HomeMy WebLinkAboutP.R. 12268 - EDC & DIKITAPort Arthur Economic Development Corporation
P. O. Box 1089 o Port Arthur, Texas 77641-1089
409/983-8195 · 409/983 8222 fax
Emai[: portarthuredc(a~eonet.net · hllp://www, porlarthur, com/edc
Memo
To: Mayor, City Council and City Jvlanager
From: Ike Mills, Executive Director4:;?J//f
Date: July 18, 2003
Re: P.R. No. 12268; Council Meeting July 22, 2003
Attached is P.R. No. 12268 approving a contract between the Section 4A Port
Arthur Economic Development Corporation and Dikita Enterprises, Inc. for program
manager services for the infrastructure construction phase of the hospital project,
charge to Acct. No. 120-1429-542.54-00 in the amount of $128,056.85.
P. R. No. 12268
07/18/03 bjm
I~ESOLUTION NO.
A RESOLUTION APPROVING A CONTRACT BETWEEN THE
PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT
CORPORATION AND DIKITA ENTERPRISES, INC. FOR
PROGRAM MANAGEMENT SERVICES FOR
INFRASTRUCTURE CONSTRUCTION PHASE OF THE
HOSPITAL PROJET, ACCOUNT NO. 120-1429-542.54-
00 IN THE AMOUNT OF $128,056.85.
WHEREAS, the Board of Directors of the Port Arthur Section 4A
Economic Development Corporation authorized the Executive Director
to enter into a contract with a Program Manager as its
representative on the infrastructure development for the hospital
project; and
WHEREAS, pursuant to Section 8.19 of the Bylaws, the Port
Arthur Section 4A Economic Development Corporation on July 10, 2003
by a four votes.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PORT ARTHUR:
Section 1.
true and correct.
Section 2.
Director of the
That the facts and opinions in the preamble are
That the City Council authorizes the Executive
Port Arthur Section 4A Economic Development
Corporation to execute a contract with Dikita Enterprise, Inc. for
program management services for in fracture construction phase of
the Hospital Project, as denoted in substantially the same form
attached hereto as Exhibit "A"
Section 3. That a copy of the caption of this Resolution be
spread upon the Minutes of the City Council.
READ, ADOPTED AND A~PROVED on this day of
of Port Arthur,
Mayor
2003, at a Regular Meeting of the City Council of the City
Texas, by the following vote: AYES:
, City Council ,
NOES:
ATTEST:
EVANGELINE GREEN,
OSCAR ORTIZ, MAYOR
CITY SECRETARY
APPROVED AS TO FORM:
SEE CONFIDENTIAL MF~MO OF CITY ATTORNEY
MARK T. SOKOLOW, CITY ATTORNEY
APPROVED FOR ADMINISTRATION:
STEVE FITZGIBBONS, CITY MANAGER
APPROVED AS TO AVAILABILITY OF FUNDS:
REBECCA UNDERHILL, DIRECTOR OF FINANCE
APPROVED FOR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION:
IG~LIOU~
APPROVE[
I~T" M~LL~, EXECUTIVE DIRECTOR
O FORM:
LEY, EDC ATTORNEY
Port Arthur EDC
From:
Sent:
To:
Cc:
Subject:
Kwame Mwaniki [kmwaniki@dikita.com]
Thursday, July 10, 2003 4:44 PM
Ike Mills
Iwilliam$@dikita.com; ewarren@dikita.com
Port Arthur EDC- Hospital Project PM Proposal
Importance: High
Hi Ike,
Further to our conversation this afternoon and as requested we confirm
that our PM Proposal dated May 23rd, 2003, is still valid at present
through the next 30 days from today 7/10/03. Please contact us if you
have any further questions or need clarification of our proposal.
We look forward to providing our services and working on this important
project. Thank you for your attention.
Kwame B. Mwaniki P.E.
Dikita Engineering
(214) 634-8844
planning
[ ~ solutions ....
,' 'managing
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Managing the life of
your project ....
PIanmng for
your success ....
engineering
Engmeenng total
RECEI\!ED
Dlkita Enterprises
of Texas, Inc,
Dikita
Engineering
Dlklta
Management
Services
www.dikita corn
May 23, 2003
Mr. Ike Mills
Executive Director
Port Arthur Economic Development Corporation
P.O. Box 1089
Port Arthur, TX. 77641-1089
Re.'
