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Home My WebLink AboutPS 2019-07-01 Item 2A - Public Safety Plan - Fire Station 52 Mini-MACC (Maximum Allowable Construction Cost) INFORMATIONAL MEMORANDUM TO: Public Safety Committee CC: Mayor Allan Ekberg FROM: Rachel Bianchi, Deputy City Administrator DATE: June 27, 2019 SUBJECT: Fire Station 52 Mini-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 by $6,801,879. This is within the newly revised budget for Fire Station 52. BACKGROUND The new Fire Station 52 is to be located on the City Hall Campus just north of the 6300 Building in the upper parking lot. With Fire Station 51 moving further south, the FACETS study determined that it would be important for Fire Station 52 to move further south to maximize coverage and response times throughout the City. Fire Station 52 will become the new headquarters station and thus is a larger, more complex building than 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. This delivery model allowed the team to identify $670,000 in value engineering options during the Design Development phase of the project. As previously stated, the current estimate for Fire Station 52 is $4.3 million over the revised budget adopted by the Council in July of 2018. At the June 24 COW, the Council concurred with the Administration’s recommendation to utilize the unexpected Streamlined Sales Tax Mitigation payments to cover the delta. As a part of the GCCM process, projects develop a MACC, or maximum allowable construction cost. As it did with the Justice Center, the City is pursuing a mini-MACC in order to capitalize on the summer months to do much of the earthwork associated with the project. Lydig Construction developed two bid packages for these early 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. The mini-MACC covers two bid packages: one for earthwork and utilities; the other for structures, which includes retaining walls, steel, and the elevator. The first bid was over the estimate, and the second was under. The collaborative nature of a GCCM project automatically leads to the ability for the team to work together to identify solutions. Lydig worked with the lowest bidder for the earthwork to identify 1 $115,000 in savings immediately. In addition, Lydig identified another $18,000 in savings by changing the specifications of the elevator. Moving forward the team will continue to work collaboratively to identify other savings when possible. The mini-MACC also includes allowances for long-lead items, including early submittals and early mechanical work that will ensure that these items are addressed in time for the full MACC. The newly revised construction budget for the mini-MACC services is $6,818,119. With the $133,000 in immediate identified savings, the mini-MACC contract is $6,801,879. The breakdown is as follows: Service Estimate Final Bid Variance Total Earthwork & Utilities $2,082,189 $2,330,000 $247,811 $2,330,000 Structures – Steel, Retaining Walls, Elevator $3,530,051 $3,396,433 ($133,618) $3,396,433 Allowance for early submittals $ 125,000 Allowance for mechanical work $ 65,000 Reduction identified with Lydig and winning earthwork bidder ($115,000) Change elevator type ($ 18,000) Negotiated Support Services $180,740 General Conditions $173,580 GCCM Contingency (3%)$335,245 Builder’s Risk $ 50,000 GCCM Fee (4.5%) $276,314 Total $6,801,879 RECOMMENDATION The project team recommends moving forward with the mini-MACC and beginning construction on Fire Station 52. The City’s program manager and GCCM agree that the earthwork part of the full MACC contains the most volatility in the overall project cost. Staff will return this fall with the final MACC after the other services are bid. The final bids for the mini-MACC were opened on Thursday, June 27, 2019. Because of this short turnaround to meet the July 1, 2019, Public Safety Committee meeting deadline, the contract amendment is not yet complete. The amendment will be a standard AIA document used on Fire Station 51 and the Justice Center and will be made available to the full Council by July 8, 2019. The Council is being asked to provide the Mayor the authority for the following:  To sign a contract amendment with Lydig Construction for $6,801,879 for the initial construction phase of Fire Station 52.  To spend $686,990 in sales tax associated with the contract amendment discussed above.  To spend, if needed, the proportional amount of the project’s contingency for change orders, as compared to the total budget, or up to $660,073. Steve Goldblatt, the Council’s Project Management Quality Assurance consultant, has reviewed the project status and agrees with this recommendation. 2 Because three Councilmembers will be absent on July 8, 2019, staff requests that this item go directly to the July 15, 2019 regular meeting so that the entire Council has the opportunity to deliberate on this matter. ATTACHMENTS Fire Station 52 mini-MACC presentation 3 4 Fire Station 52 Mini‐MACC Council Consideration5 Bottom Line•Fire Station 52 Mini‐MACC is under the newly revised budget6 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 chosen7 FS 52 Mini‐MACC•Presenting the “mini‐MACC” today, which includes:•Earthwork and Utilities•Structures – retaining walls, steel, elevator•Allowance of $65,000 for early submittal work •Allowance of $125,000 for early mechanical work8 FS 52 Mini‐MACCServiceEstimate Final Bid Variance TotalEarthwork & Utilities$2,082,189 $2,330,000 $241,811 $2,330,000Structures $3,530,051 $3,396,433 ($133,618) $3,396,433Reduction identified with Lydig and earthwork bidder($115,000)Change in elevator type($ 18,000)Allowance for early submittals$ 65,000Allowance for early mechanical work$ 125,000Negotiated Support Services$ 180,740MACC Contingency (3%)$ 173,580Specified General Conditions$ 173,580Builder’s Risk insurance$ 50,000GCCM Fee (4.5%)$ 276,314Total Mini‐MACC Contract6,801,8799 FS 52Mini‐MACCFire Station 52 Mini‐MACC totals:Contract total $6,801,879Washington State Sales Tax $ 686,990Proportional project contingency $ 660,073Total mini‐MACC $8,148,942 10 Fire Station 52Council Consideration: •The Council is being asked to provide the mayor the authority to:•Sign a contract with Lydig Construction for $6,801,879 for initial construction of Fire Station 52.•Spend $686,990 in sales tax associated with the contract above.•If needed, approve the use of the proportional amount of the project’s contingency fee, up to $660,073.11