02-104 Resolution No . 02-104
RESOLUTION
AUTHORIZING EXECUTION OF A THIRD AMENDMENT AGREEMENT WITH
GILBANE BUILDING COMPANY FOR THE CENTRE CONSTRUCTION PROJECT
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Olufemi Folarin, Interim City Manager, and Dolonna
Mecum, City Clerk, be and are hereby authorized and directed to
execute a Third Amendment Agreement on behalf of the City of
Elgin with Gilbane Building Company for construction manager
services for The Centre construction project, a copy of which is
attached hereto and made a part hereof by reference .
s/ Ed Schock
Ed Schock, Mayor
Presented: March 13 , 2002
Adopted: March 13 , 2002
Vote : Yeas : 5 Nays : 2
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
Agenda Item No.
a City of Elgin
February 22 , 2002
TO: Mayor and Members of the City Council RF CREATIONAL LEIS ll1t C:
ANA CULTURAL OPFOIATUNITIES
FOR ALL GII'IZLNS
FROM: Olufemi Folarin, Interim City Manager
SUBJECT: Amendment No. 3 to Gilbane Construction
Management Agreement for The Centre
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. 3 to the Gilbane contract for Construction Management Services
related to The Centre .
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 Centre development . Amendment No. l
was approved on July 11, 2001 and Amendment No. 2 was approved on
July 25, 2001 . These amendments established the Guaranteed Maximum
Price (GMP) for the bids and construction services current to the
date of the amendment . The GMP is determined by adding all bids
related to construction, Gilbane' s on-site construction service
costs, the construction manager' s contingency and the 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 phases or amendments to the contract .
Amendment No. 1 established the GMP for the parking structure.
Amendment No. 2 established the GMP for site utilities, mass
excavation, building concrete and structural steel, all related to
The Centre . Amendment No. 3 establishes the GMP for the remaining
construction bid items with the exception of the pools . The balance
eoo` of the pool contract will be included in a future GMP amendment .
Amendment No. 3 bid items are identified in exhibit A attached to
the subject amendment agreement .
Gilbane Construction Amendment No. 3
February 22, 2002
Page 2
All bids have been received and the City Council has authorized
Gilbane to execute all contracts relative to the list found in
exhibit A.
Amendment No. 3 includes several alternate bid items that have not
yet been considered by the City Council . A list of the items can
be found within exhibit E of the amendment agreement . Please
recall early in the bidding phase of the project, projected costs
of the various bid elements were exceeding then approved budgets.
The Recreation Center Advisory Team (RCAT) was asked to develop a
list of alternatives that could be considered later if a favorable
bidding environment was realized. At the completion of bidding the
construction elements of the project, not only was a favorable
bidding environment not realized, bids for the base project
elements exceeded the construction budget .
Information was submitted to the City Council during the budget
process which outlined the bidding results and the projected budget
deficit . In order to reconcile the project budget, one of two
things had to occur. One, the scope of the building needed to be
reduced to hold the current project in line with the budget, or
two, additional funding needed to be approved. It was agreed that
no changes be made to the building and that additional funding was
needed to fund the deficit and the alternate bids . Consequently,
$2, 000, 000 was included in the approved 2002 budget . The
$2, 000, 000 was to be divided $1, 300, 000 for base construction bids,
additional construction service and design service costs and
$700, 000 was to be used to fund alternate bids .
Subsequent to the 2002 budget approval, RCAT met to determine which
alternates to fund. The list found in exhibit E of the amendment
agreement details the alternates chosen and the respective cost .
The list only totals $303 , 757 when the cost of the pedestrian
bridge, previously approved in the project budget, is deducted.
The pedestrian bridge is added to this list only to include it in
the GMP. The balance of the $700, 000 alternate fund budget
($396, 243) will be used for the climbing wall and FF&E (furniture,
fixtures and equipment) . These items will be brought back to the
City Council at a later date .
The initial approval on May 24, 2000 established a construction
service fee of $1, 697, 112 . Amendment No. 1 increased the
construction service fee $62 , 550 due to the additional level added
to the parking deck. The subject Amendment No. 3 again increases
the construction service fees $24, 053 and $358 , 663 for the addition
of the pedestrian bridge and for an extended overall construction
schedule, respectively. When Gilbane' s contract was initially
approved, the completion date was expected in mid June 2002 .
