01-202 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
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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.
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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 .
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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
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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
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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
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