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10.H.
City Council Meeting - FINAL
Meeting Date:
05/01/2018
From:
Trevor Henry, Project Manager

Information

TITLE:

Consideration and Approval of Contract:  Approve the construction contract with Johansen Construction, Inc. in the amount of $1,623,371.71 for the Switzer Canyon Transmission Main Phase III Improvement.

STAFF RECOMMENDED ACTION:

 1) Approve the construction contract with Johansen Construction, Inc. (“Contractor”) in the amount of $1,623,371.71, which includes a contract allowance of $80,000.00, and a contract time frame of 180 calendar days;
2) Approve Change Order Authority to the City Manager in the amount of $154,400.00 (10% of the contract amount, less allowance); and
3) Authorize the City Manager to execute the necessary documents.

Executive Summary:

The contract award of $1,623,371.71 to the Contractor is proposed to complete a project that includes converting an existing water main to a new zone for distribution, installing two new water transmission mains, new water services, new fire hydrants, new sewer main and two blocks of new asphalt pavement (“Project”). The Project includes four blocks of Turquoise Road, two blocks of Fir Avenue and is scheduled to begin in the summer of 2018.  The Project is the third of five phases of the Switzer Canyon Transmission Main Improvement.  Please see the attached context map and vicinity map for location details. 
 

Financial Impact:

The Project is partially funded by $337,000.00 which is programmed in the FY18 Road Repair and Street Safety fund (account # 046-05-116-3331-6), and $1,639,000.00 which is programmed in the proposed FY19 Water Fund, Switzer Canyon Transmission Line (account # 202-08-370-3400-0).    
 

Policy Impact:

No Impact

Connection to Council Goal, Regional Plan and/or Team Flagstaff Strategic Plan:

Council Goals:
Transportation and Other Public Infrastructure
Deliver quality community assets and continue to advocate and implement a highly performing multi-modal transportation system.
 
Regional Plan Goals:
Water Sources Goals and Policies
Policy WR.2.2. - Maintain and develop facilities to provide reliable, safe, and cost-effective water, wastewater, and reclaimed water services.
 
Safe and Efficient Multimodal Transportation Goals and Policies
Policy T.2.1. - Design infrastructure to provide safe and efficient movement of vehicles, bicycles, and pedestrians.
 
Team Flagstaff Strategic Plan:
Foster a Resilient and Economically Prosperous City
Deliver outstanding services through a healthy environment, resources, and infrastructure.
 

Has There Been Previous Council Decision on This:

Council approved the City of Flagstaff’s on-call consultant contract, through which a consultant services contract for the design of the Switzer Canyon Water Transmission Main Project Phase III was executed with Turner Engineering, Inc.
 

Options and Alternatives:

  1. Approve the contract award as recommended. Approval will allow work on the Project to move forward in the summer of 2018; or
  2. Reject all bids. This action would delay the Project. If rejection occurs, possible options Include:
a) Re-solicit the Project at a later date; or
b) Suspend or cancel the Project.

Background and History:

The Project has a general scope to upgrade an existing water main to a new zone for distribution, construct two new transmission water mains (16” and 24”), new water services, fire hydrants in Turquoise Road.  A new sewer main extension in Fir Avenue and two blocks of new asphalt pavement for Fir Avenue that is currently unimproved.         
 
Construction impacts may include traffic detours, temporary lane closures with traffic flagging and temporary access to parcels with signage.  Coordination with property owners will be made for water and sewer service disconnects and reconnects.  The Project is included in a Fund that has been programmed in the Capital Improvement 5-year plan. 

The Purchasing section posted an Invitation for Bids (IFB) solicitation for construction on March 7, 2018, on the PlanetBids website, and advertised it in the Arizona Daily Sun newspaper on March 11th and 18th.  There were eleven bids received on the opening date of March 30, 2018 (bid summaries are identified in the Expanded Financial Considerations section below). After reviewing all bids received, the staff determined that Johansen Construction, Inc. is the lowest responsive and responsible bidder.
 
 

Key Considerations:

The City’s overall water system will benefit from the installation of the new transmission mains and the neighborhood distribution will benefit from the zone conversion.  This Project is the third of five phases of the Switzer Canyon Transmission Main Improvement.  Phase one and two were completed in 2014 and 2015 respectively.  
 

Community Benefits and Considerations:

Below is a summary of the bids received.
 
Johansen Const. Inc.                        $1,623,371.71
Eagle Mount. Const. Co.                   $1,750,013.00
Mountain High Ex. LLC                     $1,873,959.00
McDonald Brothers Const.                $2,072,557.25
Kinney Const. LLC.                           $2,187,551.00
Kinkaid Civil Const.                            $2,224,050.00
CNB Excavating Inc.                         $2,259,000.00
Engineers Estimate                         $2,414,999.90
Fann Contracting Inc.                        $2,431,434.00
LP’s Excavating Inc.                          $2,474,930.25
Action Direct LLC                               $3,182,796.00
T & T Const. LLC                               $3,203,993.00
 
Included in the contract amount will be an allowance of $80,000.00.  The contract allowance will be used for unforeseen items of work.  The project manager, section head and division head will have the authority to approve the use of the allowance in accordance with City Employee Directive No. 2-021.  Change Order Authority establishes a dollar amount (10% of the contract amount, less allowance) and provides the City Manager, on behalf of the Council, authority to amend the contract amount in response to unforeseen costs that are more than the contracted amount and in excess of the contract allowance. 
 

Community Involvement:

The Community benefits of this project include better water service from the new infrastructure and new pavement for an existing unimproved road.  Additional Project information and traffic restriction advisories will be provided as necessary through local media releases and other communication methods.
 

Expanded Options and Alternatives:

Inform – A letter was sent to the property owners on March 22, 2018, informing them of the Project and, if approved by the Council, when they could expect construction to begin. 
 

Attachments