City of Alexandria, Virginia
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MEMORANDUM
DATE: JUNE 20, 2023
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER /s/
FROM: TERRY SUEHR, DIRECTOR, PROJECT IMPLEMENTATION
DOCKET TITLE:
TITLE
Authorization of the Execution of the Proposed Interim Agreement for the Waterfront Implementation Project.
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ISSUE: Approval of the Proposed Interim Agreement for the Waterfront Implementation Project.
RECOMMENDATION: That City Council:
1. Authorize the City Manager to finalize negotiations with the highest-ranked respondent, Skanska/JMT, to Solicitation RFQu 1047 and to execute an Interim Agreement consistent with the Proposed Interim Agreement (Attachment) which authorizes Phase 1 Services for the Waterfront Implementation Project, up to $17,000,000 (for Phases 1A and 1B as described herein);
2. Authorize the City Manager, or his designee, to issue contract modifications and/or amendments to the Interim Agreement, within the financial limit authorized above, to accomplish requirements of Phase 1 based on any additional consultant or professional services, fees and/or time required, consistent with, or reasonably similar to, the stated needs, goals, and intent of the scope of work described in RFQu 1047 and the City's grant applications (for any grant applications approved by Council). Such changes would be based on changes to Phase 1A anticipated and/or Phase 1B services per the Phase 1A Basis of Design Report, additional work should the City receive additional funding via grants (i.e. FEMA BRIC grant or other), and/or the development of proposals for Early Work Packages; and
3. Authorize the City Manager to further amend the Proposed Interim Agreement to allow for Early Work Package amendment(s) up to an additional maximum of $5,000,000. Early Work Packages may include: Advanced preparation of work areas, early site/civil packages for utility/infrastructure repair or replacement, and/or advanced purchase of long-lead, high-risk, or cost-sensitive materials, selective demolition and/or replacement of aged, failing, or high-risk infrastructure, consistent with the stated scope of work.
BACKGROUND: The City advertised a two-step procurement process for the Waterfront Implementation Project (via Solicitation RFQu 1047) in compliance with the City’s PPEA Guidelines to hire a collaborative and well-qualified Progressive Design-Build team. The City has completed the solicitation process, ranked shortlisted respondents, and presented staff recommendations and next steps during the Public Hearing on the solicited proposal process held in the interest of a fair and transparent procurement process. The City then commenced negotiations with the highest-ranked offeror and intends, with Council approval, to execute an Interim Agreement for Phase 1 Services consistent with the form of the Proposed Interim Agreement and associated exhibits in Attachment 1 and consistent with the goals and Council-approved budget for the Waterfront Implementation Project.
DISCUSSION: A PPEA-compliant two-step procurement solicitation process was used for the Waterfront Implementation Project which will be delivered through the Progressive Design-Build model. This model provides the benefit of selecting a well-qualified combined design and construction team. The model divides the project delivery into two phases. Phase 1 services are contracted with the Interim Agreement and include site investigations, analysis of alternatives, development of the design, permitting, and development of a Guaranteed Maximum Price (GMP) proposal. The Interim Agreement describes the project requirements and summarizes costs and objectives for the design and investigation services in Phase 1A (which includes site investigations, analysis of alternatives, early engagement, and the Basis of Design Report) and Phase 1B (which includes additional design refinement, commencement of the Development Review Process, and development of a Guaranteed Maximum Price Proposal). After negotiation of the GMP, Phase 2 services will be contracted via a separate Comprehensive Agreement. Phase 2 services are anticipated to include completion of design, obtaining regulatory approvals and permits, and construction of the project.
Due to the “progressive” nature of the Progressive Design-Build delivery method, Phase 1B services and associated costs will be administratively renegotiated and finalized based on the requirements and scope of work determined by the accepted Basis of Design Report.
“Early Work Packages” refer to Phase 2 scope items, long-lead or high-risk purchase(s) and delivery of materials and/or equipment that could reduce or mitigate price or schedule risk, or otherwise expedite and compress the project schedule by authorizing such work prior to the negotiation of the GMP and Comprehensive Agreement. Early Work Packages may be recommended and negotiated administratively during Phase 1 if:
a) A determination is made that an Early Work Package is in the best interest of the City; and
b) Council has provided preliminary approval of any DSUP or standalone Special Use Permit(s) for project elements requiring such approval (or if approval is not otherwise required of such elements).
All other Phase 2 work will be authorized separately by Council under the Comprehensive Agreement.
Per the PPEA Guidelines adopted by the City, the City Council must review the Interim Agreement prior to authorizing the City Manager to finalize negotiations and execute the agreement. The Proposed Interim Agreement was shared with Council as part of the Public Hearing on May 23, 2023. The City Manager hereby requests authorization from Council to finalize negotiations and to execute an Interim Agreement consistent with the Proposed Interim Agreement and associated exhibits in Attachment 1 and consistent with the goals and Council-approved budget for the Waterfront Implementation Project.
FISCAL IMPACT: The Interim Agreement, and any Early Work Packages negotiated and incorporated by the City Manager, or his designee, shall be specifically limited to the existing CIP funding previously approved by Council, and are not anticipated to exceed $22,000,000 for Phase 1 based on the following summary of estimated Interim Agreement costs for Phase 1:
• Phase 1A - up to $6,000,000
• Phase 1B - up to $10,000,000
• Contingency - up to $1,000,000
• Early Work Packages Allowance - up to an additional $5,000,000 (added administratively by addendum, if applicable), for items such as, but not limited to:
o Stormwater Pumps and controls/civil infrastructure elements: estimated at $3,000,000
o Electrical Switchgear and similar controls: estimated at $1,000,000
o Laydown Site Prep/Early Mobilization: estimated at $1,000,000
ATTACHMENT: Waterfront Implementation Project Interim Agreement
STAFF:
Joanna Anderson, City Attorney
Emily A. Baker, Deputy City Manager
Shawn Lassiter, Assistant City Attorney
Matthew Landes, Division Chief, Department of Project Implementation