Hospital Development Project, Port Arthur, Texas:
Proposal for Program Management and Owner's Representative Services.
Dear Mr. Mills,
Further to your request, Dikita Enterprises, Inc. (Dikita) is pleased to submit this proposal to
provide professional Program Management and Owner's Representative services for the above
project. We trust you will find this proposal consistent with the stated scope of work per your
letter dated May 20, 2003 and our discussions to date.
This proposal delineates the scope of services, compensation, and schedules of professional
services to be provided, with an authorization section for your approval. The proposal is
submitted in two original sets and valid for 30 days from the above date. To accept the proposal
and authorize us to commence work, please sign the authorization section and return one of the
original copies to the attention of Mr. Lucious Williams, together with a contract document.
SCOPE OF SERVICES
Dikita. proposes to perform professional program management services for the proposed and
currently contracted design/build site improvement phase of the 30-acres $80million Hospital
Development project, here after referred to as Part I. We also propose to perform professional
services serving as the Owner's Representative to Port Arthur Economic Development
Corporation (EDC) during the building construction phase (hospital and medical office) of the
30-acres $80million Hospital Development project, here after referred to as Part II.
Both program management and owner's representative services shall be accomplished primarily
by provision of a highly qualified and experienced program manager with a registered Texas
professional engineering license and construction management experience. There will be
periodic input from our principal Mr. Lucious L. Williams within a strategic and policy
administration advisory and coordination capacity.
The program management services for part I, shall cover both design and construction stages of
the site improvements scheduled for a total of 9.5 months as proposed by the design/build team.
The owner's representative services schedule for part II is not yet known at present, and
Corporate Office; Branch Office;
1420 W. Mockingbird Lane, Suite 600, Dallas, Texas 75247 3400 Highway 365, Suite 304, Pod Arthur, Texas 77642
Ph: [2141634-8844 ~×: (214) 638-7406 Ph: (4091729-8300 Fa×: (409) 729-2307
l~ort Arthur E¢oxtomi¢ Devdopraent Corporation Hospital Development Project
May 23, 2003 Dikita Program Management & Owner's Rep. Proposal
therefore has been conservatively proposed for the initial 2 months or an allowance of 2 months
.,upon commencement of the building design/construction phase of work. We propose that within
or before the initial 2 months, both parties EDC and Dikita reconfirm the scope of services to be
performed this part II, determine a schedule and negotiate a fee.
General related tasks to be performed constituting the proposed scope of services this project, for
both parts I and II are as follows:
Part I: Site Improvements Design/Build - Program Management Services:
1. Participate in all meetings as appropriate, to include but not limited to planning, scheduling,
design review, permitting, public involvement etc as required by the owner.
2. Schedule, direct and attend regular meetings with the design/build team members, City of
Port Arthur personnel, Board of Councils, stakeholders, TXDOT, DD7 etc. as required by
the owner, including preparing the meeting agenda and minutes.
3. Plarming input during the development of the design to advise on optimal site use,
auxiliary site improvements, value engineering process of alternative utilities and roadway
routes/alignment for cost effectiveness and methods of delivery both design documents and
construction of public works for the site improvements.
4. Coordinate all planning, review, permitting issues between all various involved parties on
behalf of EDC, specifically with IASIS, City of Port Arthur public works, and the
design/build team.
5. On behalf of EDC, manage, coordinate and oversee the services of the prime design/build
contractor in accordance with the contract agreement between the prime and EDC.
6. Assist the owner EDC in preparation of project memorandums, correspondences as required,
to also include distribution to all concerned parties.
7. Coordinate with the design/build team to ensure that the Construction Contract Documents
comply with all applicable code regulations, policies and procedures for permitting and
approval requirements.
8. Establish procedures for coordination with the prime design/build contractors, sub-
consultants, subcontractors, EDC, City of Port Arthur public works and permitting agencies
with respect to all aspects of the project, and implement such procedures;
9. Prepare project action item list, a list of critical activities that require immediate action and
the date(s) by when the activity must be completed, and record and follow-up on compliance.
10. Provide recommendations to the design/build team on: construction feasibility; availability of
materials and labor; time requirements for installation and construction; assignment of
responsibilities for safety precautions and programs, traffic control considerations, factors
related to cost, including costs of alternative designs or materials, preliminary budgets, and
possible economies and any other matters necessary to accomplish quality project
deliverables in accordance with the schedule and budget.
