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Council Agenda - City of BurbankTuesday, December 19, 2006Agenda Item - 7 |
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PURPOSE
To request Council approval of Amendment No. 1 to the Professional Services Agreement between the City of Burbank and Swinerton Builders to develop the Guaranteed Maximum Price for the Community Services Building Project.
BACKGROUND
The City awarded Swinerton Builders a $48,000 Professional Services Agreement (PSA) in June 2006 to develop the Guaranteed Maximum Price (GMP) for the Community Services Building (CSB) Project. This comprised $30,000 for staff services and an $18,000 allowance for reimbursable expenses.
Upon review of the current construction market conditions, there was concern that only a limited response would be forthcoming since subcontractors were extremely busy and continued to selectively bid projects. Swinerton was directed to take additional steps to ensure a minimum of three bids from each trade providing in excess of one-half of one percent in construction services to meet competitive bidding requirements.
ANALYSIS
The success of Swinerton�s subcontractor outreach effort was documented in the November 14, 2006 initial report to Council (reference Exhibit A of that report). Of the forty-four total trades providing construction services, all but seven trades received a minimum of three bids.[1] A primary cost driver that increased the cost for reimbursable expenses was the issuance of five separate Architectural Addendums. Each Addendum was distributed to affected subcontractors to ensure document modifications were competitively priced.
Swinerton performed its GMP development services exceptionally well and its documented actual costs were in excess of the original $48,000 and the proposed $57,000 PSA Amendment. In exchange for a $35,000 increase for services, the City obtained a $45,600 General Contractor Fee reduction to the GMP Agreement. In addition, staff negotiated a 25 percent reduction in the actual reimbursable expenses Swinerton incurred.
FISCAL IMPACT
There is no additional fiscal impact if Council approves this PSA Amendment. Council approved Resolution 27,368 at the December 5, 2006 Council session enabling staff to proceed with construction of the CSB Project. The $38.1M project cost includes the subject $57,000 PSA Amendment No. 1 provided herein as an attachment.
A cost summary of the original PSA and proposed Amendment is shown below.
Original PSA Service Description PSA Amendment Total
Professional Services $30,000 $35,000 $ 65,000 Reimbursable Expenses $18,000 $22,000 $ 40,000 ----------- ----------- ------------ $48,000 $57,000 $105,000
RECOMMENDATION
Staff recommends that Council adopt the proposed Resolution.
[1] Only trades that had a value in excess of $145,000 (one-half of one percent of the $28,979,500 GMP) required three bids.
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