AgdaPkt 2012-09-10 - Laserfiche WebLink

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6.4.E. - Page 2 By bringing the Project Manager onto the Block 2 team early in the process, while the building design and the Disposition and Development Agreement are being developed, construction-related issues, such as schedule, coordination, and quality, can be evaluated from the field-delivery perspective. All too often project agreements are developed in the vacuum of the office and the hope that the details resolve themselves. Experience has shown that full engagement of the spectrum of staff and consultants who are responsible for delivering a successful project creates the greatest opportunity for that success. Consequently, some portion of the Project Manager's time will be used to review the draft DDA and to work with the Developer's design and construction support to assure constructability, cost control, and reasonable scheduling. Rather than a guaranteed monthly payment to Vanir, the agreement is based on an hourly rate, with an overall contract ceiling of $750,000. Staff believes the scope to be comprehensive and also flexible enough to adjust to the unforeseen circumstances that will undoubtedly arise over the next three years. To keep the contract costs down, the Project Manager will be housed in vacant City office space during the Redwood Creek Culvert project, then in space shared with the Block 2 developer's construction job offices. The hourly rate of $162/hour for these project management services is equivalent to the City's staff charge rate for comparable professional staff. It is recommended that outside support be used for these projects in order to keep current City staff working on other, non-developer driven capital projects. Additionally, the specific needs for project management are not currently available within the City's staff. The City Council previously authorized the Redwood Creek Culvert Relocation project to be funded through the Capital Improvement Program (CIP) in the amount of 2 million dollars. Staff is proposing to dedicate $290,000 of the $ 2 million to project management costs associated with the culvert relocation. If Block 2 is sold, those funds would be used to repay the project costs. At this time, there are no funds appropriated for managing the Block 2 Project itself. Staff recommends allocating $30,000 from the Hunter Storm $150,000 deposit to support this work. Assuming a Disposition and Development Agreement (DDA) is approved; the developer will fund the project management costs for delivery of the project. Consequently, staff requests approval of the agreement in the full amount of the contract, but limit the authorization for funding to $290,000 from the Capital Improvement Program and $30,000 from the Hunter Storm deposit. The attached