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Home My WebLink About6. MANAGERS REPORT 03/17/2009 INTEROFFICE MEMORANDUM Mount Prospect ~ Village of Mount Prospect Fire Department FROM: FIRE CHIEF AND PUBLIC WORKS DIRECTOR ~t.>. HI~ ~J11 O'f TO: VILLAGE MANAGER MICHAEL E. JANONIS DATE: MARCH 12, 2009 SUBJECT: PHASE I PROJECTS - GUARANTEED MAXIMUM PRICE APPR On August 14, 2008 the Village Board approved a contract to hire Leopardo Companies, Inc. as Construction Manager for the Phase I Projects. Approval of that contract started the Pre-Construction Services by Leopardo for (1) Fire Station #14, (2) various modifications at Public Works, and (3) the Emergency Operations Center. Over the past seven months Leopardo has been an integral part of the project design team. They have been tasked with reviewing the architect's drawings and specifications, maintaining the construction budgets, preparing scope of work documents and bid packages, and ultimately developing a "guaranteed maximum price (GMP)" for the proposed construction projects. We are now requesting Village Board approval of Leopardo's GMP, which would move the Phase I projects into the construction phase. Leopardo has presented Village staff with a GMP for the Phase I projects of $11 ,925,713. A breakdown of the costs by each of the three projects is as follows: 1. Fire Station #14 -- $7,707,130 2. Modifications at Public Works -- $2,502,597 3. Emergency Operations Center -- $1,715,986 This GMP includes the labor, material, and miscellaneous equipment costs required to complete the construction work for these projects. Included in the above costs are Leopardo's general conditions such as the assignment of two full-time superintendents, temporary site fences, toilets, weekly coordination meetings, etc. Additionally, the GMP for modifications at Public Works also includes a cost of an emergency generator that will power both the entire Public Works Facility as well as the new Emergency Operations Center. Staff has asked Leopardo to purchase and install the generator as part of the scope of work. The cost for this item, however, will be covered by the 2009 Capital Improvement Plan (CIP) budget. The cost of this emergency generator is estimated at $250,000 and these funds have been identified in the CIP budget. Phase I Projects - Guaranteed Maximum Price Approval March 12, 2009 Page 2 The total cost for the three projects includes both the GMP construction and the project costs. Leopardo provides only the GMP construction costs. The project costs will be the Village's responsibility. Examples of project costs include furniture and furnishings, telephone and computer systems, antennas, and operational equipment. In total, these project costs will add an additional $2,474,287 million to the total cost of the projects. The project costs will follow the normal bid process and when necessary Staff will go to the Village Board for approval to purchase all of these items over the coming months. The total cost of the Phase I projects falls within Village Staff's anticipated budget amount of $14.4 million as illustrated by the Finance Director at the Village Strategic Planning Workshop on February 10, 2009 and at the February 17, 2009 Village Board meeting. Staff is requesting Village Board approval of Leopardo's Guaranteed Maximum Price (GMP) of $11,925,713 for the construction of the Phase I Projects to include (1) a new Fire Station #14, (2) various modifications at Public Works, and (3) an Emergency Operations Center. Approval of this GMP is ultimately an approval to begin construction. Village Staff and representatives from Leopardo Construction and SRBL Architects will be on hand at the March 17, 2009 Village Board meeting to answer any questions. Michael J. Figolah Glen R. Andler MF/GAlcp 1:\Facilities Study - Phase I Projects\Village Board & COW Meetings\3-17-09 VB Meeting\GMP Approval Request - CP (3-12-09).doc INTEROFFICE MEMORANDUM Mount Prospect ~ Village of Mount Prospect Fire Department FROM: FIRE CHIEF AND PUBLIC WORKS DIRECTOR 1>~' Yil"'~ S 111 ~ TO: VILLAGE MANAGER MICHAEL E. JANONIS DATE: MARCH 12, 2009 SUBJECT: PHASE I PROJECTS - FINAL ARCHITECTURAL FEE PAYM APPROVAL Background On May 14, 2008 the Village Board approved a contract with SRBL Architects for architectural services for the Phase I Projects to include (1) Fire Station #14, (2) various modifications at Public Works, and (3) an Emergency Operations Center. The Village's contract with SRBL Architects stipulates that the architectural fees will ultimately be based upon a percentage of actual construction costs. During the development of the contract, Village staff negotiated a percentage fee that is unique to each of the three projects. The contract states that SRBL's fees during the first two design phases, Schematic Design and Design Development, will amount to a straight percentage of the construction costs. Starting with the Construction Documents phase and running through Construction Administration however, the fee converts to a lump sum payment that is mutually agreed upon between SRBL and the Village. Up until we received the Guaranteed Maximum Price (GMP) from Leopardo Construction last week, the payments made to SRBL to date were based upon a percentage of the construction estimates. After the Village received the GMP we were then able to determine exactly what the fixed fees should amount to as well as negotiate the lump sum final payment for SRBL's services. Fixed Fees (Schematic Design and Design Development) SRBL Architects estimated that the fixed portion of their fees for Schematic Design and Design Development for all three Phase I projects would amount to $360,344.95 based on construction estimates. When we received the GMP from Leopardo, however, we were able to compute exactly what fees they were due given our contract's fixed percentages. We found that the actual fee due to SRBL is $395,547.07, and that we therefore owe them a $35,202.12 "catch-up" fee. Phase I Projects - Final Architectural Fee Payment Approval March 12, 2009 Page 2 Lump Sum Payment (Construction Documents through Construction Administration) When we received the GMP from Leopardo we were also able to take a close look at determining a final lump sum payment for the last three design phases: (1) Construction Documents, (2) Bidding, and (3) Construction Administration. We began by calculating the design fees using the GMP and the fixed percentages for each project, as spelled out in the contract. This gave us a starting point of $734,587.41 - the full amount based upon the GMP. Staff then negotiated with SRBL and ultimately agreed upon a final lump sum payment of $634,009.93. This resulted in a savings of $100,577.48 when compared to the original figure based solely upon the GMP. Summary Staff is requesting Village Board payment approval of architectural design fees to SRBL Architects in the amount of $1,195,557. This total includes the fixed fees, lump sum payment, additional LEED design and commissioning costs, as well as the furnishings design fee. Village staff and representatives from SRBL Architects will be on hand at the March 17, 2009 Village Board meeting to answer any questions. Michael J. Figolah Glen R. Andler MF/GAlcp 1:\Facilities Study - Phase I Projects\Village Board & COW Meetings\3-17-09 VB MeetinglArchitect Lump Sum Approval Request - CP (3-12-09).doc