TO: Mayor and Members of City Council
THRU: Douglas J. Hewett, ICMA-CM, City Manager
FROM: Kristoff Bauer, Deputy City Manager
DATE: March 7, 2018
RE:
Title
Stadium Construction Manager At Risk (“CM@R”) Contract With Barton Malow Third Amendment
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal 4: Desirable Place to Live, Work and Recreate
Executive Summary:
The CM@R contract with Barton Malow authorize a “pre-construction” scope of work. The standard next step would be to execute a Guaranteed Maximum Price (“GMP”) amendment that would set the construction price and fees and authorize the execution of subcontracts. The Council authorized the first GMP amendment on November 27, 2017. Concrete work, while included in the initial bid package, was excluded in order to allow for a rebid. The second GMP, approved January 22, authorized the concrete scope. The final GMP amendment is scheduled for consideration March 19th. The third GMP amendment, attached, provides limited funding authorization to avoid any project delays as the final GMP is being finalized.
Background:
The Council has taken several steps along the path of constructing a minor league baseball stadium and entertainment venue including:
• The approval of a financing plan for stadium construction,
• The execution of a thirty year operating agreement with the Astros,
• The Initiation of project design after selecting and contracting with the project architect,
• The adoption of capital project ordinance to support construction
• The execution of a CM@R contract with Barton Malow, and
• The execution of a Downtown Development Agreement with PCH.
The Astros agreement requires the stadium to be completed in advance of the 2019 baseball season.
The initial scope of work authorize in Barton Malow’s contract is for the “pre-construction” phase of the project. This focuses on cost estimation, managing the schedule, subcontractor outreach, and bidding. Information developed during the “pre-construction” process typically culminates in the development and adoption of a GMP Amendment that will included a detailed budget, construction phase fee, and a final schedule.
In this case, the design and bid work has been divided into two phases with the site work and concrete planned for the first phase in order to get construction started consisted with the desired schedule. Unfortunately, when the first bid package was issues, two significant work items did not received desired “coverage:” that is three bids were not received for either the concrete or site work packages. Bids were not opened and the package was re-advertised.
At the second bid opening, three bids were received for concrete, but only one for site work. Bids were opened. While steel and other areas came in below estimate, both of these areas came in significantly over estimate.
The bidding process and outcome was reviewed with the Council’s Baseball Subcommittee on November 13, 2017. Due to schedule constraints, the Committee agreed to move forward with all bid work with the exception of concrete as an initial work authorization. The design team was challenged with finding additional opportunities to reduce the cost of the concrete scope. The Council approved GMP amendment one on November 27, 2017.
Since that time, a local contractor came forward and was awarded the site work package at a lower cost than the previous low bid. In addition, the fencing package was acquired through direct purchase by Barton Malow from a local fencing contractor.
Council approved GMP amendment 2 January 22, 2018, authorizing the award of the concrete work initially planned for the first phase of construction.
Issues/Analysis:
The remaining bid packages have all been issued. Not all packages, however, received bid coverage. While additional time is needed to complete the GMP, initial authorizations need to be provided in order to keep the project on schedule.
Budget Impact:
The Council has already executed the capital project ordinance authorizing the $33 million stadium project development. The proposed contract amendment increases the construction authorization by $300,000 to a total of $11,824,061.
Options:
- Authorize the City Manager to execute the amendment to the Barton Malow contract substantially in the form attached.
- Delay action and request additional information or otherwise provide direction to staff (this will delay the construction and place create significant schedule uncertainty).
Recommended Action:
Staff recommends that Council authorize the City Manager to execute the third contract amendment with Barton Malow substantially in the form attached.
Attachments:
Third amendment to CM@R contract with Barton Malow