HomeMy WebLinkAboutRes2008-068Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2008-068
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING A CHANGE ORDER TO THE CONTRACT
WITH ARCHITECTS ALASKA FOR THE PURPOSE OF VALUE
ENGINEERING THE LONG-TERM CARE FACILITY PROJECT TO
REDUCE PROJECT COSTS BY MORE THAN $2.2 MILLION AND
MODIFYING PROJECT PLANS TO CONFORM WITH V/E CHANGES,
IN AN AMOUNT NOT TO EXCEED $125,000, AND APPROPRIATING
FUNDS
WHEREAS, the Seward City Council authorized Resolution 2005-131 on November
28, 2005, approving a contract with Architects Alaska to design the long-term care facility
("LTC") in the amount of $1.2 million; and
WHEREAS, on June 26, 2006, Council authorized Resolution 2006-77 appropriating
an additional $220,000 for on-site redesign of the LTC based on the relocation of the facility to
the Afognak Acres site, including redesign of utilities, foundations, general and detailed site
surveys, geotechnical investigations, replatting, and other similar costs associated with the
second identified project site; and
WHEREAS, on July 9, 2007, Council authorized Resolution 2007-063 appropriating
an additional $584,000 to provide on-site construction management services for the
construction-phase of the LTC project ($330,000), plus $254,000 in additional on-site redesign
services based on relocation of the facility to the final Tract D, Jesse Lee Home Subdivision,
Long Term Care Facility Replat; and
WHEREAS, the City has engaged Architects Alaska to assist in value engineering the
LTC project cost down by more than $2.2 million, which requires sub-contractor assistance to
re-engineer the buildings and produce conforming sets of plans to direct construction according
to the value-engineered project, with the total cost of this process being approximately
$125,000, including a 20% contingency. This brings the total authorized contract amount to
$2,129,000.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA, that:
Section 1. The City Council hereby authorizes an amendment to the contract with
Architects Alaska in the amount of $125,000, and appropriates funds in the amount of
$125,000 from the long-term care facility bond proceeds.
Section 2. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this
22nd day of July, 2008.
CITY OF SEWARD, ALASKA
RESOLUTION 200$-068
THE CITY OF SEWARD, ALASKA
~,
~J(p/ ~y /Jr7 ~, Jy ~ Jed
Willard Dunham, Vice Mayor
AYES: Valdatta, Bardarson, Amberg, Kellar, Smith, Dunham
NOES: None
ABSENT: Corbridge
ABSTAIN: None
ATTEST: ,,
Sean ~ewis, Cl~[C ~ ~
City lerk `~
(City Seal) `~~~~~e~ir~~~
• r~er s~~~ ~ ~I
M • f+ b
~ ~~ ~~ C ~~ ~.° ~ ~
+ ~,~, •
C,^ r
r
~q ~
~ :~ ~ ~ '~
~ ~, ~~~
•" CC~4aerw w'~ jr'
•••~~+w ~~ fir' ~~'~
~'*N~f~~l1 ~~~
Council Agenda Statement
Meeting Date: July 22, 2008
Through: Kirsten Vesel, Assistant City Manager
From: Kristin Erchinger, Finance Director
Agenda Item: Contract amendment with Architects Alaska to accept Value/Engineering and
conformed drawings proposal
BACKGROUND & JUSTIFICATION
Over the past two months, members of the staff have worked together with Architects Alaska and
UNIT Company, to value engineer ("V/E") the long-term care facility project costs to achieve
significant cost savings. To date, we have been able to shave more than $2.2 million off the initial
project bid, and we hope to achieve further nominal cost efficiencies going forward.
The process of value engineering takes considerable time because itinvolves aback-and-forth iterative
process of discussion with contractors, research and bids from sub-contractors, review by engineers,
evaluation by City staff and architects, and acceptance or rej ection of various alternative materials and
means to construct the project. At this point, it is necessary to finalize the bulk of the value
engineering process in order to engage the engineering contractors in the final production of a
conforming set of plans, which reflects a new set of updated plans incorporating all of the
modifications made during the V/E process.
The timing of this task is critical because contractors and sub-contractors require the conformed set of
plans in order to begin construction of the residences. To wait until the next regularly scheduled
Council meeting to bring this forward would result in an approximate 3-week delay in finalizing the
conformed drawings, with potential costly impacts to the contractors and the City.
CONSISTENCY CHECKLIST:
Where applicable, this Resolution is consistent with the Seward City Code, Charter,
Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures.
Other:
FISCAL NOTE
The City of Seward has issued $27 million in revenue bonds through the Alaska Municipal Bond Bank
for this project. This amendment brings the total authorized contract for Architects Alaska to
$2,129,000, which represents approximately 9.7% of the total construction cost. Architect and
engineering services are generally considered to average around 15% of a project's construction costs.
Approved by Finance:
RECOMMENDATION
City Council approve a contract amendment with Architects Alaska in an amount not to exceed
$125,000, and appropriate funds.