HomeMy WebLinkAboutResolution 068-15RECORD OF RESOLUTIONS
Dayton Legal Blank, Inc., Fom No. 30045
68 -15
Resolution No. Passed —20
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER
INTO A CONTRACT WITH AND EXECUTE A GUARANTEED
MAXIMUM PRICE AMENDMENT (GMP) WITH ELFORD INC.,
CONSTRUCTION MANAGER AT RISK, FOR PHASE 2 OF THE
JUSTICE CENTER CONSTRUCTION/ RENOVATION PROJECT.
WHEREAS, the City of Dublin selected Elford, Inc. as Construction Manager at Risk
for the Justice Center Construction /Renovation; and
WHEREAS, on August 10, 2015, the City Council authorized the City Manager to
enter into a contract with and execute a Guaranteed Maximum Price amendment
with Elford Inc. for the initial phase of construction in the amount of $2,191,093.00;
and
WHEREAS, Elford, Inc. has completed the bidding process for the final phase of
construction and together with City staff and the City's Owner's Representative have
developed the Guaranteed Maximum Price for the final phase of construction in the
amount of $6,186,894.00; and
WHEREAS, City Council has determined that the total Guaranteed Maximum Price of
$8,377,987.00 is within the budget guidelines established for this project.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Dublin, State
of Ohio,. of the elected members concurring, that:
Section 1. The Guaranteed Maximum Price negotiated between the City Manager
and Elford, Inc. for the final phase of construction in the amount of $6,186,894.00 is
accepted for the Justice Center Construction /Renovation Project.
Section 2. The City Manager is hereby authorized to enter into a construction
agreement with Elford, Inc. for said project.
Section 3. This Resolution shall take effect immediately upon passage in accordance
with Section 4.04(a) of the Revised Charter.
Passed this ? A day of��, 2015
Kayor — Presiding Officer
Attest:
Clerk of Council
city of Dublin
Office of the City Manager
5200 Emerald Parkway • Dublin, OH 43017 -1090
Phone: 614 - 410 -4400 • Fax: 614 - 410 -4490
To: Members of Dublin City Counci
From: Dana L. McDaniel, City Mana
Date: September 3, 2015
Initiated By: Megan D. O'Callaghan, PE, Director of Public Works
Brian K. Ashford, Facilities Manager
Summary
Memo
Re: Resolution 68 -15 - Authorizing The City Manager To Enter Into a Contract With
And Execute A Guaranteed Maximum Price Amendment (GMP) With Elford Inc.,
Construction Manager at Risk, for Phase 2 of the Justice Center
Construction /Renovation Project.
On August 10, 2015, City Council approved Resolution 57 -15 authorizing the City Manager to enter
into a contract with and execute a Guaranteed Maximum Price amendment with Elford Inc., the
Construction Manager at Risk for the initial phase of construction of the Justice Center
Construction /Renovation Project ("Project'� in the amount of $2,191,093.00. The initial
construction phase included the site work, concrete, structural steel, some HVAC equipment, and
some administrative fees and contingencies for the building addition.
Resolution 68 -15 authorizes the City Manager to enter into a contract and execute a GMP
amendment with Elford, Inc., for the final phase, Phase 2, of construction of the Project. The final
construction phase includes architectural, mechanical, electrical, and plumbing work associated
with both the building addition and the renovation of the existing building. Elford, Inc. completed
its bidding process in late August and together with City staff and the City's Owner's
Representative identified the best value sub - contractors to complete Phase 2 of construction. The
agreement establishes the final phase GMP in the amount of $6,186,894.00.
The total GMP is $8,377,987 for all of the construction and renovation work associated with the
Project. Adding in other construction expenses, fees, and contingencies the total costs for the
project are just below the $10,640,000 budget.
Due to favorable bid results, Staff elected to include a few bid alternates such as the installation of
security gates to control access to the rear lot where the police cruisers and other emergency
vehicles are parked. Other alternates will update the lobby outside of the Court Room and add
visual displays to enhance training capabilities in the Court Room. The bid alternates are
scheduled at the latter portion of the construction and may be deleted in the event there are cost
overruns as construction progresses.
As outlined in the 2015 -2019 Capital Improvements Program, funding for this project will
ultimately come from the issuance of general obligation bonds, which is anticipated to occur in late
September. In the interim, Staff will advance funds from the General Fund in order to enter into
this construction agreement. The advance will then be repaid from the bond proceeds.
