Title
RESOLUTION INCREASING CONTRACT AUTHORIZATION FOR THE BISON RIDGE RECREATION CENTER PROJECT
Body
Summary and Background Information: As part of the Measure 2K Bond Program, the City is building the Bison Ridge Recreation Center located at approximately Highway 2 and 112th Ave. and associated infrastructure to include roadway improvements and utilities. Pinkard Construction was selected as the Construction Manager/General Contractor (CM/GC) and awarded a contract for preconstruction services including preparation and submittal of a Guaranteed Maximum Price (GMP) proposal for the construction work. The final GMP contract value was established at $48,266,156 with the approval of Resolution 2016-119 December 19, 2016. The resolution also authorized the City to negotiate and execute changes up to 5% of the GMP contract for a total authorization of $50,679,464 without further Council approval.
As discussed during the Jan. 22 study session, change order negotiations have reached 5% of the original GMP due to unforeseen costs to mitigate use of the Burlington Northern Santa Fe Railroad right-of-way and the Farmers Reservoir Irrigation Company (FRICO)-imposed scope changes and permit delays on the infrastructure project. It is anticipated that further changes will need to be negotiated to successfully complete the Bison Ridge Recreation Center building. Increasing the authorization to negotiate change orders up to 6.5% of the GMP value will allow construction to continue without impact to schedule. The additional 1.5% authorization equals a dollar amount of $713,549 and is within the current total project budget. The GMP contract would only be increased as needed for approved change orders up to this new maximum value.
For further reference, the Bison Ridge Project Update presentation from the January 22, 2018 study session is included.
Staff Responsible (Department Head): Director of External Affairs Halstead
Staff Member Presenting: 2K Program Director Herge...
Click here for full text