Title
An Ordinance authorizing the execution of Change Order No. One to an agreement setting a Guaranteed Maximum Price for the renovation of the Police and Courts building by and between the City of Lee’s Summit, Missouri, and Turner Construction Company, by increasing the Guaranteed Maximum Price to $4,962,534.00. (PWC 1/4/21)
Body
Issue/Request:
An Ordinance authorizing the execution of Change Order No. One to an agreement setting a Guaranteed Maximum Price for the renovation of the Police and Courts building by and between the City of Lee’s Summit, Missouri, and Turner Construction Company, by increasing the Guaranteed Maximum Price to $4,962,534.00.
Key Issues:
• The City is desirous of renovating its Police and Courts building and contracted with Hoefer Wysocki Architects, for architectural services to begin the process.
• The Procurement Department provided services which allowed the City to identify a qualified company which could complete projects as a Contractor with Manager’s Risk (CMR).
• Following a qualification based selection process the City entered into a base contract with Turner Construction Company for the amount of $10,000.00 on July 20, 2020 for preconstruction work and to establish a Guaranteed Maximum Price (GMP) for the City to determine if it wished to accept such GMP amendment to the base contract.
• The GMP submitted by Turner Construction is within the budgeted amount set by City Council for said project. Approval of a budget amendment to utilize asset forfeiture funds for this project was approved by City Council on 12/15/2020 (ordinance 20-9024).
• This ordinance will supersede ordinance number 20-9034 increasing the GMP from $4,474,909.00 to $4,962,534.00.
Proposed City Council Motion:
FIRST MOTION: I move for a second reading of an Ordinance authorizing the execution of Change Order No. One to an agreement setting a Guaranteed Maximum Price for the renovation of the Police and Courts building by and between the City of Lee’s Summit, Missouri, and Turner Construction Company, by increasing the Guaranteed Maximum Price to $4,962,534.00.
SECOND MOTION: I move for adoption of an Ordinance authorizing the execution of Change Order No. One to an agreement setting a Guaranteed Maximum Price for the renovation of the Police and Courts building by and between the City of Lee’s Summit, Missouri, and Turner Construction Company, by increasing the Guaranteed Maximum Price to $4,962,534.00.
Background:
Treanor HL architect firm conducted a space needs study on the Police and Courts Municipal Building during the first quarter of 2019. The study indicated remodeling of the existing spaces could provide the additional space and security needs required for the current workforce. The city received voter approval in a Special Election on August 6, 2019 to issue up to $19,475,000 in bonds for public safety improvements.
$5,500,000 was designated for renovations and improvements to enhance facility security, public access, customer service and operational efficiency in the Police and Courts Municipal Building. Hoefer Wysocki Architects, LLC was selected as the design company following a competitive bid process. On February 18, 2020, City Council passed Bill 20-35 authorizing the City of Lee’s Summit to enter into an agreement with Hoefer Wysocki Architects, LLC for professional architecture services for renovation of the Police and Courts Municipal Building.
Following a competitive bid process in April of 2020, Turner Construction Company was selected for the Construction Manager role of the renovation project. The City selected the Construction Manager at Risk (CMAR) delivery method for the Police and Court Municipal Building renovation project. The CMAR method allows staff flexibility during design and construction phases to quickly make adjustments and deliver the project within budget while maximizing value and efficiency.
Hoefer Wysocki completed the construction documents in late October. Turner Construction developed numerous bid packages from those construction documents and involved 195 local Lee’s Summit and Kansas City area subcontractors in the bidding process. Turner Construction submitted a (GMP) and cost breakdown for review by the City of Lee’s Summit and Hoefer Wysocki. The Guaranteed Maximum Price (GMP) is an itemized statement organized by trade categories, allowances, contingencies, alternates, and the Construction Manager’s fee.
City staff brought a GMP of $4,474,909.00 to full council for review on 12/15/2020. The contract was reviewed regarding the alternates following that city council vote of 9-0 in favor. The ordinance mentioned the $487,625.00 of alternate scopes of work. Staff also provided the funding sources that would cover the cost of the alternates. The add alternates were not included in the total to the GMP approved by Council. The contract GMP needs to be amended through a change order brought forward separately. This ordinance will supersede the preceding ordinance and correct GMP to $4,962,534.00 so that the City may take advantage of the favorable pricing for the alternate scopes of work.
Presenter
John Boenker, Deputy Police Chief
Recommendation
Staff recommends approval of an Ordinance authorizing the execution of Change Order No. One to an agreement setting a Guaranteed Maximum Price for the renovation of the Police and Courts building by and between the City of Lee’s Summit, Missouri, and Turner Construction Company, by increasing the Guaranteed Maximum Price to $4,962,534.00.
Committee Recommendation
The Public Works Committee voted unanimously 4-0 to recommend to City Council approval of an Ordinance authorizing the execution of Change Order No. One to an agreement setting a Guaranteed Maximum Price for the renovation of the Police and Courts building by and between the City of Lee’s Summit, Missouri, and Turner Construction Company, by increasing the Guaranteed Maximum Price to $4,962,534.00.