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CR 91-77 Designation Construction Management
III April 1, 1991 Council Report: 91 -77 Proposed Action. Staff recommends the following motion: Authorize the Mayor and City Manager to enter into an agreement with RLK Associates, LTD for project management services for Mainstreet reconstruction from 5th Avenue to Shady Oak Road. Overview. Council at its March 5 meeting authorized staff to incorporate a construction management concept in the reconstruction of Mainstreet. Staff has proceeded to direct its consultant engineer on the project to compile bid documents that reflect this concept. Staff also solicited scope of services proposals from three firms specializing in construction management. Two proposals were submitted, interviews were conducted, and this report recommends entering into a contract for project management services. Primary Issues to Consider. o What will be the cost of these services? o Which firm should be designated project manager? Supporting Information. o Request for scope of services o RLK summary of proposed services JcCmes Gessele Engineering Superintendent DESIGNATION OF CONSTRUCTION MANAGEMENT FIRM MAINSTREET RECONSTRUCTION • CR: 91 -77 Page 2 Background. A request for scope of services was prepared and mailed to prospective consultants (list attached to scope of services) and two proposals were received. Interviews were scheduled on March 29 with the two firms and following are their estimated fee percent of each remaining phase of the project (based on a 3 million dollar project): Proj. Management Firm Bidding Assessment Construction Total Christenson Building - - 7 7% Corporation RLK Associates LTD 0.2 -0.3 0.1 -0.2 7.7 -9 8 -9.5% Analysis. o What will be the cost of these services? The various estimates for the renaming three phases vary from 7 to 9.5 percent of the construction cost. This translates into a range from 40 $208,500 to $285,000. These costs appear to be consistent with market rates for construction management and fall within the parameters of the anticipated overhead costs of the total construction. The two proposals are at variance in their actual cost for two principal reasons: consultant engineering services and public relations activities. The Christenson proposal makes no mention of the above -named services. To make a fair comparison between the proposals staff has placed a dollar value on the omitted services in the Christenson proposal as follows: Engineering $20,000 - $30,000 Public relations $25,000 The cost range of the Christenson proposal would more accurately be $253,500 to $263,500. This is in comparison to the RLK proposal of $240,000 to $285,000. Considering the engineering problems Mainstreet reconstruction poses and the need of awareness of business sensitivities, staff feels it would be folly to overlook the above activities when making a cost comparison between the proposals. Other than the two services mentioned above, the total fees include project management and superintendent, surveying, jobsite office, and office overhead. The final fee cost will be negotiated and will depend on the extent of services the City wishes. The following is a tabulation of engineering costs to date, anticipated costs of project management, and anticipated cost savings by using the construction management concept • CR: 91 -77 Page 3 Engineering to date Anticipated project management Anticipated cost savings (construction management concept) Total engineering and project management cost $310,000 285,000 (225, 000) $370,000 The total of $370,000 translates into 12% of the projected 3 million dollar cost of reconstruction. Westwood originally quoted 14% for engineering from feasibility through construction. The City should realize a minimum net reduction of 2% in its engineering costs on this project. o Which firm should be designated project manager? Staff recommends the firm of RLK Associates, LTD., be retained as project manager of this project. Staff feels RLK's estimated fees are reasonable. Although this firm is newly formed, everyone recognizes Richard Koppy, the owner and president of RLK. Mr. Koppy will be project manager and have primary 40 responsibility for project activities. He will be assisted by Chuck Poppler who will serve as project superintendent. Mr. Poppler comes highly recommended from past projects, the latest being a streetscape project in New Prague, Minnesota. The firm appears to be ably staffed to complete the project and is committed to permanently locate its office on Mainstreet in Hopkins. Council and staff are fully aware of Mr. Koppy's record of willingness to work with the City to complete the Mainstreet project in an innovative and cost effective manner with a high level of community and staff input. RLK's response to the construction management