HomeMy WebLinkAboutPR 17737: EDC PRE-DEVELOPMENT SERVICES WITH SPAW GLASS interoffice
MEMORANDUM
To: Mayor, City Manager, and City Council
From: Floyd Batiste, CEO, PAEDC
Date: June 21, 2013
Subject: P.R. 17737 Pre - Development Construction Services with Spaw Glass
The Port Arthur Economic Development Corporation (PAEDC) has procured Haddon + Cowan
Architects Collaborative as the Architects and the National Development Council as
development consultants for the renovation of 501 Procter Street. Based on our experience with
projects of similar complexity as the Port Arthur Savings Building, and taking into account the
financial and time constraints presented by the Port Arthur EDC, the consultant team proposed
that the EDC bring a general contractor into the project in a meaningful way as soon as possible.
The purpose of this was to have the contractor test the proposed design against the budget early,
to suggest alternative construction methods, and to generate a schedule for decisions as well as
construction.
In this way, the EDC would have the benefit of confidence in the budget during design, the
reduction of construction risk and change orders when the construction commences, and the
elimination time re- designing and re- bidding work that can occur on some strictly low -bid
projects. We discussed several options and suggested that the EDC consider a Qualifications -
Based Selection Process (QBS). This approach has advantages for the renovation of existing
buildings, and is particularly useful when rehabilitating historic buildings that require more
specialized restoration skills. If the EDC were considering building a new structure from the
ground up, we would probably not have proposed a Qualifications - Based Selection model
unless there were some constraints more important than the lowest bid price.
As a process, QBS varies considerably with the Design - Bid - (Re- design or cut scope) Build
model that we have become most familiar with. Cost control for this process usually consists of
pre- selecting alternates that can be deleted from the bid if the price comes in too high - usually
finish materials - or designing the project in such a way as to delete scope completely, such as a
wing of the proposed building. Our thinking was that 501 Procter was unsuited to this type of
cost control, and that it did have the need for specialized management, estimating and
construction experience and expertise.
In addition, we are proposing a Guaranteed Maximum Price (GMP) contract. The contractor's
books would be open, with all cost verifiable and subject to audit if desired. All contingency
within the GMP contract would revert to the owner if not spent.
The consultant team discussed this process and alternatives at length with the EDC, including the
legal ability of the EDC to select a contractor based on qualifications rather than following the
City of Port Arthur's procurement policy. Since the implementing legislation for economic
development corporations (the Development Corporation Act) does not contain a provision that
subjects economic development corporations to municipal procurement requirements, the EDC is
not required, by statute, to comply with municipal procurement laws.
After this was presented and agreed to by the EDC Board and the City Council, the consultant
team generated a Request for Proposals, evaluated and scored proposals from six general
contractors - all qualified to do the work - interviewed each contractor, and then selected
SpawGlass to provide pre - construction services and a Guaranteed Maximum Price (GMP). It is
important to note here that the proposals were evaluated and scored by the consultant team as
well as representatives from the EDC Board of Directors as well as selected City staff. The
proposals included each contractor's experience and skills, a description of key team members,
and a price for pre - construction services, general conditions (construction - related costs that are
typically not part of any particular trade bid), overhead (office staff for example) and profit.
After selecting SpawGlass, we took the first step and prepared an Agreement for Pre-
Construction Services, which is before the City Council now.
During the General Contractor interview and selection process, the hazardous material removal
work was bid, awarded and began. During the abatement work, some construction- related
problems appeared, including increased roof leaks, a basement filled with water as well as
specific items that would need to be coordinated between the abatement contractor and the EDC
and eventual General Contractor. These included window glass removal needed to complete the
abatement work, maintaining a sump pump after the completion the abatement work, exploratory
work such as core bores in the structure required by the Structural Engineer, maintenance of
building security during the design phase, and more. The question of who could best perform this
work was discussed, and we agreed that SpawGlass was better suited to this than the EDC, as a
matter of experience as well as efficiency of cost and time. As a result, we generated a list of and
budget for general tasks, or Temporary Work, that would be provided during the time between
the completion of the abatement work and the awarding of a Contract for General Construction,
or GMP Contract.
This is the second Agreement before City Council now.
The two Agreements before the City Council now are not for the general construction of 501
Procter.
Date: April 29` 2013
To: Floyd Batiste, Executive Director - Port Arthur Economic Development Corporation
From: Murphy D. Cheatham, 11, Director - National Development Council
Re: PAEDC Contractor RFP Evaluation Summary
Mr. Batiste:
Thank you for hosting the interviews for the contractors that responded to the 501 Procter St. Request
for Proposal (RFP) at the Port Arthur Economic Development Corporation's (PAEDC) office. The pool of
contractors that responded individually brought a different experience, expertise, and ways of managing
the construction process. The six respondents received scores from the selection committee a s follows:
Available Average
Section Points Evaluator Score
Spaw Glass 100
Daniels Building Construction 100 84
H.B. Neild & Sons 100 82
Allco 100 80
Construction Zone 100 74
Icon Builders 100 62
The qualified pool was very competitive with Spaw Glass and Daniels Building Construction scoring the
highest and being separated by one point. Another method used to determine the highest ranking
respondent is by which contractor received the most first place votes by evaluator. As shown in the
following graph, Spaw Glass and Daniels Building Construction were separated by one first place vote as
well:
3
• Spaw Glass
2.5
• Daniels Building
Construction
!
