4. Public Works Facility: Approve Contract for Construction Management
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952,227,1110
Building Inspections
Phone: 952.227.1180
Fax: 952,227,1190
Engineering
Phone: 952,227,1160
Fax: 952,227.1170
Finance
Phone: 952,227,1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax: 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952,227,1404
Planning &
Natural Resources
Phone: 952,227,1130
Fax: 952.227.1110
Public Works
1591 Park Road
Phone: 952.227,1300
Fax: 952.227.1310
Senior Center
Phone: 952,227.1125
Fax: 952.227.1110
Web Site
www.ci.chanhassen.mn.us
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MEMORANDUM
TO:
Todd Gerhardt, City Manger rJ
Paul Oehme, Director of Public Works/City Engineer ? J
FROM:
DATE:
October 13, 2008
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SUBJECT:
Public Works Facility, Project No. 08-03: Approve Contract for Construction
Management Services
PROPOSED MOTION
"The City Council is recommended to direct staff to enter into a contract for
Construction Management Services with RJM Construction in the amount of
$442,600."
City Council approval requires a simple majority vote of the City Council
present.
BACKGROUND
At the December 10, 2007 work session, staff reviewed with Council a needs report
which identified options for public works facility improvements to meet current and
future needs of the departments housed at the facility.
On July 28,2008, Council authorized staff to move forward with the Park Place option
for a new public works facility and solicit proposals for architectural services.
On September 8, 2008, Council approved an architectural contract for design of the
public works maintenance facility.
At the September 8, 2008 work session, Council reviewed the pros!cons for
construction management services instead of a typical design bid project with one
prime contractor. Council authorized staff to solicited proposals for construction
management services.
DISCUSSION
For the public works facility, staff envisions using a construction manager from
schematic design through construction completion. Some of the tasks the construction
manager would complete are:
. Review plans and suggest cost-saving replacements during schematic design
phase through final.
. Review of plans for quality assurance.
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
Paul Oehme
Public Works Construction Management Services Contract
October 13,2008
Page 2
. Prepare cost estimates to ensure adherence to budget.
. Divide all required construction site activities into logical steps, budgeting the
time required to meet established deadlines.
. Oversee the selection of general contractors and trade contractors to complete
specific pieces of the project which could include everything from structural
metalworking and plumbing to painting and light fixture installation.
. Schedule and oversee the performance of all trade contractors and are
responsible for ensuring that all work is completed on schedule.
. Determine the best way to get materials to the building site and the most cost-
effective plan and schedule for completing the project.
. Direct and monitor the progress of construction activities through construction
supervIsors.
. Oversee the delivery and use of materials, tools, and equipment; worker
productivity and safety; and the quality of construction.
. Keep job site clean.
. Review pay and change order requests.
. Be responsible for obtaining all necessary permits and licenses and, depending
upon the contractual arrangements, direct or monitor compliance with building
and safety codes, other regulations, and requirements set by the project's
insurers.
BENEFITS OF CONSTRUCTION MANAGEMENT
Quality Advantages
./ Involved with architectural design for cost-saving ideas at schematic design
phase.
./ Hard bid major items.
./ Continuity of management throughout all phases of the project.
./ Interests of the Architect, Consultants and Construction Manager are consistent
with the Owner's interests.
./ Interactive team approach provides a "checks and balance" system to assure the
highest level of quality.
./ Owner-oriented, on-site supervision enforces the requirements of the plans and
specifications by the various contractors.
./ Superintendent acts as the Owner's eyes and ears on the jobsite.
./ Construction Management represents Owner's interests...General Contractors
typically represents theirs.
./ Quality Management Program provides the process for material sample
approvals, shop drawing approvals, and coordination of testing services
throughout construction.
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Paul Oehme
Public Works Construction Management Services Contract
October 13, 2008
Page 3
Cost Savings
./' No hidden costs.. . open book.
./' Multiple bids ensure best pricing, i.e. 25 lowest bids instead of 1 low bid.
./' Multiple-contractor approach eliminates overhead, profit, mark-up of
subcontracts and double-bonding premiums of the traditional general contractor.
./' Bidding approach ensures that the Owner receives the lowest, responsible bid
for every category of the work.
./' Better cash flow projections for Owner through construction phase.
./' Knowledge of the contractor bidding market enables the Owner to obtain the
best possible pricing through timely bidding.
Local Involvement
./' Potentially more opportunity to use local contractors due to smaller bid
packages.
./' Less cost for mobilization.
./' Greater public relations.
POTENTIAL DISADVANTAGES
Typically adds additional staff time to project.
. Requires staff to keep track of multiple contracts.
. Can add additional risk and liability to City.
Project is only as good as ability of Construction Management team.
Final price is not established until all bid packages have been received.
_ Typically eliminates prime contractor companies from submitting a bid.
REQUEST FOR PROPOSALS
Staff drafted a request for proposal (RFP) for Construction Management Services and
sent it to five construction management firms. On September 17, 2008, proposals were
received at the City.
All firms submitted a proposal which is summarized as follows:
Submitted prior to ./ ./ ./ ./ ./
the deadline
Pro osal format ./ ./ ./ ./ ./
Transmittal letter
submitted with ./ ./ ./ ./ ./
re uired information
Members of the team ./ ./ ./ ./ ./
identified
Understanding of ./ ./ ./ ./ ./
project
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Paul Oehme
Public Warks Construction Management Services Contract
October 13,2008
Page 4
Construction
Management and $277,500 $287,600 $388,800 $422,200 $558,720
Field Services Fee
General Conditions
Costs and On-Site $90,300 $183,254 $53,800 $31,800 $97,671
Reimbursable
Ex enses1
Total Contract $367,800 $470,854 $442,600 $454,000 $656,391
Amount
lThe total contract fee includes general conditions such as garbage dumpsters, construction trailer,
temporary utility expenses, porta-potties, etc. The costs for these items will be billed on an actual
incurred basis.
A staff selection team reviewed the proposals and rated each firm. Based on the
proposals and initial checking of references, three firms were selected for interviews.
The firms interviewed were CDS Group, Stahl Construction and RJM Construction.
CDS Group had the lowest cost proposal. CDS Group worked with the City on
preliminary cost estimates during the project budgeting process. CDS Group was
interviewed, however after the interview, has chosen to withdraw their proposal. The
withdraw letter is attached.
Based on the proposals, the team members the construction management firms were
proposing, the interviews, the fee and reference checks, the selection team recommends
RJM Construction to be the construction management firm for the public works
building. The firm has been recommended by other communities who have worked
with them including the Cities of Eden Prairie, Elk River, and Andover.
RJM Construction was founded in 1981. In 2008, United Properties Construction
Services was integrated into RJ M that brought additional resources to the firm. RJM
has diverse construction management experience in Health Care, Educational,
Sports/Recreational, Public Sector, Retail, and Restaurant projects.
The contract will be based on the AlA B801/CMa Contract format that is typically used
for this type of work. The contract will be a time and materials based work not to
exceed amount. RJM Construction must submit periodic invoices that staff will review
before processing. RJM will be required to submit time sheets verifying the hours
worked on the project and expense sheets. Staff will review the invoices and expense
sheets for accuracy and conformance to the contract.
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Paul Oehme
Public Works Construction Management Services Contract
October 13, 2008
Page 5
SCHEDULE
If this project moves forward, staff anticipates the following project schedule:
Schematic Design Complete November, 2008
Obtain City Council Site Plan Approval December/January, 2008
Complete Plans and Specifications March, 2009
Obtain Bids April, 2009
Start Construction April, 2009
Substantially Complete February, 2010
Attachment: CIP Pages
CDS Group withdraw letter
RJM Construction information
Request for Proposals
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Capital Improvement Program
City of Chanhassen, MN
Project # MB-003
Project Name Public Works Facility Improvements
2009 thru 2013
Contact Paul Oehme
Department Municipal Buildings
Type Improvement
Useful Life Unassigned
Category Street Equipment
Priority n/a
Total Project Cost $8,300,000
Account # 1
Account # 3
Account #2
Description I
The existing Public Works facility is over capacity and is in need of major repairs. The City is expected to grow an additional 30% before ultimate
build out. The existing facility is located on a 5 acre site which is already cramped for storage and operation space. The City completed a facility
needs study in 2007 and completed an exhaustive search to try to make an existing warehouse type building work. It was decided to move the
Public Works building because the existing site is too small for expansion and no warehouse type building was economically feasible to remodel.
Justification
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The Operations and Maintenance Department needs additional space for repairs, meeting facilities, files, locker rooms, storage, supervisory offices
and proper equipment storage. In addition, the current facility does not meet many City building codes.
Expenditures
Construction
2009
8,300,000
8,300,000
2010
2011
2012
2013
Total
8,300,000
8,300,000
Total
Funding Sources 2009 2010 2011 2012 2013 Total
GO Bonds 7,000,000 7,000,000
Sewer Utility Fund 700,000 700,000
Surface Water Utility Fund 400,000 400,000
Water Utility Fund 200,000 200,000
Total 8,300,000 8,300,000
Operational Impact/Other I
This project may increase operational costs. However, the new facility is planned to be very utility efficient compared to the existing facility.
Capital Improvement Program 2009 thru 2013 Contact Paul Oehme
City of Chanhassen, MN Department Major Equipment
Project # EQ-087 Type Equipment
Useful Life
Project Name Public Works Facility Equipment Category Public Works
Account # 1 Account # 3 Priority n/a
Account #2
Total Project Cost $500,000
Description I
Provides the eqiupment for the Public Works facility. This equipment includes the vehicle lifts, computer system, fiber optic connection, security
system, fuel system and office equipment.
Justification I
Necessary for the operation of the Public Works facility.
Expenditures 2009 2010 2011 2012 2013 Total
Equipment 500,000 500,000
Total 500,000 500,000
Funding Sources 2009 2010 2011 2012 2013 Total
Capital Replacement Fund 500,000 500,000
Total 500,000 500,000
Operational Impact/Other I
aDS Group, LLC
October 3, 2008
Hard CODY sent by Certified Mail
Mr. Paul Oehme
Director of Public Works/City Engineer
City of Chanhassen
7700 Market Blvd
PO Box 147
Chanhassen, MN 55317
Dear Paul,
Thanks for taking the time to meet with me this afternoon regarding the proposal CDS
Group LLC submitted for Construction Management Services.
I have given careful and considered thought to our conversation, and especially to the
concerns which you voiced in reference to the depth of our ability to Project Manage the
new proposed Public Works Facility should the contract be awarded to us. You are
correct, our discussion to have me personally represent CDS Group, LLC on site and as
Project Manager is singular and we have no one on staff to replace me should there be
any reason to do so at either level. After further consideration I am unable, at this time to
alter our submitted proposal, and make the personal commitment of serving in the
function of on site superintendent as discussed. As you so succinctly pointed out, it
greatly restricts the amount of time available to me for other responsibilities.
Additionally, and for the same reasons as stated above, we have been turned down by a
number of underwriters to provide the required coverage stated in your request for
Insurance.
Where as the Selection Committee has not made their choice as of this time, and Where
as there has been no offer made to award of contract to CDS Group, LLC at time of this
writing, I respectfully withdraw our proposal to participate in this project.
Thank your for your time and consideration.
Sincerely,
at~~D-.--~
Chuck Dennis
Principal, CDS Group LLC
CITY OF CHANHASSEN
IFJ~~~DW~IQ)
OCT 0 6 Z008
ENGINEERING DEPT.
PROJECT OVERVIEW
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RJM Construction is pleased to be among the
firms being considered for the City of
Chanhassen's new Public Works Facility project.
We understand the City of Chanhassen is seek-
ing a Construction Manager to join their project
team to provide preconstruction and construc-
tion phase services. This would include cost
estimating, constructability review, schedule
management. bidding strategy/administration,
and lead the construction process to deliver the
team's project goals. The schematic design
phase of the 83,000 sf project located at 7901
Park Place in Chanhassen, will be starting soon,
and RJM has the staff and resources ready to
prepare preliminary cost estimates and a proj-
ect schedule for the City, should we be awarded
the contract.
To RJM Construction, building a structure is not
merely a succession of steps; a formula or a
continuum of tasks resulting in a box. An on
time, on budget box. We think differently. We
believe that "a building is not just a place to be.
