HomeMy WebLinkAbout5C - Jeffers Pond Interpretive Center Project
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
CITY COUNCIL AGENDA REPORT
September 4, 2007
5C
Frank Boyles, City Manager
CONSIDER APPROVAL 0 SOLUTION AUTHORIZING CONSTRUCTIVE
IDEAS TO PROVIDE OWNER'S REPRESENTATIVE SERVICES FOR THE
JEFFERS POND INTERPRETIVE CENTER CONSTRUCTION PROJECT.
Introduction
The purpose of this agenda item is to request Council authorization to appoint
Bill Wolters dba Constructive Ideas as Owner's Representative for the Jeffers
Pond Interpretive Center construction project.
H istorv
The City, School District and Jeffers Foundation have entered into a partnership
to construct an interpretive center building on 1.4 acres donated to the City
located next to the Jeffers Pond Elementary School. Given his extensive
experience and positive impact with the Police Station I City Hall and Fire Station
NO.2 projects, I requested a proposal from Bill Wolters dba Constructive Ideas
to provide Owner's Representative services.
Current Circumstances
Attached is a copy of the proposal prepared by Mr. Wolters. The proposal
includes providing the following services for the City:
. Preparation of RFP and facilitation of architect selection.
. Assistance with schematic and design development phase.
. Management of construction document and bidding phase.
. Inspection and change order oversight during construction phase.
. Project turnover and occupancy phase.
Within each of these phases are numerous responsibilities (see attached
proposal pages 3 through 6).
The proposal further identifies the cost for services by project phase. The total
proposed cost is not to exceed $59,250 plus reimbursable out-of-pocket
expenses.
There are various issues the Council may wish to consider.
1. Why do we need an Owner's Representative in the first place?
There is no one on staff that has the necessary expertise to effectively
oversee a construction project of this nature. There are a number of things
that make this an especially challenging project:
. It involves a partnership between three parties which requires
especially close coordination.
. The building is a nature center which is a unique building use
requiring building knowledge and expertise.
www.cityofpriorlake.com
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ISSUES:
. It is intended to be a green building which creates additional
challenges in the project.
2. Could we retain an Owner's Representative for only part of the project?
Yes. Mr. Wolters indicated the greatest return for his services occurs up to
the point where bids are received. However, this building will be constructed
on highly constrained property using building techniques that are not
mainstream. Having Mr. Wolters oversee the construction phase of the
project will help assure a dependable, long-lived building. There is no one on
staff to monitor the project through the construction and acceptance phases.
3. Why not use a construction manager?
The building committee for the Police Station I City Hall did a great deal of
research regarding the type of construction process to use. They concluded
that the safest process was to use an Owner's Representative rather than
construction manager. The major difference is that the Owner's
Representative with a general contractor entails the least risk to the owner.
This is because the general contractor is responsible for each of the sub-
contractors and executes a performance bond with the City. With a
construction manager there is no general contractor and, therefore, the
liability is on the owner. This approach has worked well with the Police
Station I City Hall and with Fire Station NO.2.
FINANCIAL
IMPACT:
The cost for Owner's Representative services is $59,250 plus expenses.
Typically, savings created by the Owner's Representative covers or exceeds
these costs. These costs are reimbursable by the Jeffers Foundation which is
aware we have retained Mr. Wolters.
ALTERNATIVES:
1. Adopt the attached resolution to retain Constructive Ideas as Owner's
Representative for the Jeffers Pond Interpretive Center.
2. Take no action and direct the staff to provide additional information.
RECOMMENDED Alternative #1.
MOTION:
i:\COUNCILV\C';ENDA REPCH,TS\2007\CC, 1407 interpretive Center OVJ!81'S Rep,DOC
RESOLUTION 07-xxx
A RESOLUTION ACCEPTING THE PROPOSAL OF CONSTRUCTIVE IDEAS TO SERVE AS
OWNERS REPRESENTATIVE FOR THE JEFFERS POND INTERPRETIVE CENTER PROJECT
Motion By:
Second By:
WHEREAS, The City, School District and Jeffers Foundation have collaborated financially to make it
possible to construct an interpretive center building; and
WHEREAS, The interpretive center will benefit all ages and interests in Prior Lake since it will be
open during school and not school hours and days offering programming for all ages
and interests; and
WHEREAS, The $1.4 million building is to be built on a challenging site using "green" techniques
which require construction expertise; and
WHEREAS, The City Council desires that the building be constructed as cost effectively as possible
and in a manner which will maximize its longevity, dependability and operating cost.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The proposal of Constructive Ideas in the amount of $59,250 plus reimbursable expenses to
provide owner's representative services for the Jeffers Pond Interpretive Center building is hereby
approved.
