Consideration and Approval of Guaranteed Maximum Price Construction Contract: South Beaver and South Leroux 2010 Bond Improvement Project.

Award of the contract will authorize Construction Manager at Risk (CMAR) construction phase services for the S. Beaver and S. Leroux 2010 Bond Improvement project.

Subsidiary Decisions Points: The project is scheduled in the Capital 5-year plan for Division 24 and is funded in the FY 13 authorized budget.

The project is funded by general obligation bonds in the amount of $2,342,350 for FY 13 (acct. 403-2432-691).

Maintain and deliver quality, reliable infrastructure.

The CMAR design phase services contract was awarded to Hunter Contracting Co. at the April 17, 2012 Council meeting.  The Council adopted the budget at the June 5, 2012 meeting. 

2.  Reject approval of the award. This option could increase project cost and delay the construction start causing work to span two construction seasons (2013 & 2014) which would include a winter shutdown with temporary improvements. 

In November 2010, voters authorized up to $16.5 million in general obligation bonds to fund street and utility infrastructure replacements.  Based upon condition ratings and age of the exiting utilities and pavements, the S. Beaver and S. Leroux project has been identified for funding using a portion of the bond authorization. 

The solicitation process for CMAR design phase services was completed in February 2012 with selection of Hunter Contracting Co.  The CMAR design phase services contract was awarded at the April 17, 2012 Council meeting.   As a result, Hunter Contracting, Co. teamed with the City and our engineering design consultant and provided ongoing refinement of construction scheduling and sequencing, value engineering, material selection and constructibility analysis during the design phase.

The project area is located within the South side neighborhood, between Butler Avenue on the north and E. Franklin Avenue on the south.  Proposed improvement include;

• water main replacement and water service line replacement in S. Leroux and S. Beaver (Butler to Franklin)
• sewer main replacement and sewer service line replacement in S. Leroux and S. Beaver (Butler to Franklin)
• interceptor sewer replacement in Ellery (alley west of Beaver to Agassiz)
• full width pavement replacement on S. Leroux (Butler to Franklin)
• full width mill and overlay on S. Beaver (Butler to Franklin) 
• trench pavement repair on Ellery (alley west of Beaver to Agassiz)
• replacement of select sections of sidewalk, handicap curb ramps, curb and gutter sections and driveway approaches on S. Beaver and S. Leroux  (Butler to Franklin)

The CMAR contractor has demonstrated the knowledge and experience to facilitate construction by considering stakeholder issues early in the design and throughout construction.  The CMAR project delivery method is a collaborative effort which allows open dialog between the City, the design consultant and the contractor on critical design and construction issues in order to minimize impacts to the neighborhood and the adjacent community.  The CMAR will be involved with the coordination of construction activities and keeping the neighborhood informed on scheduling, sequencing and impacts. 

The CMAR delivery method is an effective tool for a complex project in an established neighborhood.  Substantial due diligence is performed prior to development of the Guaranteed Maximum Price (GMP).  Involving the CMAR contractor during design of the improvements reduces the risk of additional cost and contract disputes.   Any realized savings are returned to the City. 

A contingency for removal and replacement of unsuitable sub grade has been included in the contract based upon areas that have been identified as having this potential.  Historically, this issue has caused project budget over runs.  Any unused portion of contingency fees will be returned to the City. 

The community benefits of this project include:

• replacement of old and undersized water and sewer infrastructure to meet current standards
  • existing 2", 4" and 6" cast iron water main, built between 1936 and 1952, will be upgraded to 8" PVC (or ductile iron where warranted) per current City Engineering Standards
  • existing vitrified clay sewer pipe will be upgraded to accommodate daily flow volumes per current City Engineering Standards
• replacement of deteriorated street pavement
• select sidewalk improvements and ADA compliant ramps will provide a place for safe pedestrian passage
• increase inlet sizes to improve storm water interception and to reduce storm pipe clogging along DuPont
  • overall storm drain capacity will be unchanged

Inform -  A public information meeting was held in Council chambers on April 19, 2012.  Presentation boards were posted and City staff were available to discuss the project with interested citizens. 

Involve -  In May 2012 a letter describing the project and the working schedule was sent to property owners as part of our request for Temporary Entry Permits.

Empower -  Voters authorized up to $16.5 million in general obligation bonds in November 2010.  The bonds are to fund street and utility infrastructure replacements. 

1.  Approve the award as recommended.

2.  Reject approval of the award and provide additional direction to staff;

• reduce scope and renegotiate guaranteed maximum price
• pursue a method other than CMAR in the procurement of construction services

Option 2 would delay the construction start, increase overall expense to the project and would likely cause most or all of the 2013 construction season to be missed.

11/06/2012 - EAB