It is a way to be." In delivering that belief we
look beyond the expressed wants and needs of
the City of Chanhassen. We visualize your
desire. We think about the bigger picture. How
the project impacts your services, and is it
strategically aligned with your long term goals.
With efficient competence we let our thinking
anticipate, resolve, create, enhance, and do
whatever it takes to deliver on the vision not
represented on the blueprint.
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We believe we can best meet the City of
Chanhassen's goals/needS because of the fol-
lowing:
. We have proposed a construction team'
that is both highly experienced and compe-
tent in the construction of public projects.
. We embrace collaboration with the project
team from concept to completion in order
to define the final project parameters.
. Our ability to contribute to the identification
of design and construction solutions that
consider both short and long term life cycle
costs is highly valued by our clients who
operate similar facilities.
. RJM, as a company, has the resources as
well as a demonstrated commitment to
deliver projects on time, and on budget.
Our passion goes beyond the box, which
makes us more than a construction compa-
ny. RJM prides itself on thinking outside
the structure. Through smart, sophisticat-
ed, strategic thinking, we will complete your
project and deliver a rewarding construction
experience that will stand the test of time.
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CITY OF CHANHASSEN PUBLIC WORKS FACILITY ~I
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EDEN PRAIRIE COMMUNITY CENTER
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CONSTRUCTION
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Eden Prairie, Minnesota
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The Eden Prairie Community Center renovation features a new inviting front entrance with an
open solarium and a concession area. The facility contains racquetball courts, group fitness
studios, new locker rooms and community meeting rooms. The project also included a third ice
arena, a baseball stadium, state of the art baseball field and renovations. to Lake. Park.
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RJM Construction I 5455 Hwy 169 I Plymouth, Minnesota I 55442
763/383-7600 I fax 763/383-7601 I bid fax 763/553-9670
For more information on this or any of our other projects, visit: www.rjmconstruction.com
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ST. MICHAEL PUBLIC WORKS
FACILITY AND CENTRAL FIRE STATION
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CON STRUCTION
St. Michael, Minnesota
This two-phase project consisted of the construction of a new public works facility and the
relocation of temporary city offices and. fire station to this new building. A newcentral fire station
was then constructed on the site. Both buildings are constructed of pr~-cast exterior wallpanels"
steel roof structures and unique mechanical systems capable()f handling vehicle emissions. "
RJM Construction I 5455 Hwy 169 I Plymouth, Minnesota I 55442
763/383-7600 I fax 763/383-7601 I bid fax 763/553-9670
For more information on this or any of our other projects, visit: www.rjmconstruction.com
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SPECIAL AWARDS
AlA Minnesota seeks to encourage, stimulate
and recognize exceptional contributions that go
above and beyond what others in their profession
are doing to successfully collaborate with
architects and/or make a significant contribution
to the built environment. Architecture is a
collaborative effort and relies on the talents and
commitment of many individuals ~orking together
to achieve a common goal. AlA Minnesota is
pleased to present Special Awards tb these
individuals and organizations.
CONSTRUCTION
RJM CONSTRUCTION
RJM Construction is recognized as one of
the leading firms in their ability to work as a
team member with architects. They view the
architect's work and drawings as the key to
starting a successful project. As contractors
for award-winning projects,RJM continually
looks for opportunities to maintain high quality
in their work. RJM Construction sets the highest
standard for a construction firm, as well as the
standard for other contractors
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RECORD OF PERFORMANCE
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We believe our clients deserve to have a
constructor who will meet their goals for
time, quality and budget. RJM has never
failed to deliver a project that meets
or exceeds these basic goals. We take
pride in ownership of every project,
and continue to monitor the facility's
performance for years after completion.
Our commitment is not simply to the
structure, but also to the client. This
dedication is reflected in our nearly 100%
retention rate, which is a testament to our
professionalism, reliability and
management expertise.
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At right is a simple table of some major
projects detailing our ability to deliver on
budget. All projects were completed
on or ahead of schedule.
PROJECTS
INVER GROVE HEIGHTS
COMMUNITY CENTER..............
RED WING
ICE ARENA..,.,....................................
PHOENIX COYOTES .....,... ..>i...........<i.i..
