Title
Verde Water Treatment Plant Facilities Demolition and Site Restoration Construction Manager at Risk Construction Phase Services Amendment 1 - WS85200010 (Ordinance S-43437)
Description
Request to authorize the City Manager, or his designee, to execute Amendment 1 to Contract 140324 with Hunter Contracting Company (Gilbert, Ariz.) to increase the contract value by $15,000,000 to provide Construction Manager at Risk (CMAR) Construction Phase Services in support of the Verde Water Treatment Plant (WTP) Demolition and Site Restoration project. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The Verde WTP was removed from the City's water distribution system in December 2011. The site consists of approximately 27 acres with buildings, concrete basins, and storage areas. The buildings are surrounded by concrete and asphalt roads. Parking areas and gravel-landscaped areas are found throughout the site and along the perimeter boundary.
Hunter Contracting Company (Hunter Contracting) will demolish and remove the entire Verde WTP facilities including all structures, tanks, pavement, buildings, and piping on the site premises as well as demolish and remove identified above-ground structures and appurtenances in the Verde 48-inch/60-inch transmission line. After demolition is complete, Hunter Contracting will grade, landscape, and hydroseed the WTP to match similar conditions that existed prior to construction.
The CMAR will assume the risk of delivering the project through a Guaranteed Maximum Price (GMP) contract. The CMAR will be responsible for construction means and methods, participation with the City in the process to establish goals for local and SBE participation, and implementation of the local and SBE selection process. The CMAR will also be required to solicit bids from pre-qualified subcontractors to perform the work using the City's subcontractor selection process. The CMAR may also compete to self-perform limited amounts of work.
Procurement Information
Hunter Contracting was chosen for this project using a qualifications-based selection process according to Section 34-603 of the Arizona Revised Statutes (ARS). Scoring and selection were made in conjunction with the CMAR Design Phase Services procurement process.
Contract 140324 was initially executed in March 2016 for Hunter Contracting to provide initial construction phase services to solicit pricing information from its subcontractors and suppliers, including self-performed work, and to submit its GMP price proposal for the project. The incorporation of the GMP construction pricing through a contract amendment was anticipated as part of the project development process.
Contract Term
Services rendered under this contract are expected to be completed within 18 months from issuance of the Notice to Proceed. Contract work scope identified and incorporated into the contract prior to the end of the contract may be agreed to by the parties and work may extend pass the termination of the contract. No additional contract work scope may be executed after the end of the contract term.
Financial Impact
The initial contract value was established at an amount not to exceed $13,359.31 to provide GMP Preparation Services. The contract capacity will be increased by $15,000,000 for a new contract value of $15,013,359.31, including all subcontractor and reimburseable costs. Funding for these services is available in the Water Services Department's Capital Improvement Program budget. Contract payments may be made up to the contract limits for all rendered contract services, which may extend past the contract termination.
Concurrence/Previous Council Action
City Council approved the CMAR Design Phase Services Contract 140253 on March 18, 2015, and the CMAR Construction Phase Services Contract 140324 on March 25, 2016.
Location
N. Fort McDowell Rd. and Route 87 (Salt River Pima - Maricopa Indian Community)
Department
Responsible Department
This item is submitted by Deputy City Managers Karen Peters and Mario Paniagua, the Water Services Department and the City Engineer.