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		8.A.
CITY OF FLAGSTAFF
STAFF SUMMARY REPORT
To: The Honorable Mayor and Council From: Paul Mood, City Engineer Co-Submitter: Emily Markel, Purchasing Manager Date: 06/26/2024 Meeting Date: 07/02/2024

TITLE:

Consideration and Approval of Contract: Approve the First Amendments to 21 Job Order Professional Contracting Services Contracts to increase project limits and annual contractor caps for the Job-Order-Contracting Program.

STAFF RECOMMENDED ACTION:

Approve the First Amendments to 21 Job Order Professional Contracting Services Contracts to increase individual project limits to $2,000,000 and annual contractor caps to $10,000,000 for the Job-Order-Contracting Program for each of the following contractors: Horizontal Construction: Eagle Mountain Construction Co., Kinney Construction Services, Inc. Markham Contracting Co., Inc., and Tiffany Construction Co. Vertical Construction: Kinney Construction Services, Inc., Loven Contracting, Inc., and Wespac Construction, Inc. Water/Wastewater General Construction: KEAR Civil Corporation, PCL Construction, Inc., and Schofield Civil Construction, Inc. Water/Wastewater Controls Construction: M3 Engineering and Technology Corporation and Southwest Automation Services, LLC Landfill Construction: Fann Contracting Inc., Markham Contracting Co., Inc. and Rummel Construction, Inc Airport Horizontal: Combs Construction Company, Inc., Fann Contracting, Inc., J. Banicki Construction, Inc. Airport Vertical: FCI Constructors, Inc., Loven Contracting, Inc., Wespac Construction, Inc. Authorize the City Manager to execute the necessary documents.

Executive Summary:

City staff administer a significant number of projects spanning a wide range in size and complexity. The City utilizes a Job-Order-Contracting Program (JOC Program) to conduct numerous, commonly encountered construction projects done quickly and easily during the short construction season. The JOC Program reduces burdensome levels of contract procurement time along with construction project procurement costs by awarding long-term contracts for a wide variety of renovation, repair, and construction projects. The Job Order Professional Contracting Services Contracts already in effect follow the Arizona Revised Statutes (A.R.S.) Title 34 expenditure limits for Job-Order-Contracting. The City's current JOC Program has an individual project limit of $1,000,000 and caps the annual amount the City can spend on a specific contractor at $5,000,000. Due to rising construction costs, various City Departments have been unable to utilize the JOC Program as intended. By raising the individual project limit to $2,000,000 and the annual amount the City can spend on a specific contractor to $10,000,000, City staff will have more flexibility to use the JOC Program as authorized within Arizona State statute. The increased efficiency in project delivery will render project and City staff time savings that will then be utilized on other additional projects. With all non-emergency related projects, City Staff will make its best effort to obtain pricing proposals from all JOC Program contractors in the particular discipline under which the project falls. City staff will then move forward under the overarching JOC Services Contract and require an individual JOC Construction Contract that will include the individual project's name, cost, time to completion and will require the contractors to provide bonds and insurance coverage specific to each individual project initiated under the JOC Program.

Financial Impact:

Costs will be expended from budgets already approved and allocated by the City Council. Awarding multiple contracts based on specific areas of qualifications and experience on an as needed basis will result in increased efficiency.

Policy Impact:

No impact.

Previous Council Decision or Community Discussion:

January 5, 2021, the City Council approved Job-Order-Contracting Services Contracts for JOC general City-wide projects for the following contractors: Horizontal Construction: Eagle Mountain Construction Co., Kinney Construction Services, Inc. Markham Contracting Co., Inc., and Tiffany Construction Co. Vertical Construction: Kinney Construction Services, Inc., Loven Contracting, Inc., and Wespac Construction, Inc. Water/Wastewater General Construction: KEAR Civil Corporation, PCL Construction, Inc., and Schofield Civil Construction, Inc. Water/Wastewater Controls Construction: M3 Engineering and Technology Corporation and Southwest Automation Services, LLC Landfill Construction: Fann Contracting Inc., Markham Contracting Co., Inc. and Rummel Construction, Inc April 6, 2021, the City Council approved Job-Order-Contracting Services Contracts for JOC projects at Flagstaff Pulliam Airport for the following contractors:  Airport Horizontal: Combs Construction Company, Inc., Fann Contracting, Inc., J. Banicki Construction, Inc. Airport Vertical: FCI Constructors, Inc., Loven Contracting, Inc., Wespac Construction, Inc.

