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File #: 25-0238   
Type: Ordinance-S Status: Adopted
Meeting Body: City Council Formal Meeting
On agenda: 5/21/2025 Final action: 5/21/2025
Title: Val Vista Water Treatment Plant Reservoir 3 (1-ES5-3) Rehabilitation - Construction Manager at Risk Services - WS85050019 (Ordinance S-51899) - Out of City
District: Out of City

Title

Val Vista Water Treatment Plant Reservoir 3 (1-ES5-3) Rehabilitation - Construction Manager at Risk Services - WS85050019 (Ordinance S-51899) - Out of City

 

Description

Request to authorize the City Manager, or his designee, to enter into an agreement with Sundt Construction, Inc. to provide Construction Manager at Risk Preconstruction and Construction Services for the Val Vista Water Treatment Plant Reservoir 3 (1-ES5-3) Rehabilitation project. Further request to authorize execution of amendments to the agreement as necessary within the Council-approved expenditure authority as provided below, and for the City Controller to disburse all funds related to this item. The fee for services will not exceed $25,350,000.

 

Report

Summary

The purpose of this project is to rehabilitate Reservoir 3 at Val Vista Water Treatment Plant. The reservoir is a 40 million gallon concrete potable water reservoir with hopper-style side slopes and metal roof. The protective interior liner and the roof have reached the end of their operation lifespan and need to be replaced, and the reservoir requires major rehabilitation with improvements as a result.

 

Sundt Construction, Inc. will begin in an agency support role for Construction Manager at Risk Preconstruction Services. Sundt Construction, Inc. will assume the risk of delivering the project through a Guaranteed Maximum Price agreement.

 

Sundt Construction, Inc.'s Preconstruction Services include, but are not limited to: provide detailed cost estimating and knowledge of market place conditions, assist in the permitting process, advise City on choosing green building materials, provide long-lead procurement studies and initiate procurement of long-lead items and participating with the City in a process to establish a Small Business Enterprise (SBE) goal for the project.

 

Sundt Construction, Inc.'s initial Construction Services will include preparation of a Guaranteed Maximum Price proposal provided under the agreement. Sundt Construction, Inc. will be responsible for construction means and methods related to the project and fulfilling the SBE program requirements. Sundt Construction, Inc. will be required to solicit bids from prequalified subcontractors and to perform the work using the City’s subcontractor selection process. Sundt Construction, Inc. may also compete to self-perform limited amounts of work.

 

Sundt Construction Inc.’s additional Construction Services include maintaining a safe work site for all project participants, provide quality controls, arrange for procurement of materials and equipment, deal with City issues, schedule and manage site operations and coordinate with various City of Phoenix departments, other agencies and utility companies.

 

Procurement Information

The selection was made using a qualifications-based selection process set forth in Section 34-603 of the Arizona Revised Statutes (A.R.S.). In accordance with A.R.S. Section 34-603(H), the City may not publicly release information on proposals received or the scoring results until an agreement is awarded. Three firms submitted proposals and are listed below.

 

Selected Firm

Rank 1: Sundt Construction, Inc.

 

Additional Proposers

Rank 2: MGC Contractors, Inc.

Rank 3: Hensel Phelps Construction, Co.

 

Contract Term

The term of the agreement is five years from issuance of the Notice to Proceed. Work scope identified and incorporated into the agreement prior to the end of the term may be agreed to by the parties, and work may extend past the termination of the agreement. No additional changes may be executed after the end of the term.

 

Financial Impact

The agreement value for Sundt Construction, Inc. will not exceed $25,350,000, including all subcontractor and reimbursable costs.

 

Funding is available in the Water Services Department's Capital Improvement Program budget. The Budget and Research Department will separately review and approve funding availability prior to execution of any amendments. Payments may be made up to agreement limits for all rendered agreement services, which may extend past the agreement termination.

 

Location

Council District: Out of City

 

Department

Responsible Department

This item is submitted by Assistant City Manager Inger Erickson, Deputy City Manager Ginger Spencer, the City Engineer and the Water Services Department.