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HomeMy WebLinkAbout05-230 • \ Resolution No. 05-230 RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT WITH RANDY W. TRULL FOR GOLF CONSTRUCTION MANAGEMENT SERVICES (The Highlands Golf Club-Phase 2) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Olufemi Folarin,City Manager,and Dolonna Mecum,City Clerk,be and are hereby authorized and directed to execute an Agreement with Randy W. Trull on behalf of the City of Elgin for golf construction management services for The Highlands Golf Club-Phase 2,a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: July 27, 2005 Adopted: July 27, 2005 Omnibus Vote: Yeas: 7 Nays: 0 Attest: s/Dolonna Mecum Dolonna Mecum, City Clerk AGREEMENT THIS AGREEMENT, made and entered into this 27>l--day of July , 2005, by and between the CITY OF ELGIN, an Illinois municipal corporation (hereinafter referred to as "CITY") and Randy W. Trull, an individual, (hereinafter referred to as "Construction Manager"). WHEREAS, the CITY desires to engage the Construction Manager to furnish certain professional services in connection with planning and construction of Bowes Creek Golf Club and in conjunction with the planning and development of Phase 2 of The Highlands Golf Club (hereinafter referred to as the PROJECT). AND WHEREAS, the Construction Manager represents that he is in compliance with Illinois Statutes relating to professional registration of individuals and has the necessary expertise and experience to furnish such services upon the terms and conditions set forth herein below. NOW, THEREFORE, it is hereby agreed by and between the CITY and the Construction Manager that the CITY does hereby retain the Construction Manager for and in consideration of the mutual promises and covenants contained herein, the sufficiency of which is hereby acknowledged to act for and represent it in all construction management matters involved in the PROJECT, subject to the following terms and conditions and stipulations, to-wit: I. SCOPE OF SERVICES A. All work hereunder shall be performed under the direction of the Fiscal Services Director of the CITY, herein after referred to as the "DIRECTOR". B. The Construction Manager shall provide golf construction management services for the Bowes Creek Golf Project as described in the City's Request for Proposals dated April 15, 2005 and the Construction Manager's proposal response thereto dated May 02, 2005 as well as subsequent supplemental information provided by the Construction Manager dated June 6, 2005. Additionally, the Construction Manager shall, during the term of service, provide advisory and consulting services, as requested by The City, regarding matters related to development of The Highlands Golf Club owned and operated by the City of Elgin, Illinois as described in the Construction Manager's letter dated June 6, 2005. In the event of any conflict between the terms of this form agreement and the terms of the CITY'S request for proposal and the Construction Manager's proposals responses thereto dated May 2, 2005 and June 6, 2005, the terms of this form agreement shall control. Bowes Creek Agreement 1 II. PROGRESS REPORTS A. The Construction Manager will submit to the Director monthly a Status Report keyed to the Project Schedule. A brief narrative will be provided identifying progress, findings and outstanding issues. III. WORK PRODUCTS All work products prepared by the Construction Manager pursuant hereto including, but not limited too, reports, designs, calculations, work drawings, studies, photographs, models and recommendations shall be the property of the CITY and shall be delivered to the CITY upon request of the DIRECTOR provided, however, that the Construction Manager may retain copies of such work products for its records. Such work products are not intended or represented to be suitable for reuse by the CITY on any extension to the PROJECT or on any other project, and such reuse shall be at the sole risk of the CITY without liability or legal exposure to the Construction Manager. IV. PAYMENTS TO THE Construction Manager(Not To Exceed Method) A. For services provided the Construction Manager shall be paid a maximum fee of $231,360.00, including all expenses incurred during the term of service. The term of service is twenty-four (24) months. The monthly fee, inclusive of expenses, shall be: Nine Thousand Six Hundred Forty Dollars ($9,640.00) per month B. The task amounts for pre-construction and planning, construction and post- construction for the Bowes Creek Golf Club portion of the PROJECT and the Services for the Highlands Golf Club portion of the Project are detailed in the Construction Manager's supplemental proposal response in the Construction Manager's letter dated June 6, 2005 V. INVOICES A. The Construction Manager shall submit invoices in a format approved by the CITY. Progress reports (IIC