Consideration and Approval of Contract:City Court Facility Project - Award of Amendment #2 to the Design-Build Services Agreement 2018-63. This amendment contains the Guaranteed Maximum Price (GMP) #2 agreement for completion of construction.

Kinney Construction Services, Inc. (KCS) was selected by a five-member evaluation committee as the most qualified service provider for the City Court Facility Project pursuant to the evaluation and ranking process per A.R.S. 34-603.

City Council awarded the original Design-Build Agreement #2018-63 on July 3, 2018, for design phase services. KCS and the Architect (CGL Companies) have been working over the last ten months on programming the building space and developing construction plans with Courts Administration, the City Prosecutor's Office, Flagstaff Police Department, City Manager's Office, and City Planning. The GMP #1 Amendment was awarded on March 5, 2019. KCS has been on site performing the hazardous waste abatement and demolition in preparation for construction. This GMP #2 Amendment contains the work for construction of the facility. 

The City Court Facility is currently budgeted in the amount of $17,408,403.00 for FY 2019 and is anticipated to be budgeted in the amount of $4,334,024 for FY 2020. Project funding is in the Capital Project Fund, Account Number 408-09-426-3278-1.

Award of the Design-Build Services GMP #2 Amendment will allow KCS to proceed with full construction of the City Court facility as approved by Proposition 412 in the November 2016 ballot question.

Council Goal: Transportation and Other Public Infrastructure.
Deliver quality community assets and continue to advocate and implement a highly performing multi-modal transportation system.

Flagstaff Regional Plan 2030: Locating Facilities Goals and Policies.
Goal PF.2. - Provide sustainable and equitable public facilities, services and infrastructure systems in an efficient and effective manner to serve all population areas and demographics.
 
Team Flagstaff Strategic Plan: Foster a Resilient and Economically Prosperous City.
Deliver outstanding service through a healthy environment, resources, and infrastructure.

On June 14, 2016, Council reviewed options for the City Court Facility bond project and directed staff to prepare ballot language for a $12M bond project to be funded through secondary property tax.

On July 3, 2018, City Council awarded the Design-Build Contract #2018-63 to KCS for design phase services of the project.

On March 5, 2019, City Council approved the GMP #1 Amendment to the original Design-Build Contract #2018-63.  

1.  Approve the Design-Build Services Amendment GMP #2 to KCS as presented.
2.  Reject the Design-Build Services Amendment GMP #2 and direct staff to re-negotiate the terms and fee structure with KCS.

The physical condition of the existing City Court building located at 15 North Beaver Street has deteriorated to a point where significant financial resources would be needed to remediate, remodel and stabilize the structure. In addition, the need exists for current and future space to ensure continued operational viability.
 
On July 5, 2016, staff came before Council with the Consideration and Adoption of Resolution No. 2016-27.  This Resolution allowed Council to adopt an official ballot question to be submitted to qualified electors of the City of Flagstaff.  This ballot question asked the citizens of Flagstaff to approve a temporary increase in the City’s secondary property tax and authorize the sale and issuance of bonds for purposes of constructing a new City Court Facility.  Council adopted the Resolution and the question was placed on the ballot for the election of November 08, 2016. The ballot question was approved.

On April 1, 2018, the City advertised a Request for Statement of Qualifications from Arizona Registered Contractors for the qualification-based selection of a Design-Build team to provide design and construction services for the City Court Facility.
 
On April 23, 2018, the City received eight responses to the Request for Statements of Qualifications.  A five-person committee was formed to evaluate the Statements of Qualifications and the committee selected 3 firms for interviews.  Upon the completion of the interviews, the committee selected KCS as most qualified Design-Builder to perform the work.

On July 3, 2018, City Council awarded the Design-Build contract to KCS, in the amount of $1,593,628.00 for design phase services. Over the last seven months the Design-Build team has been working on programming the building space and developing construction plans with Courts Administration, the City Prosecutor's Office, Flagstaff Police Department, City Manager's Office, and City Planning.

On March 5, 2019, City Council awarded the GMP #1 Amendment to the original contract for hazardous waste abatement, demolition and site work in the amount of $1,518,175.00. 

The new City Court Facility will be located on property owned by the City located at 101 W. Cherry Avenue.  The existing buildings at this location have recently been demolished and removed in compliance with the GMP #1 amendment scope. 

To meet City of Flagstaff Zoning Code-Title 10, parking capacity requirements, the existing City Court located at 15 N. Beaver Street and the City Prosecutor’s Offices located at 107 W. Aspen Avenue will be demolished to provide patron and staff parking. The new City Court Facility will be designed to provide secure staff parking.  The combined parking at these two parcels will meet the Zoning Code requirements for parking capacity.

City staff anticipates a third GMP to be presented to Council in the fall of 2019. It will contain the ADA Parking design and construction as directed by Council, the Beaver Street/Aspen Avenue temporary parking lot, fiber optic communications work, and final building furniture. These items will be in the planning stage through the summer.  

The facility design includes several components to support sustainability and the City's Climate Action Plan, including:

• Adherence to Resolution 2014-09 requiring all new City facilities to achieve sustainable certification - Green Globes level 3 certification is included for this project
• Drought resistant and pollinator plant species will be provided in the site landscaping
• Rainwater harvesting
• Electric vehicle charging station at the new Beaver Street/Aspen Avenue parking lot
• NAIPTA information kiosk in the new Court lobby
• Water bottle refill stations
• Diversion of demolition material for the Cinder Lake Landfill Alternative Daily Cover program

Total project funding for the project is as follows:
 
Prop 412 Voter Approved Courts Project Funding
 
Bonds                                                      $12,000,000
**Identified Funding (Courts Fees)          $  7,500,000
Total                                                        $ 19,500,000
                       
**Identified Funding                                                
Court Fees                                              $2,080,000
Sale of Fire Station #1                            $   520,000
Re-development Fund                            $   500,000
Capital Funding Transfer                        $   400,000
Capital Financing                                    $4,000,000
Total                                                        $7,500,000

In addition to the $19,500,000 building budget, $2,000,000 is obligated to the future downtown parking. 

A Contractor's contingency of 4% in the amount of $472,189 and an Owner's contingency of 1% in the amount of $154,031 is included in this contract. The City's Contract Contingency Justification form is attached for the Council's information.

The new City Court Facility will provide a safe and efficient Municipal building that will greatly improve the Court's operations now and into the future, enhance the staff and user experience and provide an attractive amenity to downtown Flagstaff.

There have been multiple Council meetings to discuss the City Court Facility over the course of the last three years, in addition to multiple public meetings prior to the ballot question of 2016.
 
A Public Meeting was held on February 20, 2019, to present the project design and engage the public on the project.