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Item 4J CITY OF SOUTHLAKE 4J _ 1 MEMORANDUM January 31 , 2017 To: Shana Yelverton, City Manager From: Chris Tribble, Director of Community Services Subject: Approve an agreement with Peak Program Value, LLC for Construction Phase Project Control Services related to The Marq Southlake Champions Club project and the Bicentennial Park Phase 3 Southlake Tennis Center project for an amount not to exceed $255,000 Action Requested: City Council approve an agreement with Peak Program Value, LLC for Construction Phase Project Control Services for The Marq Southlake Champions Club project and for the Bicentennial Park Phase 3 Southlake Tennis Center project. Background Information: On March 24, 2016, staff authorized a contract for third party Pre-Construction Project Control Services with Peak Program Value (PPV). PPV has successfully assisted with the selection of and contract negotiations with Haydon Building Corp (HBC) as Construction Manager at Risk on both projects. PPV has provided construct cost estimating services, provided cost control services, and has continually validated HBC's construction cost estimates, subcontractor prequalifications, bid analysis, and proposed guaranteed maximum price to ensure the best value and service is received for the City and its residents. The basic services included within the original contract have been completed and are as follows: Basic Services — Preconstruction (COMPLETE) A. CMAR Procurement Process B. Prepare Detailed Construction Cost Estimate at 20% Construction Documents City of Southlake Values.- Integrity alues.Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Shana Yelverton, City Manager Meeting Date — February 7, 2017 4J - 2 Page 2 of 4 C. Provide an Owner's Budget and update at each Estimating Phase D. Provide Cash Flow Prediction E. Serve as Project Controls Lead with CMAR Selection & Validation Process F. Validate Selected CMAR's Initial Construction Cost Estimate G. Validate Subcontractor Pre-qualifications, Solicitation, Bid Analysis & Award Process H. Validate CMAR's 50% Construction Documents Cost Estimate I. Validate the CMAR's Proposed Final Guaranteed Maximum Price (GMP) Having PPV as a third party consultant, looking out for the City's best interests, will continue to prove very beneficial and provide great value to the City as we move through construction of both projects. It is staff's recommendation to retain the services of PPV throughout the construction phase of the projects. • PPV has a very detailed understanding of the CMAR's guaranteed maximum price, including the allowances, contingencies, and subcontractor scope included & excluded. • PPV has a good grasp of the CMAR's extensive cost & schedule control responsibilities in their contract with the City. • As PPV is actively receiving current unit cost pricing from many other CMARS/subcontractors on other projects in DFW, they know today's market value of concrete, glass, steel, etc. • PPV's estimating resources are experts at validating the scope and "reasonably inferable" requirements of change orders. • PPV's state of the art budget tracking extranet allows us the ability to track and quickly predict the cost at project completion, as well as share this info in real time. City of Southlake Values.- Integrity alues.Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Shana Yelverton, City Manager Meeting Date — February 7, 2017 4J - 3 Page 3 of 4 • Most importantly, with a PPV team member in every meeting, change order prevention (rather than just change order negotiation) becomes a priority. Financial Consideration: The Marq Southlake Champions Club Project Funding in the amount of $37,400,000 is approved in the FY 2017 CEDC CIP. The proposed contract fee for third party Construction Phase Project Control Services for The Marq Southlake Champions Club project is $189,985 (0.5% of the overall budget). The project remains within budget and on track for a June 2018 grand opening. Bicentennial Park Phase 3 Southlake Tennis Center Project Funding in the amount of $7,002,000 is currently available in the FY 2017 SPDC CIP for the Bicentennial Park Phase 3 Improvements which includes the Southlake Tennis Center improvements. An additional $1,800,000 is planned within the current FY 2017 SPDC CIP for FY 2018 to complete the final improvements to the park. The proposed contract fee for third party Construction Phase Project Control Services for Bicentennial Park Phase 3 — Southlake Tennis Center project is $62,615 (0.7% of the overall budget). The total contract fee for third party Construction Phase Project Control Services for both projects is $252,600. Strategic Link: This item is linked to the City's Strategy Map related to the focus areas of Infrastructure and Quality Development and meets the corporate objectives to Invest to Provide and Maintain High Quality Public Assets, and to Adhere to Financial Management Principles & Budget. Citizen Input/ Board Review: Community Enhancement Development Corporation (CEDC) recommended approval of the proposed agreement with PPV for third-party construction control services of the Champions Club project on January 24, 2017. City of Southlake Values.- Integrity alues.Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Shana Yelverton, City Manager Meeting Date — February 7, 2017 4J - 4 Page 4 of 4 Southlake Parks Development Corporation (SPDC) will consider approval of the proposed Agreement with PPV for third-party construction control services of Bicentennial Park Phase 3 Southlake Tennis Center project at their February 7, 2017 meeting. City Council will consider the proposed agreement with PPV for third-party construction control services for the Champions Club project and the Southlake Tennis Center project on February 7, 2017. Legal Review: City Attorney to review the contract. Alternatives: N/A Supporting Documents: ■ Copy of Proposal from PPV for The Marq Southlake Champions Club project ■ Copy of Proposal from PPV for Bicentennial Park Phase 3 Southlake Tennis Center project Staff Recommendation: City Council approval of an agreement with Peak Program Value, LLC for Construction Phase Project Control Services related to The Marq Southlake Champions Club project and to the Bicentennial Park Phase 3 Southlake Tennis Center project for an amount not to exceed $255,000 City of Southlake Values.