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HomeMy WebLinkAboutItem 28 Authorization to Proceed with Thurston Fire Station #16 Replacement Project - P20534 " Meeting Date: July 7, 2008 ~ Meeting Type: Regular Session , Department: City Manager~ ~~~ Staff Contact: Carole Knape~v \ Staff Phone No: 726-3672 Estimated Time: 10 minutes AGENDA ITEM SUMMARY SPRINGFIELD CITY COUNCIL ITEM TITLE: AUTHORIZATION TO PROCEED WITH THURSTON FIRE STATION #16 REPLACEMENT PROJECT - P20534 ACTION REQUESTED: Approve/Not Approve an increase in the project budget of $30,000 for the Thurston Fire Station #16 project and direct staff to continue a value engineering analysis. Approve/Not Approve the Guaranteed Maximum Price of $2,175,883 for the construction of the Thurston Fire Station # 16. ISSUE STATEMENT: On February 4, 2008, the Council approved the contract with the John Hyland Constr. Inc. for CM/GC on the Thurston Fire Station # 16 Project - P20534. The Council directed staff to return with the Guaranteed Maximum Price proposal for each segment of the work identified in the contract. ATTACHMENTS: None DISCUSSIONI FINANCIAL IMPACT: On October 15,2007, the Council approved the Functional and Space Program for the Thurston Fire Station #16 Project and directed staff to proceed with the design of a 9550 square foot facility. On February 4,2008, the Council selected a two story pitched roof option with a construction budget of$I,832,000 and directed staff to proceed with the project design. On May 19, 2008, Council approved the design development phase of the project, increased the construction budget to $2,081,450 and directed the staff to proceed with completion of the design. The Council also directed staff to negotiate with the CM/GC to bid the work and to develop a Guaranteed Maximum Price (GMP) . proposal after construction work bids were received. The construction documents have been completed and the CM/GC, John Hyland Const. has completed the bidding process. The bid results indicated an initial construction cost for the project of $2,234,283 . Working with the architect and the CM/GC, staff identified $58,400 in value engineering reductions, resulting in a GMP proposal of$2,175,883- approximately $94,500 above the approved budget. The project staff has identified some additional value engineering items and is completing the analysis of these items. In order to allow the project to proceed to construction, staff recommends the award of the construction contract in the amount of$2,175,883. In addition, staff recommends that Council direct the value engineering process to continue in order to examine alternatives which would reduce the construction amount by $30,000. To provide for the increase the construction cost, staff proposes two actions. First staff recommends the transfer of approximately $64,400 in funds from the project contingency to the construction budget. Up to this point, the contingency which is included in the project budget was approximately 11.5%. This transfer will reduce the contingency to approximately 8%. This reduction in contingency is appropriate now that bids have been received for the work. Second, staff recommends that Council increase the project budget by $30,000 and that this amount be included ,in the construction contract as a reserve amount to be used in the event that the remaining value engineering reductions cannot be achieved. Staff will report back to Council on the completed value engineering process in September 2008.