City of
Common
Council Report
Meeting
Date:
July 2, 2012
Item
No.:
Recommendation: That the Common Council considers a motion to
enter into a contract with Strand Associates, Inc. for design of the S. 5th Avenue
Relocation project, Chicago Road (STH 32) to E. Ryan Road, for a lump sum fee
of $399,070.00. (Project No. 12026) (4th Aldermanic District)
Background: On May 1, 2012, the Common Council passed a
motion to enter into contract negotiations with Strand Associates, Inc. for
design of the S. 5th Avenue Relocation. This project is the first step in improving
access to the lakefront development. It
is a future road pattern on the Official Map.
The preliminary cost estimate for the project is $3,250,000; not
including real estate acquisitions or railroad improvements.
Through
the negotiations Engineering staff and Strand developed and agreed upon a scope
of services for the project design, one that will preserve opportunities to
obtain future state/federal funding.
Once the scope of services was agreed upon, negotiations began for the associated
design costs.
The
negotiation process was lengthy and somewhat challenging at times. The following is a summary of the
negotiations and how the lump sum fee cost was arrived at.
1) First submittal by Strand Associates:
a. Total Contract: $474,224.56
i. Strand cost -
$403,813.39 (3,322 hours) ($121.56 per hour)
ii.
Subconsultant
costs - $16,841.17
iii.
Real
estate services - $53,570.00
b.
12.94%
(Strand plus subconsultant cost) of construction cost
c. Staff category distribution percentage
of hours was not included – City requested staff category hourly rate and
better distribution of hours, and reduction in hours and hourly rates
2) Second submittal by Strand Associates:
a. Total Contract: $419,091.11
i.
Strand
cost - $348,679.94 (3,184 hours - reduction of 138 hours with 104 in meetings
task alone) ($109.51 per hour)
ii.
Subconsultant
costs - $16,841.17
iii.
Real
estate services - $53,570.00
b. 11.24% (Strand plus subconsultant
cost) of construction cost
c. Staff category distribution percentage
of hours provided by Strand:
i.
Project
Manager (11.8%), Project Engineer (27.7%), Staff Engineer (34.6%), Technician
(19.9%), Secretary (5.1%)
3) Engineering Department response to
Strand’s second submittal:
a.
Request
a reduction of contract amount to 9%-10% of construction cost
b.
Request
staff category distribution percentage of hours (assuming 3,150 hours)
i. Project Manager (10%), Project
Engineer (20%), Staff Engineer (30%), Technician (35%), Secretary (5%)
c.
Accept
subconsultant costs - $16,841.17
d.
Accept
real estate services - $53,570.00
4)
Third Submittal by Strand Associates:
a.
Total
Contract: $399,070.00
i.
Strand
cost - $328,658.83
ii.
Subconsultant
costs - $16,841.17
iii. Real estate services - $53,570.00
b.
10.63%
(Strand plus subconsultant cost) of construction cost
c.
Change contract from fee cost not-to-exceed to
a lump sum fee
Strand
was selected as the top choice from several firms submitting qualification
proposals for the design. Based on the
negotiation process, the Engineering Department recommends entering into the lump
sum contract for a lump sum fee of $399,070.00.
Fiscal Impact: There is approximately $173,000 remaining from
what was budgeted in 2012 for design of the road. This will allow for the City to proceed with
the design. The remaining funds for
completion of the design (approximately $227,000) will either be budgeted or
reprogrammed in 2013. It is possible
this could be recouped as part of a Lakefront T.I.D. (Tax Incremental District)
if established.
|
Prepared by: Matthew J.
Sullivan, P.E. Design Engineer |
Respectfully submitted: Gerald
Peterson, ICMA-CM City
Administrator |
|
Approved by: Michael C. Simmons, P.E. City Engineer |
Fiscal review by: Mark D. Wyss Finance Director |