05-65 Resolution No. 05-65
RESOLUTION
AUTHORIZING EXECUTION OF A FIFTH AMENDMENT AGREEMENT
WITH GILBANE BUILDING COMPANY FOR
CONSTRUCTION MANAGEMENT SERVICES FOR THE CENTRE
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 on behalf of the City of Elgin with Gilbane Building Company for
construction management services for The Centre, a copy of which is attached hereto and made a
part hereof by reference.
s/Ed Schock
Ed Schock,Mayor
Presented: March 9, 2005
Adopted: March 9, 2005
Omnibus Vote: Yeas: 6 Nays: 0
Attest:
s/Dolonna Mecum
Dolonna Mecum, City Clerk
FIFTH AMENDMENT AGREEMENT
THIS FIFTH AMENDMENT AGREEMENT is made and entered into this
ly-rµ day of MAP- C-14 , 2005, 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 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
i
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,
City nGuarante Guaranteed mum structural
steel) and has proposed to the and Structural
City a G
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
Work Phase guaranteed
ot he Project in the amount Uodfe
Structural $6, 087 , 650;
and
WHEREAS, the City and the Construction Manager have previously
entered into a Third Amendment Agreement dated February 28, 2002 ,
providing for a guaranteed maximum price for the MEP, Building
Enclosure, and Interior Finishes Phase of the Project in the amount
of $19, 953 , 459 ; and
WHEREAS, the City requested the Construction Manager to
perform construction phase services for the Symphony Way and Grove
Avenue streetscape improvements work; and
WHEREAS, the City and the Construction Manager have previously
entered into a Fourth Amendment Agreement dated August 8, 2002 ,
providing for a guaranteed maximum price for the pool
construction/climbing wall and Symphony Way and Grove Avenue
streetscape improvements work in the amount of $3 , 712 , 487 ; and
WHEREAS, the Construction Manager has completed the Project
and the City and the Construction Manager desire to enter into this
Fifth Amendment to provide for an adjustment to the guaranteed
maximum price to reflect the costs of trade contract changes as
provided for in Change Order Number 5, to provide for additional
reimbursable costs, to provide for additional testing services
costs and to reflect further agreement between the City and the
Construction Manager regarding the Construction Manager contingency
and savings and additional compensation to the Construction Manager
related thereto.
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 the he Construction
Manager of June 14, 2000, as amended by
Agreement between the City and the Construction Manager dated
July 11, 2001, as amended by the Second Amendment Agreement between
the City and Construction Manager dated July 25, 2001, as amended
by the Third Amendment Agreement between the City and Construction
Manager dated February 28, 2002 , and as amended by the Fourth
Amendment Agreement between the City and Construction Manager dated
August 8, 2002 , and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree as follows :
2
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 as
amended by the Third Amendment Agreement dated February 28, 2002 ,
and as amended by the Fourth Amendment Agreement dated August 8,
2002 , is hereby further amended as follows :
A. It is acknowledged and agreed that the Guaranteed
Maximum Price for the Project through the Fourth Amendment
Agreement was in the total amount of $35 , 971, 541 . It is agreed
that as a result of the costs of trade contract changes as provided
in Change Order Number 5 and as a result of additional reimbursable
expenses and additional testing costs incurred by the Construction
Manager on behalf of the Owner that the new agreed to Guaranteed
Maximum Price for the Project (including preconstruction services
in the amount of $214, 620) shall be in the amount of $36, 539,
Attached hereto and made a part hereof by this reference is a
letter of December 22 , 2003 from the Construction Manager, as
amended by the attachment thereto dated January 12, 2004, detailing
the calculation for such new Guaranteed Maximum Price.
