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PUC approves CMGC contract for 525 Golden Gate after adding owners'rep and outside review requirements
Summary
The commission approved use of a Construction Manager/General Contractor (CMGC) contract for the 525 Golden Gate Avenue building, a project described by staff as a potential national benchmark for energy-efficient buildings, and unanimously adopted amendments requiring a dedicated owner's representative and outside consultant review before proceeding.
The San Francisco Public Utilities Commission voted to approve agreements for the 525 Golden Gate Avenue project and an associated architectural services amendment after adopting an amendment that the commission said is intended to protect the city's interests during design and construction.
Staff described the CMGC contracting vehicle as appropriate for an unusually complex, high-performance building where close coordination between contractor and architect is required. The general manager's office said the contract gives the city points of control because trade-package awards and contract modifications will require PUC approval.
In his presentation, the general manager (or acting general manager) said the envisioned building could be "the nation's most energy efficient building" if constructed as proposed and emphasized the project's potential to advance citywide conservation and renewable energy objectives.
Several commissioners flagged risk-management and contract-administration concerns. Commissioner Sklar urged the commission to secure a full-time owner's representative dedicated to the project and to obtain an outside reviewer with experience on GCCM/CMGC contracts so the city has independent construction oversight; Commissioner Oxtell and others supported the request. Legal and staff representatives explained limitations on hiring but agreed the commission could identify the appropriate outside expertise and an owner's representative either pro bono or through other procurement channels.
Following discussion, the commission approved an amendment to commit to hiring a single owner's representative who would devote full time to protecting the city's interests and to enlisting outside review; the commission then voted to approve items 11 and 12 as amended (unanimous). Staff said they would return with the names of the proposed owner's representative and outside consultant at a later meeting.
The commission's approvals permit the PUC to proceed with the CMGC contract process as amended; staff indicated the finalization of contractor trade packages and further oversight details will be reported back to the commission.
