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Meeting Date: 06/06/2023  
From: Greg Mace, Engineering Project Manager

Consideration and Approval of Contract:  Approve the construction contract with Mountain High Excavating, LLC. in the total amount of $5,291,814.00 for the Switzer Canyon Water Transmission Main Phase IV Improvement Project.
  1. Approve the construction contract with Mountain High Excavating, LLC (“Contractor”) in the total amount of $5,291,814.00 and a contract time duration of 270 calendar days.
  2. Approve a contract allowance of $223,581.00 which is 5% of the Engineer’s Estimate of Probable Cost.
  3. Approve Change Order Authority to the City Manager in the amount of $529,181.40 (10% of the contract amount, less allowance); and
  4. Authorize the City Manager to execute the necessary documents.
Executive Summary:
The contract award of $5,291,814.00 to the Contractor is proposed to complete a project that includes installing two new water transmission mains, new fire hydrants, and relocating the service connection for the Elks Lodge to the distribution main in Fir Avenue. (“Project”).  The Project includes rigorous protection and restoration of land in Switzer Canyon that is affected by construction. Construction is scheduled to begin in the summer of 2023. The Project is the fourth of five phases of the Switzer Canyon Transmission Main Improvement. Please see the attached context map and vicinity map for location details.
Financial Impact:
The Project is funded by $1,977,912 from the FY2022-23 Drinking Water Fund, Switzer Canyon Line Phase IV and by $3,954,648 from the FY2023-24 Drinking Water Fund, Switzer Canyon Line Phase IV (Account # 202-08-370-3427-0). 
Policy Impact:
No impact
Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan:
Priority Based Budget Key Community Priorities and Objectives
Sustainable, Innovative Infrastructure: Deliver outstanding services to residents through a healthy, well maintained infrastructure system.
Utilize existing long-range plan(s) that identify the community's future infrastructure needs and all associated costs.
Environmental Stewardship: Actively manage and protect all environmental and natural resources.

Carbon Neutrality Plan
WS-1    Improve water infrastructure and expand water reuse.
 HF-1    Protect existing forests, resources, and meaningful open spaces.

Regional Plan
Policy E&C.6.7. Use best practices to control the spread of exotic and invasive plants, weeds, and animals, and eradicate where possible.
Policy E&C.6.8. Disturbed areas for improvements and landscaping for new developments
shall emphasize the use of native, drought-tolerant, or edible species appropriate to the area.
Policy E&C.9.2. Construction projects employ strategies to minimize disturbed area, soil compaction, soil erosion, and destruction of vegetation.
Policy WR.2.2. Maintain and develop facilities to provide reliable, safe, and cost-effective
water, wastewater, and reclaimed water services.
Has There Been Previous Council Decision on This:
City Council approved the City of Flagstaff’s on-call consultant contract, through which a consultant services contract for the design of the Switzer Canyon Water Transmission Main Project - Phase IV was executed with Turner Engineering, Inc.
City Council authorized acquisition of real property interests for the Switzer Canyon Water Transmission Main Project - Phases IV and V with Ordinance 2019-26.
In December 2021, Council accepted the recommendation of the Water Commission to not deviate from the out of City Water Policy, not exchange property rights for water service, and to move forward with the purchase of property rights for waterline easements.
City Council approved the filing of condemnation proceedings to acquire easements necessary for the Switzer Canyon Water Transmission Main Project, Phase IV with Resolution 2022-45
Options and Alternatives:
  1. Approve the contract award as recommended. Approval will allow work on the Project to move forward in the summer of 2023; or 
  2. Reject all bids. This action would delay the Project. If rejection occurs, possible options include:
    1. Re-solicit the Project at a later date; or
    2. Suspend or cancel the Project.
 Starting in 2012, the City began replacing a 1950’s transmission main in Switzer Canyon in phases. Three of five planned phases have been completed. Phase I began at the intersection of Switzer Canyon Road and Route 66. Phase III ended at the intersection of Fir Avenue and San Francisco Street.
The Project continues from the end of Phase III with the installation of two new water transmission mains, 16” and 24”, to a location near Quintana Drive and Hootso Drive that will provide the starting point for last phase.  At the completion of all phases, the Main City Reservoirs will be connected to distribution systems Zone A and Zone B with new transmission lines.
The Project has a length of approximately 5200 feet with much of the project (3700 feet) extending outside City limits. Included in the project will be the two water mains with numerous gate valves, fire hydrants and other appurtenances.  Work will include returning all disturbed areas to their original condition through the implementation of the Switzer Watermain Restoration Guideline that was developed in partnership with the Arboretum of Flagstaff, the Museum of Northern Arizona and the City’s Open Space Program. Approximately 800 feet of a natural gas main relocation and 500 feet of social trail relocation are included in this Project. 
Construction impacts may include traffic detours, temporary lane closures with traffic flagging and temporary access to parcels with signage. Coordination with property owners will be made for gas service disconnects and reconnects. The Project is included in the Water Services’ Drinking Water Fund that has been programmed in the FY23 and FY24 Capital Improvement 5-year plan.
Residents that border the Project had requested new water services in exchange for granting property rights. The City reviewed the Out of City Water Policy with regards to the requests from residents for the exchange. The policy and the Project were reviewed by staff, the Water Commission, and Council. It was determined by the Water Commission to not deviate from the policy, not exchange new water services for property rights, and continue with the standard process for purchasing property rights. The recommendation of the Water Commission was presented to the City Council and it was accepted.    
The Purchasing section posted an Invitation for Bids (IFB) solicitation for construction on February 10, 2023, on the PlanetBids website, and advertised it in the Arizona Daily Sun newspaper on February 19 and 26, 2023. There were four bids received on the opening date of March 10, 2023 (bid summaries are identified in the Expanded Financial Considerations section below). After reviewing all bids received, the staff determined that Mountain High Excavating, LLC is the lowest responsive and responsible bidder.
Key Considerations:
The City’s overall water system will benefit from the installation of the new transmission mains. Increased reliability and reduced service interruptions from failures are the benefits of the new Zone A transmission main. Zone B will also receive the benefit of reduced service interruptions as well as increased capacity with an additional transmission main. This Project is the fourth of five phases of the Switzer Canyon Transmission Main Improvement. Phases one, two and three were completed in 2014, 2015 and 2019 respectively.
Expanded Financial Considerations:
Below is a summary of the bids received.
Engineers Estimate                     $4,471,622.00
Mountain High Excavating, LLC    $5,291,814.00
B4 Enterprises, Inc.                       $5,714,803.46
Action Direct. LLC                          $6,158,111.00
Meridian Engineering Co.              $7,983,843.00
Included in the contract amount will be an allowance of $223,581. The contract allowance is established to address unanticipated items of work, unknown items of work and/or differing field conditions and with authorization will be included in the contract amount. The contract allowance is used only at the City’s discretion. See attached allowance justification form. The Project Manager, Section head and Division head will have the authority to approve the use of the allowance in accordance with Flagstaff Procurement Code Manual.
Change Order Authority establishes a dollar amount (10% of the contract amount, less allowance) and provides the City Manager, on behalf of the Council, authority to amend the contract amount in response to unforeseen costs that are more than the contracted amount and in excess of the contract allowance.
Community Benefits and Considerations:
The Community benefits of this project include more reliable water service from the new infrastructure and new pavement for an existing road. Additional Project information and traffic restriction advisories will be provided as necessary through local media releases and other communication methods.
Exhibit A - Special Provisions
Exhibit Bb - MAG
Context Map
Vicinity Map
Allowance Justification Form


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