COUNCIL AGENDA ITEM
SUBJECT:
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Guaranteed Maximum Price (GMP) for constructing Phase 1 of the New Public Works Facility
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DEPARTMENT:
Environmental Services
SUMMARY:
With the adoption of the FY23-24 City budget, the City Council approved funding for the construction of Phase 1 of a new Public Works Facility. Phase 1 of the facility will incorporate the City’s Fleet Maintenance and fueling operations, as well as Public Works, Stormwater, and Environmental Services Administration Divisions. This will include approximately 7,500 sq. ft. of administration building and approximately 16,000 sq. ft. of fleet maintenance building, as well as fuel tanks and a vehicle fueling site. The project is planned to be constructed under a Construction Manager At Risk (CMAR) delivery method with a construction duration of approximately sixteen (16) months.
The construction of this facility will enhance the services that the City provides to its current and future stakeholders. Additionally, this facility will be essential in meeting the needs of our growing community, delivering essential services efficiently, and promoting sustainability.
In support of this initiative, the City secured the services of a Construction Manager At Risk, Wharton-Smith, Inc. through a competitive, qualifications-based solicitation method. They have completed their Part A Pre-Construction Phase services. Wharton-Smith Inc. negotiated with the City some minor language changes to the Part B Construction Phase contract, which were reviewed and approved by the City Attorney (see attached redline document).
According to their scope of service, Wharton-Smith Inc. submitted a Guaranteed Maximum Price (GMP) for constructing Phase 1 of the new facility in the amount $22,791,918. Contained within their GMP document is a list of proposals called Value Engineering which could reduce the construction cost by as much as $2,394,030 if every proposal were to be implemented. These items will be reviewed separately with the Contractor and could result in savings at the end of the project.
The City’s budget for this expense relies upon proceeds from financing. Upon Council approval of the Part B Construction Phase contract, with the included Guaranteed Maximum Price, Staff will conduct a competitive solicitation for financing of all major costs related to the construction, which will be brought before Council for approval at a later date.
BUDGETED ITEM: ☒ Yes ☐ No ☐ Not Applicable
BUDGET AMENDMENT REQUIRED: ☒ Yes ☐ No ☐ Not Applicable
RECOMMENDED ACTION:
Motion to approve the Phase B Construction Phase contract with Wharton-Smith, Inc. for the construction of Phase 1 of the New Public Works Facility at the Guaranteed Maximum Price (GMP) of $22,791,918, contingent upon subsequent approval of financing and budget amendment.