2019C024 AMENDMENT-1 RUMMEL INCREASE AUTH BOD AGENDA ITEM $33M.DOCX

Contact Name: Tim Murphy – FCD                                      C Number: C-69-220-014-5-010
Phone Number:  506-4605                                                             
Return To:  Sharon Rogers – FCD
Phone Number:  506-6764                                 
                                                  
AMENDMENT TO CONSTRUCTION MANAGER AT RISK
 Rawhide Wash Flood Hazard Mitigation Project 
Action Requested
Amend the authorization under agenda Item number (C-69-20-014-5-00), which authorized 
the award of a Construction Manager at Risk contract with Rummel Construction, Inc. This 
amendment will increase the current Final Draft Guaranteed Maximum price (GMP) to 
$33,000,000$30,000,000. The previous amount was $15,000,000.
Authorize the Chairman to execute all contracts to Rummel Construction necessary to perform 
and complete all pre-construction and construction activities without further action by the 
Board of Directors provided that the aggregate of all such contracts does not exceed the sum 
of $33,000,000$30,000,000.  The previously approved total aggregate amount for all pre-
construction and construction activities was $15,000,000.
 
On November 6, 2019, the Board of Directors authorized the Project Pre-Construction 
Services Contract FCD 2019C024 (C-69-20-014-5-00) for the not to exceed amount of 
$500,000 and an estimated construction cost of $14,500,000. For a combined total not to 
exceed $15,000,000. To date, Rummel Construction has provided pre-construction services in 
the amount of approximately $300,000 through the final design of Phase 1 and Phase 2. The 
current construction cost of Phase 1 is $14,300,000, and the estimated Phase 2 construction 
cost is $15,400,000, and including potential contingencies of $3,000,000 brings the current 
combined total estimate to $33,000,000$30,000,000. The increase in construction costs can be 
attributed to project-specific issues during design, regulatory agency requirements, 
constructability input from the contractor, and significant market factors such as increasing 
labor rates, equipment rates, and material prices. 
This Agenda Item impacts Supervisorial Districts 2 and 3.

Additional Information:  
On April 11, 2018 the Board of Directors adopted Resolution FCD2018R005 (C-69-18-028-
6-00) authorizing the District to advertise, select, negotiate, and award contracts for 
engineering and construction services, negotiate project IGAs and acquire rights-of-way for 
the Rawhide Wash Flood Hazard Mitigation project. The project includes improvements to 
existing floodwalls and levees which must be certified to meet the Federal Emergency 
Management Agency’s requirements for floodwalls and levees, and the project also includes 
the construction of new floodwalls and levees to contain the 100-year flood within the 
Rawhide Wash corridor. The project construction limits are from Pinnacle Peak Road to 
approximately ½ mile north of Happy Valley Road. This is a complex project and, as such, 
the District selected the CMAR Contractor based on qualifications in order to obtain 
valuable constructability input during the design effort through delivery of pre-construction 
services under the CMAR contracting method. The project partners are the cities of 
Scottsdale and Phoenix along with the Flood Control District