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