Consideration and Approval of Construction Manager at Risk Contract:  Funding of Street Maintenance Program 2014

1) Approve the Construction Manager at Risk Contract with C and E Paving and Grading, LLC in an amount not to exceed $3,249,999.62.
2) Authorize Change Order Authority in the amount of $162,500.00 (5%) to cover potential costs associated with unanticipated or additional items of work.
3) Authorize the City Manager to execute the necessary documents.

Award of the Construction Manager at Risk contract with C & E Paving and Grading will authorize construction of the City's annual Street Maintenance Program, 2014.

The Street Maintenance Program is funded in account 040-3332-600 in FY 2013/2014 in the amount of $3,596,000. 

Repair, replace, maintain infrastructure (streets & utilities)

Yes.  Council previously approved the design phase services contract on April 3, 2012.

1.)  Approve the Construction Manager at Risk Construction Phase Services Agreement as presented.
2.)  Reject the Agreement and direct staff to pursue traditional design-bid-build project delivery. This would negatively delay progress on the project by two months.

The City has established an annual program to maintain existing street pavements.  This year, the program provides three major services: non-structural upgrades by overlay, ADA compliance and chip sealing.  A listing of overlay and chip seal streets is attached.

The overlay streets are selected after evaluation of the street condition using pavement management software owned by the City.  One half of the City street pavements are evaluated and ranked each year.  Each street pavement is assigned an Overall Condition Index (OCI) based on the type and severity of the distress observed.  A pavement that has no distress is given an OCI of 100.  Each pavement distress such as cracking or roughness reduces the street’s OCI.  The street pavements are ranked by OCI and the pavements exhibiting the most severe distress are programmed for resurfacing with asphaltic concrete overlays as budget allows.

In recent years, 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.  The enabling legislation also allows for provision of multiple Guaranteed Maximum Prices under a single procurement.   

On February 1, 2012, a Request for Statements of Qualifications for Construction Manager at Risk services was published in the Arizona Daily Sun and posted on the City’s Purchasing web site.  On February 15, 2012, the City of Flagstaff received seven Statements of Qualifications from firms wishing to provide CM at Risk services for the project.  A selection committee of five members independently reviewed and evaluated those statements in accordance with guidelines established by the enabling legislation.  Based on numerical evaluation of the statements received, the firm of C and E Paving and Grading, LLC received the highest ranking and was deemed the most qualified among those submitting proposals to provide the desired design phase services. 

On April 3, 2012, Council approved award of the Design Phase Services Contract for the 2012, 2013 and 2014 programs to C and E Paving and Grading, LLC. in the amount of $ 76,921.00.  Design phase services including program and budget evaluation, project scheduling, design document reviews, constructibility reviews, detailed cost estimating, and preparation of final construction documents have now been completed.  Based upon the Design Phase Services, C and E Paving and Grading, LLC has provided a Guaranteed Maximum Price (GMP) to complete construction of the annual improvement project.  The GMP will include costs for construction, a CM @ Risk contingency, construction fee, costs for General Conditions including bonds and insurance, and sales taxes.

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.  Chip seal work provides a cost effective pavement preservation treatment to maintain newer pavements in a good condition.

The Street Maintenance Program is to be funded by the Street Improvement Program  budget in FY 2013/2014 (Acct. No. 040-3332-600).  The contract includes an owner’s contingency of $61,437.00 to cover the potential cost of unanticipated or additional work which may be required during construction.  All work for the Street Maintenance Program is anticipated to be complete in FY 2013/2014.  

The Street Maintenance Program provides surface treatments as required to preserve and maintain pavement condition on the 664 lane miles of asphalt City streets.  The ADA improvements provide improved access for disabled citizens and visitors along existing streets and provide compliance with Federal requirements.

Use of the Construction Manager at Risk method of project delivery will eliminate the need for an advertisement/bid/award process and will cut approximately two months off the project development schedule.  In addition, value engineering, constructibility 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.

Inform - 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.  The contractor distributes written notices to all the adjacent businesses and residents in advance of the construction.

Options available to the Council include:

1. Approve the CM @ Risk Construction Phase Services Agreement as presented. 


2. Reject approval of the Agreement and direct staff to pursue traditional design-bid-build project delivery.  This would effectively delay progress on the project by two months.