City Council Meeting - FINAL


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  7.D.       
Meeting Date: 11/17/2020  
From: Eli Reisner, Project Manager - ER

Information
TITLE:
Consideration and Approval of Amendment One to the Construction Manager At Risk Construction Services Agreement:  for the northern portion of the Coconino Estates Improvements Phase I Project.
STAFF RECOMMENDED ACTION:
  1. Approve Amendment One to the Construction Manager At Risk (CMAR) Construction Services Agreement No. 2019-37, with Eagle Mountain Construction, to include the Guaranteed Maximum Price (GMP) for the northern portion of the Coconino Estates Improvements Phase I Project in the amount of $3,192,513.34 with no changes to the contract duration; and
  2. Approve an Owner’s Contingency of $74,842.99, which is approximately 2.3% of the Guaranteed Maximum Price for the northern portion of the Project. 
  3. Authorize the City Manager to execute the necessary documents.
Executive Summary:
Staff recommends the approval of Amendment One to the Construction Manager at Risk (CMAR) Construction Services Agreement (Agreement) No. 2019-37, with Eagle Mountain Construction (EMC), in the amount of $3,267,356.33. The approval of this amendment will authorize the construction of the northern portion of the Coconino Estates Improvements Phase I Project (Project) and will bring the Total Contract Price for the entire Project up to $9,855,639.33 with no change to the current contract duration of 900-calendar days. Council awarded the southern portion of the Project on May 5, 2020, in the amount of $6,588,283.00, with the understanding that the northern portion would be presented for Council’s consideration in the fall as an amendment to the original Agreement. The northern portion limits include the area of Whipple Road and Navajo Drive north of Beal Road. The southern portion limits include Beal Road, Navajo Drive south of Beal Road, and Navajo Road. Please refer to the attached context and vicinity maps.
 
Improvements on the northern portion streets generally consist of replacing existing infrastructure with new, including water and sewer mains, water and sewer services, fire hydrants, storm drains, streetlights, curb & gutter, and the entire asphalt roadway, except for Whipple Road which will only receive a new water main. There will also be new infrastructure added consisting of underground electric lines for street lighting. There will not be sidewalk added to the streets in the northern portion.   
 
Construction of the southern portion began in May. Pending Council’s approval, construction of the northern portion is anticipated to begin in the summer of 2021. The originally approved 900-calendar day duration will cover the construction of both southern and northern portions of the Project spanning over three construction seasons, with both portions completed by fall 2022.
Financial Impact:
The majority of the Coconino Estates Improvements Phase I Project is funded by the total budget appropriations of $14,514,537 (includes FY 2020-2021 budget through FY 2022-2023 proposed) from the Coconino Estates budget line item under the Road Repair and Street Safety (RR&SS) – Utility Replacements and Overlays Funds. The other funding source is $500,000.00 from the General Improvements and Partnering Opportunities line item under the Transportation Tax Fund for constructing the underground electric lines and sidewalk in certain sections where they do not currently exist.
Policy Impact:
No impact.
Connection to PBB Key Community Priorities/Objectives & Regional Plan:
Priority Based Budget Key Community Priorities and Objectives
Safe & 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 T.2.
Improve transportation safety and efficiency for all modes.
Has There Been Previous Council Decision on This:
  • Council previously approved the ballot language for the Road Repair and Street Safety Initiative (Prop. 406).
  • Council approved both Contracts for Engineering Professional Services and CMAR Design Phase Services for the design of the Project at the May 7, 2019, Council Meeting.
  • Council approved and adopted the Road Repair and Street Safety - Utility Replacements and Overlays - Coconino Estates FY 2021 budget.
  • Council approved the award of the CMAR Construction Services Agreement, with Eagle Mountain Construction, for the southern portion of the Coconino Estates Improvements Phase I Project on May 5, 2020.
Options and Alternatives:
  1. Approve the award for the Agreement as recommended. Approval will allow work to move forward on the northern portion of the Project; or,
  2. Reject approval of the award as recommended. This action would delay the Project
    1. If rejection occurs, a possible option is:
      1. Ask staff to re-evaluate the recommendation.
Background/History:
On November 18, 2014, Council adopted the results of the General Election held on November 4, 2014. In the General Election voters approved a dedicated sales tax increase, Proposition 406, which included funding for road repairs and street safety improvements throughout the City of Flagstaff. Navajo Road, Navajo Drive, and Beal Road all qualified to receive pavement and utility improvements due to the existing pavement overall condition index (scale of 100-0) being at or below 50 and the existing utilities needing repair or replacement due to consistent need for maintenance or age. The proximity of these streets made them ideal projects to combine into the Coconino Estates Improvements Phase I Project.

