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Item 1.D.
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| City Council Regular | |
| Date: | 03/14/2022 |
| Title: | W.O. 22-37 Landfill Drop-Off Building Repair, Resolution for Alternative Method of Delivery |
| Presented by: | Debi Meling |
| Department: | Public Works |
| Presentation: | No |
| Legal Review | Not Applicable |
RECOMMENDATION
Staff recommends the City Council approve the Resolution authorizing the Public Works Department to use an alternative method of delivery contract on W.O. 22-37 Landfill Drop-Off Building Repair, as allowed by MCA Section 18-2-502.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
Public Works – Solid Waste Division completed a major project in February, 2021, that included a Drop-Off Building at the landfill. This is a 60,000 square foot pre-engineered metal building (PEMB), used by customers as an indoor facility to drop off municipal waste that is then moved to the landfill by Solid Waste staff. A fire occurred in the west end of the building on January 19, 2022, leaving the facility unable to support Solid Waste operations. W.O. 22-37 Landfill Drop-Off Building Repair is intended to evaluate and establish a limit of repairs, create a scope of work, coordinate with the City’s insurer for compliance and acceptance, and complete repair work to get the facility back into operation as soon as possible. The project involves getting the east end of the building operable prior to completing repairs to the greater damaged west end, allowing Solid Waste to return partial service to all customers. Public Works desires to utilize an alternative method of delivery for the Landfill Drop-Off Building Repair project, as authorized by State law (MCA Section 18-2-502). The evaluation of repairs and subsequent design and construction of repairs are intricately related. Reducing any complexities and costs, and overlapping evaluation, design, and construction schedules for this project makes the General Contractor Construction Management (GC/CM) method of project delivery much more feasible than the traditional Design-Bid-Build approach.
Benefits of GC/CM contracts include bringing a contractor, procured through a public proposal process, into the project team as early as possible to take advantage of their expert contributions. The contractor can assist with the evaluation of repairs and begin price evaluations at the same time. Some materials can be procured during the early stages of evaluation as well. Early construction tasks can proceed concurrently with evaluation and design, which has schedule and cost benefits, and could likely reduce the time needed to get the east end of the building back into operation. Information is gained quickly about actual construction means, methods, and availability of materials, which leads directly to improved design, accuracy, project completeness, and timeliness of ordering materials. Contractors provide a Guaranteed Maximum Price (GMP) to complete the project before a full bid package is issued, creating more cost certainty. As a result, budgets can be finalized and insurance claims settled sooner.
The overlap of design and construction in the GC/CM process shortens the overall project schedule compared to the traditional design-bid-build approach. Completing the project sooner at projected cost savings will lead to earlier achievement of the overall goal of the project—getting the Drop-Off facility back into operation, which will provide more efficient City operations and safer customer interactions at the landfill.
The resolution was reviewd by City Legal staff.
Benefits of GC/CM contracts include bringing a contractor, procured through a public proposal process, into the project team as early as possible to take advantage of their expert contributions. The contractor can assist with the evaluation of repairs and begin price evaluations at the same time. Some materials can be procured during the early stages of evaluation as well. Early construction tasks can proceed concurrently with evaluation and design, which has schedule and cost benefits, and could likely reduce the time needed to get the east end of the building back into operation. Information is gained quickly about actual construction means, methods, and availability of materials, which leads directly to improved design, accuracy, project completeness, and timeliness of ordering materials. Contractors provide a Guaranteed Maximum Price (GMP) to complete the project before a full bid package is issued, creating more cost certainty. As a result, budgets can be finalized and insurance claims settled sooner.
The overlap of design and construction in the GC/CM process shortens the overall project schedule compared to the traditional design-bid-build approach. Completing the project sooner at projected cost savings will lead to earlier achievement of the overall goal of the project—getting the Drop-Off facility back into operation, which will provide more efficient City operations and safer customer interactions at the landfill.
The resolution was reviewd by City Legal staff.
ALTERNATIVES
City Council may:
- Approve the Resolution to use the alternative delivery method of a General Contractor Construction Management (GC/CM) contract; or
- Not Approve the Resolution to use an alternative delivery method for the project. If the Resolution is not approved, evaluation, design, and construction of the Landfill Drop-Off Building Repair project would proceed under the typical design-bid-build approach, and potentially significant cost and time advantages of an alternative GC/CM approach would not be realized.
FISCAL EFFECTS
Utilizing a GC/CM approach will shorten the amount of time for evaluation and design and subsequent construction of repairs, which will allow the Drop-Off facility to be put back into operation sooner. This will, in turn, reduce the amount of time (and related cost) Solid Waste will have to manually pick up debris that would otherwise be contained inside the Drop-Off Building. Likewise, Solid Waste staff can be more efficient and provide better service to customers once the Drop-Off Facility is back in operation. Finally, early procurement of equipment and materials could result in better pricing than having to wait an extended period until evaluation and design is completely finished. This process does allow for competitive pricing for materials and labor but it will be done by the GC/CM contractor instead of through public advertising.