|
ITEM 22 |
City Council Memorandum Public Works & Utilities Memo No. CP22-173
|
Date: |
May 23, 2022 |
To: |
Mayor and Council |
Thru: |
Joshua H. Wright, City Manager Andy Bass, Deputy City Manager John Knudson, Public Works and Utilities Director Kimberly Moon, Acting Capital Projects Manager |
From: |
Vivianna Barrientes, Engineering Project Manager |
Subject: |
Construction Manager at Risk Contract No. ST2009.401, Change Order No. 1, with DCS Contracting, Inc., for the Dobson Road Improvements at Intel Driveways #1 and #4 - GMP No. 2 |
|
|
|
Proposed Motion: |
Move City Council award Construction Manager at Risk Contract No. ST2009.401, Change Order No. 1, to DCS Contracting, Inc., for the Dobson Road Improvements at Intel Driveways #1 and #4 – GMP No. 2, in an amount not to exceed $3,030,177.90, and authorize a transfer of funds from General Fund, Non-Departmental, Contingency Reserve to General Government Capital Projects Fund, Streets Capital, Other Streets Improvements, Dobson Road Intel Driveways, in the amount of $1,161,356. |
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 Infrastructure 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, which is also a signalized intersection. The project scope of work consists of 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. The contract completion time is 340 calendar days following Notice to Proceed. On February 24, 2022, City Council approved Guaranteed Maximum Price (GMP) No. 1 for procurement of materials with long-lead ordering times in the amount of $239,525.46. Guaranteed Maximum Price (GMP) No. 2 is for construction of the improvements in the amount of $3,030,177.90. |
Evaluation: |
The selection process was 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. Staff reviewed the Guaranteed Maximum Price No. 2 proposal and determined it to be reasonable. |
Financial Implications: |
Funding for this project will be 100% reimbursed to the City. Pursuant to A.R.S. § 42-5032.02, the project will be funded 80% by ADOR and 20% by Intel corporation. Transfer of funds from the General Fund, Non-Departmental, Contingency Reserve (101.1290.5911), to General Government Capital Projects Fund, Streets Capital, Other Streets Improvements, Dobson Road Intel Driveways (401.3310.6517.6ST764) is required in the amount of $1,161,356 to provide total appropriation needed. Reimbursements will be billed and collected as work is completed. |
|
Fiscal Impact |
|
|
|