above) will be included with all payment requests. B. The Construction Manager shall devote a reasonable amount of time to the project. The Construction Manager shall maintain records reflecting actual costs incurred. The Construction Manager shall provide upon request and permit the authorized representative of the CITY to inspect and audit all data and records of the Construction Manager for work done under this Agreement. The Construction Manager shall make these records available at reasonable times during the Agreement period, and for a year after termination of this Agreement. Bowes Creek Agreement 2 VI. TERMINATION OF AGREEMENT Notwithstanding any other provision hereof, the CITY may terminate this Agreement at any time upon thirty (30) days prior written notice to the Construction Manager. In the event that this Agreement is so terminated, the Construction Manager shall be paid for services performed prior to termination, except that such payment shall not exceed the total amount set forth under paragraph IV nor the Task Amounts set forth in the Construction Managers proposal letters. VII. TERM A. This Agreement shall become effective as of the date the Construction Manager is given a notice to proceed and, unless terminated for cause pursuant to Article VI above or extension pursuant to Article VII B below, shall be deemed concluded within 24 months from the Construction Manager's notice to proceed, except as extended during any periods that no productive work is being accomplished as described in paragraph VIIB. A determination of completion shall not constitute a waiver of any rights or claims which the CITY may have or thereafter acquire with respect to any term or provision of the Agreement. B. Suspension and/or Extension of Term The Construction Manager acknowledges the possibility that circumstances may arise whereby during the development process, progress on the Project is delayed to the point that no productive work is being accomplished. For example, if planning is complete and the PROJECT is stalled while waiting for permit approvals, or for other reasons, and no productive activity is necessary or performed during such waiting period, the 24 month schedule shall be extended and the Construction Manager shall not be entitled to any payment during such period of suspension. VIII. NOTICE OF CLAIM If the Construction Manager wishes to make a claim for additional compensation as a result of action taken by the CITY, the Construction Manager shall give written notice of his claim within thirty (30) days after occurrence of such action. No claim for additional compensation shall be valid unless so made. Any changes in the Construction Manager's fee shall be valid only to the extent that such changes are included in writing signed by the CITY and the Construction Manager. Regardless of the decision of the DIRECTOR relative to a claim submitted by the Construction Manager, all work required under this Agreement as determined by the DIRECTOR shall proceed without interruption. Bowes Creek Agreement 3 / 7 IX. BREACH OF CONTRACT If either party violates or breaches any term of this Agreement, such violation or breach shall be deemed to constitute a default, and the other party has the right to seek such administrative, contractual or legal remedies as may be suitable to the violation or breach; and, in addition, if either party, by reason of any default, fails within fifteen (15) days after notice thereof by the other party to comply with the conditions of the Agreement, the other party may terminate this Agreement. X. INDEMNIFICATION, To the fullest extent permitted by law, Construction Manager agrees to and shall indemnify, defend and hold harmless the CITY, its officers, employees, agents, boards and commissions from and against any and all claims, suits, judgments, costs, attorneys fees, damages or other relief, including but not limited to workers compensation claims, in any way resulting from or arising out of negligent actions or omissions of the Construction Manager in connection herewith, including negligence or omissions of employees or agents of the Construction Manager arising out of the performance of this Agreement. In the event of any action against the CITY, its officers, employees, agents, boards or commissions, covered by the foregoing duty to indemnify, defend and hold harmless such action shall be defended by legal counsel of the CITY's choosing. The provisions of this paragraph shall survive any expiration, completion and/or termination of this agreement. XI. NO PERSONAL LIABILITY No official, director, officer, agent or employee of the CITY shall be charged personally or held contractually liable under any term or provision of this Agreement or because of their execution, approval or attempted execution of this Agreement. XII. INSURANCE A. Comprehensive Liability. The Construction Manager shall