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Item 4HM E M O R A N D U M To: Honorable Mayor and Members of the City Council From: Jim C. Blagg, Assistant City Manager/Director of Public Safety Subject: Approve Resolution No. 09-004 authorizing the selection of the construction manager at risk method of delivery for construction of the DPS North Training facility. Action Requested: Approve Resolution No. 09-004 authorizing the selection of the construction manager at risk method of delivery for construction of the DPS North Training facility. Background Information: The Local Government Code Section 273.113 sets forth procurement requirements for the construction of facilities and provides for a number of methods that a local government can chose for that construction. Along with competitive bidding, other choices include; competitive sealed proposals, design- build contract, construction manager or a job order for small repairs. Section 271.114 (a) requires the “governing body . . . considering a construction contract other than competitive bidding must, before advertising, determine which method provides the best value for the governmental entity. The governing body may, as appropriate, delegate its authority under this section to a designated representative.” The attached resolution provides for the selection of the construction manager at risk as the best value method for the construction of the DPS North Training Facility. The City is currently using the construction manager at risk method at the DPS Headquarters and it has proven to be very beneficial to the City. It allows the City to choose the construction manager at risk before the design stage is complete. The construction manager at risk is chosen based on qualifications, and then the entire operation is centralized under a single contract. The architect and construction manager at risk work together in order to cultivate and assay the design. Then, the construction manager at risk gives the Citya guaranteed maximum price, and coordinates all subcontract work. Cost savings can be realized in a number of ways. By hiring the construction manager at risk during the design phase, early coordination is possible, which can potentially increase the speed of the project and strengthen coordination between the architect and the construction manager at risk. Since the City hires the construction manager based on qualifications, it ensures a construction manager with a strong allegiance to the City, because their business relies on references and repeat work. Finally, transparency is enhanced, because all costs and fees are in the open, which diminishes adversarial relationships between components working on the project, while at the same time eliminating bid shopping. The specific benefits of construction manager at risk versus other delivery methods are: 1. Provides construction management services for a project throughout the preconstruction and construction phases. These services may include preparation and coordination of bid packages, scheduling, cost control, value engineering, evaluation, other preconstruction services and construction administration. 2. Is a licensed general contractor. 3. Guarantees the cost of the project. (Guaranteed maximum price or G.M.P.) 4. Construction manager at risk shall contract directly with City for all construction 5. Construction manager at risk may self-perform a portion of the work only if: A. Bidding produces no responsible, responsive bidder for that portion of the work, or B. Subcontractor defaults and a pre-qualified replacement cannot be obtained in a timely manner, and; C. City approves of the construction manager at risk performance of the work D. All bids shall be opened publicly and, once opened, become public record E. construction manager at risk shall act as the fiduciary of the City in handling and opening bids The next steps in the process are as follows: st 1.1published advertisement of RFP February 07, 2009 (Saturday) 2.RFP Release February 10, 2009 (Tuesday) nd 3.2published advertisement of RFP February 14, 2009 (Saturday) 4.Pre-Submittal Conference February 17, 2009 (Tuesday) 5.RFP Submittal Deadline March 02, 2009 (Monday, 3:00 pm) 6.RFP OPENING DATE March 04 2009 (Wednesday) 7.Notification of Short-List March 10, 2009 (Tuesday) 8.Short-List Interviews, Final Selection March 13, 2009 (Friday) 9.Notify Finalist March 17, 2009 (Tuesday) 10.CCPDB Review/Approval of Selection Committee Recommendation 11.and CMA Contract April 14, 2009 (Tuesday) 12.City Council Review/Approval of CMA and Contract May 05, 2009 (Tuesday) 13.It is anticipated that the project will begin with construction activities in the year late 2009/early 2010. Financial Considerations: Funds for this contract are provided for in the Crime Control and Prevention District capital improvement program Strategic Link: This item is aligned with our Focus Areas of Quality Development and Safety and Security. This facility allows the City to meet the Strategic Corporate Objectives of Invest to Provide and Maintain High Quality Public Assets and Implement and Share Best Practices Across All Departments. Citizen Input/ Board Review: Southlake Crime Control and Prevention District Board gave staff direction to begin the process at its January 13, 2009 regular meeting. Legal Review: The resolution was prepared by our City Attorney’s office Alternatives: The City Council can select one of the other methods for construction delivery provided for by state statute and as outlined above. Supporting Documents: Resolution No. 09-004 Staff Recommendation: Approve Resolution No. 09-004 authorizing the selection of the construction manager at risk method of delivery for construction of the DPS North Training facility. RESOLUTION NO. 09-004 A RESOLUTION AUTHORIZING THE SELECTION OF THE CONSTRUCTION MANAGER AT RISK METHOD OF DELIVERY FOR CONSTRUCTION OF THE DEPARTMENT OF PUBLIC SAFETY NORTH FACILITY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Southlake, Texas is a home rule city acting under its charter adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution and Chapter 9 of the Local Government Code; and WHEREAS, the Local Government Code section 271.114 requires that, in order to select a facility construction delivery method other than competitive bidding, before advertising, the governing body of a city is required to determine which delivery method under Local Government Code section 271.113(a) provides the best value to the City and may, as appropriate, delegate its authority to a designated representative to make that determination; and WHEREAS, the City Council has deliberated on the construction delivery options available for the Department of Public Safety North Facility and has determined that the construction manager at risk method provides the best value to the City; and, WHEREAS, the City Council finds thatfor future facility construction projects for the City of Southlake, it will promote efficiency for the City Manager to determine the construction delivery method permitted under Local Government Code Chapter 271, Subchapter H, that provides the best value to the City for each such project and that the City Council should delegate that authority to the City Manager as permitted. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS: SECTION 1. The City of Southlake does hereby find that the construction manager at risk delivery method provides the best value for the City in the construction of the Department of Public Safety North Facility and does hereby designate the construction manager at risk method for the construction of that facility. SECTION 2. The City Council of the City of Southlake does hereby delegate to the City Manager the authority to determine, for future facility construction projects, the construction delivery method that provides the best value to the City, as permitted by Local Government Code Chapter 271, Subchapter H. SECTION 3. This resolution shall be effective immediately upon its adoption by the City Council. PASSED, APPROVED, AND EFFECTIVE ON THIS THE _______ DAY OF __________________, 2009. ______________________________________ THE HONORABLE ANDY WAMBSGANSS MAYOR, CITY OF SOUTHLAKE ATTEST: ___________________________________ LORI FARWELL, CITY SECRETARY EFFECTIVE DATE:_______________________________