Gilbane Construction Amendment No. 3
February 22, 2002
Page 3
Since that initial approval, the size and complexity of the
building has increased and, consequently, so has the time to
complete construction.
In addition to the above construction management fees associated
with The Centre, this GMP amendment cost also includes low bids in
the amount of $17, 572 , 880, the construction manager' s contingency
in the amount of $111, 742, the owner' s contingency in the amount of
$19, 558 and the alternate bid values in the amount of $885, 959 . A
copy of Amendment No. 3 is attached for your consideration.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None.
q� FINANCIAL IMPACT
The budget for The Centre and Parking Structure, project number
509560, is $35, 460, 092 . 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 16, 359, 812
340-0000-795 . 92-36 300, 000
380-0000-795 . 92-36 16, 750, 000
275-0000-601 . 60-00 50 , 280
$35, 460 , 092
To date, the following expenditures and encumbrances have been
charged against the project budget .
Account Number Amount
270-0000-791 . 92-36 $ 1, 928, 943
275-0000-791 . 92-36 2 , 250 , 345
340-0000-605 . 14-00 101, 946
380-0000-795 . 92-36 11 , 665 , 554
$15, 946, 788
Gilbane Construction Amendment No. 3
February 22 , 2002
Page 4
The addition of the subject Amendment No. 3 will increase our
current contract with Gilbane to a total of $32 , 259, 084 . Deducting
previous contract and amendment encumbrances ($13 , 522 , 120) , the
amount of Amendment No. 3 equals $18, 736 , 967 . The increase to the
Gilbane contract can be funded within the project budget .
LEGAL 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. 3 with Gilbane Building Company for an additional
contract amount of $18, 736, 967 and direct staff to execute the
necessary documents .
Respectfully submitted,
Olu emi larin
Interi Ci y Ma ger
DLL:dll
Attachment
THIRD AMENDMENT AGREEMENT
THIS THIRD AMENDMENT AGREEMENT is made and entered into this 28th day of
February 2002, by and between the CITY OF ELGIN, an Illinois municipal corporation
(hereinafter referred to as the "City") and GILBANE BUILDING COMPANY, A Rhode Island
corporation (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 (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), MEP, building enclosure, and interior finishes (which includes mechanical,
electrical, plumbing, fire protection, sound reinforcement systems, data/telephone/CATV
cabling, security system, masonry, precast planks, miscellaneous metals, general trades,
roofing, spray on fireproofing, glass & glazing, drywall/plaster/acoustical ceilings, pool
construction (engineering and procurement of materials only), flooring, painting, lockers,
bleachers and gymnasium equipment, kitchen equipment and various specialties) 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 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; and
WHEREAS, the City and the Construction Manager have previously entered into a First
Amendment Agreement dated July 11, 2001, providing for a guaranteed maximum price for the
Parking Garage Phase of the Project in the amount of$6,217,945; and
WHEREAS, the Construction Manager has received all subcontract and supplier bids for
the Underground and Structural Work Phase of the Project (which includes site preparation, site
utilities, building concrete, and structural steel) and has proposed to the City a Guaranteed
Maximum Price for the Underground and Structural Work Phase of the Project; and
WHEREAS, the City and the Construction Manager have previously entered into a
Second Amendment Agreement dated July 25, 2001, providing for a guaranteed maximum price
for the Underground and Structural Work Phase of the Project in the amount of$6,087,650; and
Third Amendment Agreement/ Elgin Family Recreation Center and Parking Garage
WHEREAS, the Construction Manager has received all subcontract and supplier bids for
the MEP, Building Enclosure, and Interior Finishes Phase of the Project (which includes
mechanical, electrical, plumbing, fire protection, sound reinforcement systems,
data/telephone/CATV cabling, security system, masonry, precast planks, miscellaneous metals,
general trades, roofing, spray on fireproofing, glass & glazing, drywall/plaster/acoustical ceilings,
pool construction (engineering and procurement of materials only), flooring, painting, lockers,
bleachers and gymnasium equipment, kitchen equipment and various specialties) and has
