Consideration and Approval of Contract:   Approve the construction contract with RTR Paving and Resurfacing, LLC in the amount of $1,246,470.00 for the Industrial Drive and Fanning Wash Improvement project.

1. Approve the construction contract with RTR Paving and Resurfacing, LLC in the amount of $1,246,470.00 and a contract duration of 275 calendar days;
2. Approve a contract allowance of $62,323.50, which is 5% of the lowest responsive bid;
3. Approve Change Order Authority to the City Manager in the amount of $124,647.00 which is 10% of the lowest responsive bid;
4. Authorize the City Manager to execute the necessary documents.

Award of the construction contract to RTR Paving and Resurfacing, LLC will authorize the construction of the Industrial Drive and Fanning Wash Improvement project in accordance with the approved public improvement plans prepared by Shephard-Wesnitzer, Inc. (SWI). 

The project will complete the third and final phase of the Industrial Drive transportation network improvements from Fanning Drive to Country Club Drive, as approved by voters in May 2000 (Transportation Tax). 
 
The general project scope includes demolition work, installation of 1,050 LF of new water main and a water service, fire hydrants, retaining walls, fencing, dual 103” x 71” stormwater pipes and appurtenant improvements, headwalls, material import, 1,466 LF of a new 42’ wide pavement section, curb & gutter, street lighting, driveway approaches, sidewalk, communications conduit and pavement striping.  Please see the attached context and vicinity maps. 

The project is funded by Transportation Tax Revenues from the FY 20 authorized budget of $3,644,797.  The budget accommodates construction cost, permitting, testing and inspection, chip seal fund payment, design, Capital Improvements project management costs and the final Letter of Map Revision (LOMR) required by FEMA following construction completion. 

None

Council Goal – Transportation and Other Public Infrastructure
Deliver quality community assets and continue to advocate and implement a highly performing multi-modal transportation system.

Team Flagstaff Strategic Plan - Priority 3
Deliver outstanding services through a healthy environment, resources, and infrastructure.

Regional Plan – Policy WR2.2
Maintain and develop facilities to provide reliable, safe and cost-effective water, wastewater and reclaimed water services.

Council has previously approved the FY 2020 Capital Improvement 5-year Plan and authorized the FY 2020 budget for this project. 
 
The City Council authorized the needed property acquisition from Block-Lite and the associated cost-to-cure via Ordinance No. 2019-18.  The property acquisition and cost-to-cure were $533,075. 

1. First reading - June 18, 2019 Council meeting
2. Second reading – July 2, 2019 Council meeting

1. Approve the award for the construction contract as recommended.  Approval will allow work on the project to move forward. 
2. Reject all bids.  This action would delay the project.
   1. If rejection occurs, possible options include;
      1. Re-advertise the project and open new bids or
      2. Suspend or cancel the project

The three-phased Industrial Drive improvement project has a general scope to upgrade sewer and water systems, construct new roadway pavement and the associated edge improvements.  Phase I, from Fanning Drive to Eagle Mountain Drive, was completed in 2010.  Phase II, from Nestle Purina Avenue to Huntington Drive, was completed in December 2015.  Phase III will complete the connection between Huntington Drive and Eagle Mountain Drive with construction targeted for calendar 2019 and 2020.
 
The City has acquired approximately 84,114 square feet of the Block-Lite property for ROW and 13,922 square feet for a Temporary Construction Easement. 
 
The Fanning Wash drainage improvement component will replace the existing high maintenance, low water crossing and will convey the 100-year storm frequency beneath the new roadway and into an existing drainage course.  Upon completion of construction, a Letter of Map Revision (LOMR) will be submitted to FEMA requesting an update to the Flood Insurance Rate Map (FIRM). 

On August 22, 2019 the Purchasing Section posted an Invitation for Bids (IFB) solicitation for construction on the PlanetBids' website and advertised the IFB in the Arizona Daily Sun on August 25, and September 1, 2019. There were seven (7) bids received and opened electronically on September 24, 2019. A summary of the bids received are identified in the Key Considerations section below. RTR Paving and Resurfacing, LLC was determined to be the lowest responsive and responsible bidder.

On September 24, 2019, bids were received to construct the Industrial Drive and Fanning Wash Improvements.  The summary results are listed below.
  

Company	Bid
Engineer’s Estimate	1,479,816.50
RTR Paving & Resurfacing	1,246,470.00
Mountain High Excavating	1,406,990.00
LP’s Excavating	1,407,402.20
Kinney Construction	1,436,125.00
Eagle Mountain Construction	1,739,000.00
Standard Construction (bid rejected as non-responsive)	2,241,021.00
Combs Construction	2,362,863.25
Allowance at 5% of the low bid	62,323.50

The contract allowance is established to address unanticipated items of work, unknown items of work and/or differing field conditions and with authorization will be included in the contract amount.  The allowance is used only at the City’s discretion. 
 
Change Order Authority establishes a dollar amount (10% of the contract amount) and provides the City Manager, on behalf of the Council, administrative authority to amend the contract amount in response to unforeseen costs that are more than the contracted amount.

The project will complete the missing segment of the Industrial Drive upgrade to meet the City’s Engineering Standards for Industrial Drive’s classification as a Minor Arterial, Truck Route.