B. It is acknowledged and agreed that the Construction
Manager' s Contingency by agreement between the City and the
Construction Manager pursuant to the Fourth Amendment Agreement was
reduced to the amount of $504, 591 . It is further acknowledged and
agreed that the Construction Manager has agreed to an adjustment
from the Construction Manager' s Contingency in Change Order
Number 5 in the amount of $204, 158 to assist the City in meeting
the City' s budgetary goals . It is further agreed that the
Construction Manager shall receive from the City in satisfaction of
the additional compensation due to the Construction Manager
pursuant to Section 5 . 2 . 2 of the Agreement the amount of $90, 000 .
2 . The reasons for the changes as outlined by this Fifth
Amendment Agreement are germane to the original contract as signed.
3 . Nothing herein is intended or shall be construed as
limiting or waiving the Construction Manager' s right pursuant to
Section 6 . 1 . 6 . 5 of the Agreement to be reimbursed by the City for
legal, mediation and arbitration costs, reasonably incurred by the
Construction Manager in the performance of the Work and with the
City' s written permission.
4 . 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, and further amended by the Third
Amendment Agreement dated February 28, 2002, and further amended by
the Fourth Amendment Agreement dated August 8, 2002 , shall remain
in full force and effect.
3
r
5 . That in the event of any conflict between the provisions
of this Fifth 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, and the Third Amendment Agreement dated February 28,
2002 , and further amended by the Fourth Amendment Agreement dated
August 8, 2002 , the terms of this Fifth Amendment Agreement shall
control .
IN WITNESS WHEREOF the parties have entered into and executed
this Fifth Amendment Agreement on the date and year first written
above.
CITY OF ELGIN GILBANE BUILDING COMPANY
By
\mss._ ` By
City Mana er
Attest : Attest:
City Clerk
4
City of Elgin
Agenda Item o.
February 18, 2005 ,
TO: Mayor and Members of the City Council FINANCIALLY STABLE CITY GCWENNMENT
EF FIC TENT SEFVICES,
AND C1W LITY INFRASTRUCTURE FROM: Olufemi Folarin, Acting City Manager
David L. Lawry, General Services Gro Director
SUBJECT: Final Amendment #5 and Change Order #5 to the Gilbane Construction
Management Agreement for the Centre Construction Project
PURPOSE
The purpose of this memorandum is to provide the Mayor and members of the City Council with
information to consider approval of Amendment#5 and Change Order#5 to the Gilbane contract
for Construction Management Services related to The Centre and to the Symphony/Grove
Streetscape Project.
RECOMMENDATION
It is recommended that the City Council approve Amendment#5 and Change Order#5 for a total
amount of$443,431.00 and direct staff to execute the required documents.
BACKGROUND
On May 24, 2000, the City Council approved a contract with Gilbane Building Company of
Chicago (Gilbane) to provide the construction management services associated with The Centre
development. Amendment# 1 was approved on July 11, 2001, Amendment# 2 was approved on
July 25, 2001, Amendment 93 was approved on February 28, 2002, and Amendment #4 was
approved on July 10, 2002. These amendments established the Guaranteed Maximum Price
(GMP) for the sum of all bids and the construction services current to the date of the amendment.
The GMP is determined by adding all low responsive 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 or other circumstances change the scope of the project.
Construction of The Centre was substantially complete, on schedule on November 18, 2002.
Work continued beyond that date to resolve punch list items and remnants of incomplete work.
Gilbane had contracts with 40 contractors to construct the various elements of The Centre. Each
of these contracts required some element of negotiation with Gilbane to determine the final
Fnl Amendment#5 & C.O. #5 to Gilbane for The Centre Constr. Proj.
February 18,2005
Page 2
completed value of their work. With the exception of PBM, the precast manufacturer of the
parking deck brick panels, Gilbane has come to agreement with final costs.
Gilbane completed an extensive document dated December 22, 2003,with elaboration on each of
the subcontract issues. City staff has reviewed the elements of this report and concurs with
Gilbane's final cost. Due to the voluminous nature of this document, it has not been attached to
this memorandum. Copies shall be made available upon request.