11. Conduct a "constructability review" which consist of reviewing the design, technical
specifications, field investigation reports (environmental and geotechnical), and all pertinent
material as well as consultation with the design/build team. This will help identify items that
in the Program Manager's opinion may cause problems in the way the Project is to be
constructed and discrepancies that if left unattended may result in Change orders or claims.
Page 2
Port Arthur Economic Development Corporation Hospital Development Project
May 23, 2003 Dikita Program Management & 0wnefs Rep. Proposal
12. Set-up and conduct a bi-weekly progress meeting to report and update the owner on progress
,,~ of work both during planning, design and construction.
13. Ensure that the prime design/build team submits bi-weekly progress reports of all work
performed by their sub-consultants, sub-contractors and themselves.
14. Assist the EDC in tracking the cost of the project, using a tracking system in a format
acceptable to EDC.
15. Develop and implement a Project Schedule for EDC, incorporating design and construction
tasks/activities of the design/build team, and monitor progress to ensure the team is on
schedule, reporting any delays.
16. Update the Project Schedule bi-weekly to incorporate an updated, detailed listing for all
activities o f the Project.
17. Review and recommend revisions and/or amendments to contracts with the design/build team
and other contractors under contract with EDC, to ensure objectivity, technical adequacy,
industry standard practices, competitive costing, merits of exclusions or qualification of
scope of work, and schedule.
18. Provide contract administration services for all contracts with EDC directly related to the
design and construction of the site improvements this project.
19. Assist EDC in administrative compliance of contract agreement i.e. insurance coverage,
M/WBE policy. Noting that M/WBE goals are to be met by the design/build prime contractor
for both design and construction of the site improvements, at a participation level to be
determined by EDC.
20. On behalf of EDC, review all contracts between the prime design/build contractor and all
sub-consultants and sub-contractors, with comments to be presented to EDC. Prepare,
maintain and update a Project budget, to included cost parameters as required by EDC,
within an acceptable format.
21. Advise EDC of any anticipated additional services, that may have not been included in the
prime design/build contractor's scope of basic services, such as material testing,
geotechnical, environmental investigation. Provide EDC with scope of additional services,
reason and importance of performance and preliminary cost.
22. Assist EDC in articulating scope of services, identifying service providers, and
bidding/selection of service provider.
23. Identify tests to be performed, and assist EDC in selecting testing laboratories and
consultants, without assuming direct responsibility for the work of such laboratories and
consultants.
24. Present an update of the Project budget update bi-weekly, and advise EDC on cost-overruns,
project cash-outlay and potential savings. Present actual cost against budgeted cost and
explain discrepancies as necessary.
25. Review and approve invoices for services trader direct contract with EDC, noting and
confirming percent completion of tasks/activities, specifically invoices from the prime
design/build contractor.
26. Review and monitor invoices from all sub-consultants and sub-contractors, under contract
with the prime design/build team to confirm percent completion of respective scope of work,
and consistent payment by prime.
27. Advise and implement with approval, any reasonable strategies or measures to be approved
by the Owner (EDC) to reduce the costs projected to be incurred during the design and
construction of the site improvements.
Page 3
Port Arthur Economic Development Corporation Hospital Development Project
May 23, 2003 D~ita Program Management & O'q~ae~' s R~. Ploposa~.
· 28. Monitor the design documents to be sure they incorporate the City of Port Arthur public
works standards and standard specifications and procedures, as well as those for other
permitting governmental agencies like DD7 and TXDOT.
29. Monitor and record general observation of work of the construction contractors as required
on a consistent non-exhaustive basis with a minimal of three site visits per week during
construction and report observations and progress to EDC bi-weekly. Observation duties
shall include reasonable dihgence to discover work that is not in compliance with the
Contract Documents.
30. During construction schedule and conduct onsite progress meetings, as required, at which
time all construction sub-contractors, the prime, and sub-consultants can discuss jointly such
matters as procedures, progress, problems and scheduling.
31. Review and determine the adequacy of the prime design/build contractor's and sub-
contractor's and equipment, and the availability of materials and supplies to meet the
construction completion schedule, especially availability of suitable fill material given the
massive magnitude of fill material required this project.
32. Maintain cost accounting records in good form on expenditures and materials, or for any
other expenditures requiring accounting records, allowing EDC access to these records.
