PRESENTER: Presenter
Scott McClelland, Assistant Transportation and Capital Improvements Director
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SUBJECT: Title
Discuss and consider approval of a contract amendment establishing the Guaranteed Maximum Price with T.F. Harper & Associates, LP for the Mission Hill Park Phase 2 Project, and approval of a contract for construction materials testing with Raba Kistner Consultants, Inc.
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DEPARTMENT: Transportation and Capital Improvements
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COUNCIL DISTRICTS IMPACTED: 3
BACKGROUND INFORMATION:
Voters approved the Mission Hill Park Phase 2 Project as part of the 2023 Bond Program. City Council approved the Design Build delivery method for the project on June 26, 2023. T.F. Harper & Associates, LP (T.F. Harper) was approved by City Council as the Design Builder on January 22, 2024, and established the pre-construction phase fee of $957,500.
Similar to a Construction Manager at Risk delivery method, the construction portion of the Design Build contract is delivered utilizing a Guaranteed Maximum Price (GMP). The GMP sets the maximum construction cost of the project package and places the risk associated with bidding the project on the Design Builder. T.F. Harper has begun the process of soliciting bids from subcontractors for the work. When the bids are received the construction price is reviewed and accepted by the City. If the bids received are higher than the GMP, the contractor is responsible for the overage. If the bids received are lower than the GMP the savings are split between the City and T.F. Harper at an 80% / 20% split.
T.F. Harper has submitted a GMP in the amount of $8,582,500. This falls in line with the overall Design Build budget which was $10,600,000. The Design Build budget included an Owner Controlled Contingency of $1,060,000, which staff is also requesting to be approved within the contract award. Below is a summary of the Design Build Budget:
Design Build Budget: $10,600,000
Preconstruction Phase Fee: $957,500
Guaranteed Maximum Price: $8,582.500
Owner Controlled Contingency: $1,060,000
Raba Kistner Consultants, Inc. will provide construction materials testing for the project. Raba Kistner, Inc. submitted an hourly not to exceed cost of $63,477 for this work.
ISSUE:
Continue an ongoing program of infrastructure, construction, and maintenance.
STRATEGIC PLAN REFERENCE:
☐Economic Mobility ☐Enhanced Connectivity ☒Community Identity
☐Organizational Excellence ☒Community Well-Being ☐N/A
FISCAL IMPACT:
Funding for the Mission Hill Park Phase 2 Project was allocated in the 2023 Bond Program, Proposition B; therefore, sufficient funds are available. The Raba Kistner construction materials testing contract will be paid from available bond project funds established outside of the Design Build Budget.
Recommendation
RECOMMENDATION:
Authorization for the City Manager to execute a Guaranteed Maximum Price Amendment with T.F. Harper & Associates, LP for the Mission Hill Park Phase 2 Project and approval of a contract for construction materials testing with Raba Kistner Consultants, Inc.