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ITEM 24 |
City Council Memorandum Public Works & Utilities Memo No. CP22-126
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Date: |
February 24, 2022 |
To: |
Mayor and Council |
Thru: |
Joshua H. Wright, City Manager Andy Bass, Deputy City Manager John Knudson, Public Works and Utilities Director Andrew Goh, Capital Projects Manager |
From: |
Kimberly Moon, Principal Engineer |
Subject: |
Construction Manager at Risk Contract No. ST2009.401, with DCS Contracting, Inc., for the Dobson Road Improvements at Intel Driveways #1 and #4 - GMP No. 1 |
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Proposed Motion: |
Move City Council award Construction Manager at Risk Contract No. ST2009.401 to DCS Contracting, Inc., for the Dobson Road Improvements at Intel Driveways #1 and #4 - GMP No. 1, in an amount not to exceed $239,525.46. |
Background/Discussion: |
Intel Corporation currently operates two manufacturing sites within Chandler and employs over 11,000 people. Arizona Revised Statute (A.R.S.) § 42-5032.02 provides for distribution of revenues for City infrastructure improvements related to manufacturing facilities. On May 23, 2019, City Council approved an intergovernmental agreement with the Arizona Department of Revenue (ADOR) for distribution of revenues under A.R.S. § 42-5032.02, as well as a Public Master Agreement with Intel Corporation for funding and construction of public improvements necessary to support Intel's qualifying capital investment at its Ocotillo plant, located at 4500 S. Dobson Road. The City and Intel are proposing under A.R.S. § 42-5032.02 to increase capacity and access on Dobson Road to connect with onsite improvements at Intel Driveways #1 and #4. Driveway #1 is the northernmost Intel driveway on Dobson Road with an existing traffic signal. Driveway #4 is at Dobson Road and Chaparral Way, also a signalized intersection. The project scope of work includes new turn lanes, restoration of raised landscaped median, re-striping, signage, curb, gutter, sidewalk, Americans with Disabilities Act upgrades, traffic signal upgrades, streetlights, traffic signal interconnect, storm drainage, irrigation, landscape restoration, and wet/dry utility improvements. Guaranteed Maximum Price (GMP) No. 1 is for procurement of materials with long-lead ordering times in the amount of $239,525.46. A subsequent change order to this contract is scheduled for GMP No. 2 for construction of the improvements. |
Evaluation: |
The selection process was conducted in accordance with City policy and procedure and State law. Staff recommends contract award to DCS Contracting, Inc., based on qualifications, relevant firm experience, team experience, project understanding, and project approach. |
Financial Implications: |
Pursuant to A.R.S. § 42-5032.02, this project will be funded 80% by the State of Arizona and 20% by Intel Corporation. There is no City financial commitment. |
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Fiscal Impact |
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