CC - Agendas - City Council - REGULAR - 10/23/2012

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II.E COUNCIL AGENDA MEMO - October 23, 2012 DEPARTMENT: Public Works AGENDA ITEM: Approval of Amendment No. 1 to City Contract No. 2012-068 with PCL Construction, Inc.-Fann Environmental, LLC, a Joint Venture, for Construction Manager at Risk services to construct the Airport Water Reclamation Facility Phase I Expansion, in an amount not to exceed $35,287,006.00 Approved By: Date: Department Head: Mark Nietupski 10/12/2012 Finance Director: Mark Woodfill City Manager: Craig McConnell 44 /0- -/Z Project Delivery via Construction Manager at Risk (CMAR) This item is for approval of Amendment No. 1 to City Contract No. 2012-068 for CMAR construction services for the Airport Water Reclamation Facility (AWRF) Expansion, Phase I. PCL/Fann provided pre-construction services under the preceding contract during engineering design of the AWRF facility improvements. Contract Amendment No. 1 is based on completed construction plans and specifications, a project schedule, multiple estimates and schedules of values, and a Guaranteed Maximum Price Proposal submitted by PCL/Fann for construction and commissioning of the required AWRF Phase I improvements. The facility expansion will increase treatment capacity to 3.75 million gallons per day (MGD). In February 2011 Public Works made a presentation to City Council on Alternative Project Delivery Methods with a recommendation that the Airport WRF Phase I Project be delivered via the Construction Manager at Risk method. Due to the magnitude and complexity of the project the CMAR process, a qualifications-based approach to construction, provides many important benefits. Teamwork is emphasized from the start of design with involvement of the Owner, Engineer (Waterworks Engineers) and CMAR. Common goals and objectives are developed with emphasis on value, quality of construction, and schedule. Continuous budget control is available to the Owner throughout the design process with team involvement in the evaluation of costs in relation to methods and materials to be incorporated into the work. CMAR projects in general have been shown to provide higher quality construction for the best value resulting in fewer warranty issues. The team approach exemplified by the CMAR process also reduces the potential for disputes, claims, and litigation. The CMAR involvement in the design phase of the Airport Water Reclamation Facility Expansion Phase I Project provided input into design, costs for construction, subcontractor selection, materials, and methods to develop the final Guaranteed Maximum Price (GMP) cost proposal that the CMAR will agree to meet.