City Council Minutes 2014 09 02 - Laserfiche WebLink

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City Council Meeting Minutes September 2, 2014 Page 7 of 16 City of Golden project and the Parker facility. He agreed delaying the project at this point will not make it less expensive at a later time. He addressed the allocation of the project cost, which would require a budget amendment at a subsequent date. CIP Manager Trettin presented the negotiated Guaranteed Maximum Price with Bryan Construction for the City Services Facility. The negotiated Guaranteed Maximum Price (GMP) is $11,010,814 for construction of the City Services Facility. The City received a Department of Local Affairs (DOLA) Grant in the amount of $1,000,000. The grant requirements specify no work may commence on the project until the DOLA grant contract is fully executed. To satisfy this requirement, and due to the timeliness of the project, and steadily increasing construction costs, City staff propose splitting the project construction contract into 2 separate contracts. The first contract will include site preparation, utility installation and preconstruction services including engineering and materials procurement and is in the amount of $1,767,059. The second contract will be for construction of the facility including all the buildings, parking lot, storage facilities and landscaping. That portion will be $9,243,755. By doing this, DOLA funds will be used only to reimburse costs associated with the second contract, which will not be in effect until after the grant contract is executed by DOLA sometime during the week of October 13th. The timeline for the service facility is very aggressive beginning next week, once there is final approval for the site work. The final completion date for the City services Facility is August 6, 2015. Recommendation: Council approval of Amendments 1A and 1B to the City Services Facility Agreement with Bryan Construction, with Amendment 1A to be signed upon Council approval and Amendment 1B to be signed upon execution of the State grant contract with DOLA. Council member Moss voiced her concern over the cost of the facility. COUNCIL COMMENTS Council member Lipton addressed the $600,000 contingency fund and asked what type of occurrences would the fund used and who would make the decisions to use the contingency fund. CIP Manager Trettin stated the contingency fund would only come into play on any unexpected cost not included in the guaranteed maximum price of construction such as unknown conditions at the site. Council member Lipton expressed his concern over using the contingency fee to add items to the project. Council member Lipton requested assurance from the City Manager the use of the contingency would be strictly controlled. He noted it would be very nice to get money