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  7.C.       
Meeting Date: 06/15/2021  
Co-Submitter: Andy Bertelsen

TITLE:
Consideration and Approval of Contract:  Construction Manager at Risk Construction Services Contract to Rummel Construction, Inc., for Construction of the Sequence D-Phase I Excavation in the amount of $1,298,649.80.
STAFF RECOMMENDED ACTION:
  1. Approve the Construction Manager at Risk Construction Services Contract with Rummel Construction, Inc., for the Construction of Cinder Lake Landfill-Sequence D Phase I Excavation, and execute a Guaranteed Maximum Price (GMP) of $1,298,649.80 (includes an Owner's Contingency of $204,000); and
  2. Authorize the City Manager to execute the necessary documents.
Executive Summary:
Sequence D (also known as a cell) is a 33-acre site located on the southern boundary of Cinder Lake Landfill (Landfill). This Construction Services Contract (Project) initiates the excavation and design of Sequence D in preparation of the future disposal needs for northern Arizona. 

In approximately three (3)-years the Landfill will begin closing existing cells (Sequence B and C) while opening Sequence D for trash disposal. Sequence D currently contains approximately 230,000 cubic yards of rock and soil to be excavated and processed (screened and crushed). The scope of work for the Project encompasses the following:
  • Phase I includes preliminary construction and installation of necessary infrastructure
    • Construction of on-site infrastructure (haul roads and small on-site water storage pond)
    • Excavation and processing of approximately 35,000 cubic yards of rock
The Construction Manager at Risk (CMAR) delivery method allows the contractor to deliver the Project at a Guaranteed Maximum Price (GMP). The CMAR provides professional services and acts as a consultant to the City in the design development and construction phases. The CMAR will also be a valuable partner with the City, especially when considering the Contractor will be at the table acting as a fiduciary in future phases of this Contract. Rummel Construction, Inc. (Rummel) has committed to self-performing a majority of the tasks identified in Phase I.
Financial Impact:
Phase I was reviewed and approved in the FY 2020-2021 budget. The budgeted cost for Phase I work was $1,300,000.00 in Fiscal Year (FY) 2020-2021 and carried forward into FY 2021-2022 budget. Subsequent budgets will include proposals for additional phases as warranted. This Project is budgeted in the Solid Waste Fund in account 211-06-165-0631-0-4433 (Improvements to Land).
Policy Impact:
No.
Connection to PBB Key Community Priorities/Objectives & Regional Plan:
Priority Based Budget Key Community Priorities and Objectives

High Performance Governance

  • Serve the public by providing high quality customer service
  • Enhance the organizations fiscal stability & increase efficiency and effectiveness

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

  • Utilize existing long-range plan(s) that identify the community's future infrastructure needs and all associated costs.
  • Deliver outstanding services to residents through a healthy, well maintained infrastructure system.
  • Provide effective management of and infrastructure for all modes of transportation.
  • Facilitate and develop carbon-neutral energy opportunities.

Environmental Stewardship

  • Promote, protect, & enhance a healthy, sustainable environment & its natural resources.
  • Implement, maintain & further the Climate Action & Adaptation Plan (CAAP) with awareness of social inequities.
  • Strengthen flagstaff's resilience to climate change impacts on built, natural, economic, health, & social systems.
Regional Plan
  • Goal E.2 - Expand production and use of renewable energy.
  • Goal PF.1 - Work across all government operations and services to prepare for the impacts of natural and human caused hazards.
  • Goal PF.2 - Provide sustainable and equitable public facilities, service, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics.
Has There Been Previous Council Decision on This:
No.
Options and Alternatives:
1. Approve the CMAR Construction Services Contract as recommended; or
2. Approve the CMAR Construction Services Contract with a decreased scope of work; or
3. Reject the CMAR Construction Services Contract and do not re-solicit.
Background/History:

The City of Flagstaff Landfill is a 343-acre site that accepts municipal solid waste from a 70-mile radius surrounding Flagstaff. Future landfill cells are being planned to accommodate future disposal needs. Sequence-D consists of a 33-acre portion of the site, located on the southern portion of the Landfill.

The work to be performed under the proposed Contract consists of furnishing all labor, materials, tools, and equipment necessary for the construction for Phase I.

The CMAR delivery method entails a commitment by the Construction Manager (CM) to deliver the project within a GMP which is based on the construction documents and specifications at the time of the GMP, plus any reasonably inferred items or tasks. The CMAR provides professional services and acts as a consultant to the owner in the design development and construction phases. Future Phases will require design development services; staff will submit those contracts for City Council review in the near future. 

