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HomeMy WebLinkAboutPS 2019-03-04 Item 2B - Public Safety Plan - Contract for Fire Station 51 General Contractor Construction Management with Lydig ConstructionAllan Ekberg, Mayor Administrative Services Department- Rachel Bianchi, Deputy CityAdministrator INFORMATIONAL MEMORANDUM TO: Public Safety Committee CC: Mayor Allan Ekberg FROM: Rachel Bianchi, Deputy City Administrator DATE: February 28, 2018 SUBJECT: Fire Station 51 MACC ISSUE The Council is being asked to consider allowing the Mayor to execute an amendment to the contract with Lydig Construction to increase it to $9,419,546 for the construction of Fire Station 51. Due to market conditions, the project is over budget by approximately $1,116,514. One remaining bid package is scheduled to open on March 8, 2019 and the project team will have final numbers at that time. Additionally, the Council is being asked to provide direction on alternates for the project. This memo is for information and discussion only and does not include recommendations. It is expected that recommendations will be made at the March 18, 2019 Public Safety Committee once all of the information is known to the project team. BACKGROUND As a part of the Public Safety Plan, the City has been working toward the construction of a new Fire Station 51. Early on, the City chose to use the General Contractor/Construction Management (GCCM), which allows the contractor to join the project early in the design process and inform the City and architects of cost impacts associated with design. City staff have found this to be a very productive delivery model, which has resulted in multiple steps of estimating and checking the budget in real time as decisions are made. The City has an existing contract with Lydig Construction for $435,007, which included pre -construction services and the demolition of the single-family home at the Star Nursery site initially purchased for the new location of Fire Station 54. As a part of the GCCM process, projects develop a MACC, or maximum allowable construction cost. Lydig Construction developed bid packages for all construction services for competitive bidding per State law. Bid packages were advertised and Lydig Construction worked to promote the packages to encourage a high number of bidders, which usually results in a better price for the owner. Due to the recent snow storms, some bid packages were delayed. In addition, addenda were required for some bid packages in order to clarify the services required in order to ensure the best value for the City. At this time, all bid packages have been opened with the exception of the earthwork, which will be opened and finalized on March 8, 2019. Additionally, the team is working to clarify the costs associated with getting electricity to the site. This memo will be updated prior to the March 18, 2019 Public Safety Committee with this additional information. As stated above, the costs associated with constructing Fire Station 51 have risen above the budget due to the region's market conditions. As has been previously shared with the Council and well known Tukwila City Hall • 6200 Southcenter Boulevard. Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 13 in the region, the Seattle area construction market is very busy. There are a significant number of private and public projects currently in the pipeline, which result in higher prices across the board. This is further exacerbated by this project being relatively small, resulting in less interest from contractors due to the amount of other work in the region, and a tighter budget. Below is a table of the project estimate, final bid amounts and variance. The lightly shaded items indicate items that are already a part of the existing GCCM contract and are formula -driven and tied to the overall construction costs. Negotiated Support Services includes services such as security and fencing, which are the contractor's responsibility. Both the Contractor's fee and the Specified General Conditions, which covers the contractor's personnel costs, were a part of the original RFP process when the City selected the GCCM for the Fire Station projects. Service Earthwork/Utilities/Asphalt Site Concrete Estimate $661,444 $287,922 Final Bid -Package $750,000* $391,500 Variance $103,578 Concrete and Steel Structure, and Enclosure $1,799,575 $1,798,890 ($685) Masonry Glazing Package GWB, Metal Framing and Insulation/Acoustical Ceiling Miscellaneous Package Tile, Resilient Flooring and Traffic Coatings Fencing and Gate Enclosures $253,878 $276,415 $467,883 $706,056 $35,436 $172,553 $310,097 $298,628 $523,500 $704,500 $38,500 $299,000 $56,219 $22,213 $55,617 ($1,556) $3,064 $126,447 Landscaping and Irrigation Electrical Contractor $237,778 $1,026,413 $262,451 $1,226,519 $24,673 $200,106 Mechanical $1,398,430 $1,455,361 $56,931 Allowance for Power issue Negotiated Support Services General Conditions GCCM Fee (4.5%) Contract amount — does not include tax $241,875 $183,228 $564,599 $370,898 $9,419,546 *Bid package opens on March 8, 2019, so placeholder number Before any discussion on how to address the gap, it is important that Council has the final costs in order to make an informed decision. The project team is working to value engineer some of these costs and will return on March 18, 2019 to the Public Safety Committee with final costs. At that time, staff will present options and a recommendation. In addition, the project team needs direction on the seven alternates identified during the design process. The table below lists all of the alternates and the estimated cost associated with each one. At the March 18, 2019 Public Safety Committee meeting staff will have the final costs associated with each alternate. Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov 14 Alternate Cost Fire hydrant in northeast corner of the rear apron $190,000 Additional paving for trailer parking $ 60,642 Four -fold doors $ 84,228 Fume hood for the shop $ 8,434 Rough in for new SCBA gear washer $ 25,128 Underground utilities for fueling station $180,648 Remainder of fueling station (this cost includes the $180 648 above) $621,970 Total alternates: $990,402 Similar to the issue above, before any discussion on how to address the gap, it is important that Council has the final costs in order to make an informed decision. The final costs for the alternates will be available by the next Public Safety Committee meeting At that time, staff will present options and a recommendation. RECOMMENDATION This information is being provided for a foundational discussion and a recommendation will be presented at the March 18, 2019 Public Safety Committee meeting. ATTACHMENTS Public Safety Plan Budget Phone: 206-433-1800 • Email: Mayor@TukwiLaWA.gov • Website: TukwilaVVA.gov 15 16 Justice Center and Fire Station 51 Bid Process Update Bottom Line • Both projects are on schedule • Market conditions continue to be an issue; Sound Transit and WSDOT alone currently working on $5.6+ Billion on current projects • Justice Center mini-MACC under budget; many large bid packages remain • Fire Station 51 over budget • The City has opportunities to address the overage at Fire Station 51 GCCM Process • City had an RFP process for GCCM services for Fire Stations and Justice Center • GCCM joins the process early to inform team on cost impacts associated with design • Once design is complete, GCCM creates specific bid packages for competitive bidding, per state law • GCCM promotes bid packages to encourage a high number of bidders • Bid packages opened at a specific time; lowest responsive bidder must be chosen 8 Justice Center Mini-MACC • Presenting the "mini-MACC" today, which includes: • Demolition and abatement • Foundations, structure and waterproofing • Earthwork and utilities • Allowance for shoring • Allowance for contaminated groundwater • Allowance for shop drawings and engineering for elevator, fire protection, mechanical and electrical • Formula -driven fees associated with the GCCM contract for negotiated support services, MACC contingency, GCCM fee and Specified General Conditions City of Tukwila Justice Center Mini-MACC PUBLIC SAFETV PLAN Demolition & Abatement Foundation/Structure/Waterproofing Earthwork and Utilities Allowance — shoring Allowance — contaminated groundwater Allowance - Shop drawings and engineering Negotiated Support Services MACC Contingency (2.5%) GCCM Fee (5%) Specified General Conditions Total Mini-MACC Contract $910,582 $4,301,047 $5,057,079 $192,995 $4,288,300 $4,874,410 $50,000 $20,000 $250,000 $221,283 $241,893 $506,944 $248,633 $10,984,458 ($717,587) ($12,747) ($182,669) ($843,003) City of Tuk Justice Center M 1 n 1- M A C C P Bpi J sice Center Contract total Washington