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  8.A.       
Meeting Date: 01/17/2023  
Co-Submitter: Stacey Brechler-Knaggs
From: David Pedersen, Capital Improvements Project Manager

TITLE:
Consideration and Approval of the Design-Build Agreement: Design-Build Services Agreement with Hunter Contracting Co. for the Inner Basin Waterline Restoration Project and a Design Phase Services GMP1 in the amount of $189,694.00.
STAFF RECOMMENDED ACTION:
  1. Approve Design-Build Services Agreement with Hunter Contracting Co.; 
  2. Approve the Design Phase Services GMP1 with Hunter Contracting Co. in the amount of $189,694.00 and a contract duration of 150-calendar days; and
  3. Authorize the City Manager to execute the necessary documents.
Executive Summary:
The Pipeline Fire (June 2022) burned 26,532 acres, including portions of the Schultz Creek and Chimney watersheds. The post-fire flooding impacted the City of Flagstaff during the 2022 monsoon season, and caused catastrophic damage, including damage to the City’s Inner Basin pipeline and Waterline Road. The City needs to repair the waterline and corresponding roadway to have it operational by the fall of 2023. This Design Phase Services work will allow the Project to move forward to construction to mitigate the immediate threat to the health of citizens resulting from the instability of water supply spring water from the Inner Basin. Overall, Inner Basin water can account for 20% of Flagstaff’s daily potable water demand during peak consumption weeks of summer. This critical water supply also provides water for fire-fighting operations. Repair and reinforcement of the Inner Basin pipeline, along with repair of both Waterline and Schultz Pass roads, are urgently needed to ensure the health and safety of the community.
 
The Design Phase Services GMP1 will allow Hunter Contracting Co. to begin design phase services for the Inner Basin Waterline Restoration Project. GMP 2 is anticipated to come before Council for consideration in spring of 2023. GMP2 will provide funding to complete the design portion of the project. GMP 2 will cover the costs of design from 30% through final design. Along with aerial imagery which can only be flown when the snowpack has melted off. 
Financial Impact:
The funding for the Inner Basin Waterline Restoration Project is being funding initially by account 202-08-370-3519-0-4421 in Water Services for the engineering design. At this time the initial estimate is approximately $10 million; however, this number will be further refined as part of GMP 1 when a 30-percent engineer’s opinion of probable construction cost is developed.
 
Funding sources for this Project may come from the U.S. Department of Homeland Security, Federal Emergency Management Agency, Arizona Department of Emergency Management and/or Military Affairs, Arizona Department of Forestry and Fire Management.
Policy Impact:
No Impact
Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan:
Carbon Neutrality Strategies
Water Security (WS-1) – Improve water infrastructure and expand water reuse.
Water Security (WS-2) – Improve ecosystem management for protection of water resources.
Healthy Forests and Open Spaces (HF-2) – Restore and maintain the natural fire-adapted structure and pattern of the forests of the greater Flagstaff region through collaboration with partners.
Health and Safety (HS-4) – Improve the resilience of public infrastructure and City facilities.
 
Priority-Based Budgeting Priorities and Objectives
Safe and Healthy Community – Ensure the built environment is safe through the use of consistent standards, rules and regulations, and land use practices
Sustainable, Innovative Infrastructure – Deliver outstanding services to residents through a healthy, well-maintained infrastructure system
 
Regional Plan – Goal E&C.7 – Environmentally Sensitive Lands Goals and Policies
Give special consideration to environmentally sensitive lands in the development design and review process
 
Regional Plan – Goal WR.5 – Stormwater and Watershed Management Goals and Policies
Manage watersheds and stormwater to address flooding concerns, water quality, environmental protections, and rainwater harvesting.
 
Regional Plan – Goal WR.3 – Water Demand Goals and Policies
Satisfy current and future human water demands and the needs of the natural environment through sustainable and renewable water resources and strategic conservation measures.
 
Team Flagstaff Strategic Plan – Priority 3
Deliver outstanding services through a healthy environment, resources, and infrastructure
Has There Been Previous Council Decision on This:
This is the second time this item has been discussed before City Council. The Inner Basin Waterline Restoration Project was presented by Staff and US Forest Service personnel on January 10, 2023 with project details.
Options and Alternatives:
  1. Approve Design-Build Services Agreement with Hunter Contracting Co. and approve the Design Phase Services GMP1 with Hunter Contracting Co. in the amount of $189,694.00 and a contract duration of 150-calendar days; or
  2. Reject approval of the award as recommended. This action would delay or cancel the Project.
Background/History:
The Pipeline Fire was reported on June 12, 2022, approximately 6 miles north of Flagstaff within the Coconino National Forest. The fire burned 26,532 acres, including portions of the Schultz Creek and Chimney watersheds. A burn scar assessment and flood modeling subsequently showed potential post-wildfire flood risk to neighborhoods on the west side of Flagstaff. Both the City of Flagstaff and the Coconino County Flood Control District are collaborating with public and private partners and taking extensive measures and precautions to mitigate damage from future potential flood events.
 