provide, pay for and maintain in effect, during the term of this Agreement, a policy of comprehensive general liability insurance with limits of at least $1,000,000 aggregate for bodily injury and $1,000,000 aggregate for property damage. The Construction Manager shall deliver to the DIRECTOR a Certification of Insurance naming the CITY as additional insured. The policy shall not be modified or terminated without thirty (30) days prior written notice to the DIRECTOR. Bowes Creek Agreement 4 The Certificate of Insurance which shall include Contractual obligation assumed by the Construction Manager under Article X entitled "Indemnification" shall be provided. This insurance shall apply as primary insurance with respect to any other insurance or self-insurance programs afforded to the CITY. There shall be no endorsement or modification of this insurance to make it excess over other available insurance, alternatively, if the insurance states that it is excess or prorate, it shall be endorsed to be primary with respect to the CITY. B. Comprehensive Automobile Liability. Comprehensive Automobile Liability Insurance covering all owned, non-owned and hired motor vehicles with limits of not less than $500,000 per occurrence for damage to property. C. Combined Single Limit Policy. The requirements for insurance coverage for the general liability and auto exposures may be met with a combined single limit of $1,000,000 per occurrence subject to a $1,000,000 aggregate. D. Professional Liability. The Construction Manager shall carry Professional Liability Insurance Covering claims resulting from error, omissions or negligent acts with a combined single limit of not less than $1,000,000 per occurrence. A Certificate of Insurance shall be submitted to the DIRECTOR as evidence of insurance protection. The policy shall not be modified or terminated without thirty (30) days prior written notice to the DIRECTOR. XIII. CONSTRUCTION MEANS. METHODS. TECHNIQUES. SEQUENCES, PROCEDURES AND SAFETY The Construction Manager shall not have control over or charge of and shall not be responsible for construction means, methods, techniques, sequences or procedures, or for safety precautions and programs in connection with the construction, unless specifically identified in the Scope of Services. XIV. NONDISCRIMINATION, In all hiring or employment made possible or resulting from this Agreement, there shall be no discrimination against any employee or applicant for employment because of sex, age, race, color, creed, national origin, marital status, of the presence of any sensory, mental or physical handicap, unless based upon a bona fide occupational qualification, and this requirement shall apply to, but not be limited to, the following: employment advertising, layoff or Bowes Creek Agreement 5 7 termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. No person shall be denied or subjected to discrimination in receipt of the benefit of any services or activities made possible by or resulting from this Agreement on the grounds of sex, race, color, creed, national origin, age except minimum age and retirement provisions, marital status or the presence of any sensory, mental or physical handicap. Any violation of this provision shall be considered a violation of a material provision of this Agreement and shall be grounds for cancellation, termination or suspension, in whole or in part, of the Agreement by the CITY. XV. ASSIGNMENT AND SUCCESSORS This Agreement and each and every portion thereof shall be binding upon the successors and the assigns of the parties hereto; provided, however, that no assignment shall be made without the prior written consent of the CITY. XVI. DELEGATIONS AND SUBCONTRACTORS Any assignment, delegation or subcontracting shall be subject to all the terms, conditions and other provisions of this Agreement and the Construction Manager shall remain liable to the CITY with respect to each and every item, condition and other provision hereof to the same extent that the Construction Manager would have been obligated if it had done the work itself and no assignment, delegation or subcontract had been made. Any proposed subcontractor shall require the CITY's advanced written approval. XVII. NO CO-PARTNERSHIP OR AGENCY This agreement shall not be construed so as to create a partnership, joint venture, employment or other agency relationship between the parties hereto. XVIII. SEVERABILITY The parties intend and agreed that, if any paragraph, sub-paragraph, phrase, clause or other provision of this Agreement, or any portion thereof, shall be held to be void or otherwise unenforceable, all other portions of this Agreement shall remain in full force and effect. XIX. HEADINGS The headings of the several paragraphs of this Agreement are inserted only as a matter of convenience and for reference and in no way are they intended to define, limit or describe