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| TITLE: |
| Consideration and Approval of Contract: Construction Manager at Risk Construction Services Agreement with Eagle Mountain Construction, Inc. for the Beulah/University Roadway Project. |
| STAFF RECOMMENDED ACTION: |
- Approve the Construction Manager at Risk Construction Services Agreement with Eagle Mountain Construction for a Guaranteed Maximum Price of $19,010,333.00 and a contract duration of 850 calendar days;
- Approve an Owner’s Contingency of $299,000.00, which is 1.55% of the Guaranteed Maximum Price; and
- Authorize the City Manager to execute the necessary documents.
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| Executive Summary: |
Staff recommends approval of a Construction Manager at Risk (CMAR) Construction Services Agreement (Agreement) for a Guaranteed Maximum Price (GMP) of $19,010,333.00 with a Total Contract Price of $19,309,333 to Eagle Mountain Construction (EMC) which will authorize the construction of the Beulah/University Realignment Project (Project).
This roadway improvement realignment Project extends the northern terminus of Beulah Boulevard to connect with University Avenue. Furthermore, University Avenue (west of Milton) will be realigned to match up with University Drive (east of Milton). A new roundabout will be constructed where Beulah Boulevard and University Avenue will intersect. Additionally, this Project will also be constructing a new pedestrian underpass beneath Milton Road, just south of Burger King across to Target. Moreover, the Project will also include underground water, sewer, and stormwater infrastructure, several new sections of sidewalks and shared-use paths, as well as landscaping and hardscape throughout the extent of the Project. Please refer to the attached context and vicinity maps.
Pending the City Council’s approval, construction is anticipated to begin in spring 2023 and continue into summer 2025. The 850-calendar day duration will cover the continuous, two phases, of construction through three construction seasons. |
| Financial Impact: |
In May 2000, the City of Flagstaff voters approved Proposition 403 which provided funding for improvements to Traffic Flow and Safety. As part of this proposition, two of those projects relate 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 $22,139,900.00 which was funded with a combination of old and new transportation taxes and developer contributions.
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 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 Proposition 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, LLC (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 EMC joined the team last fall, the Project estimating transferred from Shephard-Wesnitzer, Inc. (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 inflation and the rising costs of materials, supplies, and operations, the team was able to finalize the GMP at $19,309,333. |
| Policy Impact: |
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| Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan: |
Sustainable, Innovative Infrastructure
Utilize existing long-range plan(s) that identify the community's future infrastructure needs and all associated costs
Council Goal 2017 – 2019 - Transportation and Other Public Infrastructure
Deliver quality community assets and continue to advocate and implement a highly performing multi-modal transportation system.
Council Goal 2017 – 2019 - Environmental and Natural Resources
Actively manage and protect all environmental and natural resources
Team Flagstaff Strategic Plan – Priority 3
Deliver outstanding services through a healthy environment, resources, and infrastructure.
Priority Based Budget Key Community Priorities and Objectives
Livable Community - Provide amenities & activities that support a healthy lifestyle
Sustainable, Innovative Infrastructure - Provide effective management of and infrastructure for all modes of transportation
Safe & Healthy Community - Promote physical health through providing recreation opportunities, parks, open space & multiple transportation options
Carbon Neutrality Plan
DD-2: Create inclusive networks for walking and biking that are continuous, attractive, safe, comprehensive, and convenient for people of all ages.
DD-3: Encourage Flagstaff residents and visitors to walk, bike, roll and take the bus.
Regional Plan
Policy CC.4.1. Design streetscapes to be context sensitive and transportation systems to reflect the desired land use while balancing the needs of all modes for traffic safety and construction and maintenance costs.
Policy CC.4.4. Design streets and parking lots to balance automobile facilities, recognize human-scale and pedestrian needs, and accentuate the surrounding environment.
Policy CC.4.5. Encourage local landscaping using Xeriscape, low-impact principles, and native vegetation wherever possible.
Policy T.1.1. Integrate a balanced, multimodal, regional transportation system.
Policy T.1.4. Provide a continuous transportation system with convenient transfer from one mode to another.
Policy T.1.6. Provide and promote strategies that increase alternate modes of travel and demand for vehicular travel to reduce peak period traffic.
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| Has There Been Previous Council Decision on This: |
The Beulah/University Realignment Project has been before City Council numerous times in the past twenty years. Some of these meetings are shown below:
In 2005, the City purchased the 9.23-acre Fresquez property for the purpose of completing the University and Beulah roadway improvements.
