7.3.A. SR 05-16-2011REQUEST FOR ACTION
TO ITEM NUMBER
Ma or and Ci Council 7.3.A.
AGENDA SECTION MEETING DATE PREPARED BY
Administration May 16, 2011 Tim Simon, Finance Director on
behalf of the Public Works Committee
ITEM DESCRIPTION REVIEWED By
Construction Manager At-Risk for the Public Works and Fleet Lori ohnson, Ci Administrator
Maintenance Project REVIEWED BY
ACTION REQUESTED
Approval to contract with RJM Construction as construction manager at-risk for the public works and
fleet maintenance facility project, pending city attorney review of the contract.
BACKGROUND/DISCUSSION
On March 14, 2011, the Council authorized staff to conduct a request for proposal (RFP) fox a
construction manager at-risk for the public works and fleet maintenance facility project. The RFP was
advertised on the City's website and the League of Minnesota Cities. On April 11, 2011, a mandatory
pre-proposal meeting was conducted and thirteen (13) firms attended. We received twelve (12) proposals
for our project. The Public Works Committee (Tim Simon, Rodney Schreifels, Phil Hals, Mark
Thompson, Justin Femrite, and Councilmember Westgaard) reviewed the proposals and interviewed four
firms on May 4. John Mentor, Public Works Director from Sherburne County, also joined us for the
interviews. The Committee was unanimous in recommending RJM Construction as construction
manager for our project. References were checked and came back favorable to RJM's ability fox this
project. The Committee felt RJM's experience in pre-construction and construction management,
including the number of personnel hours and on-site presence, would be a great fit for our project. In
addition, RJM has considerable experience as a construction manager at-risk and at the guaranteed
maximum price (GMP) process.
RJM will start immediately, pending City Council approval, working with City staff and the 292 Design
Group on pre-construction services, value engineering, and determining the best use of the funds that are
available for phase I of the project. 292 Design Group, the architects, are still in the program phase for
the project.
FINANCIAL IMPACT
The RJM proposal includes a construction management fee of 1.5% ($120,000) and general conditions of
$311,488, which are broken out by each phase of the project for a total cost of service of $431,488. The
construction management fees ranged from 1.5% to 3.95% from the twelve proposals received and the
total cost of service ranged from $346,000 to $740,000.
The funding for phase I will be out of the government building fund with a transfer from the municipal
liquor enterprise fund once the complete scope of phase I is determined. After the schematic design and
N:\Public Bodies\City Council\Council RCA\Agenda Packet\05-16-2011\PWconstructionmanager.docx
construction documents are complete and the estimated costs are updated, a complete financing package
will be presented to the City Council for consideration.
ATTACHMENTS
• RJM's construction management fee proposal
Action Motion by Second by Vote
Follow Up
N:\Public Bodies\City Council\Council RCA\Agenda Packet\05-16-2011\PWconstructionmanager.docx
Elk River Public Works -Construction Management Fee Proposal
Preconstruction Phase
Description Quantity Unit Unit Cost Total
Project Principal 90 HRS NA In Base Fee
Project Executive 270 HRS NA In Base Fee
Project Manager 180 HRS $ 80.00 $ 14,400
Chief Estimator 90 HRS $ 85.00 In Base Fee
Document Quality Control Team 72 HRS $ 85.00 In Base Fee
Subtotal Design and Bidding Phase $ 14,400
Construction Phase -Administration of the Construction Contrail
Description Quantity Unit Unit Cost Total
Project Principal 95 HRS NA In Base Fee
Project Executive 381 HRS NA In Base Fee
Project Manager 953 HRS $ 80.00 $ 76,208
Superintendent 1905 HRS $ 77.90 $ 148,415
Safety Director and General Superintendent 191 HRS $ 82.90 $ 15,794
Chief Estimator 48 HRS $ 85.00 In Base Fee
Administration Assistant 476 HRS $ 35.00 $ 16,671
Subtotal Construction Phase $ 257,088
Reimbursable Expenses
Description Quantity Unit Unit Cost Total
Temporary Sanitation 10 MO 300 $ 3,000
Temporary Site Trailer 10 MO 750 $ 7,500
Travel and Transportation 10 MO 300 $ 3,000
Phones and Fax 10 MO 350 $ 3,500
Office Equipment 10 MO 250 $ 2,500
Printing and Postage 10 MO 400 $ 4,000
Misc. Equipment Charges 10 MO 750 $ 7,500
Superintendent Truck and Fuei 10 MO 900 $ 9,000
Subtotal Reimbursables $ 40,000
Construction Management Fee
Proposed Construction Management Fee 1 LS 1.50% $ 120,000
This fee has been based on the project value of $8,000,000 provided in the RFP
Summary of Construction Management Services
Preconstruction Phase $ 14,400
Construction Phase $ 257,088
Reimbursable Expenses $ 40,000
Construction Management Fee $ 120,000
Total Cost of Services $ 431,488
^ Lf
ELK RIVER PUBLIC WORKS AND FLEET MAINTENANCE FACILITY