The post-fire flooding impacted the City of Flagstaff during the 2022 monsoon season, and caused catastrophic damage, including damage to the city’s Inner Basin pipeline and Waterline Road. The City needs to repair the waterline and corresponding roadway to have it ready for use by the fall of 2023. City Staff and partnering stakeholders feel there is an immediate threat to the health of citizens resulting from the instability of water supply. Spring water from the Inner Basin can peak as high as 2 million gallons per day (MGD) in summer months. Well water from the three wells (IB9, IB11 & IB14) in the Inner Basin has a similar peak capacity of about 2MGD. The design capacity of the North Reservoir Filtration Plant (NRFP), where Inner Basin water is treated, is 4MGD. Overall, Inner Basin water can account for at least 20% of Flagstaff’s daily potable water demand during peak consumption weeks of summer. In summary, spring and well water from the Inner Basin, flowing through the Inner Basin waterline and within both the Waterline and Schultz Pass roads is a significant supply of both potable water to the residents in and around Flagstaff, as well as fire-fighting purposes. Repair and reinforcement of the Inner Basin pipeline, along with repair of both Waterline and Schultz Pass roads, are urgently needed to ensure the health and safety of the community.
 
The City estimates, based on experience, that awarding a contract using a sealed bidding process would require at least 90+ days, and the City’s Engineering Division estimates the repair work would last another 60+ days. This would likely extend the Project beyond fall of 2023, further delaying access to this critical water supply. Due to the urgent and critical nature to repair the line and time being of the essence, Purchasing has determined this to be an Emergency Procurement. Rather than conducting a sealed bidding process and due to the exigent situation, the City – in compliance with State and local law – sourced the Design-Build Team that we previously contracted with, through a competitive public procurement process, for repair of the Inner Basin pipeline that resulted from the 2010 Schultz Fire.
 
The City seeks to enter into a contract with the Design-Build team of Hunter Contracting, Co. to design and repair the Inner Basin pipeline and roadway and will issue several Guaranteed Maximum Price (GMPs) for the cost of design and construction.
Key Considerations:
The scope of this proposed project includes the engineering design, project management, contracting, and environmental clearance work necessary to prepare for construction. The work will focus on repair and rebuilding both Waterline Road and Inner Basin pipeline at flood-impacted points where drainages cross Waterline Road. Construction will involve replacing flood-impacted sections of ductile iron and concrete pipe with ductile iron pipe. Design, contracting, environmental clearance, and project management costs will be approximately $2 million. Construction costs are initially estimated at $8 million.
 
Several points have been mapped where drainage channels cross Waterline Road (see attached map). Mitigation measures have been prioritized for these points. Points 1 through 28 were initially impacted by the Schultz Fire (2010) and were addressed by earlier mitigation measures. Some of these points were further impacted by the Pipeline Fire (2022). Points A through L were affected by the Pipeline Fire. Proposed mitigation sites include points 7, 9, 17A, 32, and I. Point I is the most heavily impacted site and includes a break in the ductile iron pipe.
 
The intention of the proposed design work is to stabilize the drainages and Waterline Road cross-sections to reduce incision, erosion, and sediment deposition. By stabilizing the drainage crossings and roadway and strengthening the pipeline, the team will protect the reliability of both a significant portion of the City's water supply and a critical interagency roadway used to service this infrastructure and to access the Inner Basin of the San Francisco Peaks. Much of the roadway and pipeline infrastructure that was damaged by post-Schultz Fire flooding has been repaired and remains greatly intact. However, some of these previous repairs must be modified to accommodate the larger burn-impacted drainage areas caused the Pipeline Fire. The Project will right-size and improve the integrity of the existing flood mitigation infrastructure (at points 7, 9, and 17A). The project will also add mitigation structures north and south of the existing post-Schultz Fire structures (at points 32 and I) to include impacted drainages from the Pipeline Fire.
 
The level of protection will be calculated by design engineers to encompass the newly burned watersheds and a determined storm event. The design will ensure critical protection of Waterline Road and the Inner Basin Water Pipeline.
 
The desired outcome is to ensure a reliable conveyance of well and spring water to the City of Flagstaff without any compromise to our water supply. Outcomes would also include a passable, stable road with drainage crossings that can safely and effectively pass water and debris while not compromising infrastructure integrity. Although the roadway will require some ongoing maintenance in terms of clearing debris from the road surface, this maintenance would not involve more construction or repairs.
 
The mitigation methods for the infrastructure system repair would be the creation of structures that are anchored and secured to protect the integrity of the road and waterline. Improvements will not stop the passage of water or debris, but rather they will allow the passage of water and debris while the watershed is in the process of being restored. By creating sound structures and systems, the road and new waterline will be able to function effectively and reliably even during flood events.
Community Benefits and Considerations:
  • Repairs to allow for continued use of critical, summertime, water supply
  • Repairs to allow for water supply for fire-fighting operations
  • When US Forest Service forest closure restrictions lift, use of Waterline Road for recreational, non-vehicular, use
Community Involvement:
  • Project plans were shared at the January 10, 2023 City Council meeting
  • City Staff has worked with US Forest Service, AZDEMA, Coconino County to share project details and obtain permits and clearances during the pre-design phase
  • Time-sensitive, emergency project
Expanded Options and Alternatives:
  1. Approve the award for the Contract as recommended. Approval will allow work to proceed; or,
  2. Reject approval of the award as recommended. This action would delay the Project.
    1. If rejection occurs, possible options include:
      1. Ask staff to re-evaluate the recommendation; or
      2. Suspend or cancel the Project completely
Attachments
Design-Build Agreement
Project Extent Map
Exhibit C - Fee Schedule
Exhibit E - Grant Provisions


    

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