 
Key Considerations:
The Project is in the Coconino Estates neighborhood. The northern and southern portions of the Project, depicted in the attached vicinity map, consist of the following streets:
  • Southern Portion
    • W. Navajo Road from N. Navajo Drive to N. Fort Valley Road
    • N. Navajo Drive from W. Navajo Road to W. Beal Road
    • W. Beal Road from N. Rockridge Road to N. Fort Valley Road
  • Northern Portion
    • N. Navajo Drive from W. Beal Road to W. Murray Road.
    • W. Whipple Road from N. Navajo Drive to N. McMillan Road (only waterline improvements).
 The improvements on the streets shown in the vicinity map generally consist of replacing existing infrastructure with new, including water and sewer mains, water and sewer services, fire hydrants, storm drains, streetlights, curb & gutter, sidewalk, and the entire asphalt roadway, except for Whipple Road which will only receive a new water main. There will be new infrastructure added consisting of underground electric lines for street lighting and in the southern portion there will be sidewalk added on both sides of the street where it does not currently exist on Beal Road, Navajo Drive south of Beal, and on Navajo Road. There will not be sidewalk added to the northern portion on Navajo Drive north of Beal. The decision to add sidewalk to these particular sections of roadway was based on the results of a collaborative neighborhood survey performed by the Project Team.
 
The Construction Manager at Risk (CMAR) method of procurement was selected to expedite the design and construction schedule and to accommodate complex sequencing of construction activities for a complex Project with limits in an established neighborhood, near multiple schools, and on a Mountain Line bus route. The CMAR process is a collaborative effort, which allows for flexibility with delivering design and construction of Projects and an open dialog between City, Design Consultant, and Contractor on critical design and construction issues to minimize impacts to the community during construction.
Expanded Financial Considerations:
The majority of the Coconino Estates Improvements Phase I Project is funded by the total budget appropriations of $14,514,537(includes FY 2020-2021 budget through FY 2022-2023 proposed) from the Coconino Estates budget line item under the Road Repair and Street Safety (RR&SS) – Utility Replacements and Overlays Funds. The other funding source is $500,000.00 from the General Improvements and Partnering Opportunities line item under the Transportation Tax Fund for constructing the underground electric lines and sidewalk in certain sections where they do not currently exist.
 
The CMAR’s Contingency for the northern portion is $25,000.00, which is included in the GMP of $3,192,513.34. The Owner’s Contingency of $74,842.99, approximately 2.3% of the GMP, combined with the GMP equals the Contract Price of $3,267,356.33 for the northern portion. The City of Flagstaff is the Owner. The Contract Price for the southern portion was $6,588,283.00. Approval of this amendment will bring the Total Contract Price for the entire Project up to $9,855,639.33.
 
  Southern Portion Northern Portion Total
CMAR’s Contingency $75,000.00 $25,000.00 $100,000.00
       
GMP (includes CMAR’s Contingency) $6,439,393.97 $3,192,513.34 $9,631,907.31
Owner’s Contingency $148,889.03 $74,842.99 $223,732.02
Contract Price $6,588,283.00 $3,267,356.33 $9,855,639.33

