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HomeMy WebLinkAbout01-202 Resolution No. 01-202 RESOLUTION AUTHORIZING EXECUTION OF A FIRST AMENDMENT AGREEMENT WITH GILBANE BUILDING COMPANY THE RECREATION CENTER PROJECT BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Joyce A. Parker, City Manager, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute a First Amendment Agreement on behalf of the City of Elgin with Gilbane Building Company for construction manager services for the Recreation Center Project , a copy of which is attached hereto and made a part hereof by reference . s/ Ed Schock Ed Schock, Mayor Presented: July 11, 2001 Adopted: July 11, 2001 Vote : Yeas : 6 Nays : 1 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk . t FIRST AMENDMENT AGREEMENT THIS FIRST AMENDMENT AGREEMENT made and entered into this 11th day of July, 2001 , by and between the CITY OF ELGIN, Illinois, an Illinois municipal corporation (hereinafter referred to as the "City" ) , and GILBANE BUILDING COMPANY, a Rhode Island corporation, authorized to do business in the State of Illinois, (hereinafter referred to as "Construction Manager") . WHEREAS, the City and Construction Manager have previously entered into an agreement dated June 14 , 2000, relating to the Construction Manager providing certain professional services for the City' s proposed new Recreation Center Project (hereinafter referred to as the "Agreement" ) ; and WHEREAS, the Agreement provides that it is the expectation of the parties that the Recreation Center Project (hereinafter referred to as the "Project" ) will be constructed in phases with such phases currently expected to in general consist of the parking garage, underground and structural work (which includes site preparation, site utilities, building concrete and structural steel) and the balance of the Project; and WHEREAS, the Agreement further provides that upon receipt of all subcontract and supplier bids for the Project or phase thereof, the Construction Manager shall propose a Guaranteed Maximum Price which sum shall be the sum of the estimated cost of work for the Project or phase thereof and which shall also include the Construction Manager' s contingency, the Construction Manager' s fee and the owner ' s allowance, if any; and WHEREAS, the Agreement further provides that upon acceptance by the City the Guaranteed Maximum Price proposal for the Project or a phase thereof and its basis shall be set forth in amendments to the Agreement; and WHEREAS, the Construction Manager has received all subcontract and supplier bids for the parking garage phase of the Project and has proposed to the City a Guaranteed Maximum Price for the parking garage phase of the Project . NOW, THEREFORE, for and in consideration of the mutual undertaking contained herein, and the mutual undertakings as contained in the Agreement between the City and the Construction Manager of June 14 , 2000 , and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows : 1 . That the Agreement between the City and the Construction Manager dated June 14 , 2000, is hereby amended as follows : "A. The Guaranteed Maximum Price for the Parking Garage Phase of the Project is $6 , 217, 945, which includes all of the Cost of the Work, the Construction Manager ' s contingency, the Owner' s allowance and a proportionate share of the Construction Manager' s Construction Phase Fee for the Project . A cost summary providing for a breakdown of the various cost elements of the Guaranteed Maximum Price for the Parking Garage Phase is attached hereto and made a part hereof as Exhibit A. -2- B. The Guaranteed Maximum Price of $6 , 217 , 945 for the Parking Garage Phase of the Project is for the performance and completion of the Parking Garage Phase of the Project in accordance with the documents listed and attached to this First Amendment Agreement as Exhibits A through E as follows : (1) Exhibit A - Cost Summary providing for cost items of the Guaranteed Maximum Price for the Parking Garage Phase . (2) Exhibit B - Drawings, Specifications, Addenda and General, Supplemental and Other Conditions of the Contract upon which the guaranteed maximum price for the parking garage is based. (3) Exhibit C - Assumptions and Clarifications made in preparing the guaranteed maximum price . (4) Exhibit D - Completion Schedule . (5) Exhibit E - Alternate Prices . C. As a result of the City' s decision to accept the alternate bid for an additional level of the Parking Garage, the Construction Manager' s Fee for the Construction Phase Services as set forth in Section 5 . 1 . 1 of the Agreement is hereby amended by increasing the current fee of $1 , 697 , 112 in the amount of $62 , 550 to the total amount of $1 , 758, 936, payable to the Construction Manager in accordance with Article 7 of the Agreement . For clarification purposes, it is agreed that $400, 305 of the Construction Manager' s Fee for Construction Phase Services shall be attributable to the Parking Garage Phase of the Project . " 2 . That the reasons for the changes to the agreement as provided for in this First Amendment Agreement are germane to the original contract as signed. 