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HomeMy WebLinkAboutresolution.council.133-24RESOLUTION # 13 3 (Series of 2024) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING A CONTRACT BETWEEN THE CITY OF ASPEN AND GOULD CONSTRUCTION AUTHORIZING THE CITY MANAGER TO EXECUTE SAID CONTRACT ON BEHALF OF THE CITY OF ASPEN, COLORADO AND AUTHORIZING THE CITY MANAGER TO EXERCISE ADMINISTRATIVE OVERSIGHT OF CHANGE ORDERS THAT ARE WITHIN THE APPROVED 2024 BUDGET FOR CITY PROJECT #51641 AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID CHANGE ORDERS ON BEHALF OF THE CITY OF ASPEN COLORADO, WHEREAS, there has been submitted to the City Council a contract for, construction of The Lumberyard Affordable Housing Project Phase 0.1 between the City of Aspen and, Gould Construction a true and accurate copy of which is attached hereto as Exhibit "A"; WHEREAS, City Council has determined it is in the best interest of the City of Aspen to authorize the City Manager to exercise administrative oversight of change orders for an amount not to exceed $454,663 and execute said change orders on behalf of the City of Aspen, Colorado. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, That the City Council of the City of Aspen hereby approves that Contract for, construction of The Lumberyard Affordable Housing Proj ect Phase 0.1 between the City of Aspen and Gould Construction a copy of which is annexed hereto and incorporated herein, and does hereby authorize the City Manager to execute said agreement on behalf of the City of Aspen. That the City Council of the City of Aspen does hereby authorize the City Manager to exercise administrative oversight of any change orders for an amount not to exceed $454,663 and execute said change orders on behalf of the City of Aspen, Colorado. INTRODUCED, READ AND ADOPTED by the City Council of the City of Aspen on the 12th day of November 2024, Torre, Mayor I, Nicole Henning, duly appointed and acting City Clerk do certify that the iis a true and accurate copy of that resolution adopted by the City Counci Foregoing l of the City of Aspen, Colorado, at a meeting held, on the 12th day of November 20240 Nicole Henning, City Clerk Docusign Envelope ID: 33097885-46F3-4100-9E18-F474F1 B2C445 �X/l, AIA T67UM .. ... A 0 Standard Form of Agreement Between Owner and Contractor, Construction Manager as Adviser Edition AGREEMENT made as of the day of in the year In words, indicate day, month, and year.) BETWEEN the Owner: (Name, legal status, address, and other information) City of Aspen 427 Rio Grande Place Aspen, CO 81611 and the Contractor: (Name, legal status, address, and other information) Gould Construction, Inc. P.O. Box 130 Glenwood Springs, CO 81602 for the following Project: (Name, location, and detailed description) City of Aspen —Lumberyard Affordable Housing Phase 0 Project 2024-341 The Construction Manager: (Name, legal status, address, and other information) Dynamic Program Management P.O. Box 726 Eagle. CO 81631 The Architect: (Name, legal status, address, and other information) CTA, Inc., DBA Cushing Terrell 1700 Broadway, Suite 1200 Denver, CO 80290 The Owner and Contractor agree as follows. ADDITIONS AND DELETIONS: The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An Additions and Deletions Report that notes added information as well as revisions to the standard form text is available from the author and should be reviewed. A vertical line in the left margin of this document indicates where the author has added necessary information and where the author has added to or deleted from the original AIA text. This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification. This document is intended to be used in conjunction with AIA Documents A232TM2019, General Conditions of the Contract for Construction, Construction Manager as Adviser Edition; B132T""-2019, Standard Form of Agreement Between Owner and Architect, Construction Manager as Adviser Edition; and C132TM" 2019, Standard Form of Agreement Between Owner and Construction Manager as Adviser. AIA Document A232TM2019 is adopted in this document by reference. Do not use with other general conditions unless this document is modified. AIA Document A132 — 2019. Copyright ©1975, 1980, 1992, 2009, and 2019. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This document was produced at 15:07:34 MT on 10/16/2024 under Order No.4104244733 which expires on 11/19/2024, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, a -mail docinfo@aiacontracts.com. User Notes: (926172984) 1 Docusign Envelope ID: 33097885-46F3-4100-9E18-F474F1 B2C445 TABLE OF ARTICLES 1 THE CONTRACT DOCUMENTS 2 THE WORK OF THIS CONTRACT 3 DATE OF COMMENCEMENT AND DATES OF SUBSTANTIAL COMPLETION 4 CONTRACT SUM 5 PAYMENTS 6 DISPUTE RESOLUTION 7 TERMINATION OR SUSPENSION 8 MISCELLANEOUS PROVISIONS 9 ENUMERATION OF CONTRACT DOCUMENTS EXHIBIT A INSURANCE AND BONDS EXHIBIT B DETERMINATION OF THE COST OF THE WORK ARTICLE 1 THE CONTRACT DOCUMENTS The Contract Documents consist of this Agreement, Conditions of the Contract (General, Supplementary, and other Conditions), Drawings, Specifications, Addenda issued prior to execution of this Agreement, other documents listed in this Agreement, and Modifications issued after execution of this Agreement, all of which form the Contract, and are as fully a part of the Contract as if attached to this Agreement or repeated herein. The Contract represents the entire and integrated agreement between the parties hereto and supersedes prior negotiations, representations, or agreements, either written or oral. An enumeration of the Contract Documents, other than Modifications, appears in Article 9. ARTICLE 2 THE WORK OF THIS CONTRACT The Contractor shall fully execute the Work described in the Contract Documents, except as specifically indicated in the Contract Documents to be the responsibility of others. ARTICLE 3 DATE OF COMMENCEMENT AND DATES OF SUBSTANTIAL COMPLETION § 3.1 The date of commencement of the Work shall be. (Check one of the following boxes) [ ] The date of this Agreement. [ X ] A date set forth in a notice to proceed issued by the Owner. [ ] Established as follows: (Insert a date or a means to determine the date of commencement of the Work.) If a date of commencement of the Work is not selected, then the date of commencement shall be the date of this Agreement. § 3.2 The Contract Time shall be measured from the date of commencement of the Work. § 3.3 Substantial Completion of the Project or Portions Thereof § 3.3.1 Subject to adjustments of the Contract Time as provided in the Contract Documents, the date of Substantial Completion of the Work of all of the Contractors for the Project will be: (Insert the date of Substantial Completion of the Work of all Contractors for the Project.) AIA Document A132 — 2019. Copyright ©1975, 1980, 19922 2009, and 2019. All rights reserved. "The American Institute of Architects," "American Institute of of�tit. Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This document was produced at 15:07:34 2 L��+ MT on 10/16/2024 under Order No.4104244733 which expires on 11/19/2024, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (926172984) Docusign Envelope ID: 33097885-46F3-4100-9E18-F474F1 B2C445 5/31 /2025 Subject to adjustments of the Contract Time as provided in the Contract Documents, if portions of the Work of all of the Contractors for the Project are to be completed prior to Substantial Completion of the entire Work of all of the Contractors for the Project, the Contractors shall achieve Substantial Completion of such portions by the following dates: Portion of Work Substantial Completion Date § 3.4 When the Work of this Contract, or any Portion Thereof, is Substantially Complete § 3.4.1 Subject to adjustments of the Contract Time as provided in the Contract Documents, the Contractor shall substantially complete the entire Work of this Contract: (Check one of the following boxes and complete the necessary information.) [ ] Not later than ( )calendar days from the date of commencement of the Work. [ X ] By the following date: 5/31/2025 § 3.4.2 Subj ect to adjustments of the Contract Time as provided in the Contract Documents, if portions of the Work of this Contract are to be substantially complete prior to when the entire Work of this Contract shall be substantially complete, the Contractor shall substantially complete such portions by the following dates. Portion of Work Date to be substantially complete § 3.4.3 If the Contractor fails to substantially complete the Work of this Contract, or portions thereof, as provided in this Section 3.4, liquidated damages, if any, shall be assessed as set forth in Section 4.5. ARTICLE 4 CONTRACT SUM § 4.1 The Owner shall pay the Contractor the Contract Sum in current funds for the Contractor's performance of the Contract. The Contract Sum shall be one of the following: (Check the appropriate box) [ ] Stipulated Sum, in accordance with Section 4.2 below [ - ] Cost of the Work plus the Contractor's Fee, in accordance with Section 4.3 below Cost of the Work plus the Contractor's Fee with a Guaranteed Maximum Price, in accordance with Section 4.4 below (Based on the selection above, complete Section 4.2, 4.3 or 4.4 below.) § 4.2 Stipulated Sum § 4.2.1 The Contract Sum shall be ($ ), subject to additions and deductions as provided in the Contract Documents. § 4.2.2 Alternates § 4.2.2.1 Alternates, if any, included in the Contract Sum. Item Price § 4.2.2.2 Subject to the conditions noted below, the following alternates may be accepted by the Owner following execution of this Agreement. Upon acceptance, the Owner shall issue a Modification to this Agreement. (Insert below each alternate and the conditions that must be met for the Owner to accept the alternate) AIA Document A132 — 2019. Copyright ©1975, 1980, 1992, 2009, and 2019. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This document was produced at 15:07:34 MT on 10/16/2024 under Order No.4104244733 which expires on 11/19/2024, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AM Contract Documents® Terms of Service. To report copyright violations, a -mail docinfo@aiacontracts.com. User Notes: (926172984) Docusign Envelope ID: 33097885-46F3-4100-9E18-F474F1 B2C445 Item § 4.2.3 Allowances, if any, included in the Contract Sum: (Identify each allowance.) Item Price Price Conditions for Acceptance § 4.2.4 Unit prices, if any: (Identify the item and state the unit price, and quantity limitations, if any, to which the unit price will be applicable.) Item Units and Limitations Price per Unit ($0.00) (Paragraph deleted) (Table deleted) (Paragraphs deleted) § 4.4 Cost of the Work Plus Contractor's Fee with a Guaranteed Maximum Price § 4.4.1 The Cost of the Work is as defined in Exhibit B, Determination of the Cost of the Work. § 4.4.2 The Contractor's Fee: ;(State a lump sum, percentage of Cost of the Work or other provision for determining the Contractor's Lumberyard Affordable Housing Project Phase 0.1 Item 1- Abatement, Deconstruction & Demolition GMP 2- CM/GC Pre Construction Services Total: Billing Rates: Fees $2,968,767.00 $ 62,320.00 $3,0315087.00 ,�pS (nit. AIA Document A132 — 2019. Copyright ©1975, 1980, 1992, 2009, and 2019. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This document was produced at 15:07:34 MT on 10/16/2024 under Order No.4104244733 which expires on 11/19/2024, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AM Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (926172984) Docusign Envelope ID: 33097885-46F3-4100-9E18-F474F1B2C445 General Laborer - $50/I1our Carpenter - $64/Hour Senior Project Manager - $130/Hour Project Manager - $120/Hour Assistant Project Manager - $75/Hour Senior Superintendent - $120/Hour Superintendent - $100/Hour Project Engineer - $95/Hour General Conditions ($3101000)5 which include Surety, insurance, overhead and profit are included in the Abatement, Deconstruction & Demolition GMP total ($2,968,767.00) Change Order Fees — 15% maximum § 4.4.3 The method of adjustment of the Contractor's Fee for changes in the Work: Refer to AIA Document A232-2019 General Conditions of the Contract for Construction —Article 7 —Changes in the Work. § 4.4.4 Limitations, if any, on a Subcontractor's overhead and profit for increases in the cost of its portion of the Work: Refer to AIA Document A232-2019 General Conditions of the Contract for Construction —Article 7 —Changes in the Work. § 4.4.5 Rental rates for Contractor -owned equipment shall not exceed percent ( %) of the standard rental rate paid at the place of the Project. § 4.4.6 Unit Prices, if any: (Identify the item and state the unit price and quantity limitations, if any, to which the unit price will be applicable) Item Units and Limitations Price per Unit ($0.00) § 4.4.7 Guaranteed Maximum Price § 4.4.7.1 The Contract Sum is guaranteed by the Contractor not to exceed ($ ), subject to additions and deductions by Change Order as provided in the Contract Documents. This maximum sum is referred to in the Contract Documents as the Guaranteed Maximum Price. Costs which would cause the Guaranteed Maximum Price to be exceeded shall be paid by the Contractor without reimbursement by the Owner. § 4.4.7.2 Alternates § 4.4.7.2.1 Alternates, if any, included in the Guaranteed Maximum Price: Item Price § 4.4.7.2.2 Subject to the conditions noted below, the following alternates may be accepted by the Owner following execution of this Agreement. Upon acceptance, the Owner shall issue a Modification to this Agreement. (Insert below each alternate and the conditions that must be met for the Owner to accept the alternate) :.Item Price Conditions for Acceptance § 4.4.7.3 Allowances, if any, included in the Guaranteed Maximum Price: (Identify each allowance) Item Price Setup, Install & 6 month Rental Sound $467,500.00 Wall Document A132 — 2019. Copyright ©1975, 1980, 1992, 2009, and 2019. All rights reserved. "The American Institute of Architects," "American Institute of "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This document was produced at 15:07:34 MT on 10/16/2024 under Order No.4104244733 which expires on 