On December 2, 2014, the City Council approved the P3 Pre-development Agreement between the City of Flagstaff, Arizona Department of Transportation and Vintage Partners, LLC, which is included with this staff summary. (Initial Agreement for the extension of Beulah Boulevard, realignment of University Avenue, and relocation of ADOT facilities).
On August 21, 2017, the City Council approved the Reinstatement of, and First Amendment to the P3 Pre-Development Agreement extending the term.
On March 20, 2018, the City Council approved the Third Amendment to P3 Pre-Development Agreement between the City of Flagstaff, Arizona Department of Transportation, and VP.
On April 17, 2018, the City Council adopted a resolution (No. 2018-13) authorizing the execution of the Mill Town Development Agreement between VP and the City (Mill Town Development Agreement)
On June 29, 2021, where the 60% design plans were discussed.
On October 19, 2021, the City Council adopted a resolution (No. 2021-44) authorizing the execution of the First Amendment to the Mill Town Development Agreement between VP and the City.
On June 14, 2022, a City Council Report (CCR) was issued to update the City Council on the Project. |
| Options and Alternatives: |
- Approve the award as recommended. Approval will allow work to move forward; or,
- Reject approval of the award as recommended. This action would delay the Project
- If rejection occurs, possible options include:
- Ask staff to re-evaluate the recommendation; or
- Suspend or cancel the Project completely.
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| Background/History: |
The Beulah/University Roadway Realignment Project (Project) extends the present-day northern terminus of Beulah Boulevard to connect with University Avenue. Furthermore, University Avenue (west of Milton Road) will be realigned to match up with University Drive (east of Milton Road) via a new roundabout where Beulah Boulevard and University Avenue intersect, on the former Fresquez parcel. Additionally, this Project will also be constructing a new pedestrian underpass beneath Milton Road, just south of Burger King across to Target. Moreover, the Project will also include underground water, sewer, and stormwater infrastructure, several new sections of sidewalks and shared-use paths, as well as landscaping and hardscape throughout the extent of the Project.
The engineering design of this Project began in June 2018 by Shephard-Wesnitzer, Inc. (SWI). The 60-percent design plans were presented to City Council on 29 June 2021 at which time City Council directed staff to modify the design with a focus on bike and pedestrian components. The modified design was presented to City Council on 5 October 2021. Since this time the plans are nearly finalized, with the only modifications being incorporating the value engineering items.
On 24 September 2021, the City procured EMC as the CMAR for the Project. Since then, EMC has been able to assist the design team from the construction contractor perspective. By bringing EMC on board during the design process, they were able speak to constructability, phasing, availability of materials, and construction costs which helps to bring greater accuracy to Project timelines and budget.
The team conducted several value engineering workshops and meetings in the fall of 2022, which resulted in significant Project savings, without reducing the scope of the Project. These savings are reflected in the GMP being presented on December 6, 2022. |
| Community Benefits and Considerations: |
- New bike/pedestrian underpass under Milton Road
- New roadways and bike/ped-friendly roundabout and shared-use paths with greater connectivity to existing roadways and paths
- Realigning University Avenue (west of Milton) with University Drive (east of Milton)
- Replacing aged and undersized existing water and sewer infrastructure
- Improving intersection safety by reconfiguring the roadway geometry and removing surface crossings of Milton Road
- Streetlighting being brought up to City dark skies and engineering standards
- Improved roadway drainage throughout the extent of the Project
- Coordinating and communicating with Project stakeholders to reduce impact to businesses, NAU, community members, and visitors to our community
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| Community Involvement: |
Inform, Involve, Empower:
- In May 2000, voters approved a dedicated sales tax increase to fund various road improvements including the Beulah/University Realignment Project.
- In November 2018, voters approved the new transportation tax.
- NAU, Mountain Line, ADOT, and the City’s P3 Partner Vintage Partners have been actively involved in the design and development of this Project.
- Design Team has met in the field, in meetings, and over the phone with impacted businesses, residents, and stakeholders.
- Beta PR will be part of the construction phase of this project to aid with project updates, outreach, and overall communication with our community.
- Other Project Stakeholders including ADOT, NAU, and Mountain Line were notified of the upcoming Project and were coordinated with on the traffic control and phasing plans during construction.
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| Expanded Options and Alternatives: |
- Approve the award as recommended. Approval will allow work to move forward; or,
- Reject approval of the award as recommended. This action would delay the Project
- If rejection occurs, possible options include:
- Ask staff to re-evaluate the recommendation; or
- Suspend or cancel the Project completely.
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