The City's Corporation Counsel is working with Gilbane's legal counsel to conclude the request
for additional compensation submitted by PBM. At this time, both City Staff and Gilbane do not
believe the final costs submitted by PBM are warranted. When the issue reaches a resolution,
more information will be brought back to City Council.
The City's contract with Gilbane includes a process for change orders within the established
GMP. The attached change order#5 documents the changes Gilbane was required to incorporate
into the project. These changes were items not recognized at the time the subcontracts were bid
and were necessary to complete the project. As stated above, a component of the established
GMP is the Owner's contingency. This contingency is intended to support out-of-scope changes
to the GMP without affecting the value of the GMP. Change Order #5 causes the owner's
contingency to be exceeded by $23,070. Amendment #5 incorporates this value into the final
cost of the project.
Amendment #5 will establish the final construction cost of The Centre. The main cost elements
of this amendment are:
1) Reimbursable Expenses (not included in GMP $330,361
to date. See the attached amendment document
for reimbursable expense detail)
2) Shared Savings (Gilbane contractually shares $ 90,000
25%of unused contingency)
3) Change Order# 5 I.P. 23,070
TOTAL $443,431
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None.
Fnl Amendment#5 & C.O. #5 to Gilbane for The Centre Constr. Proj.
February 18,2005
Page 3
91A- FINANCIAL IMPACT
The cost associated with Amendment 5 with Gilbane Construction is $443,431. The budget for
The Centre and Parking Structure, project number 509560, is $41,138,640. A summary of the
project accounting is found below.
Account Number Fund Name Amount
270-0000-791.92-36 Fox Bluff Development $ 2,000,000
275-0000-791.92-32 Riverboat Operating 48,000
275-0000-791.92-35 Riverboat Operating 25597,100
275-0000-791.92-36 Riverboat Operating 16,459,812
296-5051-792.92-46 Parks&Recreation 276,153
340-0000-795.92-36 Park Development 300,000
380-0000-795.92-36 2003 G.O. Bond Projects 17,297,575
382-0000.795.92-36 2002 G.O. Bond Projects $ 2,160,000
$41,138,640
To date, encumbrances against this budget are:
1) Gilbane GMP #1 $ 6,217,945
2) Gilbane GMP#2 6,087,650
3) Gilbane GMP #3 19,953,489
4) Gilbane GMP #4 3,927,077
5) Gilbane GMP #5 and Final 443,431
(This item also appears on this agenda for approval)
6) Williams Contract 1,738,814
7) Williams Contract, Amendment#2 352,654
8) Williams Contract, Amendment#3 28,000
9) Williams Contract, Amendment#4 472,778
10) Williams Contract,Amendment#5 and Final 99,215
(This item also appears on this agenda for approval) 376,476
11) Furniture,Bid#02-058 44,735
12) Fitness Equipment, Bid#02-067 11,988
13) Washer& Dryer, Bid#02-081 22,891
14) Resistance Equipment, Bid#02-084 27,158
15) PC's,Bid#02-86 48,950
16) Scoreboards, Bid#02-096 ,530
17) Window Treatments, Bid#02-104 1 1616,752
18) Cardio Equipment,Bid#02-106 28,155
19) Signage, Bid#02-107 18,251
20) Waste Receptacles, Bid#02-109
Fnl Amendment#5 & C.O. #5 to Gilbane for The Centre Constr. Proj.
February 18,2005
Page 4
21) Floor Equipment,Bid#02-115 32,964
22) Landmark Engineering 183,570
23) Capitalized Start Up Expenses 699,200
24) Misc. Expense 82,652
TOTAL $41,075,325
Funds Remaining $ 63,315
LEGAL IMPACT
None.
ALTERNATIVES
1. Approve Amendment#5 as outlined above.
2. Do not approve Amendment#5. The City is however contractually obligated to cover the
cost as outlined above.
Respectfully submitted for Council consideration.
(do)
Attachments