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Item 4J Construction Phase Project Control Services for The Marq Southlake Champions Club & Bicentennial Park Phase 3 Southlake Tennis Center Item 4J Good evening Mayor and City Council. This item concerns a contract for control services for the construction of The Marq Southlake Champions Club and Bicentennial Park Phase 3 improvements, including the Southlake Tennis Center. 1 Requested Action Approve Contract for Construction Phase Project Control Services with Peak Program Value, LLC, for amount not to exceed $255,000 The Marq Southlake Champions Club Project Bicentennial Park Phase 3 Tennis Center City Council is being asked to approve a contract with Peak Program Value, LLC for Construction Phase Project Control Services related to construction of The Marq Southlake Champions Club project and the Bicentennial Park Phase 3 improvements, including the Southlake Tennis Center. Should the contract amount be listed? On March 24, 2016, staff authorized a contract for third party Pre-Construction Project Control Services with Peak Program Value (PPV) for The Marq Southlake Phase 2. 2 Peak Program Value LLC Originally contracted for third party Pre-Construction Project Control Services in March 2016 Pre-Construction Scope successfully completed Served as Project Controls Lead w/CMAR selection and validation process Assisted w/CMAR contract negotiations Provided detailed construction cost estimate and owner’s budget at each estimating phase Provided cash flow prediction Validated CMAR’s initial 20% and 50% CD construction cost estimates Validated subcontractor pre-qualifications, solicitation, bid analysis & award process Validated CMAR’s proposed Final GMP to ensure best value and service 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. 3 Why Peak Program Value? Detailed understanding for CMAR’s GMP Good grasp of CMAR’s extensive cost & schedule control responsibilities within contract They know market value of concrete, glass, steel, etc. Experts at validating scope and “reasonably inferable” requirements of change orders State of the art budget tracking allows for real time reporting 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. It is staff’s recommendation to retain the services of PPV throughout the construction phase of the project. The packet memo enumerates PPV’s numerous abilities and qualities that make them the right choice for the project.   - 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. - Most importantly, with a PPV team member in every meeting, change order prevention (rather than just change order negotiation) becomes a priority.   4 PPV SCOPE The Marq Southlake Champions Club Project Project Control Services Project Controls & Information Management Systems Assessment / Web Based Financials Tracking Ongoing Project Controls Validation Bicentennial Park Phase 3 – STC Project Project Control Services Pre-Construction Services for Building & Enclosed Courts Ongoing Project Controls Validation Also….. 5 The Marq Phase 2 Project Controls/Info Management/Financials $12,865 Review existing processes and tools for tracking budgets against: commitments, proposed change orders, contract changes, contingency use logs, and payment vs budget Ensure project reporting and documentation is maintained to industry standards Implement web-enabled financial system for real-time data Also….. 6 Ongoing Project Controls Validation $160,920 (18 Months @ $8,940/month) Project Exec attends 1 OAC/month & Asst PM attends weekly Review project status, weekly OAC minutes and status logs Report on & provide solutions to current project challenges Mitigate future project risks Review Pay Apps for compliance with industry standards; schedule vs amount billed; appropriateness of contingency reallocations Maintain and update project budget tracking system Train City staff on web-enabled access to real-time data Publish monthly reports (exec summary and detailed back-up) Budgets against commitments Proposed change orders Pending commitments Contract changes Contingency use log Payments vs budget Also….. 7 Review and validate CMAR’s proposed change requests Validate project closeout and turnover procedures are followed, punch list created, and addressed per contract requirements Reimbursable Expenses $16,200 Return Also….. 8 Bicentennial Park Phase 3 STC Project Preconstruction Services (Building & Enclosed Courts) $22,475 Provide schedule and cost control services Prepare RFQ and RFQ for CMAR services; analyze & validate submittals rec’d; negotiate CMAR agreement; value engineering Prepare and update a final independent cost estimate to validate CMAR’s GMP Validate updated project schedule Assist CMAR with subcontractor procurement process, packaging alternates and other owner-friendly approached during bid solicitation process Provide technical assistance with bid analysis and award recommendation Also….. 9 Ongoing Project Controls Validation $32,220 (12 Months @ $2,685/month) Same as Marq Phase 2 Reimbursable Expenses $7,920 Return Also….. 10 THE MARQ SOUTHLAKE CHAMPIONS CLUB PROJECT $37,400,000 approved in FY 2017 CEDC CIP Contract for Construction Phase Project Control Services for Champions Club $189,985 (0.5% overall budget) Project within budget Financial Considerations 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. 11 BICENTENNIAL PARK PHASE 3 SOUTHLAKE TENNIS CENTER PROJECT $7,002,000 approved in FY 2017 SPDC CIP Contract for Construction Phase Project Control Services for Southlake Tennis Center $62,615 (0.7% of overall budget) Project within budget Financial Considerations Funding in the amount of $7,002,000 is approved in the FY 2017 SPDC CIP. The proposed contract fee for third party Construction Phase Project Control Services for Bicentennial Park Phase 3 improvements, including Southlake Tennis Center is $____________ (0.)% of the overall budget). 12 Project Timelines Early 2018 Anticipated STC Opening Summer 2018 Anticipated Champions Club Opening Update? 13 City of Southlake Strategy Map The City of Southlake provides municipal services that support the highest quality of life for our residents, businesses, and visitors. We do this by being an exemplary model of balancing efficiency, fiscal responsibility, transparency, and sustainability. C1 Achieve the highest standards of safety & security C2 Provide travel convenience within City & region C3 Provide attractive & unique spaces for enjoyment of personal interests C4 Attract & keep top-tier businesses to drive a dynamic & sustainable economic environment C5 Promote opportunities for partnerships & volunteer involvement Serve our Customers Manage the Business B1 Achieve best-in-class status in all City disciplines B2 Collaborate with select partners to implement service solutions B3 Enhance resident quality of life & business vitality through tourism B4 Provide high quality services through sustainable business practices B5 Enhance service delivery through continual process improvement B6 Optimize use of technology Provide Financial Stewardship Promote Learning and Growth F1 Adhere to financial management principles & budget F2 Invest to provide & maintain high quality public assets F3 Achieve fiscal wellness standards F4 Establish & maintain effective internal controls L1 Ensure our people understand the strategy & how they contribute to it L2 Enhance leadership capabilities to deliver results L3 Attract, develop & retain a skilled workforce L4 Recognize & reward high performers L5 Empower informed decision-making at all levels in the organization C6 Enhance the sense of community by providing excellent customer service and citizen engagement opportunities L6 Foster positive employee engagement Deliver on Our Focus Areas Approval of the contract for Construction Phase Project Control Services with Program Peak Value 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. 14 Board / Citizen Review Jan 24, 2017 CEDC recommended (6-0) approval of agreement for Champions Club Feb 7, 2017 SPDC consideration of agreement for Bic Park Phase 3, Tennis Center Feb 7, 2017 CC consideration   Board Review: CEDC recommended approval of PPV Agr for Champ Club January 24, 2017 SPDC recommendation on PPV Agr for Bic Park Ph 3, Tennis Center Feb 7, 2017 City Council consideration February 7, 2017   Legal Review: City Attorney to review the contract. 15 Questions? This concludes the presentation. Please contact me at 817.748.8021 if any questions. 16