3. Funds for this purpose are to be paid by Jeffers Foundation based upon invoices rendered.
PASSED AND ADOPTED THIS 4th DAY OF SEPTEMBER 2007.
YES
NO
Hauaen Hauaen
Erickson Erickson
Hedbera Hedbera
leMair leMair
Millar Millar
Frank Boyles, City Manager
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Phone 952.447.9800 / Fax 952.447.4245
Interpretive Center Building
Prior Lake, Minnesota
Proposal for
Owner Representative Services
August 15, 2007
Constructive Ideas, Inc.
901 Jefferson Avenue, Suite 300
81. Paul, Minnesota 55102
Owner Representative Approach & Services
Owner Representative - Proiect Manae:er Description
The primary role ofthe Owner Representative during both the project's Design and
Construction Phases is to pro actively manage the design and construction team activities
so as to meet the programmatic objectives of the Owner while optimizing schedule and
minimizing overall project costs. To this end, the Owner Representative must be a true
Project Manager who is empowered to act as an agent of the Owner in all design and
construction matters so as to effectively interface and coordinate the efforts of the design
professionals with the various Owner departments and agencies.
Prior Lake Prototype Proiect Schedule
Since the Prior Lake Interpretive Center Building will be a completely new facility, it is
expected that the design and construction process will take place in a normal, single-
phase fashion. A prototype design and construction schedule for such a project is as
follows.
Description
Draft RFP-Interview-Select Architect
Confirm Program & Schematic Phase
Design Development Phase
Construction Document Phase
Project Bidding & Receipt of Bids
Verification & Approval of Bids
Issue Contract & Notice to Proceed
Construction & Substantial Completion
Project Tum-over & Occupancy
Start
9/4/2007
10/15/2007
11/19/2007
1/14/2008
3/17/2008
4/9/2008
4/14/2008
4/21/2008
11/17/2008
Finish
10/12/2007
11/16/2007
1/11/2008
3/14/2008
4/8/2008
4/11/2008
4/18/2008
11/14/2008
12/31/2008
It is an underlying philosophy of Constructive Ideas, Inc. that the greatest contribution an
Owner's Representative can make to the project is concentrated from the early design
phases through project bidding. That is why we suggest to our clients that they review
their needs on a two-part basis: Preconstruction and Construction.
Naturally, during the evolution of the project, it is normal for focus to shift from the
macro to the micro: from the system, to the component, to the element It is a well
recognized fact, however, that it is during the early phases ofthe project, during the early
design and preconstruction phases, when most major decisions will be made which will
impact not only the project's aesthetics, but also its construction cost and long range
operational costs. This is when true value analysis can be done, and when an Owner's
Representative or Project Manager can have the greatest impact on the project's overall
outcome. To be truly effective, an Owner's Project Manager must not only monitor and
guide the Design Professionals by making timely observations and recommendations, but
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must also communicate and guide the Owner to assemble and process all the related
information generated by the Owner, in order to interact with the Design Team for the
good of the project.
As the project leaves the design phase and enters its construction phase there are,
obviously, important and valuable services which the project still requires and may also
be afforded an Owner by the Owner's Representative. These services, however, center
on monitoring and reporting rather than leading and recommending, and are often
available from the Architect or the successful contractor. The need for an Owner's
Representative during the latter phase of the project is directly related to availability of
the Owner's in-house staff to monitor the project progress, the experience, quality or
performance ofthe Architect on the project, and finally, the quality and reputation of the
successful bidding contractor.
Owner representation and project management is an ongoing and dynamic process. It
requires coordinating the efforts of planning, scheduling, communicating, public
relations, documentation and accounting. It does not usurp the responsibilities of the
Owner or project designers, but it enhances and strengthens the team, and helps achieve
recognizable project goals.
Proposal Content
1. Project Organization - General Overview:
Constructive Ideas, Inc. has been in business over nineteen years, and Mr. Wolters
has over thirty-nine years' experience in the Twin Cities construction market.
Constructive Ideas, Inc. does not provide general construction or construction
management services.
If selected on this project, the individuals assigned to the project will be:
William A. Wolters, President, Constructive Ideas, Inc.
Constructive Ideas, Inc. will provide the services detailed throughout the proposal.