11/19/2024, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (926172984) 5 Docusign Envelope ID: 33097885-46F3-4100-9E18-F474F1 B2C445 Exc, Haul, Dispose Contaminated Soils Exc, Haul, Dispose Soils @ Fuel Center $96,664.00 $185575000 § 4.4.7.4 Assumptions, if any, upon which the Guaranteed Maximum Price is based: (Identify each assumption.) § 4.4.8 To the extent that the Contract Documents are anticipated to require further development, the Guaranteed Maximum Price includes the costs attributable to such further development consistent with the Contract Documents and reasonably inferable therefrom. Such fitrther development does not include changes in scope, systems, kinds and quality of materials, finishes, or equipment, all of which, if required, shall be incorporated by Change Order. § 4.4.9 The Owner shall authorize preparation of revisions to the Contract Documents that incorporate the agreed -upon assumptions contained in Section 4.4.7.4. The Owner shall promptly furnish such revised Contract Documents to the Contractor. The Contractor shall notify the Owner and Architect of any inconsistencies between the agreed -upon assumptions contained in Section 4.4.7.4 and the revised Contract Documents. § 4.5 Liquidated damages, if any: (Insert terms and conditions for liquidated damages, if any, to be assessed in accordance with Section 3.4.) None § 4.6 Other: (Insert provisions for bonus, cost savings or other incentives, y any, that might result in a change to the Contract Sum.) None ARTICLE 5 PAYMENTS § 5.1 Progress Payments § 5.1.1 Based upon Applications for Payment submitted to the Construction Manager by the Contractor, and Certificates for Payment issued by the Construction Manager and Architect, the Owner shall make progress payments on account of the Contract Sum, to the Contractor, as provided below and elsewhere in the Contract Documents. § 5.1.2 The period covered by each Application for Payment shall be one calendar month ending on the last day of the month, or as follows Refer to AIA Document A232-2019 General Conditions of the Contract for Construction Article 9 — Payments and Completion § 5.1.3 Provided that an Application for Payment is received by the Construction Manager not later than the 5th day of a month, the Owner shall make payment of the amount certified to the Contractor not later than the 30th day of the same month. If an Application for Payment is received by the Construction Manager after the application date fixed above, payment of the amount certified shall be made by the Owner not later than ( 25) days after the Construction Manager receives the Application for Payment. (Federal, state or local laws may require payment within a certain period of time) § 5.1.4 Progress ...Payments Where the Contract Sum is Based on a Stipulated Sum § 5.1.4.1 Each Application for Payment shall be based on the most recent schedule of values submitted by the Contractor in accordance with the Contract Documents. The schedule of values shall allocate the entire Contract Sum among the various portions of the Work. The schedule of values shall be prepared in such form, and supported by such data to substantiate its accuracy, as the Construction Manager and Architect may require. This schedule of values shall be used as a basis for reviewing the Contractor's Applications for Payment. § 5.1.4.2 Applications for Payment shall show the percentage of completion of each portion of the Work as of the end of the period covered by the Application for Payment. p�itit. AIA Document A132 — 2019. Copyright ©1975, 1980, 19923 2009, and 2019. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This document was produced at 15:07:34 6 MT on 10/16/2024 under Order No.4104244733 which expires on 11/19/2024, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, a -mail docinfo@aiacontracts.com. User Notes: (926172984) Docusign Envelope ID: 33097885-46F3-4100-9E18-F474F1B2C445 § 5.1.4.3 In accordance with AIA Document A232TM-2019, General Conditions of the Contract for Construction, Construction Manager as Adviser Edition, and subject to other provisions of the Contract Documents, the amount of each progress payment shall be computed as follows: § 5.1.4.3.1 The amount of each progress payment shall first include: .1 That portion of the Contract Sum properly allocable to completed Work; .2 That portion of the Contract Sum properly allocable to materials and equipment delivered and suitably stored at the site for subsequent incorporation in the completed construction, or, if approved in advance by the Owner, suitably stored off the site at a location agreed upon in writing; and .3 That portion of Construction Change Directives that the Architect determines, in the Architect's professional judgment, to be reasonably justified. § 5.1.4.3.2 The amount of each progress payment shall then be reduced by: .1 The aggregate of any amounts previously paid by the Owner; .2 The amount, if any, for Work that remains uncorrected and for which the Architect has previously withheld a Certificate for Payment as provided in Article 9 of AIA Document A232-2019, .3 Any amount for which the Contractor does not intend to pay a Subcontractor or material supplier, unless the Work has been performed by others the Contractor intends to pay; .4 For Work performed or defects discovered since the last payment application, any amount for which the Architect may withhold payment, or nullify a Certificate of Payment in whole or in part, as provided in Article 9 of AIA Document A232-2019; and .5 Retainage withheld pursuant to Section 5.1.7. (Paragraphs deleted) § 5.1.6 Progress Payments Where the Contract Sum is Based on the Cost of the Work with a Guaranteed Maximum Price § 5.1.6.1 With each Application for Payment, the Contractor shall submit payrolls, petty cash accounts, receipted invoices or invoices with check vouchers attached, and any other evidence required by the Owner, Construction Manager or Dp1it. AIA Document A132 — 2019. Copyright ©1975, 1980, 1992, 2009, and 2019. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This document was produced at 15:07:34 7 /' MT on 10/16/2024 under Order No.4104244733 which expires on 11/19lei 024, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, a -mail docinfo@aiacontracts.com. User Notes: (926172984) Docusign Envelope ID: 33097885-46F3-4100-9E18-F474F1 B2C445 Architect to demonstrate that payments already made by the Contractor on account of the Cost of the Work equal or exceed progress payments already received by the Contractor plus payrolls for the period covered by the present Application for Payment, less that portion of the progress payments attributable to the Contractor's Fee. § 5.1.6.2 Each Application for Payment shall be based on the most recent schedule of values submitted by the Contractor in accordance with the Contract Documents. The schedule of values shall allocate the entire Guaranteed Maximum Price among: (1) the various portions of the Work; (2) any contingency for costs that are included in the Guaranteed Maximum Price but not otherwise allocated to another