- Integrity alues.Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork &A 4J - 5 Peak Program Value, LLC - 4450 Arapahoe - Suite 100 - Boulder CO - 80303 - 303.503.1155 Additional Services Authorization (ASA) 02 Project Name: The Marq Southlake — Champions Club Date: 04 JAN 2017 Client: City of Southlake, TX Contact Person: Chris Tribble Distribution: Chris Tribble, Peter Kao, Kate Meacham, Steve Blackburn Authorization Requested not later than: 18 JAN 2017 The Additional Services requested by Peak Program Value, LLC (PPV) are as follows: Additional Services Description Total I. ASA # 02 — Project Control Services A. Project Controls & Information Mangement Systems Assessment $ 12,865 Review existing processes and tools now in use for tracking budgets against commitments; proposed change orders; pending commitments; contract changes; contingency use log(s) and payments vs. budget. Review current project reporting, information management processes; confirm project documentation is being maintained to standards of the industry. Meet with the team to discuss opportunities for improvement, tools & next steps that may be helpful to improve processes and results. B. Ongoing Project Controls Validation: 01 JAN 2017 > 30 JUN 2018 160 920 (Assumes 18 Months @ 8,940/Month) Project Executive attends one meeting per month; Assistant PM attends four meetings per month; Review project status & interview team members; read weekly meeting minutes&status logs. Report to owner&architect monthly on solutions to current project challenges, solutions & mitigating future project risks. Review Applications for Payment monthly for compliance with standards of the industry; schedule vs. amount billed; and appropriateness of contingency reallocations. Additional Services Authorization 02 Page 2 of 2 4J - 6 Maintain and update project budget tracking system; train City staff on web-enabled access to real-time data. Publish monthly reports (both executive summary & detailed backup) showing budgets against commitments; proposed change orders; pending commitments; contract changes; contingency use log(s) and payments vs. budget. Review and validate CMAR's proposed change requests up to 5.0% of the CMAR's initial contract value. Validate project closeout and turnover procedures are followed; punchlist created and addressed per the contract requirements. This level of effort does not include providing services after 30 JUN 2018; project quality control/quality assurance monitoring & follow- up; FF&E procurement, budgeting; or management; or evaluating proposed change requests in excess of 5.0% of the CMAR's initial contract value. These additional services are available on an hourly basis as mutually agreed on in advance and in writing. Additional Reimbursable Expenses for Above Services 167200 Total this Additional Services Authorization this Request $ 189,985 If you have any questions or comments about the above Additional Services or their associated Reimbursables, please feel free to email or call me at 303.503.1155. To authorize the above services, sign below. These services will be provided under the terms of PPV's existing Agreement with the client. Thank you for this opportunity to be of further service to your organization and this project. BY: DATE: 04 JAN 2017 Chris Squadra PPV BY: DATE: Chris Tribble, Director of Parks & Recreation &A 4J - 7 Peak Program Value, LLC - 4450 Arapahoe - Suite 100 - Boulder CO - 80303 - 303.503.1155 Additional Services Authorization (ASA) 03 Project Name: The Tennis Club Development Date: 04 JAN 2017 Client: City of Southlake, TX Contact Person: Chris Tribble Distribution: Chris Tribble, Peter Kao, Kate Meacham, Steve Blackburn Authorization Requested not later than: 18 JAN 2017 The Additional Services requested by Peak Program Value, LLC (PPV) are as follows: Additional Services Description Total I. ASA # 03 — Project Control Services A. Preconstruction Services for the Tennis Center & Indoor Courts $ 22,475 Provide schedule and cost control services to facilitate the team's meeting the project's budget and completion targets. These activities include working with City Staff to prepare an RFQ and RFP for CMARs, analyze and validate the submittals received; negotiate an Owner-CMAR agreement, including all validation of all exhibits & amendments, and assist with value engineering. In addition, the services include preparation of and updating a final independent cost estimate for this scope of work, and using it to validate the CMAR's GMP, as well as their proposed General Conditions and fee for this phase. Coordinate with the project team to increase effectiveness and get better results during preconstruction process. Work with the CMAR to validate updated project schedule, including impacts of the additional work on "long lead" procurement requirements, major construction milestones, and owner start-up and move-in tasks and their critical drivers. Assist the CMAR with the subcontractor procurement process, packaging the alternates, and other "owner-friendly" approaches during the bid solicitation process. Provide technical assistance with bid analysis and award recommendation during procurement period, as well as suggestions for opportunities for improvement in subcontractor negotiations. Additional Services Authorization 02 Page 2 of 2 4J - 8 B. Ongoing Project Controls Validation: 01 FEB 2017 > 31 JAN 2017 32,220 (Assumes 12 Months @ $ 2,685/Month) Additional level of effort above (and same services as) the currently proposed The Marq Phase 2 Project Controls Validation Services in PPV's ASA# 02. Additional Reimbursable Expenses for Above Services 7,920 Total this Additional Services Authorization this Request $ 62,615 If you have any questions or comments about the above Additional Services or their associated Reimbursables, please feel free to email or call me at 303.503.1155. To authorize the above services, sign below. These services will be provided under the terms of PPV's existing Agreement with the client. Thank you for this opportunity to be of further service to your organization and this project. BY: DATE: 04 JAN 2017 Chris Squadra PPV BY: DATE: Chris Tribble, Director of Parks & Recreation