City Council Study Session Agenda and Packet 2015 01 23

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L City at - Louisville COLORADO • SINCE 1878 CITY COUNCIL COMMUNICATION AGENDA ITEM IV SUBJECT: DATE: CITY SERVICES FACILITY PROJECT UPDATE JANUARY 23, 2015 PRESENTED BY: MALCOLM FLEMING, CITY MANAGER KURT KOWAR, PUBLIC WORKS DIRECTOR KEVIN WATSON, FINANCE DIRECTOR HEATHER BALSER, DEPUTY CITY MANAGER SUMMARY: Construction work on the City Services Facility (CSF) site at Dillon Road and S. 104th St is proceeding favorably and prospects look good for substantial completion and move -in by August of this year. When 2014 expenses are accounted for, a total of $10,544,585 is available for this project in the City's 2014 and 2015 budgets. The estimated cost to finish the project is $10,849,256, including a contingency of $150,000. Consequently, based on all available information, staff estimates that the project is currently $304,670 over the currently approved budget. Accordingly, to complete the project without making changes in scope would require a budget amendment of this amount and allocation of $76,168 each from the Capital Projects, Open Space and Parks, Water and Wastewater Utility Funds. The basis for these calculations are presented in detail in the attached table titled "City Services Facility Expenditures, Budget and Overall Accounting ". Staff, the design and construction teams continue working hard to identify cost savings and to date have implemented, without compromising the functionality and long -term cost effectiveness of the facility, significant "Value Engineering" in design, materials, equipment and other changes. Although staff will continue to look for ways to save, at this point in the project, staff does not think it is likely to identify other significant savings. Staff presented to Council in September 2014 a Guaranteed Maximum Price contract with Bryan Construction Inc. that appeared to lock in a guaranteed price above which the project would not go. However, the GMP figure presented during the September 2 Council meeting was based on the Design Development documents (60% design), which means there were many details in the scope remaining to be worked out. As the project has progressed, the design work to bring the documents to the 100% level has resulted in scope changes that have produced additional costs /change orders. Staff believes that the design and construction team is working well, the construction is proceeding successfully and that it was poor communication, not other issues, that failed to highlight in September the remaining uncertainty and unavoidable risks of cost increases. We have made staffing and procedural changes to prevent such communication lapses from happening in the future. This study session is intended to project detailed project information, introduce Council to the contractor and design team and address any questions Council members may have. CITY COUNCIL COMMUNICATION 2