scope of services request completely reaffirms that willingness and commitment. CITY OF HOPKINS REQUEST FOR SCOPE OF SERVICES FOR PROJECT MANAGEMENT March 14, 1991 PROJECT Mainstreet Reconstruction from 5th Ave. to Shady Oak Road (Co. Rd. 61). CONTACT Jim Gessele, Engineering Superintendent (935- 8474) 1010 First Street South Hopkins, MN 55343 SUBMITTAL DATE: March 25, 1991 (4 copies) INTERVIEW DATE: March 29, 1991 (scheduled after finalists selected) APPOINTMENT DATE: April 2, 1991 (City Council Meeting) SCOPE OF PROJECT Engineering and project management services for Mainstreet reconstruction in the following phases: Phase I - Bidding 1. Coordinate with present consultant engineer in administering plans and specifications for the bid letting process. (Estimated 3 million dollar construction project) 2. Analyze bids for final recommendations to City Staff and City Council for award. Multiple contractor bidding is involved. Manage execution of all contracts and bonds. Phase II - Assessments Coordinate with City Staff in preparation of the assessment roll. Special assessments will be levied in advance of actual bid awards and construction. Phase III - Construction 1. Coordinate all required meetings with contractors. Continually update Business Council, City Staff and City Council on progress. 2. Manage project on daily basis and closely inspect all aspects of construction. Recommend all payment requests. 3. Monitor and ensure the meeting of all required construction schedules. Perform public relations and solve individual problems with business establishments. 4. Provide professional personnel to coordinate design plans and specifications with the contractors. Provide survey staking for the duration of the project. 5. Coordinate soils engineering with project needs. 6. Finalize project and enforce items. (contracted by the City) completion of punch list Additional elements required: 1. Indicate personnel proposed for project construction. Indicate in -house capabilities for various project components. 2. Indicate all other specialty consultant companies and personnel proposed. 3. All recommendations and investigation in written report form. 4. Meetings with other organizations as required (i.e., Raspberry Committee). 5. Close contact with City Staff throughout all phases by phone, correspondence and meetings is expected. 6. Copies of all reports as needed. Owner Responsibilities The City Staff will provide assistance in all internal and external communications with the City Council and civic groups. Fees and Expenses Reimbursement The proposal should include a schedule of hourly billing rates for each category of professional, technical and clerical employees. Also include rates of miscellaneous charges such as copies and mileage. List all other additional reimbursable expenses. Indicate how requests for additional services would be billed. • A method of establishing a fee charge range for each phase should be indicated as an estimated percent of construction cost. Also include "not to exceed" fee. Invoice period intervals are a minimum of 30 days with a payment date of 30 days maximum from date of invoice. Council meetings are generally the first and third Tuesdays of the month with invoice deadline the previous Tuesday. 1 2 �, 410 �u rJ horn IIIIREPPPIREPIN 4 5 BOVCI L IL 7 5v . • s01- LTUNB YINNETONNA f 1 P001 aB T ODf DB iL IPVi IP VT IP VTI\ ■P VT I.PY (PVT ITIM • \: z WN HER I r 8 IM` 01 CONSTRUCTION C (DIND THE CITY OF HOPKINS , MINNESOTA HENNEPIN COUNTY BOO SCALE 0 B00 1600 r D 6 • PROJECTED SCHEDULE The schedule that is presented in the following section has been updated from the past schedules and contains the current information on the project effort. March 12, 1991 Informational meeting at City hall on the Project design March 19 City Council receives final design plans, specifications, cost estimate and orders advertisement for bids March 20, 27, April 3 Ad for Bids appears in the local newspaper. March 15, 22, 29 Ad for Bids appears in the Construction Bulletin April 12 Bids are opened and tabulated April 16 Bid tabulations are presented to the City Council and the assessment hearing is scheduled May 21 Chapter 429 Assessment Hearing June Preconstruction meetings are held by the Construction Management Team June 25 Council adopts assessment roll and various construction contracts are awarded to the lowest responsible bidders by the City Council June 21 through June 30 Raspberry Festival in downtown Hopkins July 8 Construction commencement between 5th Avenue and llth Avenue November 15 Completion of construction in segment #3 June, 1992 Placement of the wear course of bituminous in the segment #3 area June 30 Substantial completion of the portion of the project between llth Avenue and 17th Avenue October Construction completion of the Mainstreet project between 5th Avenue and Shady Oak Road Specifications Sent RLK Associates, LTD 3623 Harriet Avenue Minneapolis, MN 55409 REQUEST FOR SCOPE OF SERVICES FOR PROJECT MANAGEMENT March 14, 1991 Christenson Building Corporation 2910 Multifoods Tower 33 South 6th Street Minneapolis, MN 55402 Heskin Resource Group, Inc. 1295 North Bandana Blvd. St. Paul, MN • Eb IL 1I A© CR ETR a bIM Ip . ARC FM :: V P 1J]fl CJ `✓ MMA CITT CM BIOMES y • ( . . • • ... - . . n Scope of Services for Pro.iect Management during Construction In this section of the proposal document the Scope of Services are outlined based upon the format and contents of the Request for Scope of Services dated March 14, 1991. Further, based upon RLK Associates' knowledge and sensitivity of the project, additional work activities are Included as suggestions for a more complete approach to the Project Management activities. A. Phase I -- Bidding B. 1 . 2. 3. 4. 5. 6. Coordinate with Westwood in the a. Specification preparation; b. Review and clarification bidding; c. Coordination /preparation of bid addendums; d. Preparation of vendor bid documents; e. Assistance during the bid advertisement phase; Analyze bids and prepare matrix explaining award of Review qualifications of contractors; Manage execution of contracts, bonds and apparent low bid contractors and take organizing the award of contracts; Coordinate with private utility companies understand the construction operation strategy, are ready to commence operations on July 8th; Work with the sewer televising company, city staff owners on sanitary sewer and water service reconnaissance. Phase II -- Assessments following areas: of plans for improved contractor contract; insurance with the appropriate action to insure they are organized, and and property 1. Assist City staff in the preparation of an assessment roll model; 2. Creation of assessment policy material for the City Council and attend meetings as appropriate; 3. Prepare assessment roll from bid tabulation Material; 4. Coordinate with City staff. C. Phase III -- Construction 1. Coordinate all required meetings with contractors. a. Conduct pre -award conferences with successful bidders; review insurance, bonding requirements and prepare contracts and/or purchase orders; b. Hold weekly contractor coordination meetings; c. Facilitate all project scheduling and record keeping on follow thru activities. 2. Manage project and coordinate contractors on a daily basis. 3. Inspection of all aspects of the construction activities. a. Review the contractor work process in an ongoing manner and insure that proper construction resources are used to keep the project on schedule; b. Handle all shop drawings and coordinate with other professionals to gain acceptance /approval; c. Keep daily dairies on the contractor operations; • Hopkins Pro.iect Manaaer Proposal to Jim Gessele Paae 6 d. Keep appropriate construction records to validate payment requests, change orders, and "as built" construction records; e. Recommend and prepare all payment requests; f. Reviews on the job housekeeping and safety; g. Intrepret plans and specifications and handles disputes between the contractors; h. Coordinate the private utility companies work; i. Prepares punch list items and enforce completion of appropriate work activities; j. Maintain appropriate records to insure the MSA requirements for funding are met; k. Coordinate and communicate with DPW City staff to facilitate their involvement with the contractors; 4. Perform public relations project activities and work with businesses/property owners to solve their problems; a. Hold update meetings with the City Council at least twice per month; b. Attend Downtown Business Council meetings once per month; c. Coordinate with City Staff PR designate on a daily basis; d. Hold weekly property owner meetings. e. Hold meetings with organizations such as the Raspberry Festival Committee and others as needed; 5. Coordinate and schedule professional staff for intrepretation of plans and specifications. 6. Direct survey staking operations for the duration of the project; 7. Review and coordinate quality control on the construction products utilizing the assistance of the Soils Engineer & Testing firm on contract with City; 8. Prepare and continually update an ongoing work schedule for all of the construction activities; 9. Maintain cost accounting and cost control records for the duration of the project; 10. Prepare monthly status report to be submitted with partial payments reporting on cost, schedule and an associated project record keeping summary. D. All consultant investigations and recommendations will be provided to the City in a standard report format in as many copies as is needed. E. Close contact will be maintained with City staff and the City staff designate throughout the duration of the project.