proposed to the City a Guaranteed Maximum Price for such MEP, Building Enclosure, and
Interior Finishes Phase of the Project; and
NOW, THEREFORE, for and in consideration of the mutual undertakings as contained
herein, and the mutual undertakings as contained in the Agreement between the City and the
Construction Manager of June 14, 2000, as amended by the First Amendment Agreement
between the City and the Construction Manager dated July 11, 2001 and as amended by the
Second Amendment Agreement between the City and Construction Manager dated July 25,
2001, 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 Construction Manager dated June 14,
2000, as amended by the First Amendment Agreement between the City and the
Construction Manager dated July 11, 2001 and as amended by the Second
Amendment Agreement between the City and Construction Manager dated July 25,
2001, is hereby further amended as follows:
A. The Guaranteed Maximum Price for the MEP, Building Enclosure, and Interior
Finishes Phase of the Project, which includes mechanical, electrical, plumbing,
fire protection, sound reinforcement systems, data/telephone/CATV cabling,
security system, masonry, precast planks, miscellaneous metals, general trades,
roofing, spray on fireproofing, glass & glazing, drywall/plaster/acoustical ceilings,
pool construction (engineering and procurement of materials only), flooring,
painting, lockers, bleachers and gymnasium equipment, kitchen equipment and
various specialties, (such phase of work is hereinafter collectively referred to as
the "MEP, Building Enclosure, and Interior Finishes Phase") is $19,953,489
which includes all of the Cost of the Work, the Construction Manager's
Contingency, the Owner's allowance (if any) 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 MEP, Building Enclosure, and Interior
Finishes Phase is attached hereto and made a part hereof as Exhibit A.
B. The Guaranteed Maximum Price of $19,953,489 for the MEP, Building
Enclosure, and Interior Finishes Phase of the Project is for the performance of
the Project in accordance with the documents listed and attached to this Third
Amendment Agreement and marked Exhibits A through E, as follows:
1.) Exhibit A — Cost Summary providing for cost items of the Guaranteed
Maximum Price for the MEP, Building Enclosure, and Interior Finishes Phase
of the Project.
2.) Exhibit B — Drawings, Specifications, Addenda, and General, Supplemental,
and other Conditions of the Contract upon which the Guaranteed Maximum
Price for the MEP and Building Enclosure Work MEP, Building Enclosure,
and Interior Finishes Phase of the Project is based.
2
Third Amendment Agreement/Elgin Family Recreation Center and Parking Garage
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 First Amendment Agreement between the City and the
Construction Manager dated July 11, 2001, which provided for a Guaranteed
Maximum Price for the Parking Garage Phase of the Project in the amount of
$6,217,945, and as a result of the Second Amendment Agreement between the
City and the Construction Manager dated July 25, 2001 which provided for a
Guaranteed Maximum Price for the Underground and Structural Work Phase of
the Project in the amount of $6,087,650, and as a result of this Third Amendment
Agreement which provides for a Guaranteed Maximum Price for the MEP and
Building Enclosure Work MEP, Building Enclosure, and Interior Finishes Phase
of the Project in the amount of $19,953,489, it is agreed that the total Guaranteed
Maximum Price for the Parking Garage Phase, Underground and Structural Work
Phase, and the MEP and Building Enclosure Work MEP, Building Enclosure, and
Interior Finishes Phase of the Project is the total of those three sums being in the
amount of$32,259,084.
D. The City has requested that the Construction Manager perform preconstruction
services for the Symphony Way and Grove Avenue streetscape improvements
work. In accordance with Article 2.1 the scope of the Construction Manager's
preconstruction services shall be increased in the amount of $12,000 for a
revised lump sum total of $214,620. Preconstruction services for the Symphony
Way and Grove Avenue streetscape improvements shall include preparation of
one detailed cost estimate of 100% Construction Documents, scheduling of the
Symphony Way and Grove Avenue streetscape improvements in conjunction
with the Recreation Center and Parking Garage Project, and procurement of
subcontractors and suppliers for the Symphony Way and Grove Avenue
streetscape improvements.