Memo re. Res. 68 -15 - GMP with Elford, Inc.- Phase 2 of the Justice Center Construction /Renovation Project
September 3, 2015
Page 2 of 2
Recommendation
Staff recommends approval of this resolution authorizing the City Manager to execute a
Construction Agreement with Elford, Inc. including a GMP for the final phase of construction of the
the Project. Please note that several information memorandums discussing the status of this
Project and the Construction Manager at Risk delivery model are attached for your reference.
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RECORD OF RESOLUTIONS
Dayton Legal Blank, Inc., Form No. 30045
57 -15
Resolution No.
Passed _
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
ENTER INTO A CONTRACT WITH AND EXECUTE A
GUARANTEED MAXIMUM PRICE AMENDMENT (GMP) WITH
ELFORD INC., CONSTRUCTION MANAGER AT RISK, FOR THE
JUSTICE CENTER CONSTRUCTION/ RENOVATION PROJECT
WHEREAS, the City of Dublin has selected Elford, Inc. as Construction Manager at
Risk for the Justice Center Construction /Renovation; and
WHEREAS, Elford, Inc. has completed the bidding process for the initial phases of
construction and, together with City staff and the City's construction consultant have
developed the Guaranteed Maximum Price for the initial phase of construction; and
WHEREAS, City Council has determined that the Guaranteed Maximum Price of
$2,191,093 is within the budget guidelines established for this project.
NOW, THER FORE, BE IT RESOLVED by the Council of the City of Dublin, State
of Ohio, of the elected members concurring, that:
Section 1. The Guaranteed Maximum Price negotiated between the City Manager
and Elford, Inc. in the amount of $2,191,093 is accepted for the Justice Center
Construction /Renovation Project.
Section 2. The City Manager is hereby authorized to enter into a construction
agreement with Elford, Inc. for said project.
Section 3. This Resolution shall take effect immediately upon passage in
accordance with Section 4.04(a) of the Revised Charter.
Passed this /oZUt day of _ 2015
J
yor - Presiding Officer
Attest:
a, d45(-��
Clerk of Council
Office of the City Manager
5200 Emerald Parkway • Dublin, OH 43017 -1090
City of Dublin Phone: 614 - 410 -4400 • Fax: 614 - 410 -4490
To: Members of Dublin City Council
From: Dana L. McDaniel, City Mana
Date: August 6, 2015
Initiated by: Brian Ashford, Facilities Manager
Megan O'Callaghan, Public Works Director
Summary
Memo
Re: Resolution 57 -15 Authorizing the City Manager to Enter into a Contract with
and Execute a Guaranteed Maximum Price Amendment (GMP) with Elford Inc.,
Construction Manager at Risk, for the Justice Center Construction/ Renovation
Project
Resolution 57 -15 authorizes the City Manager to execute a construction agreement with Elford,
Inc., the Construction Manager at Risk for the Justice Center Construction /Renovation Project.
The agreement establishes the first phase Guaranteed Maximum Price in the amount of
$2,191,093.00 which covers the initial construction phase for the building addition. This includes
the site work, concrete, structural steel, some HVAC equipment, and some administrative fees and
contingencies. Elford completed its bidding process in late July and, working with City staff and
our Owner's Representative, identified the best value sub - contractors to complete the first phase
of construction. The total GMP amount for this initial phase is approximately $200,000 under the
amount allocated for these items in the overall project budget. Approval of this initial GMP
amendment will enable ground breaking for the 18,000 square foot addition to begin within a
week and will enable construction of the project to remain on schedule.
An amendment to the Guaranteed Maximum Price covering the second construction phase
(architectural, mechanical, electrical and plumbing) associated with both the building addition and
the renovation of the existing building is anticipated to be presented to City Council within the next
month. Elford has issued bids for this second construction phase, and interest among potential
sub - contractors appears to be strong. City staff and our Owner's Representative will continue to
monitor Elford's bid process to identify the best value sub - contractors. As outlined in the attached
May 14, 2015 memorandum, the overall budget for the addition and renovation is $10,640,000,
and City staff will ensure that the full GMP amount is at or below budget.
As outlined in the 2015 — 2019 Capital Improvements Program, funding for this project will
ultimately come from the issuance of general obligation bonds, which is anticipated to occur in late
September. In the interim, Staff will advance funds from the General Fund in order to enter into
this construction agreement. The advance will then be repaid from the bond proceeds.
Recommendation
Staff recommends approval of Resolution 57 -15 authorizing the City Manager to execute a
Construction Agreement with Elford, Inc. including a Guaranteed Maximum Price for the first phase
of the Justice Center Construction /Renovation Project. Please note that several information
Memo re. Resolution 57 -15 - Contract and Execute a GMP with Elford Inc., Construction Manager at Risk,
for Justice Center Construction /Renovation Project
August 6, 2015
Page 2of2
memorandums discussing the status of this project and the Construction Manager at Risk model
are attached for your reference.
Attachments
Office of the City Manager
City of Dublin Phone Ernerald 61410 -4400y Fax:
614 -410 -4490 1090
Memo
To: Members of Dublin City Council
From: Dana L. McDaniel, City Man
Date: May 14, 2015
Re: Project and Budget Update - Justice Center Renovation /Expansion
Summary
As a follow -up to a December, 4, 2104 and an October 23, 2014 update provided to Council, the
following is a summary of the progress related to the Dublin Justice Center addition /renovation
project. Also included is a revised cost estimate and information related to the need for the City's
construction management company to pre-order two mechanical and one material component.
This project is programmed in the 2015 -2019 Capital Improvement Program (CIP) for final design
completion in 2015 and construction beginning in 2015 and running through 2016. Currently the
project is on schedule, with detailed design nearing completion and a construction start date
planned for early August. An allocation of $9,585,000 is included in the 2015 CIP for completion
of this project. As detailed below, a revised budget of $10,640,000 is now being anticipated.
Construction Manager at Risk Delivery Method
Due to the size and complexity of this project and the need for more dedicated construction
management, staff spent significant time reviewing the various project delivery methods available
under the Ohio Revised Code. After several meetings with the lead architect, the City's legal
counsel and a recommended local owner's representative, staff concluded that the "Construction
Manager at Risk" model (CMR) best met the needs and desired outcomes for this project. This is
the first time this construction method has been used by the City.
The Construction Manager at Risk method provides for selection of a construction manager
through an RFQ and RFP process. This CMR is then brought into the process during the schematic
design stage to work closely with the architect. During the construction document development
stage and prior to bidding, the CMR would provide a guaranteed maximum price (GMP) for
construction that is agreed upon with the City. The CMR then holds the contract for the project,
solicits bids from pre- qualified subcontractors and contracts with those subcontractors to build the
project. While the City would work closely with the CMR and review all subcontractor bids, the
City would not be responsible for bidding the project. In January, following an RFQ and RFP
process, staff selected Elford as the City's Construction Manager for this project.
In addition to hiring a Construction Manager, staff also contracted with an Owner's Representative.
An Owner's Representative serves as an extension of the owner's staff, providing on -site
representation to ensure that design and construction proceeds in accordance with contract
documents and is completed on time and within budget, protecting the owner's interest at all
times. Similar to the Construction Manager, the Owner's Representative is also brought into the
process during the design phase, allowing them to provide guidance throughout the lifecycle of the
project.
Memo re. Justice Center Renovation /Addition Update
May 14, 2015
Page 2 of 2
Staff worked closely with our construction management company, architectural firm and owner's
representative to develop revised cost estimates for the expansion and renovation of the Dublin
Justice Center. The total funding included in the 2015 CIP for this project was $9,585,000, which
is expected to be funded through the issuance of general obligation bonds. Initial revised
estimates showed the total project costs to be $2,053,000 above this originally budgeted amount.
Following a thorough team review of all components of the project, this budget increase was
reduced to $1,055,000. A portion of this cost is associated with the complete replacement of the
facility's HVAC system, which was originally not anticipated. This system is now more than 20
years old and would soon be due for replacement. A more efficient building system will be
installed as part of the renovation /addition, resulting in savings on utility costs.
An owner's contingency of $500,721 remains in place as part of the budget. Staff will continue to
work with the construction management team to pursue any additional possible cost reductions as
detailed design and sub - contractor bidding is undertaken.
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Elford, the City's Construction Management firm, has identified the need to pre-order the following
components in early June due to lead time and construction phasing needs:
Structural steel $325,000
Air handling unit $125,000
Chiller $135,000
These pre- orders will be identified in the City's pre - construction agreement that is in place with
Elford. Word will be responsible for purchasing the items and the City will then reimburse them
for these purchases.
Recommendation
For information only. In July, staff will bring forward to Council Elford's Guaranteed Maximum
Price (GMP) for approval by resolution. Construction is planned to begin the first week of August.
Should you have any questions regarding this memorandum, please contact Michelle Crandall at
614 - 410 -4403 (desk) or 614206 -4886 (mobile).
