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Item 6E M E M O R A N D U M May 15, 2012 To: Shana Yelverton, City Manager From: Jim C. Blagg, Assistant City Manager/Director of Public Safety Subject: Item 6E: Approve Guaranteed Maximum Price with Lee Lewis Construction in the amount of $13,315,693 for the DPS North Training Facility Action Requested: Approve Guaranteed Maximum Price with Lee Lewis Construction in the amount of $13,315,693 for the DPS North Training Facility Background Information: 2005 – The Matrix Study recommends that DPS North be constructed on the land near Dove and White Chapel. November 11, 2008 – Robert Garza is selected as the architect for the project. February 3, 2009 – City Council authorizes the City Manager to hire a Construction Manager at Risk. April 14, 2009 – Crime Control and Prevention District Board approves Lee Lewis Construction. November 9, 2009 - A SPIN Meeting is held regarding the DPS North project. January 7, 2010 – Planning and Zoning Commission approves a zoning change and site plan for the DPS North site plan. June 15, 2010 – City Council approves a zoning change and site plan for the DPS North project. May 2, 2012 – Bids were opened and guaranteed maximum price (GMP) established. The City Council adopted Resolution No. 09-004 that delegates to the City Manager the authority to determine the construction method that is the best value for the City. The Construction Manager at Risk (CMR) was chosen for this 6E - 1 City Council Meeting Meeting Date – May 15, 2012 Page 2 of 3 project to obtain the highest level of quality and efficiency. The CMR approach entails hiring a construction management firm that acts as a project consultant and general contractor. The construction management firm is bound to an agreed guaranteed maximum price (GMP) that is determined from actual advertised bids received. The CMR is paid based on a percentage of the cost of the work. The CMR can also bid to self perform a portion of the work. The CMR approach gives the owner opportunity, before the GMP is established, to make adjustments in scope and value engineer if the bidding numbers appear to exceed the established budget. Overall, the CMR approach, because of its flexibility, ensures better cost control and quality. Financial Consideration: If approved, Item 7A will amend the total CCPD CIP project budget for the DPS North Training Facility to $15,725,000. Based on the bids received for the current scope of work, the total construction GMP cost is $13,315,693. The GMP does not include the Training Tower. The amended CCPD CIP allocates a total of $15,725,000 in total funding for this project. $5,968,000 in funding was allocated prior to the current fiscal year, $4,000,000 will be allocated in FY 2012, and $5,757,000 will be allocated in FY 2013. Strategic Link: This item is linked to the City’s Strategy Map related to the focus area of Safety and Security and meets the corporate objectives to Achieve the Highest Standards of Safety and Security, Achieve Best in Class Status in all City Disciplines, Invest to Provide High quality public assets, Provide High Quality Customer Service, and Improve performance of delivery and operational processes. Citizen Input/ Board Review: Several public meetings have been held since 2005 including: SPIN Meeting  CCPD Meetings  Planning & Zoning Meeting  City Council Meetings  CCPD approved item 5-0 at May 8, 2012 meeting. 6E - 2 City Council Meeting Meeting Date – May 15, 2012 Page 3 of 3 Legal Review: N/A Alternatives: Alternatives may include: Approve Guaranteed Maximum Price amendment with  Lee Lewis Construction as presented Approve Guaranteed Maximum Price amendment with  Lee Lewis Construction with input as desired Not approve Guaranteed Maximum Price amendment.  Supporting Documents: AIA Document A133 – 2009 Exhibit A Amendment  Staff Recommendation: Approve Guaranteed Maximum Price with Lee Lewis Construction in the amount of $13,315,693 for the DPS North Training Facility 6E - 3