E. It is acknowledged and agreed that the Construction Manager's Contingency
through the First Amendment Agreement dated July 11, 2001 and the Second
Amendment Agreement dated July 25, 2001 totals $330,281.00. It is further
acknowledged and agreed that Section 2.2.2 of the Agreement provides for the
Construction Manager's Contingency in the amount of three (3%) percent for the
project and that the Construction Manager's Contingency through the First
Amendment Agreement dated July 11, 2001 and the Second Amendment
Agreement dated July 25, 2001, and the MEP, Building Enclosure, and Interior
Finishes Phase of the Project if calculated pursuant to Section 2.2.2 would have
therefore been in the amount of $883,038. In an effort to cooperate with the City
to keep the Guaranteed Maximum Price for the Project within the Project budget,
the Construction Manager agrees to reduce the allocated Construction
Manager's Contingency, without revising Section 2.2.2 of the Agreement, to
$441,519, being $441,519 less than the three (3%) percent contingency of
$883,038. It is agreed and understood that in the event there are additional
3
Third Amendment Agreement/ Elgin Family Recreation Center and Parking Garage
costs properly reimbursable as a cost of work but not the basis for a change
order which the Construction Manager may properly charge to the three (3%)
percent Construction Manager's Contingency pursuant to the Agreement, the
City shall be responsible for and shall pay the Construction Manager by Change
Order such additional costs of the Project to the extent the total of any such
additional costs exceed $441,519 but are not greater than $883,038. The
Construction Manager shall be responsible for any additional costs to the extent
the total of any such additional costs exceed the sum of the Guaranteed
Maximum Price plus $441,519 as defined by Section 5.2.1 of the Agreement. It
is further agreed and understood for the sole purpose of calculating any savings
and any additional compensation to the Construction Manager pursuant to
Section 5.2.2 of the Agreement, that the Guaranteed Maximum Price for the sole
purpose of Section 5.2.2 of the Agreement shall include a Construction
Manager's Contingency in the total amount of$883,038, less any additional costs
charged to the Construction Manager's Contingency
2. The reasons for the changes as outlined by this Third 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 of June 14, 2000, as amended by the First
Amendment Agreement dated July 11, 2001, and further amended by the Second
Amendment Agreement dated July 25, 2001 shall remain in full force and effect.
4. That in the event of any conflict between the provisions of this Third Amendment
Agreement and the Agreement of June 14, 2000, as amended by the First Amendment
Agreement dated July 11, 2001, and further amended by the Second Amendment
Agreement dated July 25, 2001 the terms of this Third Amendment Agreement shall
control.
IN WITNESS WHEREOF the parties have entered into and executed this Third
Amendment Agreement on the date and year first written above.
CITY OF ELGIN GILBANE BUILDING COMPANY
r ,
By By -C -
City Manager
Attest: Attest:
City Clerk
4
• . 2/28!2002
City of Elgin Family Recreation Center
Job#2884
Elgin Recreation Center Guaranteed Maximum Price Amendment#3
Exhibit A-Cost Summary
Bid Base Bid
Pkg. Description Contractor Amount Total
Trade Contractor Costs-GMP Amendment#3
04B Masonry Midwest Masonry $ 2,527,200 $ 2,527,200
04C Precast Planks Spancrete $ 92,670 $ 92,670
05C Miscellaneous Metals Waukegan Steel Sales $ 912,000 $ 912,000
06B General Trades Edwin Anderson $ 1,521,000 $ 1,521,000
