City Council Minutes 2016 03 15 - Laserfiche WebLink

Home Browse Search

City Council Meeting Minutes March 15, 2016 Page 8 of 17 The City has been working on the design of the South Street Underpass and the Core Area Redevelopment planning and financing for many years. Components of the redevelopment construction were to be completed during different seasonal construction time frames. Due to delays by the BNSF for the South Street Underpass, desire by the City to expedite water, sewer, and street improvements on streets with poor surface condition, addition of parking improvements to resolve Downtown parking issues, and a vibrant private development environment for non -city owned property the Core Area will experience all construction in the same area during the same construction season. This sole source recommendation is an outcome of preliminary meetings with H2 focused on the City bidding and building its own work and how best to coordinate with BNSF, DELO 2 ,and DELO Plaza improvements already underway. Ultimately, City Staff believes this is the most efficient way to ensure a quality - coordinated project on time, while incorporating competitive pricing. City Staff recommends the sole source with H2 due to the fact that they are currently responsible for the major portions of construction underway in the Core Area development. The large portions of work to be completed are adjacent and dependent upon each other for successful completion of a cohesive and attractive project outcome. At this time, it would be difficult to bid and coordinate multiple contractors for the South Street Underpass, Front Street improvements, and parking improvements without adverse effects to the Core Area redevelopment construction. Approval of this contract also expedites the timeline for bidding and initialization of construction by 1 -2 months in a busy construction environment where costs are continually increasing as time goes by. Staff recommends approval of a sole source contract with a preliminary budget in the amount of $3,115,193 with H2 Development Services, LLC (H2) for construction management services along with the reconstruction of South Street from Main Street to Highway 42, the South Street Burlington Northern Santa Fe (BNSF) Underpass, Front Street from Walnut Street to Short Street, a new City parking lot on Lot 4 of the DELO Plaza Subdivision, and improvements to parking at Miners Field. The proposed H2 contract provides for a flat 5% fee on infrastructure improvements and a to be determined negotiated contingency not to exceed 7% that would be an incentivized 50% shared savings (50% goes back to the City and 50% goes to H2) at the end of the project. The contingency will be reviewed at the time of the award of the actual bid cost of work to determine a reasonable amount for risk and shared savings. Services in the H2 contract include solicitation and competitive bidding for all identified work, coordination of subcontractor sequencing and construction, and management of follow -up for a 2 -year warranty.