Owner's Contingency – A fund to cover cost growth during the project used at the discretion of the Owner usually for costs that result from Owner directed changes or unforeseen site conditions. The amount of the Owner’s contingency shall be set solely by the Owner and shall be in addition to the Project costs included in CMAR’s GMP packages. Use and management of the Owner’s contingency is described in Section 5.3.3.
  • Section 5.3.3 – Owner’s Contingency are funds to be used at the sole discretion of the Owner to cover any increases in Project costs that result from Owner directed changes or unforeseen Site conditions. Owner’s Contingency shall be added to the GMP amount provided by CMAR, the sum of which shall be the full Contract Price for construction. At the time that Owner’s Contingency is used the appropriate markups shall be applied.
CMAR’s Contingency – A fund to cover cost growth during the Project used at the discretion of CMAR usually for costs that result from Project circumstances. The amount of CMAR’s Contingency shall be negotiated as a separate line item in each GMP package. Use and management of CMAR’s Contingency is described in Subsection 5.3.1 and 5.3.2.
  • Section 5.3.1 – CMAR’s Contingency is an amount CMAR may use at its sole discretion for, an increase in the Cost of Work, and may use for increases in General Conditions Costs with written approval of the City. CMAR’s Contingency is assumed to be a direct Project cost and all applicable markups shall be applied at the time of GMP submission.
  • Section 5.3.2 – When CMAR utilizes CMAR’s Contingency funds, CMAR shall make the appropriate changes to the Schedule of Values with the next regular progress payment request. CMAR shall deduct the amount of CMAR’s Contingency funds used from CMAR’s Contingency line item and add the same amount to the line item on the Schedule of Values where the funds were used. If CMAR’s contingency funds are used for a new line item that was not given with the original Schedule of Values, these shall be so indicated.
Community Benefits and Considerations:
  • Replacing and or abandoning aged and undersized existing water and sewer infrastructure, ranging from 35 – 72 years old, to meet current standards and minimizing the possibility of emergency repairs and associated service outages.
  • Improving drainage issues and extending the life expectancy of the roadway by installing correctly sized storm drain infrastructure and eliminating low spots in the existing curb lines.
  • Eliminating maintenance of overhead lines and the constant trimming of trees by installing underground electric lines to power streetlights.
  • Improving intersection safety by reconfiguring the roadway geometry to increasing sight distance.
  • Replacing aging and deteriorated asphalt that is no longer maintainable with a chip seal or overlay and improving the streets ride quality and longevity.
  • Creating safer streets by adding sidewalk, where sidewalk does not currently exist, to roadways with high volumes of traffic in proximity to local schools and regional parks.
  • Replacing defective select edge improvements such as existing curb and gutter that impedes stormwater flow and existing sidewalk with tripping hazards.
  • Reducing required maintenance with the construction of the new infrastructure.
  • Coordinating construction on multiple streets to minimize inconveniences to the public and to reduce costs.
Community Involvement:
Inform, Involve, Empower:
  • In November 2014, voters approved a dedicated sales tax increase to fund road repairs and street safety improvements throughout the City of Flagstaff.
  • The Project is shown in the interactive map located under the Road Repair and Street Safety Updates on the City of Flagstaff’s Website at: www.flagstaff.az.gov/roadsafety   
  • In May 2019, Staff sent Upcoming Project Notices to property owners along the Project.
  • In June, a website was set up for the Project with information about the design of the Project. The link www.coconinoestates.com was included on all outreach documents distributed to the surrounding neighborhood.
  • In June 2019, Beta PR, on behalf of the City, sent general Project information and invitations to property owners and tenants in the neighborhood for the first Community Open House Meeting.
  • In June 2019, the Project Team setup a booth with Project information and invitations to the Community Open House Meeting at Concerts in The Park held at the Jim Cullen Memorial Park in the Coconino Estates Neighborhood.
  • In July 2019, Beta PR sent 548 Sidewalk Surveys to property owners and tenants in the neighborhood to gather input on support for sidewalk where it does not current exist within the Project limits.
  • In July 2019, Beta PR made multiple attempts to hand deliver the Community Open House Meeting invitation and Sidewalk Survey to each stakeholder along the Project.
  • On July 25, 2019, the first Community Open House Meeting was held at Marshall Elementary. The Project Team was in attendance. A six-minute video was played on a loop to provide an overview of the Project as attendees entered. The Project Team presented the Project information, held discussions, received feedback from the public, and provided an opportunity for the Sidewalk Survey to be filled out and submitted. A total of 88 attendees signed in at the welcome table.   
  • Sidewalk Surveys were accepted up to the second week in August 2019, at which point 190 surveys were received.
  • Beta PR established a Project Hotline during the design of the Project for interested parties to use as a resource for Project information, answers Project specific questions, and for contacting the Project Team throughout the duration of the Project, including the construction.
  • Beta PR began to gather contact information during the design of the Project and will continue to do so, to create a database to electronically distribute weekly eNews articles to the interested parties consisting of updates and information throughout the duration of the Project, including the construction.    
  • In November 2019, Beta PR distributed the Sidewalk Survey Results and invitations to property owners in the neighborhood for the second Community Open House Meeting.
  • On November 14, 2019, the second Community Open House Meeting was held at Marshall Elementary. The Project Team were in attendance and presented the revisions to the Project based on feedback received at the first meeting, held discussions, and received feedback from the public. A total of 44 attendees signed in at the welcome table.
  • Other Project Stakeholders including ADOT, FUSD, and Mountain Line were notified of the upcoming Project and were coordinated with on the traffic control and phasing plans.
  • All the Emergency and relevant Public Service organizations were notified of the Project prior to construction and will continue to receive updates throughout construction.
  • In March 2020, the Project Team redesigned the Project website to include construction information and still maintained the same link of www.coconinoestates.com.
  • In lieu of the Pre-Construction Community Open House Meeting that was scheduled for April 2020, that was canceled due to the COVID Pandemic, the Project Team put together a detailed Preconstruction Presentation Video and posted it to the Project website.
  • On May 1, 2020, Beta PR released the eNews letter notifying the neighborhood that the southern portion of the Project would be starting at the end of May and EMC hand delivered copies of eNews letter to the residence along the first construction zone on Navajo Road.
  • The Project Team also put together a Video to provide additional information regarding the use, reasoning, and benefits to utilizing the Thorpe Park Annex as a Temporary Construction Yard for the Project and posted it to the Project website.
  • Staff has individually met with multiple property owners and will continue to do so through construction.
  • EMC, Beta PR, and Staff have been and will continue to be intimately involved with the coordination of construction activities and keeping the stakeholders informed on schedule, sequence, and impacts through construction.
  • We have received multiple complements from the residents on Navajo Road regarding EMC’s coordination efforts with the residents, including this one “I just moved into a place on Navajo Rd and the Eagle Mountain team could not be nicer or more helpful. All my neighbors feel the same way I do about the project going well and while I was not living here for the sidewalk “scandal”, everyone seems excited about them now.”
Expanded Options and Alternatives:
  1. Approve the award for the Agreement as recommended. Approval will allow work to move forward on the northern portion of the Project; or,
  2. Reject approval of the award as recommended. This action would delay the Project
    1. If rejection occurs, a possible option is:
      1. Ask staff to re-evaluate the recommendation.
Attachments
Amendment 1
GMP - Coconino Estates Improvements Phase I North
CMAR’s and Owner’s Contingency Justification
Context Map - Coconino Estates Improvements Phase 1
Vicinity Map - Coconino Estates Improvements Phase I


    

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