Time to take a closer look at one or two selected items for today's regular Mesa City Council meeting where the scheduled study session ahead of time has a review of the items. One of the items from the study session on Thursday of last week deserves some more informed discussion attention: The plans for ASU in downtown have been controversial from the get-go that became public two years ago. Here's the current item for more scrutiny: Implementing the City Council’s prior approvals for the Arizona State University facilities and other improvements in downtown Mesa. How to do that?
What it says:
- by approving and authorizing the City Manager to enter into the Pre-Construction Services Contract with the selected Construction Manager at Risk (CMAR) for the development and construction of a multi-story building for certain educational facilities and other improvements at the Mesa City Center
- by ratifying the actions of the City Council related to the City’s excise tax revenue obligations for the financing of the development and construction.
STOP RIGHT THERE! Exactly what actions and the City's excise tax obligations for the financing of the development and construction are up again for review - and the City Manager wants those actions ratified now? Readers of this blog might note that the Arizona State Attorney General is taking legal action now against ASU over questionable financing of real estate deals in Tempe.
Why revisit this now when Jeff McVay, the city's Director of Downtown Transformation, made the case for that (or tried to) back in May of last year. He used a questionable study produced by ASU to support the purported economic benefits of "a presence" of ASU downtown. Totally bogus, but Mesa taxpayers got hood-winked by a slick public relations trick to approve the financing plan foisted in public. 
The Council approved an Intergovernmental Agreement (IGA) with ASU for the new building project in February 2018. The City and ASU subsequently entered into a lease agreement for the building in November 2018. Those actions again were controversial in spite of what City Manager Chris Brady said time-and-time again both in a series of City Council study sessions and regular public meetings. Most of the public were kept-in-the-dark. Only two Councilmembers raised any questions at all. 
Now there are problems questioning the financing. . . asking the City Council today to ratify the actions of the City Council related to the City’s excise tax revenue obligations for the financing of the development and construction.
The city now needs to hire a Construction Manager at Risk (CMAR) for "Pre-Construction Services" with a pre-construction services contract is in the amount of $753,731.00.
The proposed ASU @ Mesa City Center, Plaza @ Mesa City Center, and City Center Utility Improvements projects will require extensive on-site investigation, phasing, construction sequencing, constructability analysis, and cost evaluation
___________________________________________________________________________
City Council Report
Date: January 28, 2019
Date: January 28, 2019
To: City Council
Through: Kari Kent, Assistant City Manager
From: Beth Huning, City Engineer Marc Ahlstrom, Assistant City Engineer
Subjects:
ASU @ Mesa City Center
The Plaza @ Mesa City Center
City Center Utility Improvements
City Project Nos. CP0871ASU, CP0919, CP0920 District 4
Purpose and Recommendation
The purpose of this report is to provide information to the Council concerning the selection of a Construction Manager at Risk (CMAR) for the proposed ASU @ Mesa City Center, the Plaza @ Mesa City Center, and City Center Utility Improvements projects (Refer to Exhibit “A” for the project location).
Staff recommends that Council approve the resolution approving the selection of DPR Construction as the CMAR for this project and award a Pre-Construction Services contract in the amount of $753,731.00.
Background
These projects will consist of
- a five-story, approximately 118,000 square-foot academic building,
- two to three acres of urban plaza space
- associated site improvements including utilities.
The proposed building will support Arizona State University (ASU) programs related to digital and sensory technology, film and media arts, user experience design, and entrepreneurial support.
This project will create unique, sustainable, and architecturally significant spaces for ASU and the City.
The Plaza @ Mesa City Center will be a gathering place for the community.
It will consist of a large open space, a water feature, and seasonal ice rink. The plaza will also create a strong pedestrian connection between the Center Street light rail station and the new ASU facility.
Page 2
The utility work will be comprised of improvements necessary to support both the building and plaza and future improvements in the area.
The utility work includes water, sewer, electric, gas, storm drain, and communications facilities.
Discussion
In September 2018, Staff received eleven “Statements of Qualifications” (SOQ) from contractors proposing to act as the CMAR for this project.
Based on an evaluation of these SOQ’s and subsequent interviews, DPR Construction was recommended as the most qualified CMAR.
Staff has prepared a contract and negotiated the fee for the PreConstruction Services contract. During the Pre-Construction Phase, the CMAR will work closely with the project team to develop the project design, review the design for constructability, prepare cost estimates, and develop the project schedule and phasing plan.
The last item developed during the Pre-Construction Phase will be the “Guaranteed Maximum Price” (GMP) for the project.
This GMP will then be brought back to the Council for review and approval.
Once underway, construction of this project is anticipated to last no more than 20 months.
Alternatives
An alternative to the approval of this Pre-Construction Services contract for the selected CMAR would be to construct this project using the traditional Design/Bid/Build method. This is not recommended due to the need for the additional services provided by a CMAR contractor during the design phase.
The proposed ASU @ Mesa City Center, Plaza @ Mesa City Center, and City Center Utility Improvements projects will require extensive on-site investigation, phasing, construction sequencing, constructability analysis, and cost evaluation by the contractor throughout the design phase.
Another alternative is to not perform the work.
This is not recommended because this would hinder progress on the development of ASU in downtown Mesa and would be contrary to the IGA and associated lease between the City and ASU.
Fiscal Impact
This pre-construction services contract is in the amount of $753,731.00.
This project is funded by
- Economic Investment Fund,
- 2018 authorized Parks Bonds,
- Utility Bonds.
The City Manager’s Office,
Parks Recreation and Community Facilities Department,
Energy Resources Department,
Water Resources Department
[concur with this recommendation.]
__________________________________________________________________________
This is Item 6 RESOLUTIONS
Specifically Item 6-e and File #19-006
| File #: | 19-0086 |
| Type: | Resolution | Status: | Agenda Ready |
| In control: | City Council |
| On agenda: | 1/28/2019 |
| Title: | Implementing the City Council’s prior approvals for the Arizona State University facilities and other improvements in downtown Mesa by approving and authorizing the City Manager to enter into the Pre-Construction Services Contract with the selected Construction Manager at Risk (CMAR) for the development and construction of a multi-story building for certain educational facilities and other improvements at the Mesa City Center, and ratifying the actions of the City Council related to the City’s excise tax revenue obligations for the financing of the development and construction. The Pre-Construction Services Contract for this Phase One project is awarded to the selected CMAR, DPR Construction, in the amount of $753,731. (District 4) |
| Attachments: | 1. Council Report, 2. Exhibit A - Project Location Map, 3. Resolution |
_________________________________________________________________________
A selection of DPR projects [from https://en.wikipedia.org/wiki/DPR_Construction]
1 Arizona State University, McCord Hall at W. P. Carey School of Business
2 The Biodesign Institute at Arizona State University, Building A and B
3 eBay Inc., Salt Lake City Data Center (Salt Lake City, Utah)
