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173 Approach of managing final design, bidding, and construction management of the 174 Maintenance Operations Center 175 There are a couple of planning and design components that will need to be done to move the MOC 176 project forward; final design by an architectural firm and overall project management that includes 177 bidding the project and construction management. It is desirable to have both efforts working in 178 parallel so as to make sure the final design is done with costs, scheduling, and construction 179 feasibility in mind. 180 181 For the final design, the City will need to hire an architectural firm to work with staff and City 182 Council on the components of the final design of the MOC (and the LPC if that moves forward). 183 Having the architect on board early will also allow the City to explore alternatives that staff or City 184 Council would like to have more information about. 185 186 For the overall project management, there are two approaches that the City Council should consider, 187 using a Construction Manager Advisor or a Construction Manager at Risk. (A third, but unfeasible 188 option, would be for staff to serve as the project manager. As current staff do not have capacity or 189 expertise to manage such a large and complex project, staff is not bringing this option forward). 190 191 Construction Manager Advisor (CMa) 192 With this approach, a city contracts with a construction manager to coordinate the work of multiple 193 contractors hired by the city. However, the city would hold all of the contracts for the various 194 contractors for the project. While the CMa would advise the city on working with the various 195 subcontractors, it will be the city’s responsibility to enforce the contractor’s performance. Therefore, 196 the CMa only serves as the city’s advisor for the project and does not take on any of the risk 197 associated with the project. 198 199 Construction Manager at Risk (CMaR) 200 The use by cities of the Construction Manager at Risk process was approved by the Minnesota 201 Legislature in 2023. This process is commonly used for large private projects and has been used by 202 state agencies since 2005. The CMaR process places a third-party construction manager in charge of 203 overseeing the entire project from creating a schedule for project completion, creating bid packages, 204 managing the bidding process, managing the general contract and its subcontractors, inspecting the 205 on-going construction, dealing with site and construction issues as they arise, and coordinating the 206 change orders. The CMaR holds all of the construction contracts instead of the city and they 207 guarantee construction of the project for a guaranteed maximum price (GMP). The CMaR is exposed 208 to all of the risks of the project. 209 210 With the use of a CMaR, staff is consulted throughout the project, but the CMaR handles all of the 211 details. The CMaR process has recently been used in Oakdale, Rosemount, Apple Valley, Lakeville, 212 and White Bear Lake for recent projects. The costs for using a CMaR are typically higher than using 213 a Construction Manager Advisor, due to the CMaR taking on the risks of the project and 214 guaranteeing the price of the project. 215 216 The City Attorney has provided information about the CMaR process prepared by the her law firm. 217(Attachment 4). 218 219 Staff recommends that the City Council direct staff to prepare request for proposals for architectural 220 firms to complete the final design of the overall project and look at Council-specified alternatives 221 and for a Construction Manager at Risk to oversee the entire project. Page 5 of 9 Qbhf!9!pg!6: