Authorize Execution of Change Order No. 2 to the Montgomery Street/Eastern Arlington Heights Drainage Construction Manager-at-Risk Agreement with Haydon Building Corp (City Secretary No. 47328), in the Amount Up to $245,878.11, for Changes to the Water and Sanitary Sewer Component Thereby Increasing the Guaranteed Maximum Price to a Maximum of $17,599,850.78 (COUNCIL DISTRICT 7)

It is recommended that the City Council authorize Change Order No. 2 to the Montgomery Street/Eastern Arlington Heights Drainage Construction Manager-at-Risk Agreement with Haydon Building Corp (City Secretary No. 47328), in the amount up to $245,878.11, for changes to the water and sanitary sewer components, thereby increasing the Guaranteed Maximum Price to a maximum of $17,599,850.78.

This Mayor and Council Communication authorizes Change Order No. 2 in the amount up to $245,878.11 to the CMAR Agreement with Haydon Buidling Corp (City Secretary Contract No. 47328). Change Order No. 2 authorizes the use of up to $245,878.11 from the contract -funded Owner's Allowance. The actual change order costs are being negotiated but due to the necessity of completing this project to coincide with the the grand opening of the Dickies Arena, staff needed to expedite this M&C by requesting an estimated amount. The final negotiated change order cost will increase the CMAR's Guaranteed Maximum Price by the same amount. This cost increase provides for changes to the water and sanitary sewer components.

On August 25, 2015 (M&C C-27427), the City Council authorized the execution of a two-phase Construction Manager-at-Risk (CMAR) Agreement (City Secretary Contract No. 47328) with Haydon Building Corp (Haydon) for Pre-Construction Services in the amount of $68,809 for the construction of Montgomery Street from Camp Bowie Boulevard to Interstate Highway 30. During the Pre-Construction 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.

On May 16, 2017 (M&C C-28243), the City Council authorized Amendment No. 1 to the CMAR Agreement with Haydon to establish a Guaranteed Maximum Price (GMP) in the amount of $17,092,000 for the construction of Montgomery Street from Camp Bowie Boulevard to Interstate Highway 30 and Eastern Arlington Heights Drainage Improvements along Bryce Avenue from Montgomery Street to Sutter Street and provided for an Owner’s allowance and additional construction services costs for a total construction budget in the amount of $18,808,000.00.

On December 5, 2017 (M&C C-28489), the City Council authorized Change Order No. 1 to the Montgomery Street/Eastern Arlington Heights Drainage Construction-Manager-at-Risk Agreement with Haydon Building Corp in the amount of $261,972.67 for changes to the street paving component thereby increasing the Guaranteed Maximum Price (GMP) to $17,353,972.67.

M/WBE Office: Haydon Building Corp agrees to maintain its initial MBE commitment of 12 percent that it made on the original contract and extend and maintain that same MBE commitment of 12 percent to all prior change orders up to and inclusive of this Change Order No. 2. Therefore Haydon Building Corp remains in compliance with the City's BDE Ordinance and attests to its commitment by its signature on the Acceptance of Previous MBE Commitment form executed by an authorized representative of its company.

The Montgomery Street project is located in COUNCIL DISTRICT 7.