2. Relevant Experience:
A recent example of the successful Project Management techniques implemented
by Constructive Ideas is the recent design and construction results of the Prior Lake
Police and City Hall Project, as well as the new Prior Lake Fire Station No.2. This
last project is just entering its construction phase, and Constructive Ideas is being
retained to represent the Owner through the completion of construction.
2
Similar type projects on which Constructive Ideas provided Cost Management
services are Thompson Lake Park and Lebanon Hills Park, both in Dakota County,
Minnesota. We have also been involved in cost management for Baker Area Near
Wilderness facility, the Mary Gibbs Interpretive Center and the Prairie Rivers
Environmental facility.
3. Workload:
Mr. Wolters is available to give immediate attention to the project if selected as
Owner's Project Manager.
Turnover dates for recent Owner Representative Projects are as follow:
Proiect
Prior Lake Fire Station No.2
Turn-over Date
May 9, 2008
4. General References:
Feel free to contact the following individuals to discuss Constructive Ideas'
capabilities.
Contact
Bud Osmundson
Al Madsen, City Manager
Mike Opatz, City Traffic Manager
Captain Scott Webb
Municipality
City of Burnsville
City of Maple Grove
City of Maple Grove
City of Plymouth
Phone No.
952-895-4544
763-494-6001
763-494-6005
763-509-5188
5. Scope of Services:
Following is a general listing ofthe major project phases and a listing of Owner
Project Management activities related to each phase:
Architect Selection
9/4/2007 to 10/12/2007
A. Develop a Request for Proposal (RFP) for Architectural Services for the
project.
B. Coordinate the Architectural RFP process on behalf of the City.
C. Attend Architectural interviews and offer comments and/or
recommendations to the interview panel.
D. Retain Soils Engineer on behalf of the City to investigate subterranean
conditions of possible final sites.
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Schematic and Deshm Development Phase
101/15/2007 to 1/14/2008
A. Develop a project management plan to identify and communicate
important project objectives, considerations, and strategies.
B. Establish and publish an overall project development schedule.
C. Establish and distribute a project communication plan.
D. Establish and publish an overall project budget and project cost
management plan.
E. Implement and manage team planning and goal setting activities to ensure
effective and voluntary teamwork.
F. Identify, establish and implement project decision making procedures,
roles and timelines.
G. Evaluate and recommend to Owner construction delivery methods and
options.
H. Recommend and arrange for soil investigation services to interface with
the Design professionals.
I. Manage programming and schematic process and team to optimize long
term success of project.
J. Establish a reporting and review system with the Construction Committee.
Construction Document & Biddin2 Phase
1/1412008 to 4/8/2008
A. Manage Design Team efforts on behalf of the Owner.
B. Attend design review meetings. Establish a recording and communication
distribution system with the Construction Committee.
C. Report and review progress of the project design with the Construction
Committee on no less than a monthly basis.
D. Review progress of design work for conformance with approved program
and to optimize long term value of project.
E. Evaluate design concepts for constructability with regard to:
1. Resources (manpower & material) availability
2. Sequence of construction
3. Control (limit) number of different systems and materials.
4. Provide specification review for procurement optimization.
F. Review building component and system selection from long term
operations and maintenance perspective and initiate reviews by both
Owner personnel and sub-consultants.
G. Manage document development consistent with Owner timing needs to
meet project milestones.
H. Arrange for and provide "Peer Reviews" for the design documents and
project specifications. (These reviews will be provided by qualified
subcontracting firms and individuals active in our metropolitan
construction market.)
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I. Provide Project Cost Management services for the Owner.
1. Establish overall cost categories not only for construction, but also
for proj ect expense.
2. Forecast costs where necessary for the Owner's benefit.
3. Provide prototype cash flow schedules to aid the Owner in
predicting project cash requirements.
4. Provide value engineering services:
. Log and monitor Value Engineering ideas.
. Evaluate with Design Team full impact of suggested V.E. ideas
. Provide life cycle cost analysis of major systems if needed.
J. Prepare and recommend list of project bid packages, if necessary, to meet
overall project schedule. These packages are "project packages:' such as
telephone installation, furniture procurement and building security, and
mayor may not include items normally associated with the actual
construction ofthe building shell.
K. Coordinate and manage bidding process on behalf of the Owner and
Construction Committee.
Construction Phase
4/21/2008 to 11/14/2008
A. Negotiate construction contract on behalf of the Owner.
B. Attend and represent the Owner at routine weekly job site meetings or
special system or installation meetings.
