Title
Resolution Authorizing the City Manager to Use the Construction Manager at Risk Delivery Method to Construct the Steven B. Tanger Center for the Performing Arts
Body
Department: Coliseum
Council District: 3
Public Hearing: N/A
Advertising Date/By: N/A
Contact 1 and Phone: Matt Brown, Managing Director 373-7400
Contact 2 and Phone: James Dickens, Assistant City Attorney 373-2320
PURPOSE:
Pass a Resolution Authorizing the City Manager to use the Construction Manager at Risk Delivery Method to Construct the Steven B. Tanger Center for the Performing Arts.
BACKGROUND:
On March 4, 2014, the City Council adopted a Resolution Authorizing the Mayor and City Manager to Enter into a Memorandum of Understanding ("MOU") Between the Community Foundation of Greater Greensboro ("CFGG") and the City to design, finance, develop, construct, and manage the operations and programs of the proposed Steven B. Tanger Center for the Performing Arts (STCPA). As part of this MOU, the CFGG, through private donors, agreed to pay up to $5 million of design costs for the facility and $30 million for the construction costs. The City also agreed to pay up to $30 million for the construction of the facility. City staff working in conjunction with the CFGG recommends that the City Council select the Construction Manager at Risk delivery method to construct the facility. In the Attachment A to this Agenda Item, City staff has analyzed the advantages and disadvantages of using the Construction Manager at Risk delivery method in lieu of the separate prime, single prime and dual bidding delivery methods authorized by N.C.G.S. 143-128 (a1)(1) through (a1)(3). This analysis is required by N.C.G.S. 143-128.1(e) before the City may use this option. 143-128.1(e) was part of Session Law 2014-42 that was passed by the legislature on June 30, 2014 and was made effective on October 1, 2014. City staff has concluded that the six advantages to using the Construction Manager at Risk delivery method outweigh its few disadvantages, and City staff is already taking steps to mitigate the impact of these disadvantages. The six advantages are:
1. Reduction in Significant Change Orders
2. Cost Control
3. Fast Tracking
4. The Construction Manager is Selected by Qualifications, Not Price
5. Increased Opportunities for M/WBE Participation
6. The Experience of Other Municipalities.
The disadvantages are that the Construction Manager at Risk delivery method requires a high level of communication with the City and the Construction Manager, and drafting the contracts that adequately establish the relationships and interactions between the architects and engineers who will be designing the project and the Construction Manager can be difficult. The City and the CFGG, through their attorneys, have worked very hard to make sure that all of the design contracts contained the necessary language to establish these relationships and responsibilities.
BUDGET IMPACT:
There is no budget impact. This Resolution has no impact on the funds that have been budgeted for the construction of the Steven B. Tanger Center for the Performing Arts.
RECOMMENDATION / ACTION REQUESTED:
The Coliseum recommends that City Council approve and adopt a resolution authorizing the City Manager to use the Construction Manager at Risk delivery method to construct the Steven B. Tanger Center for the Performing Arts.