Agenda

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16.

City Council Regular Meeting

Meeting Date:

04/16/2024

BACKGROUND

An agreement with Eikon Architects for the design of Fire Station #4 has previously been approved by City Council and initial design efforts are under way. The project is now at the stage that the expected cost of the proposed project needs to be determined by a qualified Construction Manager before the project design can proceed.

In accordance with TX Local Government Code 2269.251, the “construction manager-at-risk method” is a delivery method by which a governmental entity contracts with an architect or engineer for design and construction phase services and contracts separately with a construction manager-at-risk to serve as the general contractor and to provide consultation during the design and construction, rehabilitation, alteration, or repair of a facility. A construction manager-at-risk assumes the risk for construction, rehabilitation, alteration, or repair of a facility at the contracted price as a general contractor and provides consultation to the governmental entity regarding construction during and after the design of the facility. The contracted price may be a guaranteed maximum price.

On November 29, 2023, a Request for Qualifications (RFQ) for Fire Station #4 using the two-step selection process under Section 2269 et seq. of the Texas Local Government Code (LGC) for a Construction Manager at Risk (CMAR) was issued by the City. Four responses to this RFQ were received on January 4, 2024. The responding firms were evaluated by the committee and ranked solely on the basis of their qualifications in the first step as required by LGC. As part of step two, the top three ranked firms were invited to submit a cost proposal and participated in an interview with the selection committee on February 9, 2024.

Per LGC 2269.254, the governmental entity shall select the offeror that submits the proposal that offers the best value for the governmental entity based on the published selection criteria and on its ranking evaluation. Marksmen General Contractors was identified as the best qualified finalist, and the City has successfully negotiated an agreement with Marksmen.

GOAL

To authorize the City Manager to execute the approve and execute and agreement for Construction Manager at Risk services with Marksman Construction.

COMMUNITY BENEFIT

The benefit of the Construction Manager at Risk delivery method is that this contract type reduces the City's overall potential risks because the contract will include a Guaranteed Maximum Price (GMP). This provides for a predictable project budget, and anything over the GMP is covered by the construction manager. Retaining a highly qualified construction management firm, such as Markmen General Contractors, will help to ensure that the City receives a quality fire station in order to provide superior service and response times to our residents and visitors. In addition, this will help the City move toward an ISO 1 rating in our next evaluation.

SUMMARY OF RECOMMENDED ACTION

Authorize the City Manager to execute an agreement with Marksmen General Contractors for Construction Manager at Risk services related to the design and construction of Fire Station #4.

FISCAL IMPACT

The amount payable under this Agreement shall be in accordance with Marksmen’s proposal of 12.15% of construction costs, estimated at $10,000,000, and $42,000 in Pre-construction Services (only payable if construction does not begin), for an estimated total of $1,257,000. The approval of these services comes from within the bond approved for the building of fire station 4 that is under way.

Marksmen Proposal:
8.15% General Conditions
4.00% Contractor Fee
$42,000 Preconstruction Services (only payable if construction does not begin)

RECOMMENDATION

Staff recommends approval of Resolution No. 24-R-29

Attachments
Resolution 24-R-29
Service Evals 2023-014