Consideration and Approval of Contract: City of Flagstaff Municipal Court Facility Project - Award of Amendment #3 to the Design-Build Services Agreement 2018-63. This amendment contains the Guaranteed Maximum Price #3 agreement for completion of construction.

1. Award the Design-Build Services Amendment #3 Guaranteed Maximum Price (GMP) #3 to Kinney Construction Services, Inc. (KCS) of Flagstaff, Arizona in an amount not to exceed $545,478 with a 45 calendar-day contract period; and 
2. Authorize the City Manager to execute the necessary documents

• The recommended award of the Amendment #3, GMP #3 to KCS will authorize an agreement for completion of the Municipal Court Facility Project (Project).
• The scope of this contract is anticipated to be complete in September 2020. 
• Design and construction contracts for the majority of the facility were awarded in July 2018, March 2019, and May 2019 at a sum of $18,668,897.
• Amendment #3, GMP #3 includes construction of the ADA parking adjacent to the facility, the fiber optic infrastructure installation, and facility furniture.

The Project is currently budgeted in the amount of $17,242,427 for FY 2019-2020 and is anticipated to be budgeted in the amount of $2,243,963 for FY 2020-2021. Project funding is in the Capital Project Fund, Account Number 408-09-426-3278-1.

The fiber optic infrastructure work will receive a funding contribution in the amount of $100,000 from Account 040-05-112-3043-6.

Award of Amendment #3, GMP #3 will allow KCS to continue with the construction of the Project 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 funding options for the 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.  

On May 21, 2019, City Council approved the GMP #2 Amendment to the original Design-Build Contract #2018-63.

1.  Approve the Design-Build Services Amendment #3 GMP #3 to KCS as presented.
2.  Reject the Design-Build Services Amendment #3 GMP #3 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 had 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 Municipal 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 Project. 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 the 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 for design phase services. The design team completed the programming and developed the facility design in cooperation 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. 

On May 21, 2019, City Council awarded the GMP #2 Amendment to the original contract for the facility construction in the amount of $15,557,094. 

The Project will be located on property owned by the City located at 101 W. Cherry Avenue.  The existing buildings at this location have been demolished and removed in compliance with the GMP #1 amendment and project construction has begun in compliance with the GMP #2 amendment. 

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 Project was designed to provide secure staff parking. 

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
• NAIPTA information kiosk in the new Court lobby
• Water bottle refill stations
• Diversion of demolition material for recycling.

Total 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

Future public parking associated with the 2016 bond language is funded in the amount of $2,000,000 through the sale or development of the existing Court Facility lots. In addition to the bond and identified funding, additional funding in the amount of $379,505 was designated for the facility in the FY 2020 budget from Police Department salary savings, debt service savings, and interest earnings credit. The fiber optic infrastructure work will receive a funding contribution in the amount of $100,000 from Account 040-05-112-3043-6 because this infrastructure will provide benefits for the city-wide traffic signal interconnect program. A Contractor's contingency of 5% in the amount of $19,230 and an Owner's contingency of 4.89% in the amount of $25,451 are included in this contract.

The Project 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 Project 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 engage the public on the Project design.