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HomeMy WebLinkAbout08 T.R. TREE PARK CONT 02-06-95 NO. 8 2-6-95 In t e r-C o rn DATE: TO' FROM: SUBJECT: January 11, 1995 WILLIAM A. HUSTON, CITY MANAGER COMMUNITY DEVELOPMENT DEPARTMENT CONSTRUCTION MANAGEMENT CONTRACT TUSTIN RANCH TREE PARK RECOMMENDATION Authorize the City Manager to negotiate and execute an agreement with Howard, Needles, Tammen, and Bergendorf, Inc. (HNTB) for construction and project management services for the Tustin Ranch Tree Project. FISCAL IMPACT Construction and project management services are estimated at $90.00 per hour. Costs for such services would be reimbursed by the Park Development Fund and future capital project account for the Tree Park. An appropriation for design services will be transmitted to the City Council at their next regular meeting. BACKGROUND In October 1994, a Request for Qualifications (RFQ) was distributed for the development of a Master Plan and phased construction plan for the Tustin Tree Park. Staff are in the process of reviewing responses to the RFQ and it is anticipated that the City Council will be asked to approve a design contract in late February. The City Council responded to the residents in the vicinity of the proposed Tree Park by requesting that staff expedite the schedule for park design and construction. With the hiring of a consultant firm for design of the park master plan nearly completed, a decision on construction management for the project is now a priority. As with any major City construction project, coordination of the design process, working drawings and the bid documents, as well as construction administration are critical to keeping a project on a schedule and on budget. Originally it was thought that City staff xvould be able to manage the project. After careful evaluation of the scope of the project, Community Services staff do not believe that they have the expertise to manage this type of construction. Expediting the project in light of other projects that have been planned, scheduled, and started, has added another priority project to any already full schedule. A number of other Community Service Capital Projects cannot be tabled due to grant funding requirements or design contracts already in place. Stopping these projects in process could also cost the City additional money. Staff believes the use of a contract construction and project manager would ensure that the Tree Park project is kept on schedule and under budget. Unfortunately, timing to conduct an RFP process for construction and project management services could impact the project schedule. One option that staff would be comfortable with and which would allow us to proceed expediting the Tree Park would be the City's continued use of the construction and project management services of HNTB. HNTB has previously provided construction management services to the City for the Civic Center renovation, completion of the Columbus Tustin Master Plan-including construction of the gymnasium, and design and development of the Tustin Sports Park. The firm's expertise in managing these projects has reduced the number of change order requests made by the general contractors which has saved the City money. Being able to focus on management of the construction process has also resulted in all of the above projects being completed on/or ahead of schedule. HNTB services have also been extremely cost effective. While contract management fees are generally in the range of the 5-7% of total estimated construction costs, HNTB's fees on previous capital projects in Tustin have been only approximately 3% of total construction costs. HNTB hourly rates of $90/hr are also lower than industry rates. Staff would, therefore, recommend that the City Council authorize the City Manager to negotiate and execute an agreement with HNTB for Construction and Project Management services for the Tustin Ranch Tree Park at hourly rates not to exceed $90/hour. Susan M. Jones Recreation Superintendent smj5/hntb.con