the scope of intent of any provision of this Agreement, nor shall they be construed to affect in any manner the terms and provisions hereof or the interpretation or construction thereof. Bowes Creek Ageement 6 XX. MODIFICATION OR AMENDMENT This Agreement and its attachments constitutes the entire Agreement of the parties on the subject matter hereof and may not be changed, modified, discharged or extended except by written amendment duly executed by the parties. Each party agrees that no representations or warranties shall be binding upon the other party unless expressed in writing herein or in a duly executed amendment hereof, or change order as herein provided. XXI. APPLICABLE LAW This Agreement shall be deemed to have been made in, and shall be construed in accordance with the laws of the State of Illinois. Venue for the resolution of any disputes or the enforcement of any rights pursuant to this agreement shall be in the Circuit Court of Kane County, Illinois. XXII. NEWS RELEASES The Construction Manager may not issue any news releases without prior approval from the DIRECTOR, nor will the Construction Manager make public proposals developed under this Agreement without prior written approval from the DIRECTOR prior to said documentation becoming matters of public record. XXIII. COOPERATION WITH OTHER CONSULTANTS The Construction Manager shall cooperate with any other consultants in the CITY's employ or any work associated with the PROJECT. XXIV. INTERFERENCE WITH PUBLIC CONTRACTING The Construction Manager certifies hereby that it is not barred from bidding on this contract as a result of a violation of 720 ILCS 5/33E et seq. Or any similar state or federal statute regarding bid rigging. XXV. SEXUAL HARASSMENT As a condition of this contract, the Construction Manager shall have written sexual harassment policies that include, at a minimum, the following information: A. the illegality of sexual harassment; B. the definition of sexual harassment under state law; C. a description of sexual harassment, utilizing examples; D. the vendor's internal complaint process including penalties; E. the legal recourse, investigative and complaint process available through the Illinois Department of Human Rights, and the Illinois Human Rights Commission; Bowes Creek Agreement 7 7 F. directions on how to contact the department and commission; G. protection against retaliation as provided by Section 6-101 of the Human Rights Act. A copy of the policies must be provided to the Department of Human Rights upon request 775 ILCS 5/2-105. XXVI. WRITTEN COMMUNICATIONS All recommendations and other communications by the Construction Manager to the DIRECTOR and to other participants which may affect cost or time of completion, shall be made or confirmed in writing. The DIRECTOR may also require other recommendations and communications by the Construction Manager be made or confirmed in writing. XXVII. NOTICES All notices, reports and documents required under this Agreement shall be in writing and shall be mailed by First Class Mail, postage prepaid, addressed as follows: A. As to CITY: James Nowicki City of Elgin Fiscal Services Director 150 Dexter Court Elgin, Illinois 60120-5555 B. As to Construction Manager: Randy W. Trull 3600 N. Capital of Texas Highway Suite 180 Austin, TX 78746 IN WITNESS WHEREOF, the undersigned have placed their hands and seals upon and executed this Agreement in triplicate as though each copy hereof was an original and that there are no other oral agreements that have not been reduced to writing in this statement. For the CITY: ATTEST: THE CITY OF ELGIN By J2-1 ii— By Ci y Clerk City Mana:fi (SEAL) Bowes Creek Agreement 8 For the Construction Manager: Dated this1 st day of July , A.D., 2005 By / 7((Individual — Ra y Sole Proprietor (SEAL) Bowes Creek Agreement 9 �yOFf�C `„ �4"§ Agenda Item No. \-\ �,,, City of Elgin a y,u,_ '1/EDFO' E L .1.. June 17,2005 G _____ N TO: Mayor and Members of the City Council RECREATIONAL LEISURE ANC/CULTURAL OPPORTUNITIES FOR ALL CITIZENS FROM: Olufemi Folarin, City Manager Mike Lehman, Golf Services ager SUBJECT: Golf Construction Management Services PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider an agreement for golf course construction management services for the development of Bowes Creek Country Club. RECOMMENDATION It is recommended that the City Council approve the agreement with Randy W. Trull, Golf Project Management, for golf course construction management services in the amount of $186,000 and variable travel expenses not to exceed $45,360, for a total contract agreement price of$231,360. BACKGROUND Requests for Proposals for golf course construction management services for Bowes Creek Country Club were issued on April 15, 2005 to six (6) qualified firms. Three proposals were received on May 2, 2005. Interviews of all three of these firms were conducted on May 23, 