ICE DEN ............,......................................$8,732,727........................$8,464,333
ICE MIDWESL......................"".........$(j,309,869 ...,...:.......:......$6,058,323
MN STATE CAPITOL ..' ...... ........< .. ...
NORTH PROJECTS ......................$1,481,63~i ..........:.............$1,388,714.,
BUffALO.IC.EARENA ...:...........$3. ,.0... 01.,. 6......9.6..........:.......'.....::............$3,.0....0.6,5.. 02 ~
.. .. .... .. . ... ... .>"'-"" . ,-', .".','
PNHS HEART ..' .....,.. ....
&.VASCULAR CLINIC. ................$36,000.000 .........:........$34,000,000
PNHS.. '. .' ........<> . '" ...... .' ....
CHANHASSEN CLINIC ...:........$13,000,000....................$12,000.000
AVERA ST. LUKES ........................$10,000,000:..................$9.000,000
CITY OF CHANHASSEN PUBLIC WORKS FACILITY ~I
REQUEST
FOR PROPOSALS
CONSTRUCTION MANGEMENT SERVICES
CITY OF CHANHASSEN
PUBLIC WORKS FACILITY
City Project #08-03
Submission Date: September 17, 2008, 2:00 p.m.
Submit to: Paul Oehme, P.E.
Public Works Director/City Engineer
7700 Market Boulevard
P.O. Box 147
Chanhassen, MN 55317
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The City of Chanhassen invites you to respond to a request for preconstruction and construction
services for the proposed new Public Works Facility to be located at 7901 Park Place. The
overall construction budget for the Project is $8,800,000. This project will start the schematic
design phase soon and the City will need preliminary cost estimates from the selected
construction manager within two (2) weeks of the construction management services contract
approval. The anticipated award of the construction management services contract is
October 13, 2008. The anticipated award of the architectural services contract is September 8,
2008.
PROJECT DESCRIPTION
The City of Chanhassen staff had drafted a facility study that identified operational and
maintenance space needs for public works. It has been determined the existing public works site
is too small a parcel for expansion of the public works building. The City has also looked at
purchasing property or purchasing a warehouse type facility and remodeling it to accommodate
public works. Based on a cost benefit analysis, the City has decided to build a new facility on
land currently owned by the City. This property is large enough to accommodate the ultimate
facility needs of public works. The new facility is anticipated to be approximately 83,000 square
feet as identified in the Public Works Facility Program Study - Park Place Option. City crews
are planning to make soils correction on the site and rough grade the property this year.
FACILITY NEEDS
General overview of the new facility needs is as follows:
A. Administration
. Public access and adequate reception and waiting area.
. Meeting/conference space.
. Filing and record storage.
. Supervisory office space.
. Plan storage and layout area.
. Building security and site access control.
. Energy efficient heating, ventilation, and lighting system.
. Use of as much natural lighting as possible.
. Fiber Optic communication system connection.
B. Fleet Maintenance
. Efficient/cost effective layout.
. Adequate overhead lift height.
. Drive-thru service bays.
. Centralized parts and equipment area.
. Proper ventilation and heating.
. Vehicle exhaust system.
. Workbench space.
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. Vehicle/truck hoist.
. Vehicle wash facility.
. Fuel island facility.
. Vehicle welding facility.
. Parts reception area.
. Adequate work/repair space.
. Use of as much natural lighting as possible.
C. Employee Support Area
. Adequate lunch/kitchen facilities and eating space. This area will also be used
as a polling location for elections.
. Mens and ladies locker room facilities with adequate locker space.
. Adequate training/meeting room.
. Use of as much natural lighting as possible.
. The project shall also have a design included as an add an alternate bid item
for ground source heat pump (geothermal heating and cooling) for the general
office building area.
D. Vehicle Storage Building
. Adequate storage space.
. Energy efficient heating, ventilation, and lighting system.
. Wash down capacity at parking stalls.
. Use of as much natural lighting as possible.
. Cold Storage (salt/sand) building will be moved to the new site by City forces.
CONSTRUCTION MANAGEMENT INFORMATION FOR PROPOSAL
A. Firm Qualifications
1. History and background of the firm.
2. Years in business.
3. Number of professionals in the firm by work description and available support
staff.