Office of the City Manager
5200 Emerald Parkway 9
City
7of Dublin Phone: 614 - 410 -4400 • Fax: 614- 410 -4490 1
To: Members of Dublin City Council
From: Marsha I. Grigsby, City Manager
Date: December 4, 2014
Initiated By: Michelle L. Crandall, Assistant City Manager
Summary
Memo
Re: Justice Center Addition /Renovation — Update on Construction Manager At Risk
Selection
As a follow -up to the October 23, 2014 memo, responses to the RFQ/RFP for Construction
Manager at Risk(CMR) are due today, December 41' and will be reviewed by a committee
consisting of representatives from the City's Administrative Services and Police Departments as
well as the architectural firm and the Owner's Representative, McCarthy Consulting, Inc. The
Owner's Representative will assist the City from the CMR selection process all the way through
design, construction and closeout for the Justice Center project. The Representative's duties will
include assisting with contract negotiations, conducting constructability reviews, evaluating bid
documents issued by the CMR for subcontracting work, and reviewing pay applications.
The RFQ/RFP committee will select a CMR by early January, and the design development process
will begin immediately. Once a final design has been completed and the guaranteed maximum
price has been determined, a detailed package will be submitted to City Council for its
consideration in late spring or early summer. The goal is for construction to begin by next fall.
Recommendation
For information only. If you have questions regarding this memorandum, please contact Michelle
Crandall at 614 - 410 -4400 (desk) or 614 -206 -4886 (mobile).
Attachment
Office of the uty Manager
5200 merald City of Dublin Phone: 614 -41P0 -4400 • Fax : 614- 410 -4490 43017-1090
To: Members of Dublin City Council
From: Marsha I. Grigsby, City ManagerrC,
Date: October 23, 2014
Initiated By: Michelle L. Crandall, Assistant City Manager
Memo
Re: Justice Center Addition /Renovation — Construction Manager at Risk Model
Summary
The Justice Center addition /renovation project is programmed in the 2015 -2019 Capital
Improvement Program (CIP) for final design completion in 2015, with construction beginning in
2015 and running through 2016. Total project cost is estimated at approximately $9,940,000.
Due to the size and complexity of this project and the need for more dedicated construction
management, staff has spent significant time reviewing the various project delivery methods
available under the Ohio Revised Code. After several meetings with the lead architect, the
City's legal counsel and a recommended local owner's representative, staff has concluded that
the "Construction Manager at Risk" model (CMR) best meets the needs and desired outcomes
for this project. This would be the first time this construction method has been used by the
City. Attached is a table showing the various delivery methods provided under state law, with a
brief description and advantages and disadvantage commonly associated with each.
Typically the City has used the "General Contracting" method whereby the project is designed,
bid and then built (also referred to as design- bid - build). Under this method, the company with
the lowest and best bid is awarded the contract and the City holds a single contract with that
general contractor. The construction management components of the project are then
managed jointly by the architectural firm and City staff working with the general contractor.
For smaller projects, this method has worked well.
The Construction Manager at Risk method provides for selection of a construction manager
through an RFQ and RFP process. This CMR is then brought into the process during the
schematic design and design development stages to work closely with the architect. During the
construction document development stage and prior to bidding, the CMR would provide a
guaranteed maximum price (GMP) for construction that is agreed upon with the City. The CMR
then holds the contract for the project, solicits bids from pre - qualified subcontractors and
contracts with those subcontractors to build the project. While the City would work closely with
the CMR and review all subcontractor bids, the City would not be responsible for bidding the
project.
Advantages to this method include the following:
• Construction Manager chosen based upon qualifications.
• Construction Manager has input on design due to being brought in during the design
phase, creating a collaborative design process between the CMR, architects and the City
staff.
Memo re: Justice Center — Construction Manager at Risk Model
October 23, 2014
Page 2 of 2
• Reliance on the architectural firm to provide construction management is reduced
signiflcantly.
• Reliance on the need for in -house construction management knowledge is addressed.
• Gain earlier and better knowledge of cost and schedule.
• Faster project delivery than traditional design- bid - build.
• More control selecting subcontractors.
Due to the fact that under this method Council would not be awarding a bid, staff would
provide updates to Council once a Construction Manager is selected through an RFQ and RFP
process and would bring forward a contract with the selected Construction Manager once a
guaranteed maximum price (GMP) for the project is established.
In addition to hiring a Construction Manager, staff would also hire an Owner's Representative.
Owners Representatives serve as an extension of the owner's staff, providing on -site
representation to ensure that construction proceeds in accordance with contract documents and
is completed on time and within budget, protecting the owner's interest at all times. Similar to
the Construction Manager, the Owner's Representative is also brought into the process during
the design phase, allowing them to provide guidance throughout the lifecycle of the project.