2005. Based on the interviews and proposals, staff recommended Randy W. Trull as the most qualified candidate based on professional experience and ability to meet the scope of services required. Mr. Trull has previously provided project management services in conjunction with Phase 1 of the Highlands of Elgin Golf Course. The other two firms were Kemper Sports Management and VisionGolf. Further, a negotiation took place with City staff and Mr. Trull on May 25,2005 as to identify any cost savings or value added services that Trull could offer the City. Attached is a letter dated June 6, 2005 that outlines the specifics of the negotiation and the agreement with the City will reflect these details. eillb' • .. r" Golf Construction Management Services June 17,2005 Page 2 The Agreement provides for the City to use Randy W. Trull as our golf course construction manager for Bowes Creek and any Highlands Phase 2 activities during a specified 24 month period of Bowes Creek Country Club construction, beginning with the City Council approval of this agreement. The construction of Bowes Creek Country Club has a tentative construction timeline beginning June, 2006 pending permit approvals, which are currently being pursued. The construction of the 18 holes and clubhouse is scheduled through 2007 with a tentative opening of the golf course to the public in the spring of 2008. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED Toll Brothers, Inc. FINANCIAL IMPACT The agreement with Randy W. Trull will total a not to exceed figure of$231,360. As a result of the Toll Brothers annexation agreement, all golf course development expenses will be shared r equally between the City and Toll Brothers. All expenses will initially be paid by Toll Brothers and offset by credits to future development fees. The eventual cost to the City for this service will be a not-to-exceed amount of$115,680 (50% Of$231,360) over the 24 month development schedule. LEGAL IMPACT Ay7one ALTERNATIVES 1. Not to accept the recommendation of staff and continue to interview candidates for project management services. 2. Not accept additional services offered through negotiations and commit to services and proposal originally defined by scope of services in original RFP. Respectfully submitted for Council consideration. ML Attachment r BOWES CREEK COUNTRY CLUB GOLF CONSTRUCTION MANAGEMENT SERVICES BID BIDDER MANAGEMENT SERVICE BID Vision Golf $192,000 Randy Trull 231,360 Kemper Sports Management 640,000 * * 4%of construction costs estimated at$16 Million rbk * * aft * *[ r * * •►re., RANDY W. TRULL June 6, 2005 Golf Project Management Mr. Jim Nowicki Finance Director City of Elgin, IL 150 Dexter Court Elgin, Illinois 60120-5570 Dear Mr. Nowicki, As discussed with you and Mike Lehman during our phone conversation last week, I am very pleased, based on proposals received and interviews with prospective bidders conducted Monday May 23, 2005,to be selected as your"first choice"to provide Construction Management Services for the Bowes Creek Project. I understand that I am not the"low bidder"insofar as price, but my offering is deemed by the selection committee to offer a greater range and superior level of service. Of course, I recognize that cost is always an issue, and in order to provide"added value" to of set the difference in cost between myself and my competitors, I wish to offer, at no additional cost, services relating to Phase II development of The Highlands of Elgin golf facility. If selected as your Construction Manager for the Bowes Creek project, I would be pleased to provide additional services relative to Phase II development of The Highlands of Elgin project, including advisory/consulting services relating to existing lake edge treatments, clubhouse development, site planning& design, water source, permitting, cost estimation and/or other issues. My proposed fee for Bowes Creek Construction Management Services, based on the 24 month schedule specified in the RFP, is$186,000. It is my understanding that this is not an issue... In that regard, I am in fact the low bidder. The issue appears to be my cost for travel expenses. Proposed estimated expenses, for travel between Austin, Texas and Elgin, IL, based on the 24 month schedule and frequency/duration of site visits is $45,360. This is what I propose...I will provide Construction Management Services for Bowes Creek Golf Club, as outlined in my proposal, and include within the scope of services during the term of service for Bowes Creek, any advisory/consulting services relating to future development of"The Highlands" project, for a"fixed cost"of$231,360, based on the following schedule: 4700 North Capital of Texas Hwy,Suite 1025,Austin,TX 78746 Office(512)732-2006*Fax(512)732-2776*Mobile(512)964-1418 The City of Elgin—Bowes Creek Golf Club 'June 6, 2005 Page Two Fee-Pre-construction and Planning: Period: 06/01/2005 through 