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CITY OF SEWARD, ALASKA
RESOLUTION 2011 -103
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING AMENDMENT NO. 2 FOR $102,158 TO THE
CONSTRUCTION CONTRACT WITH PCL CONSTRUCTION SERVICES
INC. FOR ADDITIVE ALTERNATE # 4 , A MORE DURABLE STONE
SIDING OPTION FOR THE SEWARD LIBRARY MUSEUM PROJECT,
AND ESTABLISHING A $100,000 PROJECT CONTINGENCY, AND
APPROPRIATING FUNDS
WHEREAS, the City of Seward entered into a construction manager general contractor
contract ( "Contract ") with PCL Construction Services, Inc. ( "PCL ") on October 25, 2010 via
Resolution 2010 -098 in the amount of $42,900; and
WHEREAS, under the terms of the contract PCL provided the City of Seward with a
guaranteed maximum price ( "GMP ") of $7,399,999 for construction based on the 100% building
design documents, as approved in Resolution 2011 -051 passed by the Seward City Council on June
20, 2011, as Amendment No. 1 to the Contract; and
WHEREAS, the stone siding option was presented as Additive Alternate #4 to the GMP as
an alternative to the cement fiber board and is at an additional cost of $102,158, and by accepting
this alternative siding, there will be lower long -term maintenance costs, and this change represents
Amendment No. 2 to the Contract; and
WHEREAS, the City of Seward did not establish a project contingency above the GMP and
should establish a working contingency of $100,000 during the construction of the project, to
account for unforeseen but necessary modifications to the scope, the status of which shall be reported
monthly at the city council meetings, and which will require written advance approval by the city
manager in the form of additional amendments to the Contract, prior to committing such funding to
the project; and
WHEREAS, the project is on schedule and on budget and projected for completion in
October 2012; and
WHEREAS, the City of Seward has received funding commitments in the amount of
$9,976,227.52 including: State grant funds in the amount of $4.7 million; City of Seward bond
proceeds in the amount of $3,725,147.73; Rasmuson Foundation grant of $500,000; NEH grant of
$500,000; fundraising commitments from the Seward Community Library Museum Building
Committee of $500,000; building rent in the amount of $26,079.79; and donations from the Sue
Kaanta Trust in the amount of $25,000.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
CITY OF SEWARD, ALASKA
RESOLUTION 2011 -103 laj
Section 1. The City Manager is hereby authorized to approve Amendment No. 2 to the
Contract with PCL Construction Services, Inc.
Section 2. The City Manager is hereby authorized to proceed with Change Order #1 in the
amount of $102,158 to the GMP contract with PCL Construction Services for Alternative #4 (stone
siding to replace fiber cement siding), and funding in the amount of $102,158 is hereby appropriated
from State grant funds to building account no. 626 - 6261 -5810.
Section 3. A project contingency in the amount of $100,000 is hereby authorized and
appropriated from Seward Community Library Museum Building Committee funds to account no.
626 - 6260 -5690. Use of the contingency must be authorized in writing, in advance, by the City
Manager, in the form of an amendment to the contract with PCL Construction, and the City Council
will be informed of utilization of project contingency via the City Manager's report.
Section 4: This resolution will take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 14` of
November, 2011. ,mai
THE CITY OF SEWARD, ALASKA
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A
David Sea ar A Ma 'or
AYES: Valdatta, Bardarson, Shafer, Casagranda, Terry, Seaward
NOES: None
ABSENT: Keil
ABSTAIN: None
ATTEST:
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40; OF SPiiN
- Jo hanna Kinne , MC • ,••gitPc:ta;!a *.,
C ty Clerk ,.��� "'�: ®:
mai Cs r .
(City Seal)
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Council Agenda Statement
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Meeting Date: November 14, 2011 ; - �a
From: Michelle Weston, Assistant City Manager q P
Agenda Item: Authorizing Amendment No. 2 to the construction contract with PCL
Construction Services, Inc. In the amount of $102,158, and establishing a
construction contingency in the amount of $100,000
BACKGROUND & JUSTIFICATION:
The City of Seward entered into a Construction Manager / General Contractor contract with PCL Construction
Services, Inc. ( "PCL ") on October 25, 2010 in the amount of $42,900. The contract was amended on June 20,
2011 (Amendment No. 1) as approved in Resolution 2011 -051, providing for a guaranteed maximum price
( "GMP ") for construction of the Seward Library Museum, of $7,399,999.
The exterior stone siding option (in substitution for cement fiber board) was listed as Alternative #4 of the
GMP Scope of Work (Attachment A). The City of Seward and Library Museum Committee both
recommended Alternative #4 due to lower long -term maintenance costs, but decided to wait on the decision to
proceed with it until after PCL had completed the foundation work, in case any unknown project cost
escalators such as poor soils or major contamination were uncovered (Attachment B). PCL has further refined
the costs of this Change Order to $102,158 (Attachment C). This change order will be approved as contract
Amendment No. 2 and will bring the total amount of the PCL contract to $7,545,057.
This Project is currently on budget (Attachment D) and scheduled to be completed in October 2012. City
Administration requests permission to establish a $100,000 working project contingency for omissions and or
deletions from the GMP scope and will provide Council with a monthly accounting of the contingency.
INTENT: To authorize the City Manager to approve Amendment No. 2 (Change Order #1 for Alternative #4)
to utilize stone siding in substitution of cement fiber board on the PCL GMP Contract and establish a $100,000
working project contingency which is intended to cover changes to the original scope or project conditions, as
approved by the city manager.
CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the Seward City
Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures or
Other Plans or Policies:
FISCAL NOTE: The total amount of funding identified for this project is $9,976,227.52 (Attachment E).
This assumes that the Seward Community Library Building Committee reaches the $500,000 fundraising level,
that the NEH Grant is reaffirmed at the $500,000 level, and that all other funding remains in place. As of
11/7/11, the total amount of funding appropriated for the project from these revenue sources is $9,169,490.23
(including this change order request of $102,158). This leaves unappropriated funds in the amount of
$806,737.29 to be used, in part, to fund the recommended $100,000 project contingency, resulting in a final
unappropriated project balance of $706,737.29.
Approved by Finance Department:
ATTORNEY REVIEW: Yes No
RECOMMENDATION:
Recommend approval of Resolution 2011 - IO.3 authorizing Amendment No. 2 (Change Order #1 for stone
siding for Alternative #4 of the GMP Contract with PCL Construction Services Ltd) in the amount of $102,158
and establishing a $100,000 project contingency, and appropriating funds.
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