line item or included in a Change Order; and (3) the Contractor's Fee. § 5.1.6.2.1 The schedule of values shall be prepared in such form, and supported by such data to substantiate its accuracy, as the Construction Manager and Architect may require. This schedule of values shall be used as a basis for reviewing the Contractor's Applications for Payment. § 5.1.6.2.2 The allocation of the Guaranteed Maximum Price under this Section 5.1.6.2 shall not constitute a separate guaranteed maximum price for the Cost of the Work of each individual line item in the schedule of values. § 5.1.6.2.3 When the Contractor allocates costs from a contingency to another line item in the schedule of values, the Contractor shall submit supporting documentation to the Architect and Construction Manager. § 5.1.6.3 Applications for Payment shall show the percentage of completion of each portion of the Work as of the end of the period covered by the Application for Payment. The percentage of completion shall be the lesser of (1) the percentage of that portion of the Work which has actually been completed; or (2) the percentage obtained by dividing (a) the expense that has actually been incurred by the Contractor on account of that portion of the Work and for which the Contractor has made payment or intends to make payment prior to the next Application for Payment by (b) the share of the Guaranteed Maximum Price allocated to that portion of the Work in the schedule of values. § 5.1.6.4 In accordance with AIA Document A232-2019, and subject to other provisions of the Contract Documents, the amount of each progress payment shall be computed as follows: § 5.1.6.4.1 The amount of each progress payment shall first include: .1 That portion of the Guaranteed Maximum Price properly allocable to completed Work as determined by multiplying the percentage of completion of each portion of the Work by the share of the Guaranteed Maximum Price allocated to that portion of the Work in the most recent schedule of values; .2 That portion of the Guaranteed Maximum Price properly allocable to materials and equipment delivered and suitably stored at the site for subsequent incorporation in the completed construction or, if approved in writing in advance by the Owner, suitably stored off the site at a location agreed upon in writing; .3 That portion of Construction Change Directives that the Architect determines, in the Architect's professional judgment, to be reasonably justified; and .4_ The Contractor's Fee, computed upon the Cost of the Work described in the preceding Sections 5.1.6.4.1.1 and 5.1.6.4.1.2 at the rate stated in Section 4.4.2 or, if the Contractor's Fee is stated as a fixed sum in that Section, an amount that bears the same ratio to that fixed -sum fee as the Cost of the Work included in Sections 5.1.6.4.1.1 and 5.1.6.4.1.2 bears to a reasonable estimate of the probable Cost of the Work upon its completion. § 5.1.6.4.2 The amount of each progress payment shall then be reduced by: .1 The aggregate of any amounts previously paid by the Owner; .2 The amount, if any, for Work that remains uncorrected and for which the Architect has previously withheld a Certificate for Payment as provided in Article 9 of AIA Document A232 2019; .3 Any amount for which the Contractor does not intend to pay a Subcontractor or material supplier, unless the Work has been performed by others the Contractor intends to pay; .4 For Work performed or defects discovered since the last payment application, any amount for which the Architect may withhold payment, or nullify a Certificate of Payment in whole or in part, as provided in Article 9 of AIA Document A232-2019; .5 The shortfall, if any, indicated by the Contractor in the documentation required by Section 5.1.6.1 to substantiate prior Applications for Payment, or resulting from errors subsequently discovered by the Owner's auditors in such documentation; and .6 Retainage withheld pursuant to Section 5.1.7. AIA Document A132 — 2019. Copyright ©1975, 1980, 1992, 2009, and 2019. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This document was produced at 15:07:34 $ MT on 10/1ale) 024 under Order No.4104244733 which expires on 11/19/2024, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (926172984) Docusign Envelope ID: 33097885-46F3-4100-9E18-F474F1B2C445 § 5.1.6.5 The Owner and the Contractor shall agree upon a mutually acceptable procedure for review and approval of payments to Subcontractors and the percentage of retainage held on Subcontracts, and the Contractor shall execute subcontracts in accordance with those agreements. § 5.1.6.6 In taking action on the Contractor's Applications for Payment, the Construction Manager and Architect shall be entitled to rely on the accuracy and completeness of the information furnished by the Contractor and such action shall not be deemed to be a representation that (1) the Construction Manager or Architect have made a detailed examination, audit, or arithmetic verification of the documentation submitted in accordance with Section 5.1.6.1 or other supporting data; (2) that the Construction Manager or Architect have made exhaustive or continuous on -site inspections; or (3) that the Construction Manager or Architect have made examinations to ascertain how or for what purposes the Contractor has used amounts previously paid on account of the Contract. Such examinations, audits, and verifications, if required by the Owner, will be performed by the Owner's auditors acting in the sole interest of the Owner. § 5.1.6.7 Except with the Owner's prior approval, the Contractor shall not make advance payments to suppliers for materials or equipment which have not been delivered and stored at the site. § 5.1.6.8 If final completion of the Work is materially delayed through no fault of the Contractor, then the Owner shall pay the Contractor any additional amounts in accordance with Article 9 of AIA Document A232-2019. § 5.1.7 Retainage § 5.1.7.1 For each progress payment made prior to when the Work of this Contract is substantially complete, the Owner may withhold the following amount, as retainage, from the payment otherwise due: (Insert a percentage or amount to be withheld as retainage from each Application for Payment. The amount of retainage may be limited by governing law.) � 5% Retainage for Demo GMP to be paid upon completion of Demo GMP. Retention for Phase o to be negotiated. § 5.1.7.1.1 The following items are not subject to retainage: (Insert any items not subject to the withholding of retainage, such as general conditions, insurance, etc) Insurance, performance bonds, payment bonds, and 2 year warranty bonds § 5.1.7.2 Reduction or limitation of retainage, if any, shall be as follows: (If the retainage established in Section 5.1.7.1 is to be modified prior to when the entire Work of this Contract is substantially complete, including modifications for completion of portions of the Work as provided in Section 3.4.2, insert provisions for such modifications) § 5.1.7.3 Except as set forth in this Section 5.1.7.3, when the Work of this Contract is substantially complete, the Contractor may submit an Application for Payment that includes the retainage withheld from prior Applications for Payment pursuant to this Section 5.1.7. § 5.2 Final Payment � �s. AIA Document A132 — 2019. Copyright ©1975, 1980, 1992, 2009, and 2019. All rights reserved. "The American Institute of Architects," "American Institute of nr,' Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This document was produced at 15:07:34 �vt,[� MT on 10/16/2024 under Order No.4104244733 which expires on 11/19/2024, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (926172984) Docusign Envelope ID: 33097885-46F3-4100-9E18-F474F1 B2C445 (paragraphs deleted) § 5.2.2 Final Payment Where the Contract Sum is Based on the Cost of the Work with or without a Guaranteed Maximum Price § 5.2.2.1 Final payment, constituting the entire unpaid balance of the Contract Sum, shall be made by the Owner to the Contractor when .1 the Contractor has fully performed the Contract except for the Contractor's responsibility to correct Work as provided in Article 12 of AIA Document A232-2019, and to satisfy other requirements, if any, which extend beyond final payment; .2 the Contractor has submitted a final accounting for the Cost of the Work, pursuant to Exhibit B, Determination of the Cost of the Work and a final Application for Payment; and .3 a final Certificate for Payment or Project Certificate for Payment has been issued by the Architect in accordance with Exhibit B, Determination of the Cost of the Work. § 5.2.2.2 The Owner's final payment to the Contractor shall be made no later than 30 days after the issuance of the final Certificate for Payment or Project Certificate for Payment, or as follows: § 5.3 Payments due and unpaid under the Contract shall bear interest from the date payment is due at the rate stated below, or in the absence thereof, at the legal rate prevailing from time to time at the place where the Project is located. (Insert rate of interest agreed upon, if any.) ARTICLE 6 DISPUTE RESOLUTION § 6.1 Initial Decision Maker The Architect will serve as Initial Decision Maker pursuant to Article 15 of AIA Document A232-2019, unless the parties appoint below another individual, not a party to this Agreement, to serve as Initial Decision Maker. If the parties mutually agree, insert the name, address and other contact information of the Initial Decision Maker, if other than the Architect.) § 6.2 Binding Dispute Resolution For any Claim subject to, but not resolved by, mediation pursuant to Article 15 of AIA Document A232-2019, the method of binding dispute resolution shall be as follows: (Check the appropriate box.) [ X ] Litigation in the District Court for Pitkin County, Colorado.. If the Owner and Contractor do not select a method of binding dispute resolution, or do not subsequently agree in writing to a binding dispute resolution method other than litigation, Claims will be resolved by litigation in a court of competent jurisdiction. ARTICLE 7 TERMINATION OR SUSPENSION �s AIA Document A132 — 2019. Copyright ©1975, 1980, 1992, 2009, and 2019. All rights reserved. "The American Institute of Architects," "American Institute of �'t/� Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This document was produced at 15:07:34 // VV��,,LL�� MT on 10/16/2024 under Order No.4104244733 which expires on 11/19/2024, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, a -mail docinfo@aiacontracts.com. User Notes: (926172984) Docusign Envelope ID: 33097885-46F3-4100-9E18-F474F1B2C445 (ParagNaphs deleted) § 7.2 Where the Contract Sum is Based on the Cost of the Work with or without a Guaranteed Maximum Price § 7.2.1 Termination § 7.2.1.1 The Contract may be terminated by the Owner or the Contractor as provided in Article 14 of AIA Document A232-2019. § 7.2.1.2 Termination by the Owner for Cause § 7.2.1.2.1 If the Owner terminates the Contract for cause as provided in Article 14 of AIA Document A232.2019, the Owner shall then only pay the Contractor an amount as follows: .1 Take the Cost of the Work incurred by the Contractor to the date of termination; .2 Add the Contractor's Fee, computed upon the Cost of the Work to the date of termination at the rate stated in Section 4.3.2 or 4.4.2, as applicable, or, if the Contractor's Fee is stated as a fixed sum in that Section, an amount that bears the same ratio to that fixed -sum Fee as the Cost of the Work at the time of termination bears to a reasonable estimate of the probable Cost of the Work upon its completion; .3 Subtract the aggregate of previous payments made by the Owner; and .4 § 7.2.1.2.2 When the Contract Sum is based on the Cost of the Work with a Guaranteed Maximum Price, if the Owner terminates the Contract for cause as provided in Article 14 of AIA Document A232-2019, the amount, if any, to be paid to the Contractor under Article 14 of AIA Document A232-2019 shall not cause the Guaranteed Maximum Price to be exceeded, nor shall it exceed the amount calculated in Section 7.2.162& 1 a § 7.2.1.2.3 The Owner shall also pay the Contractor fair compensation, either by purchase or rental at the election of the Owner, for any equipment owned by the Contractor that the Owner elects to retain and that is not otherwise included in the Cost of the Work under Section 7.2.1.2.1.1. To the extent that the Owner elects to take legal assignment of subcontracts and purchase orders (including rental agreements), the Contractor shall, as a condition of receiving the payments referred to in this Article 71, execute and deliver all such papers and take all such steps, including the legal assignment of such subcontracts and other contractual rights of the Contractor, as the Owner may require for the purpose of fully vesting in the Owner the rights and benefits of the Contractor under such subcontracts or purchase orders. All Subcontracts, purchase orders and rental agreements entered into by the Contractor will contain provisions allowing for assignment to the Owner as described above. Contractor shall not be liable for any negligence of subcontractors of assigned contracts for work occurring after termination. § 7.2.1.3 Termination by the Owner for Convenience If the Owner terminates the Contract for convenience in accordance with Article 14 of AIA Document A232-2019, then the Owner shall pay the Contractor a termination fee as follows: (Insert the amount of or method for determining the fee, if any, payable to the Contractor following a terminationfor the Owner's convenience) 2.5% of unbilled remaining contract value § 7.3 Suspension. The Work maybe suspended by the Owner as provided in Article 14 of AIA Document A232 2019; in such case, the Contract Sum and Contract Time shall be increased as provided in Article 14 of AIA Document A232-2019, except that the term "profit" shall be understood to mean the Contractor's Fee as described in Section 4.3.2 or 4.4.2, as applicable, of this Agreement. ARTICLE 8 MISCELLANEOUS PROVISIONS § 8.1 Where reference is made in this Agreement to a provision of AIA Document A232 2019 or another Contract Document, the reference refers to that provision as amended or supplemented by other provisions of the Contract Documents. —Ds AIA Document A132 — 2019. Copyright ©1975, 1980, 1992, 2009, and 2019. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This document was produced at 15:07:34 MT on 10/16/2024 under Order No.4104244733 which expires on 11/19/2024, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, a -mail docinfo@aiacontracts.com. User Notes: (926172984) Docusign Envelope ID: 33097885-46F3-4100-9E18-F474F1 B2C445 osinit. § 8.2 The Owner's representative: (Name, address, email address, and other information) § 8.3 The Contractor's representative: (Name, address, email address, and other information) § 8.4 Neither the Owner's nor the Contractor's representative shall be changed without ten days' prior notice to the other party. § 8.5 Insurance and Bonds § 8.5.1 The Owner and the Contractor shall purchase and maintain insurance as set forth in AIA Document A132TM 2019, Standard Form of Agreement Between Owner and Contractor, Construction Manager as Adviser Edition, Exhibit A, Insurance and Bonds, and elsewhere in the Contract Documents. § 8.5.2 The Contractor shall provide bonds as set forth in AIA Document A132TM2019, Exhibit A, and elsewhere in the Contract Documents. § 8.6 Notice in electronic format, pursuant to Article 1 of AIA Document A232-2019, may be given in accordance with AIA Document E203TM-2013, Building Information Modeling and Digital Data Exhibit, if completed, or as otherwise set forth below. (If other than in accordance with AIA Document E203-2013, insert requirements for delivering notice in electronic format such as name, title, and email address of the recipient and whether and how the system will be required to generate a read receipt for the transmission) § 8.7 Relationship of the Parties Where the Contract is based on the Cost of the Work plus the Contractor's Fee, with or without a Guaranteed Maximum Price, the Contractor accepts the relationship of trust and confidence established by this Agreement and covenants with the Owner to cooperate with the Architect and exercise the Contractor's skill and judgment in furthering the interests of the Owner; to furnish efficient business administration and supervision; to furnish at all times an adequate supply of workers and materials; and to perform the Work in an expeditious and economical manner consistent with the Owner's interests. The Owner agrees to furnish and approve, in a timely manner, information required by the Contractor and to make payments to the Contractor in accordance with the requirements of the Contract Documents. § 8.8 Other provisions: § 8.8.1 Full appropriation by Owner. The amount of money appropriated for the Work is equal to, or in excess of, the contract amount. This Agreement prohibits the issuance of any change order or other directive requiring additional compensable work that would cause the total amount payable under- the contract to exceed the amount appropriated, unless the Contractor is given written assurance by the Owner that lawful appropriations to cover the costs of the additional work have been made or the Work is covered under aremedy-granting provision in this agreement AIA Document A132 — 2019. Copyright ©1975, 1980, 1992, 2009, and 2019. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This document was produced at 15:07:34 ,� 2 MT on 10/16/2024 under Order No.4104244733 which expires on 11/19/2024, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, a -mail docinfo@aiacontracts.com. User Notes: (926172984) Docusign Envelope ID: 33097885-46F3-4100-9E18-F474F1B2C445 Force 1Vlajure The time during which Contractor is delayed in said work by (a) the acts of Owner or its agents or employees or those under Contract with or permission from Owner, or (b) the acts of God which Contractor could not have reasonably foreseen and provided against, or (c) unanticipated and unforeseeable weather that in fact delays the work, or (d) any strikes, boycotts or obstructive actions by employees or labor organizations and which are beyond the control of Contractor and which it cannot reasonably overcome, or (e) any delay caused in whole, or in part, by acts or omissions within the control of Owner pursuant to C.R.S. § 24-91-103.5, shall be added to the time for completion of the work by a fair and reasonable allowance which shall be documented in a Change Order (defined above). Contractor recognizes, however, that the site of the work is in the Rocky Mountains at a high elevation where inclement weather conditions are common and this fact has been considered by Contractor as an anticipated and foreseeable condition in preparing its Bid and agreeing to the Project Schedule and Completion Date. ARTICLE 9 ENUMERATION OF CONTRACT DOCUMENTS § 9.1 This Agreement is comprised of the following documents: .1 AIA Document A132TM-2019, Standard Form of Agreement Between Owner and Contractor, Construction Manager as Adviser Edition .2 AIA Document A132TM-2019, Exhibit A, Insurance and Bonds Exhibit .3 AIA Document A232TM-2019, General Conditions of the Contract for Construction, Construction Manager as Adviser Edition (Paragraphs deleted) .5 Drawings Number Title Date Construction Documents Phase 0: Deconstruction, 7/26/2024 Demolition, Site Grading & Public Infrastructure .6 Specifications Section Title Date .7 Addenda, if any. Number Date Pages 1. Gould GMP Rev 3 10/8/2024 2 Pages 2. Gould Pre Con GMP 9/12/2024 1 3. Gould Demo Schedule 10/8/2024 1 Portions of Addenda relating to bidding or proposal requirements are not part of the Contract Documents unless the bidding or proposal requirements are also enumerated in this Article 9. .8 Other Exhibits. (Check all boxes that apply and include appropriate information identifying the exhibit where required.) I AIA Document A132TM 2019, Exhibit B. Determination of the Cost of the Work AIA Document E235TM-2019, Sustainable Projects Exhibit, Construction Manager as Adviser Edition, dated as indicated below: (Insert the date of the E235-2019 incorporated into this Agreement.) [ ] The Sustainability Plan: r.--pg �n�t. AIA Document A132 — 2019. Copyright ©1975, 1980, 1992, 2009, and 2019. All rights reserved. "The American Institute of Architects," "American Institute of Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This document was produced at 15:07:34 13 Docusign Envelope ID: 33097885-46F3-4100-9E18-F474F1 B2C445 Title Date Pages [ ] Supplementary and other Conditions of the Contract: Document Title Date Pages .9 Other- documents, if any, listed below: (List here any additional documents that are intended to form part of the Contract Documents. AIA Document A232-2019 provides that the advertisement or invitation to bid, Instructions to Bidders, sample forms, the Contractor's bid or proposal, portions of Addenda relating to bidding or proposal requirements, and other information furnished by the Owner in anticipation of receiving bids orproposals, are notpart of the Contract Documents unless enumerated in this Agreement. Any such documents should be listed here only if intended to be part of the Contract Documents.) �r�ai�etaii:is entered into as of the day and year first written above. DocuSigned by: OWNER (Signature) Sara G. Ott (Printed �zame a�zd title) Signed by: Signature: City 432FOA40A55C4BD.4. Attorney James R. True Mark Gould (Printed name atzd title) 10/16/2024 � 3:49:39 PM MDT President/CEO �,�1+ AIA Document A132 — 2019. Copyright ©1975, 1980, 1992, 2009, and 2019. All rights reserved. "The American Institute of Architects," "American Institute of �u� Architects," "AIA," the AIA Logo, and "AIA Contract Documents" are trademarks of The American Institute of Architects. This document was produced at 15:07:34 MT on 10/16/2024 under Order No.4104244733 which expires on 11/19/2024, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, a -mail docinfo@aiacontracts.com. User Notes. (926172984) l� Page 1 of 4 DECISION MEMORANDUM TO: Mayor Torre and City Council FROM: Reilly O’Brien, Senior Project Manager, Dynamic Program Management THROUGH: Robert Schober, Capital Asset Director MEMO DATE: October 17, 2024 MEETING DATE: October 22, 2024 RE: Resolution #133, Series of 2024 – Lumberyard Affordable Housing Project Phase 0 Contract for Abatement, Deconstruction & Demolition, and Pre- Construction Services with Gould Construction Phase 0 CMGC Procurement The process used by the City of Aspen Capital Asset staff to procure Construction Manager/General Contractor (CM/GC) Professional Services for the Abatement, Deconstruction & Demolition, and Pre-Construction Services for Phase 0 of the Lumberyard Affordable Housing Project was of high standard and typical to the industry. The process was facilitated in a fair and transparent manner while maintaining competition between the candidates. The City of Aspen Procurement Department reviewed all materials for approval prior to the release of any Request for Qualifications & Proposal (RFQ/P) documents and interview invitations. The RFQ/P advertisement was advertised on BidNet, as is typical for City of Aspen Capital Construction and the public sector. Based on the high number of firms requesting the RFQ/P there was a strong level of interest in this project. The virtual pre-bid meeting was well attended and provided an opportunity for candidates to ask questions. Site walks were provided to candidates as requested over a long window of time, between 7/29/2024 and 9/6/2024. The members of the selection committee thoroughly reviewed the qualifications and proposal responses from each candidate. A scoring matrix was followed to assist in making decisions about the candidates that should move forward in the process by sending an invitation to interview with the selection committee. Six responses were received from candidates. A short list of three firms were selected to be invited to interview. The fees requested for the CM/GC Professional Services were consistent with industry standards and included General Conditions, to be treated at cost, not-to-exceed within the contract. Preconstruction fees and percentage markups for overhead, profit, change orders, bonds and insurances were requested in the competitive environment. Phase 0.1 of the Lumberyard project included bid documents from the design team for the following: - Abatement of asbestos and contaminated soils - Demolition and recycling of existing structures - Demolition and recycling of existing asphalt & concrete Page 2 of 4 Gould’s proposed fees and General Conditions are consistent with pricing we have seen recently on similar projects. Gould’s fees were the most competitive of the three qualified candidates responding to the RFQ/P. It worked out well that Gould as the best fit of the three qualified for the project was also the most cost-effective. The CM/GC delivery method allows the contractor to engage early in the design process to provide value engineering and constructability feedback to the design team on the costs of infrastructure and grading for the project (Phase 0.2). Therefore, the competitive request for proposals for the CM/GC delivery method include the fees as outlined above and are intended to be held throughout the project and when the City and CM/GC agree upon a Guaranteed Maximum Price (GMP) at the conclusion of design phases. Interviews were held on September 27th, 2024, with three candidates. Each candidate was provided 45 minutes with the selection committee including five minutes of introductions, a 15- minute vendor presentation, 20 minutes of questions, and five minutes for closing statements. The questions were the same questions asked of each firm, with follow-up questions asked by persons attending the interviews for clarification. After firms had completed their interviews, the selection committee members scored each firm individually. Then the committee held a debrief discussion for approximately 30-45 minutes. Each person in attendance was able to express their observations and notes about strengths and/or weaknesses of each team. Based on the score cards submitted, the selection committee unanimously selected Gould Construction as the top candidate. There was a follow up interview with Gould construction on October 1st, 2024, to confirm their good fit for the project. Gould Construction was informed of the intent to award them at the conclusion of that meeting. After the intent to award, Gould Construction provided contract comments on the contract proposed by the City of Aspen. City legal has reviewed the comments and the reviewed contract is included in the memo for approval. Dynamic Program Management has reviewed the contract and finds it meets industry standards. Updated Phase 0 Cost Model Cairn Consulting’s original 2022 Schematic Design estimate was prepared with the best information available at the time regarding the scope of work and with standard industry practices. The 5% annual escalation applied to Cairn Consulting’s 2022 Schematic Design estimate is not consistent with the 18% annual escalation Dynamic Program Management has observed from 2022 to 2024. The cost increases are not the result of escalation of the same scope of work priced in 2022, but an increase in the scope of the work as design progressed from Schematic to Design Development in order to satisfy the stakeholders in the process. Page 3 of 4 Shaw Construction was engaged to provide cost estimating services as the project moved into Design Development. The 2024 Design Development estimate incorporated scope additions as follows that were not included in the Schematic Design: - Sound walls - Snow fence - Annie Mitchell stair connection to transit - Stormwater facilities by the bus stop and northeast corner - Trail realignment in ROW - including walls/fence that was previously primarily sharrow on site roads - Grade separation for AABC trail at intersection - Significant utility relocation at Highway 82 underpass - Additional accessible connections from AABC trail to the development - Offsite utility connections in adjacent County Road - Closure of Sage Way - Additional site retaining walls - Unexpected CDOT drainage onto site requiring additional underground storage on site - Additional drainage swales - Change from curb/gutter to full sidewalks - Increases in landscape material quantities and additional irrigation These items above were not included in the 2022 Schematic Design estimate. Dynamic Program Management, the Capital Asset department, and Cushing Terrell thoroughly investigated the increase from the 2022 Schematic Design to the 2024 Design Development estimate. The scope changed substantially, and the escalation applied at 5% per year was optimistic. Phase 0 Contractor At this point in the process, pivoting from the current project approach of having the City manage the Phase 0 scope to a hired developer could have negative schedule and budget implications. Gould Construction and their abatement contractor are scheduled to mobilize on November 4th, 2024, with abatement and demolition scopes of work. Delaying the start of abatement and demolition will directly delay the start of site work and infrastructure in the spring. With the City managing the CM/GC through a GMP process, all savings will be returned to the City. The City is currently in process of procuring a developer for the phases beyond Phase 0. Per that process, the City has communicated to candidates that the Phase 0 scope is currently assumed to be completed by the City. Prior to issuance of the developer RFQP, staff heard positive remarks from developers regarding their interest in pursuing the project if Phase 0 was managed by the City. If the City would like to move Phase 0 into the developer’s scope of work, the timeline for the developer procurement will need to be extended. We have seen steep escalation in the market over the past two years. While the industry is experiencing a leveling of the curve of escalation, it still exists in the Aspen market. Each month of delay could put the City at risk for 1%+ of the construction scope awarded to Gould Construction. Having a developer control Phase 0 would add months to the start of the project given the current timeframe for the developer procurement. Page 4 of 4 With the increase in the scope of work from Schematic Design to Design Development, it is our opinion that the costs will not be reduced by significant amounts, if any, from the costs that will be finalized in a GMP with Gould Construction, regardless of which entity (City or Developer) leads the process. The cost increases were mostly attributed to increases in scope needed as the design moved forward. Gould Construction has been a good partner of the City on past projects. A developer without knowledge of the local market may not be able to procure an earthwork and infrastructure contractor with as much experience as Gould in completing projects with high quality for the City for a fair price. The developer would need time to procure their own contractor for the Phase 0 scope and bring that contractor up to speed on the complex project. If a developer were to take on this scope of work, while the initial costs may be higher and the schedule extended, the advantage could be a lower risk to the City for construction escalation costs and unforeseen conditions dependent on contract language. In addition, moving the responsibility of Phase 0 to the developer would free up City staff to focus on other projects for the community. Dynamic Program Management recommends moving forward with the contract for Gould Construction for Phase 0 of the project. However, our team is prepared to support the City to deliver the scope of work in the method deemed the best pathway forward for this important project. Sincerely, Reilly O’Brien Senior Project Manager, Dynamic Program Management Attachments: None cushingterrell.com MEMORANDUM Date: October 25, 2024 To: Chris Everson, Affordable Housing Development Senior Project Manager From: Randy Rhoads, Executive Director of Affordable Housing RE: Phase 0 Implementation/Construction The City has received feedback over the course of the RFQ/RFP process that having the City act as developer for the Phase 0 work is perceived beneficially because it creates certainty of schedule and reduces overall risk for the developers. Having twelve developers respond to the RFP is a testament to the extreme amount of buy in there is for the process that was outlined in the developer RFP. The Phase 0 project is past the development stage – it is now simply a construction project. The entitlements, construction documentation (other than potential Value Engineering changes through a CMGC process) and contractor bidding/selection is complete. Having a developer manage the Phase 0 construction process could add cost to revisit these already completed stages. Additionally, a developer will need compensation for the management of a construction project should they take on Phase 0 from this point. The Phase 0 Construction contract will need to be (re) negotiated between developer and general contractor or a wholly new contract will need to be negotiated with a new general contractor if the developer chooses to not move forward with the selected general contractor. Schedule: There will be added time for a developer team to take on Phase 0 and determine approach (maintain selected GC and process or rebid phase 0 scope – 4 months in process thus far). The current schedule to select a developer team based on the proposals submitted for vertical construction is mid-December. This would push a construction start date to May 2025. With demolition needing to occur prior to any site/infrastructure work, overall construction will be adversely delayed. Current construction schedule allowed demolition activities to start in the winter months with infrastructure construction starting in early spring to maximize construction in during weather favorable months. Cost: Schedule delays increase construction cost due to escalation. Developer fees to manage the Phase 0 construction project are in addition to any currently contemplated costs. 2 cushingterrell.com Optics: Loss of confidence in process with phase 0 general contractor and developers. Multiple changes in course, multiple exercises in costing/proformas could lead to developer fatigue. Ultimately, developer involvement does not diminish City of Aspen construction risk. The city is still responsible for any unforeseen cost. Having a developer manage the Phase 0 construction process will not result in cost savings or schedule reductions. Cushing Terrell recommends that the city approve the Phase 0 contract with the selected general contractor and immediately provide a notice to proceed so that the abatement and demolition portions of the Phase 0 work get underway and allow the CMGC process to commence with the selected contractor for the reminder of the Phase 0 scope. Developers seeing the Phase 0 work stay on track sends a strong signal, which will boost confidence in the city’s commitment to the process outlined in the RFQ and RFP documents and will allow the developers to focus on what they do best, finance, build, and manage affordable housing.