Focus Area: Infrastructure (Facilities Management), Fire
Staff Contact: Mary Jaeger / Jeff DeGraffenreid / Jennifer Gerlach
Subject: Amendment 1 to agreement with J.E. Dunn Construction Company for construction management services for the Fire Station No. 9 project.
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TITLE:
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Consideration of Guaranteed Maximum Price Amendment 1 to the agreement with J.E. Dunn Construction Company for construction management services for the Fire Station No. 9 project, PN 6-C-013-23.
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Summary:
The Fire Station No. 9 project has been approved in the 2023 CIP, 2024 CIP and 2025 CIP. This project provides for a new single company fire station, constructed on City owned property on the north side of College Boulevard approximately 1,500 feet west of Woodland Road.
On November 22, 2023, Council approved the construction management agreement with J.E. Dunn Construction Company (JE Dunn) for Fire Station No. 9. Initial approval of the agreement authorized JE Dunn for pre-construction services, established their construction management fee at 2.15%, and authorized JE Dunn to provide pre-construction services. As construction documents were developed by our architect to an agreed upon level of completeness, , JE Dunn bid the project and provided the City with a Guaranteed Maximum Price (GMP) for the construction of the project. Staff and the construction team are preparing to move the project into construction in the coming months.
In order to authorize JE Dunn to proceed with construction of Fire Station No. 9, it is necessary to put funds into their contract so they can execute subcontracts for the work. Attached as Exhibit C is Amendment 1 to the Construction Manager at Risk Agreement with JE Dunn, which establishes a guaranteed maximum price for construction as well as additional compensation for pre-construction services provided by JE Dunn. This amendment increases their contract value from $79,000 (preconstruction services) to $14,057,346 and authorizes JE Dunn to proceed with the work of the GMP at a cost of $13,477,346 to construction Fire Station No. 9. The remaining balance $580,000 of funding will be placed in an Owner’s Allowance within their contract. Expenditure of the Owner’s Allowance funds only happens upon written approval by City staff or their representative.
While City Staff, Design and Contractor Staff continue to refine costs and designs, a number of potential concerns have been encountered including: a retaining wall is required to preserve trees and maintain an agreed to buffer with the neighborhood to the west; a reworking of the median and drive lane on College Boulevard to minimize traffic impacts; and building and site modifications due to strict utility easements and buildable area on the site.
Anticipated additional costs are 10% of the previous approval ($1,500,000), potentially bringing the new project costs to $16,670,000. Staff and the design and construction teams are currently working through several deductive alternates which will be incorporated in the coming months which would reduce the total construction price. In order to not incur additional escalation costs, it is important to get construction started as soon as possible. Current encumbered costs are within the $15,170,000 funding. Staff anticipates returning to Council later in 2025 for approval of additional funds to account for the above impacts. Staff anticipates the increase to be lower than the current overage with the incorporation of the deductive alternates.
Construction of Fire Station #9 is anticipated commence in early March 2025 and be complete by March 2026.
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Financial Impact:
Funding for the Fire Station No. 9 project, as approved in the 2024-2028 Capital Improvement Plan, is $15,170,000 of General Obligation Bonds.
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Action Needed:
Approval of Guaranteed Maximum Price Amendment 1 to the agreement with J.E. Dunn Construction Company for construction management services for the Fire Station No. 9 project, PN 6-C-013-23.
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Attachment(s):
A. Project Location Map
B. Project Fact Sheet
C. Amendment 1