REQUEST FOR COUNCIL ACTION CITY OF SAN DIEGO

Transcription

1 REQUEST FOR COUNCIL ACTION CITY OF SAN DIEGO CERTIFICATE NUMBER (FOR COMPTROLLER S USE ONLY) TO: FROM (ORIGINATING DEPARTMENT): DATE: CITY COUNCIL Public Works/Engineering 4/2/2015 SUBJECT: Multiple Award Construction Contract (MACC) Program Streamlining Measure Implementation PRIMARY CONTACT (NAME, PHONE): Richard Leja,(619) , MS908A SECONDARY CONTACT (NAME, PHONE): Paul Bowden, (619) , MS 612 COMPLETE FOR ACCOUNTING PURPOSES FUND FUNCTIONAL AREA COST CENTER GENERAL LEDGER ACCT WBS OR INTERNAL ORDER CAPITAL PROJECT No. AMOUNT FUND FUNCTIONAL AREA COST CENTER GENERAL LEDGER ACCT WBS OR INTERNAL ORDER CAPITAL PROJECT No. AMOUNT COST SUMMARY (IF APPLICABLE): N/A ROUTING AND APPROVALS APPROVING APPROVAL DATE CONTRIBUTORS/REVIEWERS: AUTHORITY SIGNATURE SIGNED Financial Management ORIG DEPT. Gibson, Marnell 07/30/2015 Liaison Office Environmental Analysis CFO DEPUTY CHIEF COO CITY ATTORNEY Mercer, Mark COUNCIL PRESIDENTS OFFICE PREPARATION OF: RESOLUTIONS ORDINANCE(S) AGREEMENT(S) DEED(S) (1) Amend Chapter 2, Article 2, Division 33, Section of the Municipal Code regarding increasing task order amounts from $10,000,000 to $30,000,000 without City Council approval. (2) Amend Chapter 2, Article 2, Division 33, Section of the Municipal Code to remove the June 30, 2017 sunset date from the current MACC program. (3) Amend Chapter 2, Article 2, Division 33, Section of the Municipal Code to remove the 3 year award limit.

2 STAFF RECOMMENDATIONS: Approve Requested Actions SPECIAL CONDITIONS (REFER TO A.R FOR INFORMATION ON COMPLETING THIS SECTION) COUNCIL DISTRICT(S): ALL COMMUNITY AREA(S): ALL ENVIRONMENTAL IMPACT: This activity is not a Project and is not subject to CEQA pursuant to CEQA Guidelines Section 15060(c)(3). This determination is predicated on Section of the guidelines, which defines "project" as an activity which may cause either a direct physical change in the environment or a reasonable indirect foreseeable physical change in the environment. CITY CLERK Please send one copy of the ordinance and resolution to Jim Shamloufard and INSTRUCTIONS: one copy to Paul Bowden at MS 612.

3 COUNCIL ACTION EXECUTIVE SUMMARY SHEET CITY OF SAN DIEGO DATE: 4/2/2015 ORIGINATING DEPARTMENT: Public Works/Engineering SUBJECT: Multiple Award Construction Contract (MACC) Program Streamlining Measure Implementation COUNCIL DISTRICT(S): ALL CONTACT/PHONE NUMBER: Richard Leja/(619) , MS908A DESCRIPTIVE SUMMARY OF ITEM: This action is to amend the San Diego Municipal Code to increase the Mayor's authority to award task orders for the Multiple Award Construction Contract (MACC) Program from $10,000,000 to $30,000,000, to remove the June 30, 2017 sunset date of the original pilot program, and amend the San Diego Municipal Code to remove the 3 year award limit. STAFF RECOMMENDATION: Approve Requested Actions EXECUTIVE SUMMARY OF ITEM BACKGROUND: On April 10, 2012, the City Council approved the Multiple Award Construction Contract (MACC) Program to be utilized for implementation of the City s Capital Improvement Program (CIP) Projects. The MACC approach is a project delivery method that is a variation of traditional design-build, where multiple construction activities are awarded as task orders to the best qualified design-build team from a group of pre-qualified firms. The original authorization of the MACC program included the authorization for the Mayor to award task orders up to $10 million without Council approval and a sunset date for the program of June 30, The first of these contracts focused on water, wastewater, and storm drain pipeline projects throughout the City. As presented to Council on April 21, 2015 as part of the CIP Streamlining Report, the MACC Program has shown during its initial pilot period to be an effective method of delivering CIP projects. Since its implementation, the MACC project delivery method has been utilized successfully in delivering 15 projects with a total value of over $85 million that were completed or awarded. For these projects, the MACC task orders were awarded on average within 18 months from the date that the project was initiated by the asset managing department. This represents an average schedule improvement of approximately 20% over traditional design-bidbuild or design build delivery methods. A detailed comparison of costs has not been performed yet, since all of the construction must be fully completed first. However, it is estimated that the costs will be comparable to those of traditional design-bid-build, for the projects that are good MACC candidates. Another important benefit of the MACC program is the participation of Small and Local Business Enterprise (SLBE/ELBE) firms. During the pilot period, all of the mandatory SLBE/ELBE participation goals have been met on every MACC task order issued. The overall average SLBE/ELBE participation has been 34.43%, which represents an increase of up to 30%