Options and Alternatives to Recommended Action:

Approve the First Amendments to 21 Job Order Professional Contracting Services Contracts to increase individual project limits to $2,000,000 and annual contractor caps to $10,000,000 for the JOC Program; or Reject the proposed increases and maintain the individual project limit at $1,000,000 and the annual contractor cap at $5,000,000; or Recommend alternative individual project limits and annual contractor limits to the JOC Program.

Background and History:

Title 34 of Arizona Revised Statute provides government entities the ability to solicit a pool of vendors who are qualified and experienced in specific construction disciplines and utilize those vendors through a JOC Program. By utilizing this solicitation method, the City is able to conduct a general solicitation for each discipline, enter into a service contract with each selected vendor that defines the scope of work for the specific discipline, and as projects arise, request that the vendor submit a "job-order" bid to perform the services and enter into individual JOC construction contracts. In 2021, the Purchasing Section conducted solicitations for individual disciplines within the JOC Program; one for City-wide construction services and one for Flagstaff Pulliam Airport construction services. An evaluation committee for each solicitation, including local registered contractors, evaluated the responses and selected the contractors identified above. The JOC Program has been both vital and successful in completing projects, however, rising construction costs have limited its usefulness over the past few years due to the relatively low project and annual limits. By approving the First Amendments, the increased individual and annual JOC limits will: Save a considerable amount of staff time in contracting for smaller capital, maintenance, and repair projects; Maximize the accomplishment of the large number of projects needed during Flagstaff's small construction season window, minimizing the number of winter shutdowns needed; Save the City the cost of multiple solicitation advertisements and staff time as well as the related soft dollar (indirect overhead) costs of conducting a formal solicitation process for each separate project. City staff will be able to properly utilize the JOC Program and increase efficiency when delivering projects, such as construction on facilities and infrastructure (e.g., roadways, the Airport and FUTS trails).

Connection to PBB Priorities and Objectives:

Safe & Healthy Community: Ensure the built environment is safe through the use of consistent standards, rules & regulations, & land use practices Promote physical health through providing recreation opportunities, parks, open space & multiple transportation options.   Inclusive & Engaged Community: Ensure City facilities, services, & programs are accessible for all residents & representative of Flagstaff's diverse community   Sustainable, Innovative Infrastructure: Deliver outstanding services to residents through a healthy, well maintained infrastructure system. Promote physical health through providing recreation opportunities, parks, open space & multiple transportation options.

Connection to Regional Plan:

Improve mobility and access throughout the region (T.1) Improve transportation safety and efficiency for all modes (T.2) Promote Transportation Infrastructure and services that enhance the quality of life of the communities within the region (T.4) Increase the availability and use of pedestrian infrastructure, including FUTS, as a critical element of a safe and livable community (T.5) Provide for bicycling as a safe and efficient means of transportation and recreation (T.6) Improve the City and County financial systems to provide for needed infrastructure development and rehabilitation, including enhancement of existing infrastructure (CD.1) Maintain and develop facilities to provide reliable, safe and cost-effective water, wastewater and reclaimed water services (WR2.2)

Connection to Carbon Neutrality Plan:

Create inclusive networks for walking and biking that are continuous, attractive, safe, comprehensive, and convenient for people of all ages (DD-3) Reduce or remove natural gas usage in municipal buildings (FS-3)

Connection to 10-Year Housing Plan:

None.

Connection to Division Specific Plan:

None.

Attachments:	First Amendment - Airport JOCs - Horizontal
	First Amendment - Airport JOCs - Verticle
	First Amendment - City-wide JOCs - Horizontal
	First Amendment - City-wide JOCs - Landfill Construction
	First Amendment - City-wide JOCs - Vertical Construction
	First Amendment - City-wide JOCs - WW Controls Construction
	First Amendment - City-wide JOCs - WW General Construction