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Item 1.D.
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| City Council Regular | |
| Date: | 01/08/2024 |
| Title: | W.O. 19-42: West End Water Treatment Plant Project, GC/CM Construction Contract |
| Presented by: | Debi Meling |
| Department: | Public Works |
| Presentation: | No |
| Legal Review: | Yes |
| Project Number: | N/A |
RECOMMENDATION
Staff recommends that the City Council approve the Standard Agreement and General Conditions Between Owner and General Contractor/Construction Manager (Construction Contract) with Dick Anderson Construction, Inc. (DAC) for W.O. 19-42: West End Water Treatment Plant (WEWTP) Project in the amount of $68,198,734.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
In September 2021, City Council approved a water treatment plant pre-construction services contract with Garney Companies, Inc. City staff and Garney worked through pre-design to develop a water plant design, but were unable to come to an agreement on the final construction cost of the work in May 2023 to execute a construction contract. Subsequently, staff solicited proposals using the public Request for Qualifications and Request for Proposals process and recommended selection of Dick Anderson Construction (DAC). City Council awarded a pre-construction services contract to DAC in August 2023.
Since the project was nearly 90% designed when DAC joined the Project, bid packages were developed shortly thereafter and publicly advertised on November 3, 10, 17 and 24 and were opened on November 30. DAC assembled the $68,198,734 GMP using the project team’s evaluations and best value selections of subcontractor bids. The project team consisted of City staff, the Consultant Engineer (Burns & McDonnell), and DAC. The proposed contract amount is about $5 million less than the GMP presented by Garney Construction seven months ago.
If Council does not approve the GMP, the current pre-construction contract allows for the City's relationship with DAC to be terminated, with the City then proceeding with other options to construct the project. If approved, project construction is anticipated to begin in early 2024 and continue through 2026.
Since the project was nearly 90% designed when DAC joined the Project, bid packages were developed shortly thereafter and publicly advertised on November 3, 10, 17 and 24 and were opened on November 30. DAC assembled the $68,198,734 GMP using the project team’s evaluations and best value selections of subcontractor bids. The project team consisted of City staff, the Consultant Engineer (Burns & McDonnell), and DAC. The proposed contract amount is about $5 million less than the GMP presented by Garney Construction seven months ago.
If Council does not approve the GMP, the current pre-construction contract allows for the City's relationship with DAC to be terminated, with the City then proceeding with other options to construct the project. If approved, project construction is anticipated to begin in early 2024 and continue through 2026.
ALTERNATIVES
City Council may:
- Approve the Standard Agreement and General Conditions Between Owner and General Contractor/Construction Manager with Dick Anderson Construction, Inc. in the amount of $68,198,734; or,
- Not approve the Agreement. If this project is not completed, the City will be unable to proceed with the plans needed to provide for the present and future drinking water redundancy and capacity needs of City of Billings residents.
FISCAL EFFECTS
The W.O. 19-42: West End Water Treatment Plant (WEWTP) Project was budgeted using Water funds and revenue bonds. Council was previously notified that the West End Project would be significantly over the original budget due to inflation. Public Works made adjustments in the last year to the CIP and in the planned debt service to compensate for the overage. There is cash on hand to award this contract; however, a future budget amendment will be required for the West End Project.