1
• H.B. Ncild & Sons
1 I
F ■AIco
■ • Construction Zone
0 111
• Icon Builders
1st
2nd
3rd
Spaw Glass
Spaw Glass' contributing factors were:
Qualifications
- Experience renovating historic facilities with flooding basements and installing flooding
prevention systems
- Recently opened a regional office in Beaumont, TX by staff that has regional experience with
state wide resources
- Currently have three projects in the region
- Possess experience in renovating historic structures to L.E.E.D. guidelines
Project Management
- Prefer detailed preconstruction phase with the architecture and engineering team to review the
drawings, discuss construction processes, organize flow of information, determine approval
process, gain input for subcontractors, and create construction timeline.
- Source M.E.P. locally to ensure future warranty work be addressed as soon as possible
- Require "Mock -Up" drawings from each contractor prior to starting work
- Have a local contractor outreach program
Daniels Building Construction
Daniels Building Construction's contributing factors were:
Qualifications
- Experience renovating historic facilities in the region
- Family owned business started in the "Golden Triangle" in 1957
- Have capacity to complete project due to recently finishing larger projects
- Shortest tenure employee has 13 year experience.
Project Management
- Prefer detailed preconstruction phase with the architecture and engineering team to review the
drawings, discuss construction processes, organize flow of information, determine approval
process, gain input for subcontractors, and create construction timeline.
- Strong relationships with local contractors
- Track projects electronically via emails using on site scanners and computers: RFI LOG; Submittal
Log
Although Spaw Glass has more direct experience with this project in the term of flooded basements and
implementing sustainable design, their fee is considerable higher than Daniels Building Construction as
shown in the following graphs:
14.00% -V e-
12.00% -
10.00% -V
8.00% -V I '""
6.00%
4.00% 0 Spaw Glass
.
2.00% -V ) T_, 13 Daniels
0.00 % /f i
e�� a � o �5 e a <<e'
� �� <2 e`a \`off ao �o
Qi 1 `o\\�
Q
Fee Comparison by Percentage
400,000
350,000 -
300,000
250,000 - i-- '—
' 200,000 _ , „_
150,000 4,--1_ '1.____
100,000 o Spaw Glass
50,000 o Daniels
Z�__ = = f7
o� <e' a`�oo e re? a \�ee”
e e \ oQ �e e a � b �
Q
0,
<2 Q
Fee Comparison by Dollar
As PAEDC's project manager and representative on this project, citing the aforementioned attributes the
National Development Council (NDC) recommends that PAEDC present Spaw Glass and Daniels Building
Construction to their board to decide which contract to secure for the preconstruction services of 501
Procter Street. We also recommend securing the general contractor for the renovation as well, should
all parties mutually agree how to move forward, in order to keep continuity between the preparation of
preconstruction and the actual renovation of the building. Attached is an excel spreadsheet including a
summary tab with additional tabs containing the scoring of each contractor buy judge.
NDC is excited to participate in such a transformational project for the City of Port Arthur and
surrounding region. Thank you again for this opportunity.
Regards,
Murphy D. Cheatham, II
Director
National Development Council
P.R. No. 17737
6/19/2013
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY OF PORT
ARTHUR SECTION 4A ECONOMIC DEVELOPMENT
CORPORATION TO ENTER INTO A PRE- DEVELOPMENT
CONSTRUCTION SERVICES AGREEMENT WITH SPAW
GLASS FOR 501 PROCTER STREET NOT TO EXCEED
$15,000.00
WHEREAS, it is deemed in the best interest of the citizens of Port Arthur to enhance the
appearance of the downtown area and to create an environment that promotes business and
entertainment activities for the community; and
WHEREAS, the City of Port Arthur Section 4A Economic Development Corporation
(the "PAEDC ") desires to relocate its offices to downtown Port Arthur; and
WHEREAS, per Resolution No 12 -641, the City Council authorized PAEDC to pursue .
the building development plan to retrofit the property at 501 Procter; and
WHEREAS, PAEDC invited selected general contractors to submit proposals in order to
provide design assist services for the redevelopment of the historic Port Arthur Savings Building;
and
WHEREAS, on May 6, 2013, the PAEDC Board of Directors voted to begin negotiating
an agreement with Spaw Glass for the pre - development construction services for 501 Procter
Street not to exceed $15,000; and
WHEREAS, per Resolution No 13 -225, the City Council authorized PAEDC to
negotiate an agreement with Spaw Glass; and
WHEREAS, the pre - development construction agreement has been negotiated and
finalized as noted in Exhibit "A ".
•
` I
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF PORT ARTHUR, TEXAS:
Section 1. That the facts and opinions in the preamble are true and correct.
Section 2. That the City Council authorizes the PAEDC to enter into pre -
development agreement with Spaw Glass to provide design assist services for the redevelopment
of the historic Port Arthur Savings Building at a cost not to exceed $15,000.
Section 3. That a copy of the caption of this Resolution be spread upon the Minutes
of the City Council.
READ, ADOPTED AND APPROVED on this day of A.D., 2013,
at a Meeting of the City Council of the City of Port Arthur, Texas, by the following vote:
AYES:
Mayor
Councilmembers
NOES:
Deloris "Bobbie" Prince, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED:
#996946 Page 2
Floyd Batiste, PAEDC CEO
#996946 Page 3
APPROVED AS TO FORM:
Guy N. Goodson, PAEDC Attorney
APPROVED AS TO FORM:
Se C'onC -e4-1,
Valecia R. Tizeno, City Attorney
#996946 Page 4
Exhibit "A" has been distributed to the City Council for review