01 March 2022

RARE RECUSAL BY MESA MAYOR JOHN GILES ON A CONTRACT AWARD: Council Study Session Mon 02.28.2022

Yesterday's City Council Study session was the second public meeting after last Thursday's early morning Study Session to look over and discuss the lenthy agenda for the regular meeting that followed at 5:45 p.m.

Legislation Item 11-a (Taken off Consent Agenda)
File #:22-0282   
Type:ContractStatus:Agenda Ready
In control:City Council
On agenda:2/28/2022
Title:Signal Butte Water Treatment Plant Expansion - Pre-Construction Services and Construction Manager at Risk (CMAR) (District 6)
The Signal Butte Water Treatment Plant (SBWTP) was constructed in 2018 to deliver 24 million gallons per day (MGD) to meet the growth in southeast Mesa.
As growth has continued at a rapid pace, additional water capacity is needed to meet current and future demands.
This project will further expand the SBWTP to produce 48 MGD of treated water.
The project will also include the construction of a second 8-million-gallon reservoir to store and distribute the treated water.
Staff recommends selecting McCarthy Building Companies, Inc. as the CMAR for this project, and awarding a pre-construction services contract in the amount of $1,328,030.
This project is funded with Utility Systems Revenue Obligations.
Attachments:1. Presentation, 2. Council Report, 3. Project Location Map

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City Council Report 
Date: February 28, 2022 
To: City Council 
Through: Marc Heirshberg, Deputy City Manager 
From: Beth Huning, City Engineer and  Marc Ahlstrom, Assistant City Engineer 
 
Subject: Signal Butte Water Treatment Plant Expansion City Project No. CP0372 Council District 6 
 
Purpose and Recommendation 
The purpose of this report is to provide information to Council concerning the selection of a Construction Manager at Risk (CMAR) for the proposed Signal Butte Water Treatment Plant Expansion project (Refer to Exhibit “A” for the project location). 
Staff recommends that Council approve the selection of McCarthy Building Companies, Inc. as the CMAR for this project, and award a Pre-Construction Services contract in the amount of $1,328,030.00

Background 
The Signal Butte Water Treatment Plant (SBWTP) was constructed in 2018 to deliver 24 million gallons per day (MGD) to meet the growth in southeast Mesa. 
As growth has continued at a rapid pace, additional water capacity is needed to meet current and future demands. 
  • This project will further expand the SBWTP to produce 48 MGD of treated water. 
  • The project will also include the construction of a second 8-million-gallon reservoir to store and distribute the treated water. 
  • Discussion In September 2021, Staff received three “Statements of Qualifications” (SOQ) from contractors proposing to act as the CMAR for this project. 
Based on an evaluation of these SOQ’s, McCarthy Building Companies, Inc. 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 2 constructability, prepare cost estimates, and develop the project schedule and project phasing plan. 
  • The last item developed during the Pre-Construction Phase will be the “Guaranteed Maximum Price” (GMP) for the project. 
  • The GMP will then be brought back to Council for review and approval. 
 
Community Impact 
– The expansion of the Signal Butte Water Treatment Plant will support the City’s two additional water treatment plants as a source of redundancy in the City’s water distribution system. 
This will help to sustain the growth that is happening and provide adequate water to the community while reducing the need to draw on the City’s wells to make up the difference. 
Once underway, construction of this project is anticipated to last no more than 24 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 SBWTP Expansion project will require extensive on-site investigation, phasing, construction sequencing, constructability analysis, etc. by the contractor throughout the design phase. 
Another alternative is to not perform the work. This is not recommended given the critical schedule needs of this project to produce much needed water for southeast Mesa growth. 
 
Fiscal Impact 
This pre-construction services contract is in the amount of $1,328,030.00. This project is funded by Utility Systems Revenue Obligations. Coordinated With The Water Resources Department concurs with this recommendation
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