04/01/2006 10 Months Monthly Fee: $ 7,000.00 Total: Pre-construction and Planning $70,000.00 Fee- Construction: Period: 04/01/2006 through 12/01/2006 08 Months Monthly Fee $10,000.00 Total: Construction Management $80,000.00 Fee-Post-construction: Period: 12/01/2006 through 06/01/2007 06 Months Monthly Fee: $ 6,000.00 Ancillary Services Total: Post-construction $36,000.00 Total Fees: $186,000.00 Expenses: Expense for travel is based on an estimated cost of$810.00 per trip. It is presumed,based on past experience, that I will be required to travel to the site twice(2)each month during Pre and Post-construction periods(total of 16 months)and three times per month during the period of Construction(8 months): Total Allowance for Expenses: $ 45,360.00 TOTAL PROPOSED COST $231,360.00 You asked during the interview process if I would be willing to agree to a"fixed cost" agreement structure. I would indeed be willing to agree to this by dividing the proposed combined fees and expenses($231,360)by the duration of the proposed schedule(24 months). This eliminates any confusion or complication by fixing the monthly fee at $9,640 per month for the next 24 months. I would, therefore, assume any risk for increased travel expenses and/or increased number of site visits that may be necessary throughout the proposed development period. 4700 North Capital of Texas Hwy, Suite 1025,Austin,TX 78746 Office(512)732-2006*Far(512)732-2776*Mobile(512)964-1418 • The City of Elgin—Bowes Creek Golf Club June 6, 2005 Page Three Also, in the event that, during the development process, progress is delayed to the point that no productive work is being accomplished, I would agree to waive or reduce my fee during that period. For example, if planning is complete and we find the project is "stalled" while we are waiting for permit approvals [or other reason] and no productive activity is necessary or performed during such waiting period,the 24 month schedule would be extended and I would not be entitled to payment during such period of suspension. Call this a simple"no work, no pay" agreement. I realize this is not a highly defined and specific arrangement but it's difficult to prescribe. I would hope our past working relationship would afford each of us assurance that we will deal fairly and reasonably with one another in the event of such circumstances. I was asked during the interview process what I believe to be my strengths qualifying me for this position...I have worked closely with City of Elgin staff members in the past and believe I possess and offer: • a sound understanding of the requirements, practices, procedures and policies of the City, • an understanding of The City of Elgin's golf recreation program. Specifically, the City's desire to provide a well-rounded program offering all levels of golf to residents and/or non-residents of Elgin. This is made possible by offering Wing- Park at the very-affordable golf level, Highlands at the mid-tier level and Bowes Creek at the upper-tier level. With some forethought, The Highlands and Bowes Creek are at the stage of development to satisfy these objectives. • an intimate knowledge and understanding of future plans and requirements to complete development of The Highlands of Elgin Golf facility, including closure of the existing mining operation, environmental/permitting issues, clubhouse development, water source requirements, etc. • a working relationship with permitting authorities having jurisdiction over both Bowes Creek and The Highlands facilities, • a past working relationship and familiarity with designers of both the Bowes Creek(Rick Jacobson)and The Highlands(Keith Foster)facilities, • an understanding of golf construction practices and procedures, gleaned from years of employment as a golf course contractor. I know and understand how contractors think and more importantly, how they negotiate and realize profit from their work, 4700 North Capital of Texas Hwy,Suite 1025,Austin,TX 78746 Office(512)732-2006*Fax(512)732-2776*Mobile(512)964-1418 The City of Elgin—Bowes Creek Golf Club June 6, 2005 Page Four • a knowledge of how to mitigate costs, more importantly, not just how to cut costs but where without sacrificing quality, • a great deal of experience and involvement on golf development projects within a residential community and an understanding of how golf and adjacent housing must work together...what the costs are and how to share and/or separate those costs. It is my fervent hope that you find these terms acceptable and I receive your endorsement to serve as Construction Manager for The City of Elgin. Please contact me if I may be of assistance in any way or if you or members of the committee wish to discuss this matter further. Sincer rs, Randy W. Trull Golf Project Manager 4700 North Capital of Texas Hwy, Suite 1025,Austin,TX 78746 Office(512)732-2006*Fax(512)732-2776*Mobile(512)964-1418