SUBJECT/RECOMMENDATION:
Title
Approve Change Order 3 to Skanska USA Building, Inc., for The Sound Canopy Gutters Installation Project in the amount of $694,055.00, increasing the contract from $72,362,827.92 to $73,056,882.92; approve a project budget increase of $2,513,593.13 to align the budget with revenues received and provide funding for additional project-related costs, and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
City Council approved Request for Qualifications (RFQ) 52-19, selecting Skanska USA Building, Inc. as Construction Manager at Risk (CMAR) for the Imagine Clearwater project, including subsequent Guaranteed Maximum Price (GMP) approvals and change orders, resulting in a current contract value of $72,362.827.92.
The item before Council is Change Order No. 3 to Skanska USA Building, Inc. in the amount of $694,055.00 for the furnishing and installation of additional canopy gutters along the western portion of The Sound. These improvements are intended to address stormwater drainage issues identified after the venue became operational. Installation is anticipated to begin in December 2026.
Since opening, The Sound has experienced stormwater drainage issues and incurred additional unforeseen project-related expenses totaling $148,719.96. Between August 29, 2025, and March 10, 2026, the City Manager approved a work order and Supplemental Work Order No. 1 to CPH Consulting in the amount of $73,700.00 for evaluation of the subsurface drainage system and design of gutter improvements to address stormwater concerns. The remaining $75,019.96 was used to address other unforeseen costs necessary for project completion.
An expenditure increase of $912,593.13 is requested to the project to fund the gutter installation ($694,055.00), cover existing project overages as outlined above ($148,719.96), and establish a small contingency for potential unforeseen stormwater-related conditions that may arise during completion of this work ($69,818.17). The total project budget will be increased by $2,513,593.13 to account for additional revenues received in the project. These revenues, which offset the expenditure increase noted here, will provide for a transfer of $1,601,000 to the parking fund to offset contributions made for development agreements.
The City is currently in litigation with Stantec, seeking to recover a portion of the costs associated with the canopy gutters.
APPROPRIATION CODE AND AMOUNT:
A third quarter budget amendment will include the following adjustments to project funding to tie out revenues received vs. originally budgeted which will result in a net increase to the project budget by $2,513,593.13.
These revenues received (grants, credits, and land sale) will cover $912,593.13 of additional expenditures noted above and will result in an excess of $1,601,000 which will be transferred to the parking fund to offset contributions made for development agreements.
The following amendments will be made to increase project funding resulting in a net budget increase of $2,513,593.13:
• Increase bond financing total by $743,820.83
• Increase reimbursements by $12,678.40
• Increase grant revenue from FDEP by $1,300,201.90
• Increase Land Sale revenue by $456,892.00
STRATEGIC PRIORITY:
1.3 Adopt responsive levels of service for public facilities and amenities, and identify resources required to sustain that level of service.
2.3 Promote Clearwater as a premier destination for entertainment, cultural experiences, tourism, and national sporting events.