C. Provide monthly status reports to the owner:
1. Narrative of progress, changes and overall status
2. Schedule review with milestones and key dates highlighted
3. Financial review with current cost & billing information and
projected future cash requirements
4. Arrange for professional progress photographs, if necessary.
D. Maintain project documentation and record keeping system on behalf of
the Owner.
E. Monitor contractor planning, scheduling and procurement strategies and
results.
F. Facilitate conflict resolution where and when appropriate.
G. Actively demonstrate and support positive team building actions
consistent with Owner's best interests.
H. Monitor contractor quality assurance strategies and implementation with
specific focus on meeting project and owner requirements.
1. Monitor contractor application for payment.
J. Monitor change order process and review costs on behalf of Owner.
Proiect Turnover & Occupancy Services
11/17/2008 to 12/31/2008
A. Arrange for and monitor commissioning process on behalf of the Owner.
B. Establish and monitor project close-out process on behalf of the Owner.
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C. Collect and distribute operational and maintenance manuals and
warranties.
D. Ensure Owner training on newly installed systems and equipment.
E. Schedule, attend and document 12-month warranty inspection.
Other Services
While the above scope of services includes coordinating all aspects ofthe design
and construction of the building process, these services do not include
programming, other than a review of the program already established for the
facility. In addition, no design or construction services are included to cover move
coordination or any involvement to specify, procure, or install telecommunication,
technology or computer systems, office furniture or other owner furnished
equipment, other than recommending the timing of the bidding or procurement
necessary to meet the overall project milestone schedule.
Constructive Ideas Inc. does not practice law, accounting, architecture or
engineering or provide other professional services beyond those specifically
described in this proposal. Therefore, we may advise you from time to time to
secure other professional consultants such as lawyers, accountants, architects,
engineers or others. The Owner will be directly responsible for fees and expenses
due to those other professionals, and we cannot accept any responsibility for work
performed by them.
6. Basis of Compensation:
Fees for Owner Representative Services on the Prior Lake Interpretive Center
Construction Project have been calculated on an hourly rate basis for the level of
services described. The anticipated hours are representative of similar services on
recent projects of similar size and complexity.
The lump sum fee for Owner Project Representative Preconstruction Services for
the Prior Lake Interpretive Center Project described above will be Fifty-Nine
Thousand Two Hundred Fifty Dollars ($59,250.00). This fee would be broken
down among the various project phases and billed as follows:
Phase
Cost
Billed
Due
Architect Selection & Interview
Schematic & Design Development
Construction Documents Phase
Final Cost, Quality Review & Bidding
Construction Phase
Project Turnover & Occupancy
Lump Sum
Lump Sum
$4,000/mo.
Lump sum
$3,750/mo.
~ Lumpsum
In addition to the lump sum fee, there y e relm ursable out-of-pocket expenses
$2,750
$5,000
$12,000
$3,500
$30,000
Monthly
Monthly
Monthly
Monthly
Monthly
1/31/2009
directly associated with this project. Examples of these are long distance telephone
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calls, faxes, courier service, photos, out-of-town meals and travel expenses and
mileage at the current rate allowed by the Internal Revenue Service. Upon
acceptance of this proposal a target estimate of these expenses will be provided for
your use. However, we would not incur any reimbursable expense in excess of
$100 without your prior approval. These expenses will be billed on a monthly
basis.
7. Insurance:
Since Constructive Ideas, Inc. does not provide architectural, engineering or design
services, errors and omissions insurance will not be provided under the scope of
this proposal. A general liability insurance policy covering Constructive Ideas
personnel providing services to this project will be provided in accordance with
your Request for Proposal.
8. Additional Pertinent Information:
Cost Manat!ement Plan - Controllint! the Budt!et
A major responsibility of the Owner's Representative in the design and
construction process is the overall control of the budget. This is the development,
monitoring and accurate forecasting of all costs on the project. These include not
only "hard" costs, those costs commonly referred to as "construction costs," but
also all "soft" costs. Soft costs include design fees, permits, special inspection and
testing, FF&E (furniture, fixture and equipment), wetland mitigation, special
systems (security, audio-visual, voice & data cabling, etc.), legal costs, moving
costs, as well as having an identifiable and controllable project contingency.