Typical costs for a Construction Manager are in the range of 3 -5% of the total construction
cost. This cost was assumed within the project budget included in the CIP. Typical costs for an
Owners Representative are in the range of 1 -1.5% of the total construction cost. This cost was
not assumed within the project budget; however, staff believes this cost can be covered within
the budgeted contingencies.
Recommendation
For information only. If you have questions regarding this memorandum, please contact
Michelle Crandall at 614 - 410 -4400 (desk) or 614-206 -4886 (mobile).
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Project Delivery Method
Comparison Guide
Description
Traditional approach in which the owner
hires an AJE to fully document the project
criteria and design prior to bidding. Nbdtiple
packages are separately bid and awarded to
the lowest responsive and responsible prime
contractors. The owner holds all prime
contracts and Is responsible for coordination
during corWructlon.
An owner's agent is hired through a
qualifications based selection
process during the design phase.
WW9 The owner's criteria and full design
Is documented by a separate AIE.
The CMA provides estimates during
V design, assists with bidding and
coordinates prime contractors during
construction. The owner bids and
holds all contracts for construction.
i A linear des4n4* -bu8d process In which
F= the owner selects an AIE to fully document
the project criteria and design prior to
bidding. The lowest responsive and
z responsible GC (single prime) is awarded
U the contract The owner holds a single
contract with the GC.
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A contractor Is hired through a best value
selection process during the design phase.
Y The owner's criteria and full design is
m documented by a separate AIE. The CMR
provides a guaranteed maximum price prior
to bidding. The CMR bids to prequalified
U subcontractors and holds all subcontracts
for construction.
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A single entity Is hired through a best value
selection process to deliver a complete
project The owner's criteria and design
Intent Is documented by a separate criteria
architect. The design Is completed by the
DS entity and a guaranteed maximum price
Is provided prior to bidding. The DS entity
bids to prequallfled subcontractors and
holds all subcontracts for construction.
Advantages
• Familiar delivery method
• Fully defined project scope
• Both designer and contractor
accountable to owner
• Creates most prime bidding
opportunities (lowest bonding)
• Lowest initial price
• Good for simple projects that
are not schedute-driven and
riot subject to change
• Fully defined project scope
• Supplements owner's staff
• Independent professional services &
expertise for owner
• Creates most prime bidding
opportunities (lowest bonding)
• Familiar delivery method
• Fully defined project scope
• Both designer and contractor
3srAtable to owner
• Simple procurement method
• Single contractor to manage
• Good for simple to moderately
complex projects that are not
schedule-driven
• Contractor input on design
• Selection of contractor based
qualifications and price
• Open -book GMP
• Faster project delivery than
traditional design4d -build
• Provides flexibility to handle changes
during design phase
• Good for large or complex
schedule-driven projects
• More control selecting subs
• Single point of responsibility
for design and construction
• Contractor selection based
on qualifications and price
• Fastest project delivery
OpwW)ook GMP
• No changes orders for design
errors and omtssbns
• Good for row construction
that Is time sensitive and not
subject to chwW
• Good for Was complex projects
• More control selecting sub's
Disadvantages
• Linear process means longer
schedule
• Limited control over contractor and
subcontractor selection
• No design or lost input from
contractor
• Ladc of flexibility for change
• Can be adversarial In nature
• Not good for complex projects that
are schedule-driven
• Adds level of bureaucracy
• Limited control over contractor and
subcontractor selection
• Owner still holds contracts for
construction
• Not sulted for small projects
• Drawbacks common to the
design - bid -build process
• sequential process means
longer schedule
• Limited control over contractor and
subcontractor selection
• No design or cost Input from
contractor
• Can be adversarial in nature
• Not good for complex projects that
are schedule-driven
• Bonding requirements
• Relationship changes during
design to construction phase
• Increased contingency for
assumption of risk
• Dncuft to determine if best price
has been achieved
• Bonding requirements
• Disputes If GMP scope not dear
• Owner has less control over selecting
designer
• Owner has less input in details
• Over emphasis on price may
compromise quality
• Difficult to determine If best price has
been achieved
• O� required to make quick
• Changes difflcrrlt & expensive
• Bonding requirements
• Disoutes If criteria not dear
Ohlo Construd/on Reform Rev. 04.23.12
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Project Delivery Method
Selection Diagram
Small PROJECT SIZE Large
Low PROJECT COMPLEXITY High
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Ohio Cons"dim Reform Rev. 04.23.12