Often times, the CMAR also provides a portion of construction services during the project, depending on the expertise within the company. In this case, Rummel has the ability to dedicate resources to a majority of the scope. The portions of work expected to be sub-contracted in Phase I include: fencing, installation of liners, and crushing. In addition to acting as a fiduciary, the CMAR must manage and control construction costs to not exceed the GMP because contractually any costs exceeding the GMP that are not change orders are the financial liability of the CMAR.

The CMAR delivery method is of particular benefit to the City for the following reasons:

  • A higher level of cost control from the start of the Project;
  • The CMAR is an owner advocate and manages the Project with the City's best interests at all times;
  • The CMAR allows City Project Managers to facilitate multiple projects at the same time;
  • The CMAR provides expertise in Value Engineering at the inception of the Project; and
  • The CMAR services are professional services and can be handled like an architect, engineer or surveyor
As previously noted, future Phases of development services and construction services will be submitted to Council for review.
Key Considerations:
This Project begins the excavation and design of Sequence D, a 33-acre site located on the south side of the Landfill. The cell contains approximately 230,000 cubic yards of rock and soil that need to be excavated and processed prior to burying trash. The scope of work encompasses the following:
  • Phase I-Preliminary Construction and Infrastructure
    • Clearing and grubbing of an 11-acre portion of the site
    • Construction of a 300,000-gallon lined water storage tank for dust abatement needs
    • Construction of the Sequence D haul road
    • Excavation of the preliminary cell
      • Approximately 35,000 cubic yards of soil to be crushed and screened
      • Where possible, the Rummel will excavate within 6-inches of the design elevations as specified in the plans.
      • Rummel is required to use the minimum machinery specifications of a D10 Dozer to excavate soil and rock. Geologic reports indicate that it will be impractical to excavate all portions of rock. Rummel will work in 25-foot grids and demonstrate what portions of rock they are unable to excavate. Those gridded areas will be inventoried for future phases of drilling and blasting. 
      • Rock less than 36-inches in diameter shall be crushed and screened to a maximum diameter of 3-inches.
      • Rock greater than 36-inches shall be broken with a mechanical hammer with a minimum tool energy of 2,900 foot pounds. The rock shall be crushed to a maximum diameter of 30-inches.
      • The processed rock and soil will be stockpiled and used to cover trash within the current sequences (Sequence B and C).
Landfill geologic reports indicate that it would be impractical to accurately project the volumes of rock that could be excavated from the entire cell. Therefore, Phase I is intended to determine the following:
  • Determine the characteristics (size, hardness, quantity) of rock in remaining Phases of work
  • Assess the optimal methods of excavation in in remaining Phases of work
On February 24, 2021, Purchasing staff posted a Request for Statement of Qualifications (RSOQ) for Construction Manager at Risk services on the PlanetBids electronic bidding website, and advertised it in the Arizona Daily Sun on February 28 and March 7, 2021.  On March 30, 2021, Purchasing received five Statements of Qualifications (SOQs) from contractors wishing to provide CMAR services for the project. An Evaluation Committee of five (5) members, including one member, a licensed contractor, outside of City staff, independently reviewed and evaluated the SOQs in accordance with guidelines established by the enabling legislation. Based upon the numerical scoring of the written SOQs, the Selection Committee identified the most qualified Firm to perform the CMAR services for the Project and recommended to commence negotiations for a scope and fee proposal to be provided by Rummel Construction, Inc.
 
A. Company Overview, Experience and Personnel
B. Experience and Qualifications of the Firm/Team
C. Experience of Key Personnel to be Assigned to the Project
D. Understanding of the Project and Approach to Performing the Required Services
E. Experience with Anticipated Construction Conditions
F. Value Added Knowledge and Experience
 
After completing the evaluation process, the Evaluation Committee identified the three (3) top Firms. Final scores from all firms are as follows:

Rummel Construction, Inc.:               592
Banicki-Buesing JV:                          568
Fann Contracting, Inc.:                      525
Kinney Construction Services, Inc.:  493
Markham Contracting Co.:                488
Expanded Financial Considerations:
Increased efficiency in project delivery will render Project and staff time savings that can be utilized on other valuable projects. Handling this Project in an iterative fashion will also allow Rummel and the design engineer(s) to collaborate on a best-fit approach for the City.
Community Benefits and Considerations:
The City of Flagstaff Cinder Lake Landfill will continue providing affordable means of solid waste disposal for northern Arizona through the life of the Landfill.
Community Involvement:
No.
Expanded Options and Alternatives:
  1. Deny the requested action and provide direction on how to best deliver the Project and dedicated funding; or
  2. Deny the use of the CMAR process on this Project and request that the contract be procured through an alternate project delivery method; or
  3. Approve the CMAR Construction Services Contract as recommended.
Attachments
CMAR Phase 1 Agreement
Scope of Work
Schedule
GMP-Letter
Landfill Map
Contingency Justification
Presentation


    

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