Due to this project's relatively small size accurate cost forecasting will be
extremely important. From the information I have been provided I have
determined that the construction cost projected for this building is $225.00 per
square foot. I believe this will be very difficult to achieve, especially if a two story
structure is the final design solution. The vertical transportation (elevator)
mentioned will alone account for Twenty Dollars ($20.00) of this cost. Buildings
with small footprints carry much higher than average costs. Add to that the fact
that it is desired to design this facility to a LEED's Gold standard, and costs will
add up in a hurry. Budget control on this project will be difficult.
From experience, I've found that the best way to keep a project in budget is to
identify and reach agreement on the overall approved total project budget and then
break the budget down to the various categories as soon as possible, even before
any plans are drawn or an architect is selected. Identifying cost categories and
controlling a budget in this manner allows the selected design team to know exactly
what is allocated for each element and allows the design of each element to
progress within its own budget.
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A well known law of accounting, sometimes called the "Law of the Significant
Few," states that "80% ofthe value of any column of numbers is found in 20% of
the numbe:r:s." What this means is, there are only a few "big" numbers in each
column which really determine the outcome or value of the column. When looking
at the cost of construction, 80% of the cost will be found in five major systems:
Civil and Site Grading, Structural Framing, Architectural Enclosure, Mechanical
and Electrical. These are five components, or elements, of the building which are
decided upon very early in the design process and which, when taken as a whole,
will control over 80% of the final construction cost. Identifying a budget for each
element and monitoring the design of each element within its budget during the
design process will allow the greatest control of the overall budget and give the
greatest assurance of a successful outcome on bid day.
To this end, cost management is more than doing an estimate at the traditional
milestone phases of Schematic Design, Design Development and Construction
Document. These cost checks will be done, but Cost Management, as practiced by
Constructive Ideas, is an ongoing, interactive, dynamic process designed to
continually monitor and update budgets and inject market trends and labor and
material availability in the design process to ensure, to the greatest extent, a
successful project when bids are opened.
Certainly markets and prices change over time and may increase during the time it
will take to design and bring this project on line. To help achieve the best control
of the budget and buy the best project package available, I also advocate identifying
a select number of "add" alternates. It is my experience that using additive
alternates is a better value for an owner than using deducts. A base project is
identified which will meet all the needs of the owner, and a select series of add
alternates will be specified which may, if accepted, improve on that project.
Typical add alternates will be structured to achieve three results: increase finishes
in areas which may result in lower maintenance and operating costs over the life of
the project; improve the work environment and indoor space quality for the
employees; or improve building efficiency of operation and energy management.
This is true cost management: a proactive process to control cost rather than
traditional cost estimating, which is a reactive response to a design, often when it is
too late to make any necessary corrections.
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Constructive Ideas
Planning, Preconstruction & Owner Representative Services · Project Cost Analysis
William A. Wolters
Construction Consultant
Constructive Ideas, Inc.
St. Paul, Minnesota
Mr. Wolters is a construction professional with thirty-eight years' experience in the
construction industry. Since graduating from Dunwoody Institute, Minneapolis, Minnesota,
Mr. Wolters has been associated with such firms as Knutson Construction Co., Kraus
Anderson of Minneapolis, Lovering Associates, and Witcher Construction Co. With the latter
two organizations, Mr. Wolters held executive positions as Vice President. With Witcher, he
oversaw all estimating and project management, as well as having had total responsibility for
yard and field operations.
Mr. Wolters' background includes all types of commercial construction projects including
multi-family housing, office, retail, institutional, industrial and parking structures. He is
experienced with concrete construction, whether it be conventionally reinforced, post tensioned
or precast, as well as masonry construction, structural steel, wood frame, and building
renovation. He has participated in projects as general contractor and construction manager,
and is experienced with all forms ofproject delivery.
His broad experience has given him an understanding and appreciation of the nature of
construction projects and their organization, and for the need to address and solve their
difficulties through creative, systematic and knowledgeable approaches.
Mr. Wolters has taught in the continuing education program for Dunwoody Institute,
Minneapolis, Minnesota. He was instructor for General Construction Estimating from 1988
through spring 1992, CPM scheduling in 1991, and Construction Project Management for the
fall 1995 and spring 1996 sessions. In addition, he serves on the Building Technology
Advisory Board for Dunwoody.
Mr. Wolters founded Constructive Ideas, Inc., in 1988 to provide building owners, architects,
contractors, financial institutions, and the legal community with a construction service
resource. Constructive Ideas works in the areas of cost analysis, value engineering, project
planning & CPM scheduling, and construction monitoring.
901 Jefferson Avenue, Suite 300. St. Paul, MN 55102. (651) 225-4740. Fax (651) 225-4741
www.constructiveideasinc.com