07A Roofing/Sheetmetal Elgin Roofing $ 723,520 $ 723,520
07B Spray on Fireproofing Spray Insulation $ 399,000 $ 399,000
08A Glass&Glazing C.A.D.Contract Glazing $ 1,540,500 $ 1,540,500
09A Drywall/Plaster/Acoustical Ceilings OPC Construction $ 1,389,000 $ 1,389,000
09B CeramkVQuarry Tile/Terrazzo R.D.Roman $ 187,424 $ 187,424
09C Resilient Flooring/Carpeting Libertyville Tile&Carpet $ 361,665 $ 361,665
09D Resilient Athletic/Wood Flooring Floors Inc. $ 398,000 $ 398,000
09E Painting Ascher Brothers $ 231,900 $ 231,900
10A Lockers/Gym Bleachers Larson Equipment $ 267,900 $ 267,900
12A Gymnasium Equipment Porter Athletic Equipment $ 96,200 $ 96,200
** 13A Swimming Pools Paragon Aquatech $ 392,988 $ 392,988
14A Kitchen Equipment Boelter Companies $ 116,737 $ 116,737
15B HVAClTernperature Controls Oak Brook Mechanical $ 2,481,000 $ 2,481,000
15C Plumbing Jensen's Plumbing&Heating $ 1,048,000 $ 1,048,000
15D Fire Protection Century Automatic Sprinkler $ 358,600 $ 358,600
16B Electrical Work Preferred Electrical $ 1,965,298 $ 1,965,298
16C Sound Reinforcement Systems Advent Systems $ 284,135 $ 284,135
16D Datafrelephone/CATV Cabling Chicagoland Cabling $ 76,998 $ 76,998
16E Security System MidCo Inc. $ 108,145 $ 108,145
Subtotals $ 17,479,880 $ 17,479,880
Allowances for Rec Center not included above per Exhibit C $ 93,000
Subtotal $ 17,572,880
Alternates Accepted by City per Exhibit E $ 852,365
Subtotal-All Contractor Costs $ 18,425,245
Construction Management Construction Phase Services' $ 1,397,418
$ 19,822,663
Construction Manager's Construction Contingency for GMP Amendment#3 $ 111,238
Owner's Contingency $ 19,558
Total Guaranteed Maximum Price for Amendment#3 $ 19,953,459
" Partial amount for noted bid package for initial shop drawings/engineering and initial work on site.
Remainder of contract value($1,178,962)to be included in future amendment.
• . 2/28/2002
City of Elgin Family Recreation Center
Job#2884
Calculation of Parking Garage CM Construction Phase Services:
Parking Garage(from bids above,incl.Extra level) $ 5,540,609 19.4%
Rec Center Underground/Structural Work $ 5,468,757 19.2%
Rec Center MEP/Building Enclosure/Interior Finishes Phase $ 17,479,880 61.4%
$ 28,489,246 100.0%
Original CM Construction Phase Fee $ 1,697,112
Increase for Parking Garage Additional Level $ 62,550
Increase for actual project schedule extension to November 1,2002 $ 358,663
Increase for markup on Accepted A temates $ 24,853
$ 2,143,178
Allocation Between Garage and R.C.on a%basis: Parking Garage $ 400,305 19%
Rec Center-GMP Amendment#2 $ 345,455 16%
Rec Center-GMP Amendment#3 $ 1,397,418 65%
$ 2,143,178
Summary of Guaranteed Maximum Price to Date
Guaranteed Maximum Price-Amendment#1 $ 6,217,945
Guaranteed Maximum Price-Amendment#2 $ 6,087,650
Guaranteed Maximum Price-Amendment#3 $ 19,953,459
Total Guaranteed Maximum Price to Date $ 32,259,054
• . 2/28/2002
City of Elgin Family Recreation Center
Job#2884
Contingency Calculations
Construction Manager's Contingency
Total Contractor Costs-Amend.#1 $ 5,540,609
Total Contractor Costs-Amend.#2 $ 5,468,757
Total Contractor Costs-Amend.#3 $ 18,425,245
Total-All Contractor Costs through Amendment#3 $ 29,434,611
Contingency per Section 2.2.2 of Agreement $ 883,038
Voluntary Reduction per Amendment#3 $ 441,519
Contingency through Amendment#3 $ 441,519
Less:Contingency in Amendment#1 $ 166,218
Contingency in Amendment#2 $ 164,063
Additional Contingency to be included in Amendment#3 $ 111,238
Owner's Contingency
Amendment#1 $ 110,812
Amendment#2 $ 109,375
Owner Direct Costs(Summary by City Staff) $ 85,255
Amendment#3 $ 19,558
Total through Amendment#3 $ 325,000