Consideration and Approval of Contract Amendment:  Purchase Contract for property acquisition services with TB Real Property Consultants, LLC in the amount of $100,000.00 for property acquisitions necessary for the Milton Road and University Avenue Right of Way Capital Project.

1. Approve an amendment to the contract for property acquisition services with TB Real Property Consultants, LLC, to increase the scope of work and contract amount to an amount not to exceed $100,000.00 for property acquisitions necessary for the Milton Road and University Avenue Right of Way Capital Project; and
2. Authorize the City Manager to execute the necessary documents.

The City entered into a contract for property acquisition services on December 15, 2022 with TB Real Property Consultants, LLC for the rights necessary for the Milton Road and University Avenue Right of Way Project. The City has used Contractor more extensively than originally anticipated and workload has increased as a result of changes in the Project design. As a result, the compensation for the contract has increased from a not-to-exceed $49,500 to a not-to-exceed $100,000. The additional services has enabled the City to deliver the property rights needed for the project within the construction timeline. Construction commenced in May 2023.

In May 2000, the Flagstaff voters approved Proposition 403 which provided funding for improvements to Traffic Flow and Safety. As part of this proposition, two of those projects apply to the Project. These two projects were the University Avenue Realignment and Beulah Boulevard Extension.
 
City Staff completed a preliminary realignment plan and programmed $7.4 million in the FY2015 Capital Improvement Program Summary. Now in FY2023, the authorized spending budget is $22,139,900 which was funded from the new transportation tax. 
 
As part of the internal FY2023 budget process, the team reported in January 2022 a request for additional funds to cover the expenses reported with the guaranteed maximum price (GMP) of $17.3M by EMC. The discussion with Finance continued in April when Finance Staff was able to identify an approximate $800K coming from the balance of the Fourth Street Reconstruction Project as well as an approximate $3.6M from potential carry forwards from Prop. 419 projects in FY2023. This was based on the estimated budget expenditures for projects identified that may not be completed or are anticipated to be pushed to FY2024. The total proposed budget for FY 2023 would be $22.1M with a contribution of $1.65M from Vintage Partners (VP). It should be noted that VP is responsible for all costs associated with the pedestrian underpass and per Amendment One to the Development Agreement (DA), those costs must be repaid to the City within five (5) years. This payment has been referred to at the true-up payment. 
 
As the Project has undergone design, the estimate of construction has increased. When Eagle Mountain Construction (EMC) joined the team last fall, the project estimating transferred from SWI to EMC, or from designer to contractor. As mentioned earlier, this allows for a more inclusive estimate by those who will be constructing the Project and are familiar with current costs and availability. When EMC provided the team an estimate in mid-January 2022 the construction cost estimate was $17.3M. Upon greater refinement of the design, that figure grew to $18.5M in the beginning of March 2022 and when the 90-percent plans were completed in the end of April 2022, the construction costs were up to $19.1M. At that time in April, the estimating was put on hold until the design plans were finalized, and a value engineering effort could be completed. In the late October/early November timeframe, the value engineering was ended and resulted in a project savings of $668,790, without reducing the project scope. While facing inflations and the rising costs of materials, supplies, and operations, the team was able to finalize the GMP at $19,309,333.
 

Priority Based Budget Key Community Priorities and Objectives Safe and Healthy Community - Foster a safe, secure, and healthy community. Ensure the built environment is safe through the use of consistent standards, rules and regulations, and land use practices. Inclusive and Engaged Community - Advance social equity and social justice in Flagstaff.  Sustainable, Innovative Infrastructure - Deliver outstanding services to residents through a healthy, well maintained infrastructure system. Utilize existing long-range plans that identify the community's future infrastructure needs and all associated costs. Identify smart traffic management, multi modal transportation, and alternative energy opportunities. Environmental Stewardship - Implement sustainable building practices and alternative energy and transportation options. Implement, maintain and further the Climate Action and Adaptation Plan. Regional Plan Goal T.2 - Improve transportation safety and efficiency for all modes.

None.