SUBJECT/RECOMMENDATION:
Title
Approve Guaranteed Maximum Price (GMP) 2, Amendment 4 to the Agreement with Ajax Building Company, LLC, of Midway, FL, for construction of Municipal Service Building (MSB) Renovations (23-0035-EN), in the amount of $3,193,901.00, increasing the purchase order from $5,822,660.00 to a not to exceed total of $9,016,561.00, pursuant to Request for Qualifications 59-23 and authorize the appropriate officials to execute same.
Body
SUMMARY:
City staff is requesting approval of GMP with authorization to conduct final negotiations with Ajax to refine schedule information to incorporate a phased move-in approach and potentially reduce amount of several line items. Final cost will not exceed the total GMP of $9,016,561.00.
Ajax was selected via RFQ 59-23. December 19, 2023, City Council approved an agreement and $369,965.00 pre-construction phase proposal to Ajax with $110,605.00 funded by the MSB Renovations project and the remainder funded by the City Hall project. MSB renovations will improve space efficiencies of the existing 66,063 square foot facility allowing for right-sizing of the proposed City Hall project, creating a productive workspace that meets specific needs of the remaining City departments while providing a comfortable and aesthetically pleasing atmosphere for employees and visitors alike.
September 17, 2024, City Council approved a $362,616.00 purchase order for early procurement of an air handling unit for the MSB and a $1,140,302.00 design work order with Wannemacher Jensen Architects (WJA). October 3, 2024, Council approved a $5,712,055 Early Release package GMP 1 for the MSB Renovations that included early equipment purchases, selective interior demolition, millwork, doors, frames and hardware, glass, and glazing, framing and drywall, ceilings, painting, fire protection, HVAC, partial electrical and audio-visual costs. This approval brought the MSB Ajax PO to $5,822,660.00 (MSB portion of the preconstruction phase fee and the Early Release Package GMP).
Combined efforts by City, Owners Representative Broaddus, Ajax and WJA, resulted in over $2.5M in cost avoidance. Efforts include significant design work to reuse existing walls to reduce demo and new construction costs including the in-wall utilities, early release of air handling unit, vacating the entire facility versus one floor at a time, discounts from purchasing furniture concurrent with City Hall, relocation and temporary rental furniture reduction, and executing project concurrently with City Hall.
This MSB GMP covers the balance of the work for the project, including updated workspaces for city staff, new millwork, wall finishes, ceilings and flooring, as well as updates to fire sprinkler, plumbing, mechanical, electrical, and audio-visual-systems.
Current total MSB Renovations project costs for design, construction and furnishing is estimated to be $13.7 million. The project funding includes $10M of prior year General Fund revenue. The $2M for MSB furniture was initially intended to be added to the project for a total of $12M. An amendment is needed to provide additional revenue to fully fund the project, including additional funds as contingency for unforeseen costs for a total project budget of $14M. First quarter amendments will transfer an additional $4M from the sources listed below to provide the remaining funds necessary for the project.
Work will begin in February 2025 with an 8-month construction duration to substantial completion; followed by furniture set up and a phased staff move-in starting in October 2025.
APPROPRIATION CODE AND AMOUNT:
A first quarter budget amendment will include the following transfers to capital project ENGF230001, MSB Renovations, to provide total funding necessary to complete the project:
• A transfer of $2,000,000 from capital project GSBM180001, General Facility Building Major Renovations (funded with General Fund revenues to provide for furnishings),
• A transfer of $365,000 from capital project GSBM180009, New A/C Chiller Systems (funded with General Fund revenues to provide for the air handler unit),
• A transfer of $274,000 from capital project ENGF220001, New City Hall (funded with General Fund revenues, this amount covers the previously included roof solar scope, photovoltaics and panel supports on the new City Hall),
• A transfer of $500,000 from Administrative Services Fund reserves to provide for enhancements to building technology,
• And, a transfer of $861,000 from General Fund reserves.
USE OF RESERVE FUNDS:
Funding for this purchase will be provided by a first quarter budget amendment allocating General Fund reserves in the amount of $861,000 to capital improvement project ENGF230001, MSB Renovations. Inclusive of this item if approved, a net total of $14,531,000 of General Fund reserves has been used to date to fund expenditures in the 2024/25 operating budget. The remaining balance in General Fund reserves after the 8.5% reserve is approximately $41.4 million, or 18.3% of the current General Fund operating budget.
First quarter amendments will also include the allocation of Administrative Services Fund reserves in the amount of $500,000 to capital improvement project ENGF230001, MSB Renovations. The remaining balance of Administrative Services Fund reserves after 25% working capital reserves is approximately $11.5 million or 63% of the current Administrative Services Fund operating budget.
STRATEGIC PRIORITY:
The MSB Renovation project supports the four strategic priorities below. The renovations will improve indoor air quality and energy efficiencies while providing safe and streamlined public interface.