4 over traditional design-bid-build delivery methods. To date, no change orders have been processed with completed MACC Task Orders, which has helped keep the pilot projects on schedule and within budget, once awarded. Since the award of MACC task orders is based on both qualifications and price bid, it has been shown that community interactions between the design-build teams and the community have improved as well. During this pilot period, several improvements to the MACC process have been identified to streamline and improve its effectiveness, which are based on the lessons learned input from the various pilot projects. Many of these process changes have already been incorporated to the MACC program and will be reflected in the next solicitation for MACC design-build teams. Furthermore, a primary limitation of the program has been the original task order award limit of $10 million. The additional time involved in obtaining City Council approval for these projects on an individual basis negates the schedule benefit for these projects. Since many of the projects which are good candidates for MACC delivery are higher than this amount, it is recommended that the limit of the Municipal Code in Chapter 2, Article 2, Division 33, Section , be modified to $30 million, which is the Mayor s authority limit that is currently authorized by the City Council for other CIP project delivery methods. In addition, it is recommended the originally instituted sunset date, June 30, 2017 for the MACC Program in Municipal Code in Chapter 2, Article 2, Division 33, Section be modified so that this program can be applied to future projects. In order to provide for continued availability of the MACC program while these changes take effect, it is recommended that the 3 year award limit of the Municipal Code in Chapter 2, Article 2, Division 33, Section be removed. CITY STRATEGIC PLAN GOAL(S)/OBJECTIVE(S): Goal 1: Provide high quality public service Objective #2. Improve external and internal coordination and communication Goal #2: Work in partnership with all of our communities to achieve safe and livable neighborhoods. Objective 3. Invest in infrastructure Goal #3: Create and sustain a resilient and economically prosperous City. Objective 3. Diversify and grow the local economy FISCAL CONSIDERATIONS: No specific expenditure authorization is requested as part of this action. EQUAL OPPORTUNITY CONTRACTING INFORMATION (IF APPLICABLE): No changes to the EOC aspects of the MACC program are associated with this request. The high levels of SLBE/ELBE participation exhibited during the MACC pilot program are anticipated to continue, due to the mandatory goals. PREVIOUS COUNCIL and/or COMMITTEE ACTION: On April 10, 2012, the City Council approved (R ) the implementation of Multiple Award Construction Contract (MACC) Program for City s CIP Projects. The actions associated with this request were part of the CIP

5 Streamlining report which was presented to the City Council Infrastructure Committee on March 11, 2015 and to the City Council on April 21, COMMUNITY PARTICIPATION AND PUBLIC OUTREACH EFFORTS: The MACC program is routinely presented and outlined at MACC outreach events that are conducted by the City of San Diego. Project managers also perform outreach community groups on all CIP projects. KEY STAKEHOLDERS AND PROJECTED IMPACTS: Key stakeholders include the contracting and consulting industry. No impacts from the MACC program to these groups have been identified during outreach events. Gibson, Marnell Originating Department Deputy Chief/Chief Operating Officer

6 San Diego Municipal Code (5-2012) Chapter 2: Government Multiple Award Design-Build Contracts The City may award design-build contracts to more than one design-build entity in which the design-build entities compete for public works projects on a task order basis, under the following conditions: (a) (b) (c) (d) (e) (f) (g) (h) The City issues a request for qualifications or proposals generally describing the types of public works projects anticipated to be performed under the multiple award design-build contracts, and the evaluation criteria to be used to determine which design-build entities will be awarded contracts. The City Council approves the award of the multiple award designbuild contracts. Only the design-build entities awarded multiple award design-build contracts are eligible to compete for the public works projects submitted to them by the City, with the winning design-build entity determined in accordance with Section The winning designbuild entity is awarded the public works project through the issuance of a task order. The period for competition and award of task orders under multiple award design-build contracts shall not exceed three years. Multiple award design-build contracts may have a duration of longer than three years only as necessary to complete outstanding task orders that were awarded within the three year period. No multiple award design-build contract may guarantee a design-build entity cumulative task orders in excess of $50,000. A task order may not exceed $10,000,000 without City Council approval. The cumulative amount of task orders issued to all design-build entities awarded contracts through each request for qualifications or proposals may not exceed $100,000,000 without City Council approval. Every request for proposals for a task order that the City estimates to cost over $1,000,000 shall include mandatory minimum participation by Small Local Business Enterprises and/or Emerging Local Business Enterprises, as defined in Section Ch. Art. Div U

7 San Diego Municipal Code (5-2012) Chapter 2: Government (i) The City Manager may include mandatory minimum participation by Small Local Business Enterprises and/or Emerging Local Business Enterprises in requests for proposals for task orders estimated to cost $1,000,000 or less. The City Manager may also include mandatory minimum participation by Disabled Veteran Business Enterprises in any request for proposal for a task order. (1) The City Manager shall determine the levels of mandatory minimum participation for Small Local Business Enterprises, Emerging Local Business Enterprises, and Disabled Veteran Business Enterprises on a project-by-project basis, and include the mandatory minimum participation levels in the request for proposals for each task order. (2) Notwithstanding Sections and , good faith efforts by the design-build entity shall not satisfy the mandatory minimum participation levels required by Section (h)(1). (3) Any design-build entity awarded a task order who fails to achieve the required mandatory minimum participation levels in the request for proposals shall be ineligible to compete for further task orders under that multiple award design-build contract. The City shall not award a new task order under a multiple award design-build contract after June 30, ("Multiple Award Design-Build Contracts" added by NS.; effective ) Ch, Art. Div