|
Item 1.B.
|
| City Council Regular | |
| Date: | 08/08/2022 |
| Title: | W.O. 22-37 Landfill Drop-Off Building Repairs, Contract Award |
| Presented by: | Debi Meling |
| Department: | Public Works |
| Presentation: | No |
| Legal Review | Yes |
RECOMMENDATION
Staff recommends that the City Council approve a General Contractor/Construction Manager (GC/CM) contract with Swank Enterprises for W.O. 22-37 Landfill Drop-Off Building Repairs in the amount of $137,542.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
The City of Billings completed a project in February 2021, that included a new drop-off building. The drop-off building is a 60,000 square-foot pre-engineered metal building (PEMB) used by customers as a facility to drop off garbage to be landfilled by City staff. A fire occurred in the west end of the building on January 19, 2022, causing substantial damages that have prevented the City from resuming operations inside the building.
On March 14, 2022, Council approved a Resolution allowing the use of an Alternative Method of Delivery -- General Contractor/Construction Manager (GC/CM) -- as authorized by MCA 18-2-502. The City elected to move forward with the GC/CM contract format due to this contracting structure being more conducive to ensuring City staff involvement in project direction and expedited decisions developed by the project Team, which consists of City staff, the Engineer, and GC/CM Contractor. Some major benefits of GC/CM contracts are that they bring the contractor, procured through an open public process, onto the project team as early as possible in order to take advantage of the expert contributions the contractor can bring to the project design and early cost development. GC/CM contracts also allow for early procurement of materials.
The City publicly advertised and solicited proposals for GC/CM services to collaborate with HDR Engineering (the City's consultant for professional services) in assessing the extent of repairs needed to make the drop-off building operational. On April 28, 2022, City Council approved a Pre-Construction Services Contract with Swank Enterprises (Swank) in the amount of $42,100. The project Team completed multiple field investigations to determine required repairs and compiled a repair assessment report that has been reviewed and approved by the City's insurance group. The Team has finalized a GMP (guaranteed maximum price) for the work required to place the east end of the building back into operation in the amount of $137,542. In addition, the Team is obtaining quotes from suppliers for materials and preparing cost estimates and schedules for all remaining repair work. All pricing information is "open-book" and reviewed by the project Team.
Council is asked to approve the Standard Agreement and General Conditions construction contract between Swank (GC/CM) and the City of Billings in the amount of $137,542. This contract includes the GMP (costs) and construction duration for the repairs to the east end of the Drop-Off Building. Approval of this contract will allow the east end of the building to be put back into operation.
Subsequently, Swank will create an overall GMP to perform the repair work for the remainder of the building, which will be reviewed by the Team and the City's insurance group for approval. The overall GMP will be presented to City Council with a subsequent contract amendment. If Council approves the GMP amendment, Swank will proceed with the remainder of the project work.
On March 14, 2022, Council approved a Resolution allowing the use of an Alternative Method of Delivery -- General Contractor/Construction Manager (GC/CM) -- as authorized by MCA 18-2-502. The City elected to move forward with the GC/CM contract format due to this contracting structure being more conducive to ensuring City staff involvement in project direction and expedited decisions developed by the project Team, which consists of City staff, the Engineer, and GC/CM Contractor. Some major benefits of GC/CM contracts are that they bring the contractor, procured through an open public process, onto the project team as early as possible in order to take advantage of the expert contributions the contractor can bring to the project design and early cost development. GC/CM contracts also allow for early procurement of materials.
The City publicly advertised and solicited proposals for GC/CM services to collaborate with HDR Engineering (the City's consultant for professional services) in assessing the extent of repairs needed to make the drop-off building operational. On April 28, 2022, City Council approved a Pre-Construction Services Contract with Swank Enterprises (Swank) in the amount of $42,100. The project Team completed multiple field investigations to determine required repairs and compiled a repair assessment report that has been reviewed and approved by the City's insurance group. The Team has finalized a GMP (guaranteed maximum price) for the work required to place the east end of the building back into operation in the amount of $137,542. In addition, the Team is obtaining quotes from suppliers for materials and preparing cost estimates and schedules for all remaining repair work. All pricing information is "open-book" and reviewed by the project Team.
Council is asked to approve the Standard Agreement and General Conditions construction contract between Swank (GC/CM) and the City of Billings in the amount of $137,542. This contract includes the GMP (costs) and construction duration for the repairs to the east end of the Drop-Off Building. Approval of this contract will allow the east end of the building to be put back into operation.
Subsequently, Swank will create an overall GMP to perform the repair work for the remainder of the building, which will be reviewed by the Team and the City's insurance group for approval. The overall GMP will be presented to City Council with a subsequent contract amendment. If Council approves the GMP amendment, Swank will proceed with the remainder of the project work.
ALTERNATIVES
City Council may:
- Approve a General Contractor/Construction Manager (GC/CM) Standard Agreement and General Conditions contract with Swank Enterprises in the amount of $137,542.00; or,
- Not approve the GC/CM base construction contract. If this project is not completed, necessary repairs will not be done, and the City will be further delayed in allowing the Landfill Drop-Off Building to become operational again, which will benefit both Solid Waste Operations and the general public.
FISCAL EFFECTS
The amount of this construction contract for W.O. 22-37 Landfill Drop-Off Building Repairs is $137,542. Future amendments to this agreement for material procurement and remaining repair construction will have further fiscal effects and require Council action. W.O. 22-37 Landfill Drop-Off Building Repairs will utilize Solid Waste funds and insurance claim reimbursements. The City has received an advanced partial insurance reimbursement of $750,000. Additional reimbursements are expected upon presentation and approval of subsequent work packages and GMPs.