4. Statement of the firm's focus, values and strategic goals.
5. List any subcontracted professionals that will be used on this project if any.
B. Similar Project History
1. Describe your three most recent experiences working as a Construction
Manager on Public Works facilities or similar government projects.
2. List three similar Public Works or government facilities recently completed by
your firm.
3. Include the date of completion, the total square footage, original construction
budget, final construction cost, project duration, and project designer.
4. List both the design reference and the owner reference.
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C. Proposed Project Team Members
1. Include the Project Principal, Project Manager, and On-Site Project
Superintendent that will work on the project.
2. Provide a brief biographical history and project experience for each team
member.
3. Provide a list of current and anticipated workload and an indication of how
you can complete the project within the time frame indicated.
D. Client References - Only clients from the most recent five years:
1. Furnish at least three client references from projects completed within the last
five years.
2. Provide the references name, title, and contact phone number.
E. Preliminary Project Schedule - State a brief understanding of the proposed
schedule and identify any potential scheduling concerns.
F. Projected General Conditions Costs and On-Site Reimbursable Expenses for
the Project.
1. Provide a detailed breakdown of anticipated General Condition Costs for the
entire Project. These costs may include dumpsters, site fence installation and
maintenance, and installation and maintenance of temporary building access,
sanitation units, etc.
2. Provide a separate, detailed cost of all on site direct reimbursable expenses
such as the project superintendent, job site office, temporary utilities service,
and any other expenses to be paid directly to your firm.
3. Use your preliminary schedule as a base for the construction period.
4. Include labor and material costs.
5. Parking area, access drive and erosion control measurs will be required to be
kept clean (including snow removal), open or maintained during construction
by the construction manager.
G. Project Fee
1. Your fee shall include all home/office expenses, including any personnel costs
(project manager) and incidental expenses that would be incurred during the
completion of this Project.
2. Your fee should also include any monies you require for overhead and profit
for this Project.
3. There will be no additional fee or overhead expense allowed for reimbursable
or general conditions expenses.
4. Provide a separate fee for pre-construction services and construction services
as described by the proposed contract format.
H. Scope of Services
1. Provide a cost estimate for the project within 10 calendar days of selection.
2. Provide an estimate for the project at 60% Construction Documents and prior
to advertisements for bids.
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3. Provide plan review at 30% design and recommendation cost saving ideas or
material substitutes.
4. Perform technical review of the drawings prior to issuance for bidding.
5. Provide monthly contract and budget updates throughout construction phase.
6. Facilitate weekly progress meetings and issue meeting minutes.
7. Maintain updated schedule during the project.
8. Manage pay requests and draft and review change order requests for City
approval.
9. Provide all service described by the AlA Contract B1411CMa - 1992.
I. Contract
1. The contract to be used for this project will be the current edition - AlA
B1411CMa - 1992 with amendments
2. The Construction Manager will be required to furnish a Guaranteed Maximum
Price for construction management services including reimbursibles prior to
the start of construction.
3. The current edition of AlA A201/Cma - 1992 General Conditions for
Construction with amendments will be used in addition to the City of
Chanhassen General Conditions.
4. This project will be a Plan & Specification project.
5. The owner reserves the right to terminate the contract at the end of the
preconstruction phase of services. The contractor will have no reimbursement
for expenses beyond the designated fee for preconstruction services.
J. Additional Information- Include other items that you feel the City should review
or consider during their review of your firm's qualifications.
INTERVIEW AND SELECTION
1. The City may interview the team or teams which it determines best meets
requirements of the request for proposal the week of September 15, 2008.
2. The City reserves the right to award the contract for services to the team, in its
sole discretion and will best benefit the City of Chanhassen.
3. There shall be no reimbursement for any expenses with responding to this
Request for Proposal.
SCHEDULE
The City is anticipating an accelerated consultant selection process. The anticipated project
schedule is as follows:
RFP Back to City
Construction Management lnterview(s)
Anticipated A ward of CM Contract
Construction Start
Substantial Completion
September 17, 2008
Week of September 22, 2008
October 13, 2008
April, 2009
Early 2010
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