33. Implement a system in accordance with EDC policy for the preparation, review and
processing of Change Orders and assist in negotiating Change Orders prior to submittal of
same to EDC for final approval.
34. Maintain strict enforcement of all Construction Contracts including retention of retainage
amount, prevalhng wage laws as required by state law and/or EDC policy.
35. Review the Work of construction contractors for defects and deficiencies in the Work as
specified in the Construction Contract Documents, on a regular and frequent basis, and prior
to any facilities being installed which also requires observation by the responsible design
consultant or applicable authorities prior to being installed.
36. Assist EDC in having the prime design/build contractor establish a safety program and
monitor to ensure comphance. Safety standards are to be included in the Construction
Contracts, and adequately inform the prime contractor to coordinate safety programs with the
sub-contractors in their work area.
37. In the event the Program Manager becomes aware of any violations of safety-related
practices and procedures by and of the prime contractor and/or sub-contractor, the Program
Manager shall be responsible for advising the EDC of such violations, however, the Program
Manager shall not be responsible for compliance of such safety-related practices by the prime
contractor and/or sub-contractor
38. Monitor the prime contractor's production of as-built construction records and shall monitor
the production of final, as-built mylar record project drawings by the prime design/build
consultant for delivery to EDC and/or City of Port Arthur public works, as required.
39. Maintain updated records of contracts, drawings, examples, purchases, materials, permits,
and other construction related documents, including all changes and revisions; obtain data
from the prime contractor and maintain a current set of record drawings and project manual.
40. Represent EDC on the final inspection and walk-through for final acceptance of the site
improvement works, to be conducted jointly with City of Port Arthur public works, TXDOT
and perhaps DD7, as well as the prime design/build contractor.
Page 4
Port Arthur Economic Development Corporation Hospital Development Project
May 23, 2003 - - Dkkita Program Management & Owner's Rep. Proposal
Part II: Building Construction - Owner's Representative Services:
]. In general to serve as the owner's representative involved primarily in coordination,
scheduling, and policy administration related tasks within the owner EDC best interest
regarding the construction of the Medical Office building and Hospital building by IASIS.
2. Participate and represent EDC at all meetings as appropriate, to include but not limited to
planning, scheduling, design review, permitting, public involvement etc as required by the
owner.
3. Coordinate any post site improvement scope of work deliverables to an acceptable means and
conditions as specified by IASIS, in agreement with EDC. Coordination and planning
assistance to IASIS, EDC and other involved parties as required. Includes participation in
review and planning meetings as required, however limited to a reasonable number of
meetings.
4. Articulate and implement a local M/WBE minimal partcipafion goal of vendors, suppliers,
sub-consultants and sub contractors by IASIS throughout the course of development and
construction of the medical office building and hospital. Also assist EDC in searching and
pre-qualifying eligible local MWBE, and well as enforcing compliance of policy by IASIS. If
this is within the interest of EDC.
5. Review the agreement between EDC and IASIS to ascertain the extent of any further
participation and viable interest by EDC at this post site improvement phase of the Hospital
development project.
6. Assist EDC to the extent required to take ownership, and actively participate within their
ongoing economical development interests and agreement rights on the project once site
improvement is completed, and private development of the building commence.
Additional Services:
From time to time the Owner (EDC) may request that Program Manager perform services in
addition to those Services required or reasonably inferable herein. Each time the Program
Manager is requested to perform services which are deemed to be Additional Services, and prior
to performing such Additional Services, Program Manager shall complete and forward to EDC
for acceptance a cost and scope of work proposal of the requested additional services. Additional
services shall be provided upon request and mutual agreement.
