Consideration and Approval of the Design-Build Contract Amendment Two:  Core Services Maintenance Facility – Guaranteed Maximum Price (GMP) #2 for the Phase 2 construction portion of work.

The award of Amendment Two to the Design-Build Contract will authorize the construction phase services for the Phase 2 portion of work on the new Core Services Maintenance Facility. The Phase 2 portion of work will consist of the construction of a new Public Works Administration Facility, new Fleet Shop, new Solid Waste Facility and a new Streets Facility with a base GMP #2 of $14,500,625.00 plus the Owner’s Contingency of $575,843.00.  The Owner's Contingency will supplement several of the assumed construction allowances, including, hard rock dig or removal, permit and “other” utility fees, construction cost escalation fees, winter protection for concrete paving, etc.

Additionally, Staff is requesting authorization for Alternative #1 costing $468,639.00 for a single structure Wash Building that has a manual sprayer used to remove dirt, debris and winter roadway salt and help extend the life of the vehicle assets.  The cost of constructing the Wash Building is identified on page 2 of Exhibit A.  Exhibit A is to be fully incorporated into the Design-Build Services Contract by this Second Amendment.

The total price of the Design-Build Contract (excluding Alternative #1) is $26,772,012.00 which consists of the original base price ($2,209,660.00), Amendment One ($9,485,884.00), and the proposed Amendment Two ($15,076,468.00).  The addition of Alternative #1, the Wash Building ($468,639.00) will bring the total price to $27,240,651.00.

In the Fiscal Year 2018 budget, the City has appropriated $27,450,510.00 in account No. 406-09-424-3276-3-4444 for the Core Services Maintenance Facility construction.

Transportation and other public infrastructure; Approval of the development of the new Core Services Maintenance Facility will provide support of the delivery of core City services and programs including: street maintenance, snow plowing and clearing operations, drainage maintenance, pothole and sidewalk repair and street sweeping, residential and commercial trash and recycling collection, bulking trash collection, and maintenance of all City vehicles and equipment, including fire, police, streets, solid waste, and water and wastewater department vehicles.

 Yes. Previous Council Decisions include:

• In 2017 Council approved Amendment One for construction services for Phase 1.
• In 2016 Council approved the pre-construction / design phase services for the programming and preliminary design documents for the construction of the project.
• In 2014 Council reinstated the $2.50 landfill collection fee ("Fee") to aid with the funding.
• In 2012 a bond measure passed authorizing the City to issue up to $14 million dollars in general obligation bonds.
• In 2010 Council extended the Fee (suspended in 2012) and approved proceeding with the bond measure.
• In 2008 Staff provided Council with a list of alternative site locations, facility space needs, and a conceptual layout plan.  Staff requested a renewal of the fee until the project could be completed.  Council approved the extension of the Fee for another year instructing staff to produce 1) a property/location selection, 2) conceptual site plan development and 3) preliminary cost estimate.

1. Approve Amendment Two of the Design-Build Contract with CORE Construction, Inc. for the construction phase services for the Phase 2 portion of the Core Services Maintenance Facility.
2. Reject Amendment Two of the Design-Build Contract with CORE Construction, Inc. for the construction phase services for the Phase 2 portion of the Core Services Maintenance Facility.
3. Reject the Core Services Maintenance Facility Design-Build Contract and continue existing operations in the existing facilities.

The existing Core Services Maintenance Facility is located at 419 N. Mogollon, Flagstaff, Arizona.  This facility was originally built as a horse barn for the Army Corps of Engineers and was later purchased by the City of Flagstaff and used as a Public Works yard.  Over the years, there have been numerous structures built on this property, as growth dictated. The existing facility is not adequate to maintain the vehicles and equipment necessary to provide core services.  A new facility would also provide an indoor space for all fleet maintenance repairs, some of which are currently performed outdoors in inclement weather, including snow.
 
The City has been in need of a new Core Services Maintenance Facility for many years.  The City has outgrown the existing facility and core service operations are scattered throughout the City.  In 2010, Council approved a bond measure to construct a new facility on McAllister Ranch located on West Rt. 66.  The bond measure was for a total dollar amount of $42 million to build the new facility, which included all new infrastructure (e.g., water, sewer, electricity, as well as Rt. 66 road improvements for traffic flow). The citizens of Flagstaff did not approve this bond measure.  At the April 2012 Budget Retreat, the project was discussed and Council approved setting budget authority for the facility.  The Council, then, voted on July 17, 2012, to approve the bond measure for a November election through Resolution 2012-30. The citizens of Flagstaff approved a $14 million authorization to be repaid through secondary property taxes.

The City has developed preliminary construction documents that are consistent to findings through the programing portion of current needs for the new Core Services Maintenance Facility. Provisions have been made in the preliminary construction documents for expansion of the buildings in the future if needed.
 
City Council has supported Phase 1 of the project (provide the needed utility improvements, improve Rte. 66 to allow safe turning movements into and out of the facility, and grading for the proposed development).
 
The current scope of the project (Phases 1 and 2) would relocate Streets, Solid Waste, Fleet and the Public Works Administration to the new Core Services Maintenance Facility.

The City will be able to operate from a new Core Services Maintenance Facility in a more cost effective manner by providing City services and programs from a focused location on the west side of town where private and commercial development is currently extensive.
 
Project funds will be provided through the issuance of general obligation debt repaid through secondary property tax ($14 million dollars), revenue debt repaid through a dedicated landfill fee ($5 million dollars), solid waste revenues and revenue transfers from other funds including, the General Fund, Transportation Fund, and Highway User Revenue Fund for a portion of the onsite and offsite utility improvements.

The City will benefit in numerous ways with the completion of the Core Services Maintenance Facility. There will be a consolidation of facility resources (i.e. staff, equipment) and thus, efficiency in these services and programs the City can provide citizens. This new facility will increase the capacity for the following services: Streets, Parks and Facilities (equipment and materials storage), as well as consolidating the service personnel for Streets, Fleet Services, Solid Waste Collections and Public Works Administration. The design and projected construction of these facilities are intended to be completed in a sustainable manner. The Core Services Maintenance Facility will have a smaller utility impact and will be much more efficient.
 
The facility has been designed to allow the construction of additional structures to the north as needed for growth.

• Consult - The City has provided numerous work sessions and Council sessions to discuss the progress in the development of the Core Services Maintenance Facility.
• Empower - The citizens of Flagstaff approved the 2012 bond measure thereby authorizing $14 million dollars in funding to be used to construct the Core Services Maintenance Facility.