3 . That except as amended herein the terms and provisions of the Agreement between the City and the Construction Manager dated June 14 , 2000 , shall remain in full force and effect . -3- .l 1 4 . That in the event of any conflict between the provisions of this First Amendment Agreement and the Agreement dated June 14 , 2000, the terms of this First Amendment Agreement shall control . IN WITNESS WHEREOF, the parties have caused this First Amendment Agreement to be executed on the date and year first written above. CITY OF ELGIN, a municipal GILBANE BUILDING COMPANY, corporation a R e land corporation By By ' Qyv!:�M 1—nager / Vice-President Attest :City Clerk Vice-President RAGREE/GILBANE.Al -4- Agenda Item No. City of Elgin July 6, 2001 TO: Mayor and Members of the City Council RECREATIONAL LEISURE ANG CULTURAL OPPORTUNITIES FOR ALL CITIZENS FROM: Joyce A. Parker, City Manager SUBJECT: ' Amendment No. 1 to Gilbane Construction Management Agreement for the Recreation Center Construction Project PURPOSE The purpose of this memorandum is to provide the Mayor and members of City Council with information to consider approval of Amendment No. 1 to the Gilbane contract for Construction Management Services related to the Recreation Center. BACKGROUND On May 24 , 2000, the City Council approved a contract with Gilbane Building Company of Chicago to provide the Construction Management Services associated with the Recreation Center development . The type of construction management service being provided is referred as a "Guaranteed Maximum Price„ (GMP) . The GMP is determined by adding all bids related to construction, Gilbane' s on-site construction service costs, a 3 percent constructor' s contingency and a 2 percent owner' s contingency. Once the GMP is established, Gilbane is responsible for all project costs, regardless of final costs, unless the City (owner) changes the scope of the project . Because this type of project has many components, it is necessary to bid work and begin construction prior to all bids being in place . The contract with Gilbane recognizes this and provides for the GMP to be established in three phases or amendments to the contract . The subject Amendment No. 1 would establish the GMP for the parking structure. All bids have been received and the City Council has authorized Gilbane to execute all contracts relative to the parking structure construction. Gilbane Construction Amendment No. 1 July 6, 2001 Page 2 Gilbane' s contract requires that their construction service fee be identified as a component of the GMP. The initial approval on May 24 , 2000 established a construction service fee of $1, 697 , 112 . For the purpose of this GMP amendment, a percentage of the $1, 697, 112 fee has been identified relating to the parking deck construction only. The parking deck construction service fee of $337, 755 is not in addition to the $1, 697, 112 fee, but for information only. An additional $62 , 550 is being included however to cover construction- related services associated with the alternate parking deck level not included in Gilbane' s original scope . In addition to the above construction management fees associated with the parking structure, this GMP amendment cost also includes low bids in the amount of $5, 540 , 609, the construction manager' s 3 percent contingency in the amount of $166, 218 and the owner' s 2 percent contingency in the amount of $110, 812 . A copy of Amendment No. 1 is attached for your consideration. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None. FINANCIAL IMPACT The budget for the Recreation Center and Parking Structure is $32 , 809, 812 . A summary of the funding allocation is found below. Account Number Amount 270-0000-791 . 92-36 $ 2 , 000, 000 275-0000-791 . 92-36 13 , 759, 812 340-0000-605 . 14-00 300, 000 380-0000-795 . 92-36 16 750 , 000_ - $32 , 809 , 812 To date, the following expenditures and encumbrances have been charged against the project budget . Account Number Amount 270-0000-791 . 92-36 $ 1 , 929, 748 275-0000-791 . 92-36 4 , 400, 831 340-0000-605 . 14-00 0 380-0000-795 . 92-36 0 $ 6 , 330 , 579 Gilbane Construction Amendment No. 1 July 6, 2001 Page 3 The addition of the subject Amendment No . 1 will increase our current contract with Gilbane $5, 880 , 190 to a total of $7, 779, 922 . The increase to the Gilbane contract can be funded within the project budget . 0 GAL IMPACT None . ALTERNATIVES The City Council may elect to deny the subject amendment . Such action would require selection of another construction manager and would significantly delay the project and increase costs . RECOMMENDATION It is recommended that the City Council approve the subject Amendment No. 1 with Gilbane Building Company for additional contract amount of $5, 880 , 190 and direct staff to execute the necessary documents . Respectfully submitted, Joyce A. Parker City Manager DLL:dw Attachment Resolution. No. 01-209 RESOLUTION AUTHORIZING EXECUTION OF A L=EASE AND USE AGREEMENT WITH SHERMAN HEALTH SYSTEMS FOR THE OPERATION OF A WELLNESS CENTER WITHIN THE ELGIN RECREATION CENTER BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, :ILLINOIS, that Joyce A. Parker, City Manager, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute a written Lease and Use Agreement with Sherman Health Systems for the operation of a wellness Center within the Elgin Recreation Center located at Kimball Street and Douglas Avenue, Elgin_, Illinois, a copy of which is attached hereto and made a part hereof by reference . sl Ed Schock Ed Schack, Mayor :presented: July 25, 2001 Adopted: July 25, 2001 Omnibus Vote: Yeas : 7 Nays : 0 Attest : sl Dolonna Mecum Dolonna Mecum, City Clerk c