Additional services shall be based upon hourly billable rates, as set forth below. Other personnel
that may be used from time to time will be billed at reasonable rates, respective of the rates
below:
Principal-In-Charge
Program Manager
Engineer
Architect
Construction Inspector
Administrative Assistant
Estimator
Page 5
Port Arthur Economic Development Corporation Hospital Development Project
May 23, 2003 Dikita Program Management & Owner's Rep. Proposal
COMPENSATION
Provts~on of professional program management and owner's representative services as described
herein, is proposed as a fee consisting of 2.2% of the design/build contract amount initially, to be
adjusted later at the end of the construction based on the final design/build cost. In addition an
estimated fee for the initial 2 months of owner's representative services. Our fee proposal for
separately for both parts I and II are as follows:
Fee Schedule for Basic Services:
Services
Part I: Site Improvements Design/Build - Program Management
Services:
Fees: 2.2% of Design/Build contract estimated at $5.8million
Reimbursable:
Total Fees Program Management Services:
Part II: Building Construction - Owner's Representative Services:
Lump Sum "not to exceed" Fees: (Initial 2 months only)
Reimbursable:
Total Fees Owner's Representative Services:
Total
$127,600
$1,550
$129,150
$22,846
$300
$23,146
SCHEDULES
Schedule of Tasks and Deliverables:
Commencement of basic services as described herein this proposal, shall commence upon receipt
of an executed contract and a Notice to Proceed.
Schedule of Pa_.Lmaent:
The Basic Services compensation fee for either part I or II shall be invoiced each month based
upon percentage (%) complete attained each month for the Program Manager services or
Owner's Representative services, respectively.
The Lump Sum fees for the aforementioned service tasks shall be paid based on monthly
invoices within 15 days of receipt, charged at percent completion of project, plus reimbursable
expenses incurred.
Page 6
Port Arthur Economic Development Corporation Hospital Development Project
May 23, 2003 Dikita ?togmmManagement & Ovaxei's~ep. Ploposal
...Full payment shall be due within 30 days upon submittal of an invoice and remitted directly as
follows:
Attn: Ms. Evalynn Warren, CFO
Dikita Enterprises, Inc.
1420 W. Mockingbird Ln., Suite 600
Dallas, TX. 75247
AUTHORIZATION
The undersigned is an authorized signature and agrees to the terms, services, compensation, and
schedule described in this letter.
Port Arthur Economic Development Corporation:
Owner
Signature
Printed Name
Date
We look forward to the prospect of providing professional services on this important project and
thank you for your consideration. Please feel fxee to contact us and further discuss any aspect of
this proposal or if you need any clarification. Thank you for your attention.
Sincerely,
Dikita Enterprises, Inc.
Lucious L. Williams
President/CEO
attachment: Proposal Fee & Cost Estimate for Services
Page 7
DIKITA ENTERPRISES, INC.
Proposal Fee & Cost Estimate for Services
Project: Hospital Site Development, Port Arthur TX Project No.
Prepared tiy: KBM ~?. Date: May 23, 2003
Scope of Services: Program management services for Part I (Site Improvement Design/Build) and Owner's Representative Services Part ti Building Construction
(Medical Office Buildin~l and Hospital Building/
Estimated Time Input (Hrs.)
Dikita Engineering Staff
Proj. Mgr. I Proj. Eng E.I.T. I CADDI Inspector Principal
'Descri tion of Work Task
Based on a 150 da~rs (5,3 months = 21 weeks) Desitin 0
~chedule as proposed by the Pdme Design/build Team: 0
All related tasks average 18hrs.~k (~ 21 wks for PM = 378 378
All related tasks average 4 hrs~vk (L~ 21 wks for PHncipal = 84 84
0
Based on a 4 months (16 weeks) construction schedule 0
as proposed by the Prime DesigrVbuild Team: 0
All related tasks average 12hrs./wk ~ 16 wks for CM -- 192 192
All related tasks average 4hrs./wk (~ 16 wks for Principal = 64 64
3ased on an initial 2 months (8 weeks) of services, thereafter 0
Urther services to be negotiated. 0
~,ll related tasks avera~le 20hm./wk (~ 8 wks for PM = 160 160
~,11 related tasks avera~]e 4 hrsNvk (~ 8 wks for Principal = 32 32
0
0
0
0
0
total Input hours 730 0 0 0 0 180 910
Rate per hour $111.79 $111.79 $73.01 $59.99 $57.35 $155.00
rotalCharcJes $81,603.78 I $ I $ I $ I $ I $27,900.00 $109,503.78
rotal Fee for Services (sub-total) 3109.503.78
Reimbursable
=tinting, courier deliver, services L.S., mileage $ 1,850.00
total Estimated Cost for all BASIC Services $111~353.78
Add: 15% Profit matin $ 16,703.07
rotal Estimated Charge for All BASIC Services $128~056.85
Multiplier = 3.10
Reviewed By:. Date:
Reviewed By:. Date:
Approved By: Date:
Comments:
5~25~03