HomeMy WebLinkAboutSummary FormAGENDA ITEM SUMMARY FORM
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FILE ID: /0 —O U 172- 0
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Date: 5/27/10 Requesting Department: CIP
Law Department
Matter ID No.
09-340.003
Commission Meeting Date: 6/24/10 District(s) Impacted: ❑1 02 ®3 74 ❑5
Type: ® Resolution ❑ Ordinance ❑ Emergency Ordinance ❑ Discussion Item ❑ Other
Subject: Resolution to approve Amendment No. 3. the "Guaranteed Maximum Price (GMP) Amendment", to the
Construction Manager at Risk Aareement with Suffolk Construction Company. Inc. for the Stadium Site Parking
Protect, B-30648.
Purpose of Item:
To authorize the City Manager to execute Amendment No. 3 to the Construction Manager at Risk Agreement with Suffolk
Construction Company, Inc., for the Stadium Site Parking Project, accepting a GMP in an amount not to exceed
$73,000,000, which includes an Owner contingency of $1,810,970 and Owner allowances in the amount of $3,550,834. The
GMP amendment establishes the GMP amount, Owner Contingency, Owner allowances, Construction Manager's Fee, and
General condition expenses. The amendment also modifies the distribution percentage of the Construction Manager's
contingency, provides for a CSBE incentive program and incentive payments, and establishes additional provisions as
detailed in the attached.
Background Information:
Pursuant to R-10-0003, enacted January 14, 2010, the City Commission approved the award of a Construction Manager at
Risk Agreement with Suffolk Construction Company, Inc. (Suffolk) for the provision of Construction Management
services for the Stadium Site Parking Project (Project). The City subsequently entered into an Agreement with Suffolk,'
executed February 12, 2010. On March 11, 2010, the City Commission adopted Resolution R-10-0105, authorizing
Amendment No. 1, allowing certain services to be moved forward into the pre -construction phase of the Project. On April
22, 2010, the City Commission adopted Resolution R-10-0172, approving Amendment No. 2, authorizing the issuance of a
limited Notice to Proceed prior to the sale of the Bonds to allow Suffolk to begin performance of certain construction
services, up to $3,000,000 of the the GMP.
This Amendment No. 3 (GMP Amendment) establishes the GMP amount of $73,000,000, which includes an Owner
Contingency of $1,810,970, Owner allowances of $3,550,834, a Construction Manager's Fee of $1,825,000, General
Condition expenses $3,470,843, a trench safety allowance; and other provisions relating to payments and damages, as
detailed in the attached. CONTINUED............
Budget Impact Analysis
NO Is this Item related to revenue?
NO Is this item an expenditure? If so, please identify funding source below.
General Account Aro:
Special Revenue Account No:
CIP Project No:
NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact:
CIP N/A Budge
busing or receiving capital funds 11t
Grams iwA Risk M
Purchasing /A Dept. D
Chief City M.,
Page I of 2
Project Manager. Robert Fenton
Further, in an effort to provide incentive for CSBE participation, the GMP Amendment increases the current CSBE
participation goal from 15% to 26%, and provides for an incentive program for which the City will pay the
Construction Manager $20,000 if Construction Manager achieves 30% CSBE participation, and an additional $10,000
for each percentage point of CSBE participation above 30%, up to a total not to exceed Incentive Payment of $100,000,
which shall be paid from the Owner's Contingency and which shall not cause the GMP to be increased.
The GMP Amendment also modifies contingency payments. The existing Agreement directs that any funds remaining
in the Construction Manager's contingency which exceed the initially approved contingency shall accrue 100% to the
City. The GMP Amendment modifies this language to provide for the distribution of any remaining balance at forty
percent (40%) to the Construction Manager and sixty percent (60%) to the City, to be applied even in the event that the
remaining balance exceeds the amount initially included in the GMP. Said modification to the Agreement provides a
greater incentive for the Construction Manager to control costs.
The GMP Amendment further establishes a Substantial Completion date of December 31, 2011. Funds are to be
allocated from the sale of Special Obligation Parking Revenue Bonds.
Pursuant to R-10-0003, the GMP Amendment was contingent upon the sale of the Bonds. In an effort to expedite the
Project, authorization for execution is currently being sought, with Notice to Proceed issuance to be contingent upon
the sale of said Bonds.
Page 2 of 2
Project Manager: Robert Fenton