Consideration and Approval of Construction Manager at Risk (CMAR) Contract:  Leroux Street Water and Sewer Improvements (Approve contract with Eagle Mountain Construction in the amount of $2,119,350.00).

 1)  Approve the Construction Manager at Risk (CMAR) contract with Eagle Mountain Construction in the Guaranteed Maximum Price (GMP) of $2,119,350.00 and a contract time of 350 calendar days.
2)  Approve Change Order Authority to the City Manager in the amount of $198,740 (10% of the contract amount, less Owner's contingency).
3)  Authorize the City Manager to execute the necessary documents.

Award of the contract will authorize the construction of the Leroux Street Water and Sewer Improvements in accordance with the approved public improvement plans prepared by the WLB Group, Inc. and dated March 2015.  The project will replace an 8" water main that was built in 1900, replace sewer and water service lines, replace select sections of city sidewalk, handicap ramps, curb, gutter and driveway approaches.  A new road pavement will be built.  Resetting of tree grates and select sidewalk brick in downtown area are included. 

The project is scheduled in the Capital 5-year plan.  The work is funded by the annual waterline replacement fund and transportation tax funding. 

The project has a FY 16 budget appropriation of $1,877,191 in account 201-08-370-3289-0 (waterline replacement fund)  and up to $400,000 from 040-05-112-3056-6 (transportation tax).  The $400,000 is budget savings from the second phase of the Industrial Dr. Improvements project. 

The Council adopted the FY 16 budget and this appropriation was included in that budget adoption. 

1)  Approve the award as recommended.  Approval will allow the work to move forward in calendar 2015.
2)  Reject approval of the award.  This would delay the project.  If rejected, possible options include;
            a.  Terminate the CMAR procurement and solicit conventional bids
            b.  Suspend or cancel the project
3)  Modify the project scope and restart the process as either a new RSOQ solicitation or a conventional design/bid/build solicitation.  This would delay the project at least one calendar year. 

Project History
The replacement of water mains is based upon the analysis of variables, which include the age of the existing lines, frequency of repairs and the need to bring municipal underground utilities up to current engineering standards.  The analysis is performed by the City's Utilities section.  The project was identified for replacement because the existing water main is cast iron and the majority of the 3,100 LF was built in 1900.  Replacement of the main will bring it up to current engineering standards and minimize the chance of a catastrophic failure. 

CMAR Background
The CMAR Request for a Statement of Qualifications solicitation was advertised on September 11, 2014.  In response, five firms submitted Statements of Qualifications (SOQ's) on October 13, 2014.  The City's Evaluation Committee reviewed and scored the SOQ's and top three firms (Achen-Gardner Construction, Hunter Contracting and Eagle Mountain Construction) were interviewed on January 28, 2015.  Cost negotiations for a Guaranteed Maximum Price with Achen-Gardner and Hunter Contracting were unsuccessful. 

Preconstruction phase services were performed by Achen-Gardner prior to the beginning of the construction phase negotiations.  Services provided were plan review for constructability, value engineering and coordination with franchise utilities.  The results of their work were provided to Hunter Contracting and Eagle Mountain in subsequent Guaranteed Maximum Price negotiations.  Preconstruction phase services were via purchase order in March 2015.

The project is primarily on North Leroux Street, from Rte. 66 to Hunt Avenue.  There are three additional legs, Elm Avenue and Dale Avenue form Leroux St. to Beaver St. and Hunt Avenue from Leroux St. to San Francisco Street.  The proposed improvements include;

• Water main replacement, water service line replacement and fire hydrant replacement
• Sewer service line replacement
• Full width asphalt replacement
• Replacement of select sections of sidewalk, handicap ramps, driveway approaches, alley approaches and curb/gutter work
• Downtown streetscape restoration of tree grates and brick sidewalks along Leroux St.

The Construction Manager at Risk (CMAR) process is a collaborative effort, which allows for open dialog between the City, the design consultant, and the contractor on critical design and construction issues in order to minimize impacts to the neighborhood and the community.  The contractor will be intimately involved with the coordination of construction activities and keeping the stakeholders informed on schedule, sequence and impacts. 

CMAR is an effective tool for a complex project in an established neighborhood and in the downtown district.  Substantial due diligence is performed prior to development of the Guaranteed Maximum Price(GMP).  Involving the CMAR during the design phase reduces the risk of additional cost and contract disputes.  Any realized savings are returned to the City. 

The Leroux Street Water and Sewer Improvements project is funded for $1,877,191 in FY 16.  The funds are from the Annual Waterline Replacement fund.  Transportation Tax will provide $400,000 from the second phase of the Industrial Drive Improvement project budget savings.   

Guaranteed Maximum Price (GMP)

Direct Cost of Work	1,526,042.00
General Conditions	172,700.00
Bonds & Insurance	35,020.00
Sales Tax	109,275.00
Sub Total	1,987,430.00
Owner's Contingency	131,920.00
Total GMP	2,119,350.00

                                

The community benefits include;

• The replacement of old water and sewer infrastructure to meet current engineering standards
• New road pavement to address deteriorating conditions and to mitigate impacts of frequent trench patching as a result of underground work
• Sidewalk improvements and ADA compliant ramps to provide a safe place for pedestrian travel
• Restoration of downtown streetscape items (tree grates, bike racks, brick sidewalk) along Leroux St.
• Reduced infrastructure maintenance
• Minimize the risk of catastrophic water main failure

Inform
Property owners adjacent to the project have been contacted and requested to provide temporary rights-of-entry to allow utility connections.  Residents will receive a mailer providing a working schedule for the project and a brief description of what they may expect. 

A public information meeting will be held so interested parties can come and ask questions, be introduced to the City project manager, meet the contractor's representatives and discuss any concerns they may have.  As part of the project scope, a Public Information Specialist has been retained to assist in the liaison efforts.  The City's Public Information Officer will notify emergency responders and other local entities.

Consult
Staff has had multiple meetings with the Downtown Business Alliance (DBA) and will have an ongoing dialog with the DBA throughout the project's duration.  Staff has conferred with the Flagstaff Recreation Department and the Flagstaff Convention & Visitor's Bureau.  Notification was sent to the Chamber of Commerce.  Staff has spoken with representatives from Northern Arizona University. 

Involve
Staff is working with the DBA to help identify possible impacts to businesses along Leroux St. and to implement strategies that will help minimize impacts.  Conversations about the project have been held with representatives of the National Bank, the Department of Economic Security and the Flagstaff Recreation Department. 

Collaborate
Staff has agreed to substantially refrain from project work in the downtown between Memorial Day and Labor to minimize impacts during peak business and visitor months.  We will accommodate other special events, businesses and residents as much as possible during the construction activities. 

1)  Approve the award as recommended.  Approval will allow the work to move forward in calendar 2015.
2)  Reject approval of the award.  This would delay the project.  If rejected, possible options include;
                       a.  Terminate the CMAR procurement process and solicit conventional bids.
                       b.  Suspend or cancel the project.
3)  Modify the scope and restart the process as either a new RSOQ solicitation or a conventional design/bid/build solicitation.  This would delay the project at least one calendar year.