It is recommended that the City Council:

1. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations of the Water Capital Projects Fund in the amount of $1,685,000.00 from available funds;

2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations of the Stormwater Capital Projects Legacy Fund in the amount of $2,000,000.00 from available funds;

3. Authorize the Construction Phase portion of the Construction Manager-at-Risk Agreement with Haydon Building Corp. (City Secretary No. 47328) including Amendment No. 1 to add additional scope for Eastern Arlington Heights Drainage Improvements, provide additional funding in the amount of $11,792,000.00 and establish a guaranteed maximum price of $17,092,000.00 inclusive of a Construction Phase fee of eight percent; and

4. Authorize funding for the Construction Phase Portion of the Montgomery Street Project (City Project No. 02432) in the amount of $18,808,000.00 inclusive of $1,716,000.00 for contingencies, allowances, and construction services.

On August 25, 2015, Mayor and Council Communication (M&C C-27427) the City Council authorized the execution of a two-phase Construction Manager-at-Risk Agreement (CMAR Agreement) (City Secretary Contract No. 47328) with Haydon Building Corp. (Haydon), for Pre-Construction Services in the amount of $68,809.00 for construction of  Montgomery Street from Camp Bowie Boulevard to IH-30 with a project budget of $5,300,000.  During the preconstruction phase, the City determined that the Eastern Arlington Heights Storm Drain Improvements along Bryce Avenue from Montgomery Street to Sutter Street were necessary for the completion of the Montgomery Street Project.  This Amendment No.1 adds that scope of work and related increased costs to the CMAR Agreement.

This Mayor and Council Communication provides for Haydon to commence the construction portion of the CMAR Agreement. Haydon has structured the work into two separate Work Package, each with their own GMPs.  Work Package No.1 with a Guaranteed Maximum Price in the amount of $12,407,000.00 (inclusive of CMAR fees and costs) is for the construction of  Montgomery Street from Camp Bowie Boulevard to Interstate Highway 30 and Work Package No. 2 with a Guaranteed Maximum Price in the amount of $4,685,000.00 (inclusive of CMAR fees and costs) is for the construction of the Eastern Arlington Heights Storm Drain Improvements along Bryce Avenue from Montgomery Street to Sutter Street.

Haydon publicly advertised Work Packages Nos. 1 and 2 in the Fort Worth Star-Telegram on February 9, 2017 and February 16, 2017 as well as directly to the North Texas contracting community seeking contractors capable of performing the work and who could provide the best value for the CMAR and City. Haydon engaged the services of construction project listing services including DBE-only listing services to advertise the project as well as reaching out to specialty contractors to solicit bids for the project. Haydon received bids on February 23, 2017.

After review of the bids and evaluation of critical factors such as ability to start and complete the project within the Project schedule, construction techniques and the capability to perform the work, Haydon has recommended to Staff the following contractors:

Where Haydon Building Corp is the recommended contractor, the Director of Transportation and Public Works has determined that Haydon Building Corp. provides the best value for the City.

        Eastern Arlington Heights Storm Drain Improvements from Montgomery Street to Sutter Street (Work Package No. 2)

In addition to the construction costs for Work Packages Nos. 1 and 2, funding in the amount of $1,716,000.00 will be used for City contingencies, allowances, and construction services such as materials testing and inspection a project construction phase total in the amount of $18,808,000.00.

Funding sources for this projects are as follows: 2014 Arterial Bond Funds in the amount of $8.000 million;  2014 Sidewalk Bond Funds in the amount of $0.124 million; 2004 Bond Program Residuals in the amount of $2.544 million, 2008 Bond Program Residuals in the amount of $3.406 million; Street Improvement Supplemental Funds in the amount of $1.00 million; Stormwater Capital Projects Fund in the amount of $5.524 million; and Water Capital Projects Funds in the amount of $1.685 million for a total of $22.283 million.  This project will include reconstructed travel lanes, intersection, storm drainage, waterline, sanitary sewer, sidewalks, shared use path, traffic signals, and streetlight improvements. The construction activity is well-coordinated with the construction of the new parking garage and arena to avoid damage to new infrastructure.

Haydon Building Corp., is in compliance with the City's BDE Ordinance by committing to 12 percent MBE participation on the construction phase services. The City's MBE goal on the construction phase services is 12 percent.

The Montgomery Street project is located in COUNCIL DISTRICT 7.