Consideration and Approval of Contract:  Award C and E Paving & Grading, LLC, the Construction Manager at Risk Design Services Agreement for the Street Maintenance Program years 2018, 2019 and 2020.

In 2014, the voters approved the Road Repair and Street Safety Initiative which provided the City funds for infrastructure maintenance. Through this Design Services Agreement ("Agreement"), C and E Paving & Grading, LLC ("CMAR") will implement the Street Maintenance Program. The CMAR cost proposals for years 2018, 2019 and 2020 are:
 

1. Street Maintenance Program 2018 (Project No. 01-18001): $38,114.00
2. Street Maintenance Program 2019 (Project No. 01-19001): $37,829.00
3. Street Maintenance Program 2020 (Project No. 01-20001: $37,851.00

This award will utilize the funding approved by the voters in 2014 for the Road Repair and Street Safety Initiative.  The Council has budgeted the Street Maintenance Program in FY 2019 account number 040-06-162-3073-6 and 046-06-163-3321-6-4443 in the combined amount of $10,841,637.00.

1. Transportation and other public infrastructure;
2. Provide sustainable and equitable public facilities, and services; and
3. Provide infrastructure systems in an efficient and effective manner to serve all population areas and demographics.

Yes. On November 18, 2014, Council awarded a Construction Manager at Risk Design Services Agreement to C and E Paving & Grading, LLC, for the Street Maintenance Program for years 2015, 2016, and 2017.

1. Award the Agreement as presented to allow timely initiation and completion of the projects; or
2. Reject approval of the Agreement and direct staff to pursue traditional design-bid-build project delivery.  This would delay progress on the projects by two to four months.

On January 19, 2016, Council approved an Agreement for Consulting Services with Plateau Engineering, Inc. to provide engineering design and limited construction phase services for the Street Maintenance Program years 2016, 2017 and 2018.  Design of the 2018 program is currently being finalized.

The Arizona State Legislature has authorized the use of Alternative Project Delivery Methods ("APDM") in lieu of the traditional Design-Bid-Build method of project delivery.  These alternative methods allow a contracting agency the opportunity to select a construction team utilizing a Qualifications Based Selection process to procure construction services from a firm deemed most qualified to perform the work. 

On December 21, 2017, Purchasing staff posted a Request for Statements of Qualifications solicitation for Construction Manager at Risk services on the PlanetBids electronic bidding website, and advertised it in the Arizona Daily Sun on December 26, 2017 and January 3, 2018.  On January 24, 2018, Purchasing received two Statements of Qualifications ("SOQs") from contractors wishing to provide CMAR services for the project.  A selection committee of seven members, including two members outside of City staff, independently reviewed and evaluated the SOQs in accordance with guidelines established by the enabling legislation.  Based on numerical evaluation of the statements received (see below), C and E Paving & Grading, LLC received the highest ranking and was deemed the most qualified by the evaluation committee to provide the desired CMAR services.
 

Contractor	Score
C and E Paving	795
Eagle Mountain Construction	695

Construction manager at risk design phase services are scheduled to begin immediately upon approval of the Agreement.  Construction is scheduled to begin in late July, 2018 and is estimated to be complete in September, 2018.

The three-year award of the construction manager at risk method of project delivery will reduce the need for an annual advertisement/bid/award process and will cut approximately two months off the project development schedule. In addition, value engineering, constructability reviews and design input conducted as part of this service agreement have the potential to realize significant construction cost savings over the traditional design-bid-build delivery method.

The award of this Agreement to the CMAR will allow the City to ensure that the projects are constructed within the allocated budget. Additionally, with the volatile costs of petroleum products, the CMAR will guarantee that the City will not be directly impacted by escalating pricing.

The Construction Manager at Risk, Design Phase Services is to be funded by the Street Maintenance Program budget in FY 2019 through FY 2019 (040-06-162-3073-6 and 046-06-163-3321-6-4443).  Funding for design phase services in future program years will be provided from that year’s budget in the same account number.
 

The goal of the Street Maintenance Program is to use the available funds in the most efficient manner to lengthen the service life of the City street pavements and avoid costly pavement reconstruction.  The ADA improvements provide improved access for disabled citizens and visitors along existing streets and provide compliance with Federal requirements. 
 

During construction, the Public Works Division will prepare weekly news releases that are distributed to the local media outlets describing the location of the street construction and any traffic restrictions planned for the week.  Under the Agreement, the CMAR will distribute written notices to all the adjacent businesses and residents in advance of construction.