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CITY COMMISSION AGENDA ITEM |
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Department: |
Fire Medical |
Commission Meeting Date: July 8, 2018 |
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Staff Contact: |
Mark Bradford, Fire Chief |
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Recommendations/Options/Action Requested: |
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Authorize change order for Bid No. SB-B1758-0-2017/JW1 – Fire Station No. 1 and Douglas Senior Resource Center Remodel, to B. A. Green Construction Company, Inc. in the amount of $249,018.00. |
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Executive Summary: |
The original sealed bid (SB-B1758-0-2017/JW1) opening was conducted on November 21, 2017, for the remodel of Fire Station No. 1 and Douglas County Resource Center facilities located at 746 Kentucky Street and 745 Vermont Street respectively. This project was approved by the City Commission on December 12, 2017 with a building permit issued on May 5, 2018 and Notice to proceed issues on May 7, 2018.
Several modifications to the original design were required at the direction of the State Historic Preservation Office (SHPO). The lawsuit filed by one of the bidders of the project has been resolved in the City’s favor. The lawsuit and the design changes have caused delays in the project since the project bid was awarded in December 12, 2017. City staff has received information from the contractor indicating several change orders necessary for the project as a result of the delays (primarily increases in project material cost) and redesign.
A letter from B.A. Green outlines the details of the change order. In the letter, B.A. Green indicates that if the change order is not approved before July 12, 2018, there will be an additional $8,750 increase due to market conditions. Therefore, staff is adding this item to the July 10, 2018 City Commission meeting agenda.
In addition to the cost increase the Notice to Proceed date will be effective the date of Change Order No. 1 authorization. This means that the project will require 365 calendar days to complete upon authorization of this change order.
Regarding financing, due to the schedule change the City would not issue the debt until the completion of the project, or the fall of 2019 at the earliest. Also, the original project budget did not include the potential revenue generated from the eventual sale of the historic tax credits, which should provide a partial offset to change order costs. The project budget also still includes a contingency. These change order proposed will not negatively affect the current financial forecast of the City. |
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Strategic Plan Critical Success Factor |
Safe, Healthy, and Welcoming Neighborhoods Core Services Sound Fiscal Stewardship Collaborative Solutions |
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Fiscal Impact (Amount/Source): |
The updated fiscal impact to the City is approximately $6,300,000 (construction and relocation costs). This item was in the FY 2016-2017 CIP. General Obligation Bond supplemented by Historical Tax Credits and Douglas County participation over time. |
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Attachments: |
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Reviewed By: (for CMO use only) |
☐TM ☒DS ☐CT ☐BM |