State Sales Tax Total mini-MACC Mini-MACC under budget by: Land acquisition under budget by: Total under budget to date: $10,894,458 $1,089,446 $11,983,903 $843,003 $341,809 $1,184,812 Remaining Services to be Bid City of Tuk is Architectural casework Exterior siding Mechanical Electrical Insulation/GWB Assemblies Miscellaneous specialties and equipment Irrigation and landscaping TOTAL Bid packages remaining (does not include formula -driven fees) $18,940,632 Justice Center Budget City of Tuk LI A/E Services Permits/Fees Construction, including sales tax Construction related costs PM Services, including other professional services Contingency, including construction and project Contingency for potential contamination Land Acquisition Contingency for land acquisition TOTAL $3,500,000 S700.000 $38,727,363 $2,282,639 $2,112,596 $4,861,492 $750,000 $14,052,253 $1,550,000 $68,536,343 $3,141,729 S111.317 $563,671 $562,398 $1,967,303 $13,679,370 $898,962 $20,953,976 $358,271 S588.683 $38,163,692 $1,720,241 $145,293 $4,861,492 $750,000 $343,657 $651,038 $47,582,367 Fire Station 51 MACC • MACC includes all of the construction costs • Unknown today: • Earthwork; bid packages to be opened on March 8, 2019 • Costs associated with electricity delivery • With what we know now (earthwork estimate and allowance for electricity) Fire Station 51 is over budget by $1,116,514, though the project team is currently working on value engineering solutions to reduce the amount • Market conditions exacerbated by relatively small budget Fire Station MACC Earthwork/Uti I ities/Aspha It Site Concrete Concrete and Steel Structure, and Enclosure City of Tukwila PUBLIC SAFE PLAN $661,444 $750,000 $287,922 $391,500 $103,578 $1,799,575 $1,798,890 ($685) Masonry $253,878 $310,097 $56,219 Glazing Package $276,415 $298,628 $22,213 GWB, Metal Framing and Insulation/Acoustical Ceiling $467,883 $523,500 $55,617 Miscellaneous Package Tile, Resilient Flooring and Traffic Coatings $706,056 $704,500 ($1,556) $35,436 $38,500 $3,064 Fencing and Gate Enclosures $172,553 $299,000 $126,447 Landscaping and Irrigation $237,778 $262,451 $24,673 Electrical Contractor $1,026,413 $1,226,519 $200,106 Mechanical $1,398,430 $1,455,361 $56,931 Formula -driven costs $2,060,679 Allowance for Electrical Issue $241,875 Total $9,521,969 $1,116,514 Fire Station 51 Budget City of Tuk LI A/E Services Permits/Fees Construction, including sales tax Construction related costs PM Services, including other professional services Contingency, including construction and project Land Acquisition TOTAL $1,292,781 S234.000 $9,396,000 $931,000 $526,000 $893,219 $1,236,572 S44.557 $165,000 $163,241 $344,681 $13,273,000 $1,954,050 $56,209 S189.443 $9,231,000 $767,759 $181,319 $893,219 $1 1,318,950 Fire Station 51 Funding Options • Use contingency funds from Fire Station 51 • Use savings from Justice Center mini-MACC Fire Station 51 Alternates City of Tuk P B 11 Fire hydrant in NE corner of rear apron Additional paving for trailer parking Four -fold doors Fume hood for the shop Rough in for new SCBA gear washer Underground utilities for fueling station Remainder of fueling station Total alternates: $190,000 $60,642 $84,228 $8,434 $25,128 $180,648 $621,970 (this cost includes the $180,648 above) $990,402 8 Fire Station 51 Alternates Funding Options • Do not fund alternates • Use savings from Justice Center land acquisition budget • Use existing surplus General Fund Reserves Other Considerations • Fire Station 52 includes $750,000 alternate to build out the Administration space • Fire Station 52 likely to experience a premium similar to Fire Station 51 • Justice Center full MACC will be done this spring; remaining bids not likely to see much savings • Public Works master plan will be done in May • Currently $3M in construction budget (including tax) to retrofit Heiser building; unknown at this time what budget will be needed Next Steps • Project team will return with full information on Fire Station 51 • Project team will return with a recommendation on moving forward • Council will be asked to consider per project: • MACC (or mini-MACC) • Authority to spend funds to pay sales tax amount • Authority to spend contingency funds City of Tukwila Council Review and Actior P Bpi APRIL MAY Fire Station #5 Fire Station #52 ustice Center Public Works Facility AUGUST SEPTEMBER OCTOBER ! NOVEMBER * Target dates