Consideration and Approval of Construction Contract:  Recommended Approval of the Construction Contract with Mountain High Excavation, LLC. in the amount of $845,051.00 for the Aztec Street Improvements Project.

1. Approve the Construction Contract with Mountain High Excavation, LLC. in the amount of $845,051.00, which includes a $56,000.00 Contract Allowance and a Contract Timeframe of 120 calendar days; and
2. Approve Change Order Authority to the City Manager in the amount of $78,905.10 (10% of the Contract Price, less the Contract Allowance); and
3. Authorize the City Manager to execute the necessary documents.

Staff recommends a Construction Contract award of $845,051.00 to Mountain High Excavation, LLC., which will authorize the construction of the Aztec Street Improvement Project (the Project) in accordance with the approved public improvement plans prepared by Shephard Wesnitzer, Inc. (SWI). The Project can be generally described as a utility and roadway improvements Project on N. Aztec Street from W. Santa Fe Avenue north to the Frances Short Pond. The improvements consist of replacing approximately 900 LF of water main, 10 water services, 3 fire hydrants, 250 LF of sewer main, 5 sewer services, 2 manholes, 3,900 SY of roadway pavement, select edge improvements, placing 2,000 SY of full-width asphalt overlay, and other associated work. Pending Council approval, construction is anticipated to begin in July 2019 and is anticipated to be complete in October 2019. Please refer to the attached context and vicinity maps.

The Project will be funded by the Road Repair and Street Safety Program under the Aztec Street FY 2019 and 2020 budget appropriations of $960,910 (FY 19) and $195,338.00 (FY 20) totaling $1,156,248.00 in Project Account Number 046-05-116-3342-6.

Council Goal 2017 – 2019 Transportation and Other Public Infrastructure
Deliver quality community assets and continue to advocate and implement a highly performing multi-modal transportation system.
 
Regional Plan – Goal T.2.
Improve transportation safety and efficiency for all modes.
 
Team Flagstaff Strategic Plan – Priority #3: Foster a resilient and economically prosperous city
2. Deliver outstanding services through a healthy environment, resources and infrastructure.

Yes, Council previously approved the ballot language for the Road Repair and Street Safety Initiative (Prop. 406).  Also, the Council approved and adopted the Road Repair and Street Safety - Utility Replacements and Overlays - Aztec Street FY 2019 budget.

1. Approve the award as recommended. Approval will allow work to move forward in the calendar year 2019; or,
2. Reject approval of the award. This action would delay the project until next construction season. If rejection occurs, possible options include:
   1. Re-advertise the Project and open new bids; or
   2. Suspend or cancel the Project completely.
   3. Consider another delivery method (CMAR or Design/Build)

On November 18, 2014, Council adopted the results of the General Election held on November 4, 2014. In the Election, voters approved a dedicated sales tax increase, Proposition 406, which included funding for road repairs and street safety improvements throughout the City of Flagstaff. Aztec Street qualified to receive pavement and utility improvements due to its existing pavement overall condition index (scale of 100-0) being at or below 50 and its existing utilities needing repair or replacement due to repeated maintenance or age.
 
On April 4, 2019, the Purchasing Section posted an Invitation for Bids (IFB) solicitation for construction on the PlanetBid’s website and advertised the IFB in the Arizona Daily Sun on April 7 and 14, 2019. There were four (4) bids received and opened electronically on April 26, 2019.  A summary of the bids received is identified in the Key Considerations section below. Mountain High Excavation, LLC. was determined to be the lowest responsive and responsible bidder.

On April 26, 2019, four (4) bids were received for the project.
 

Mountain High Excavating, LLC	$    845,015.00
Kinney Construction, LLC.	$    977,889.00
Eagle Mountain Construction Co.	$ 1,096,000.00
Standard Construction Company, Inc.	$ 1,110,667.00

               
Engineer’s Estimate (without the Contract Allowance): $1,104,746.76
 
The Contract Allowance is established to address certain unforeseen items of work where details cannot be determined at the time of contracting and is included in the Contract Amount. The $56,000.00 Contract Allowance is 7.1% of the low bid amount, excluding the Contract Allowance. The Contract Allowance is used only at the City’s discretion.
 
Change Order Authority is established to address inevitable differing field conditions usually becoming time-sensitive major construction issues resulting in unforeseen costs that are more than the Contract Amount. Change Order Authority provides the City Manager, on behalf of the Council, the administrative authority to amend the Contract Amount up to an established dollar amount (10% of the Contract Price, less the Contract Allowance) and is only utilized if the Contract Allowance is or would become exhausted.

The Project will be funded by the Road Repair and Street Safety Program under the Aztec Street FY 2019 and 2020 budget appropriations of $960,910 (FY 19) and $195,338.00 (FY 20) totaling $1,156,248.00 in Project Account Number 046-05-116-3342-6.

• Replacing and or abandoning aged and defective existing water and sewer infrastructure, ranging from 93 – 100 years old, to meet current standards.
• Abandoning the existing water main being replaced to reduce costs.
• Replacing aged and deteriorated asphalt that is no longer maintainable with a chip seal or overlay and improving the streets ride quality and longevity.
• Reducing the required maintenance of existing infrastructure by replacing it with new infrastructure.

Inform, Involve, Empower:

• Voters approved a dedicated sales tax increase to fund road repairs and street safety improvements throughout the City of Flagstaff in November 2014.
• Since 2015 the Project has been listed as a proposed project in the interactive map on the Road Repair and Street Safety section of the City of Flagstaff’s Website at: www.flagstaff.az.gov/roadsafety.
• Updates to the Road Repair and Street Safety Program, which included the proposed Project, have been presented by the Capital Improvements Engineer at multiple Transportation Commission Meetings, Council Meetings, and Budget Meetings.
• A public meeting was held on May 4, 2016 at the Joe C. Montoya Community & Senior Center where City Staff and SWI were in attendance to present the Project and hold discussions with residents from the neighborhood regarding the proposed Project.
• In May 2019 staff sent out temporary entry permit requests and Project Notices to the residents adjacent to the Project.
• Staff has met with individual property owners during design and will continue to do so through construction.
• Periodic updates will be provided to the Public during construction.