Staff recommends that the City Council approve Amendment No. 1 to the General Contractor/Construction Manager (GC/CM) contract with Swank Enterprises for W.O. 22-37: Landfill Drop-Off Building Repairs, in the amount of $2,801,538.22.

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.  On April 25, 2022, Council approved a GC/CM Pre-Construction Contract with Swank Enterprises (Swank) to assist with the repair assessments.  On August 8, 2022, Council approved the initial GC/CM construction contract with Swank for repairs to the east end of the building, which will allow the building to be put back into operation prior to completing repairs to the rest of the building.  The majority of repair assessments have been completed, and those cost estimates have been reviewed and approved by the City's insurance adjuster.  Amendment No. 1 is intended to cover those repairs that have been identified on the west portion of the building where the fire did the most damage.  
 

City Council may:

• Approve Amendment No. 1 to the General Contractor/Construction Manager (GC/CM) Standard Agreement and General Conditions construction contract with Swank Enterprises in the amount of $2,801,538.22; or,
• Not approve Amendment No. 1 to the GC/CM base construction contract. Not approving will result in the necessary repairs not being done, and the City will be further delayed in allowing the Landfill Drop-Off Building to become operational again.

W.O. 22-37: Landfill Drop-Off Building Repairs will utilize Solid Waste funds and insurance claim reimbursements.  The amount of Amendment No. 1 to the construction contract for W.O. 22-37 is $2,801,538.22.  This amount has been approved by Crawford Co. (the adjuster for the City's insurance group) for reimbursement.  Future change orders to this agreement may be required due to fire damage exposed during construction that may have further fiscal effects.  The City received an advanced partial insurance reimbursement of $750,000, which is being used for previous expenses on the repair project.