HomeMy WebLinkAboutRES2026-063 Cornerstone General ContractorsSponsored by: Sorensen
CITY OF SEWARD, ALASKA
RESOLUTION 2026-063
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,
AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH
CORNERSTONE GENERAL CONTRACTORS FOR PRE -CONSTRUCTION SERVICES
FOR THE HARBORMASTER'S OFFICE AND UPLANDS DEVELOPMENT
WHEREAS, City Council approved a revenue bond to fund the construction of a new
Harbormaster's Office and Uplands Development (Project); and
WHEREAS, per city code, a request for proposals for a contract for Construction
Manager/General Contractor (CMGC) Delivery Method services for the Project was advertised;
and
WHEREAS, the purpose of the RFP was to select a General Contractor that will support the design
process to improve cost certainty, schedule performance, and reduce risk certainty prior to
construction of the Project, with the award of a contract for construction dependent on the CMGC's
performance during pre -construction activities, collaboration with Project team, and GMP
acceptability; and
WHEREAS, based on the RFP criteria, the selection committee scored Cornerstone General
Contractors as the highest respondent; and
WHEREAS, Cornerstone General Contractors proposed a $0 fee for pre -construction services;
and
WHEREAS, time is of the essence to award a contract for pre -construction services for an
anticipated construction amendment to adhere to the Project timeline; and
WHEREAS, a proposed construction amendment will be brought to council for approval before
moving to the construction phase of the Project.
NOW, THEREFORE, BE IT RESOLVED BY TIIE CITY COUNCIL OF TIIE CITY OF
SEWARD, ALASKA:
Section 1. The City Council hereby authorizes the City Manager to sign a contract with
Cornerstone General Contractors for Project pre -construction services based on Cornerstone's
response to the RFP. The contract shall not bind the parties to construction of the Project but
provide for Cornerstone to furnish a GMP proposal for a construction -phase amendment to the
contract, which amendment shall require council approval to be effective.
Section 2. This resolution shall take effect immediately upon adoption.
CITY OF SEWARD, ALASKA
RESOLUTION 2026-063
Page 2 of 2
APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA THIS 13th
DAY OF JULY 2026.
Ce-u. re -
Sue McClure, Mayor
AYES: Draper, Osenga, Crites, Calhoon, Barnwell, McClure
NOES: None
ABSENT: Warner
ABSTAIN: None
ATTEST:
Kris Peck
City Clerk
City Council Agenda Statement
Meeting Date: July 13, 2026
To: City Council
Through: Kat Sorensen, City Manager
From: Jason Bickling, Deputy City Manager
Subject: Resolution 2026-063: Authorizing the City Manager to Enter into a Contract
with Cornerstone General Contractors for Pre -Construction Services for the
Harbormaster's Office and Uplands Development
Background and justification:
On June 1, 2026, a Request for Proposals (RFP) was released for Construction Management /
General Contractor (CM/GC) Services for the Harbormaster's Office and Uplands Development.
The response deadline was June 18, 2026. Of the seven respondents, Cornerstone General
Contractors was scored the highest by the evaluation committee.
There are two potential phases for the contract that were solicited in the RFP: (1) pre -construction,
and (2) construction.
The first phase, pre -construction services, is where the contractor is brought on during the design
process to help find cost efficiencies to develop what is known as the contractor's GMP
(Guaranteed Maximum Price) proposal. This project delivery method is to ensure that the project
stays within budget, which is dictated by the bond amount in this case. For the pre -construction
services, proposers bid a flat fee. Cornerstone General Contractors had the lowest bid cost for these
services — $0. The resolution before council authorizes the city manager to enter into a contract
with Cornerstone for pre -construction services.
The second phase, construction, occurs if and when the city accepts Cornerstone's GMP proposal.
In short, if the GMP proposal is acceptable to the city, the contract is then amended to include
construction of the new harbormaster's office on the basis of the GMP proposal. It is with this
amendment that the city would be committing to construction of the building. A proposed
construction amendment based on Cornerstone's GMP will come back before Council for approval
after the first phase, pre -construction services, is completed. An additional note is that if the city
determines that things with Cornerstone are not working out within the first phase, the contract will
not require the city to continue with a construction amendment, but could choose another contractor
for construction, though the intent with this method of project delivery is that the selected CM/GC
will end up doing the construction work following a construction amendment to the contract.
The attorneys are currently drafting up the contract. Passing this resolution allows the City Manager
to sign the contract for pre -construction services when it is finalized. Time is of the essence, and
the City Manager needs authorization to sign the first part of the (no -cost) contract. Under the
City Council Agenda Statement
assumption that all goes well, a construction amendment to the contract will be brought before
council for construction services, which will have a cost associated with it.
Fiscal Impact:
Funding Source:
X
Fiscal Impact
Yes — Amount: Budgeted:
No
General Fund:
Enterprise Fund:
Grant:
Other:
Finance Director Signature:
X
Yes
No
N/A
"a3- 9ase"
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan: 3.7.1.5
Strategic Plan:
Other:
Attorney Review
X
Yes
Attorney Signature: /s/ Charles Cacciola
Not applicable Comments:
Administration Recommendation
X
Approve
Other: