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HomeMy WebLinkAbout171-20 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 171-20 File Number: 2019-0838 NABHOLZ CONSTRUCTION CORPORATION CHANGE ORDER NO. 2: A RESOLUTION TO APPROVE CHANGE ORDER NO.2 TO THE CONTRACT WITH NABHOLZ CONSTRUCTION CORPORATION FOR PRE -CONSTRUCTION SERVICES RELATED TO THE REPLACEMENT PARKING DECK FOR THE CULTURAL ARTS CORRIDOR PROJECT AT NO ADDITIONAL COST TO THE CITY WHEREAS, on October 2, 2018, the City Council passed Resolution 217-18 to approve a Construction Manager at Risk Services Contract with Nabholz Construction Corporation for pre -construction services for Phase 1 of the Cultural Arts Corridor Project; and WHEREAS, in February 2020, pursuant to RFQ 20-02, a City selection committee recommended contracting with Nabholz Construction Corporation for construction of the replacement parking structure; and WHEREAS, in its proposal, Nabholz offered to waive or reduce certain remobilization costs and fees related to the replacement parking deck to incentivize the City to select that firm as the construction manager at risk for the deck, which would lead to total savings of $410,000.00 on the project. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves Change Order No. 2 to the Construction Manager at Risk Services Contract with Nabholz Construction Corporation for pre -construction services related to the replacement parking deck for the Cultural Arts Corridor Project at no additional cost to the City. A copy of Change Order No. 2 is attached to this Resolution and made a part hereof. Page 1 Printed on 6117120 Resolution: 171-20 File Number. 2019-0838 PASSED and APPROVED on 6/16/2020 Attest: `�� G\-ER K �.• GITYo�Fy�G= Kara Paxton, City Clerk Treasurer ; �FVj�( ';U_ E. NSAs . Page 2 Printed on 6117120 City of Fayetteville, Arkansas 113 West Mountain Street 1= \ Fayetteville, AR 72701 / (479) 575-8323 Text File File Number: 2019-0838 Agenda Date: 6/16/2020 Version: 1 Status: Passed In Control: City Council Meetinq File Type: Resolution Agenda Number: C. 2 NABHOLZ CONSTRUCTION CORPORATION CHANGE ORDER NO. 2: A RESOLUTION TO APPROVE CHANGE ORDER NO.2 TO THE CONTRACT WITH NABHOLZ CONSTRUCTION CORPORATION FOR PRE -CONSTRUCTION SERVICES RELATED TO THE REPLACEMENT PARKING DECK FOR THE CULTURAL ARTS CORRIDOR PROJECT AT NO ADDITIONAL COST TO THE CITY WHEREAS, on October 2, 2018, the City Council passed Resolution 217-18 to approve a Construction Manager at Risk Services Contract with Nabholz Construction Corporation for pre -construction services for Phase 1 of the Cultural Arts Corridor Project; and WHEREAS, in February 2020, pursuant to RFQ 20-02, a City selection committee recommended contracting with Nabholz Construction Corporation for construction of the replacement parking structure; and WHEREAS, in its proposal, Nabholz offered to waive or reduce certain remobilization costs and fees related to the replacement parking deck to incentivize the City to select that firm as the construction manager at risk for the deck, which would lead to total savings of $410,000.00 on the project. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves Change Order No. 2 to the Construction Manager at Risk Services Contract with Nabholz Construction Corporation for pre -construction services related to the replacement parking deck for the Cultural Arts Corridor Project at no additional cost to the City. A copy of Change Order No. 2 is attached to this Resolution and made a part hereof. City ofFayetleviUe, Arkansas page I Printed on 611712020 City of Fayetteville Staff Review Form 2019-0838 Legistar File ID 6/16/2020 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item Wade Abernathy 11/27/2019 FACILITIES MANAGEMENT (140) Submitted By Submitted Date Division / Department Action Recommendation: Staff recomends approval of Change Order #2 to the Cultural Arts Corridor Construction Management at Risk contract RFQ 18-11 with Nabholz construction for the CMAR Services for a parking deck for CAC Replacement Parking and approve pre -construction services for a zero amount. A selection committee chose Nabholz as CMAR for the parking replacement deck RFQ 20-02 on 3/5/2020. 4608.860.7820-5860.02 Account Number 46080.7820- Arts Corridor Parking Project Number Budgeted Item? Yes Does item have a cost? No Budget Adjustment Attached? NA Budget Impact: 4608-Arts Project 2019 Bond Fund Arts Corridor 2019 Bonds Project Title Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget $ 20,141,051.00 $ 503,262.05 $ 19,637,788.95 $ 19,637,788.95 Purchase Order Number: 2018-757 Previous Ordinance or Resolution # 2 17 -18 Change Order Number: Original Contract Number: Comments: 2 2018-00000042 Approval Date: V20180321 10/16/2018 CITY OF FAYETTEVILLE ARKANSAS MEETING OF JUNE 16,2020 TO: Mayor and City Council THRU: Susan Norton Chief of Staff Paul Becker, Chief Financial Officer Peter Nierengarten, Environmental Director FROM: Wade Abernathy, Director Bond Projects DATE: 4/14/2020 CITY COUNCIL MEMO SUBJECT: Change order #1 with Nabholz Construction to the RFQ 18-11 Cultural Arts Corridor Construction Manager at Risk Contract for the CMAR Services on a parking deck for CAC Replacement Parking and approve pre -construction services for a zero amount. Per the RFQ 20-02 selection on 3/5/2020. RECOMMENDATION: Staff recommends approval of Change Order #2 to the Cultural Arts Corridor CMAR contract with Nabholz construction for the construction of a parking deck for the downtown CAC replacement parking. This change order is for the pre -construction services of the deck. Nabholz has waived these fees, therefore this is a zero -sum change. The guaranteed maximum price will be determined by future change orders. BACKGROUND: In October 2018 Council approve a CMAR project with Nabholz for the pre -construction services for the Cultural Arts Corridor, which was funded by the Walton Family Foundation. In April 2019, Fayetteville voters approved question 8 on the bond initiative for the new cultural arts corridor. The mayor and council committed that replacement parking would be included as a part of that project, and such parking would be completed prior to the commencement of the phase 2 civic plaza. Phase 1 Bonds allocated $20,016,970 for the CAC and replacement parking. In Februrary 2020, RFQ 20-02 Selection Committee chose Nabholz over several Construction Management Firms, mainly based on their experience with Deck Construction. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 DISCUSSION: Nabholz is currently under contract as the Construction Manager at Risk for the Cultural Arts Project. With the requirement of completing the parking deck prior to starting the Civic Plaza, Nabholz will have to demobilize after completion of phase 1 of the CAC, awaiting the completion of the deck. To avoid the remobilization fees to the City, they proposed a significant incentive to select their firm as the Construction Manager for the Deck. As already being under contract for the CAC project, they would be able to reduce or waive some of their fees. Below is the breakdown: 1. Waive Preconstruction Services (project meetings and estimating): Savings of $25,000-$30,000. 2. Reduce Fees from 4.5% to 2.5%: Savings of $200,000. (based on $10,000,000 deck cost) 3. Reduced General Conditions and General Requirements: Savings of $132,073. (These are overhead cost of supervision, field offices, temporary facilities, etc.) 4. Remobilization fees no longer needed: $50,000. Total of incentives: $410,000 Schedule benefits start with being able to get Nabholz on board within 30 days. They could assist with preliminary budget figures associated with various site selections. Also with this is a fast tract project with completion within 15 months, they need on board as soon as we finalize the Engineer Contract to help provide cost estimates and schedules. Nabholz has notable experience with parking deck structures. BUDGET/STAFF IMPACT: This project will be funded from the 2019 sales and use tax bonds. Phase 1 bonds allocated 20,016,970 for the CAC and the replacement parking. This item is a zero sum change order. Attachments: Change Order #1 Nabholz incentive Letter ANTE6Blty 1 f Prime Contract Change Order Prcn-F'ville Cultural Art Corr Project # 02-19-2526 Nabholz Construction Corporation 113 W. Mountain St. Tel: Fax: Fayetteville, AR 72701 Date: 11 /21 /2019 To Contractor: Architect's Project No: Nabholz Construction Corporation Contract Date: 4/18/2018 3301 N 2nd St (72756), PO Box 277 Contract Number: 02-19-2526 Rogers, AR 72757 Change Order Number: 002 Owner acknowledges that Contractor is an independent contractor and the Owner has no ownership or control over Contractor, private entity. Contractor has not agreed to act as a custodian of public records for the Owner subject to the provisions of the Arkansas Freedom of Information Act, Ark. Code Ann. §25-19-101, ei seq. Owner further acknowledges and agrees that certain documents and information provided to Owner pursuant to the terms and conditions of this agreement may place Contractor and Owner at a competitive disadvantage if the information is disclosed by Owner. In the event Owner receives a request for disclosure pursuant to subpoena or other means, Owner shall provide notice of such request to Contractor within twenty-four (24) hours of receipt of the request, subpoena or demand, and shall not disclose such records without order. The Contract is hereby revised by the following items: Fayetteville Parking Deck - Preconstruction Services PCO Description Amount 001 Fayetteville Parking Deck - Preconstruction Services $ 0.00 This zero dollar ($0) Change Order incorporates the preconstruction services for the Fayetteville Parking Deck. Additional time has been added to account for this additional scope of work. By selecting the firm already contracted to build the cultural art corridor, to also coordinate and build the parking deck, the city of Fayetteville stands to save approximately $410,000. A break down of the total savings incentives is as follows: 1. Waive Preconstruction Services (project meetings and estimating): Savings of $25,000-$30,000. 2. Reduce Fees from 4.5% to 2.5%: Savings of $200,000. (based on $10,000,000 deck cost) 3. Reduced General Conditions and General Requirements: Savings of $132,073. (These are overhead cost of supervision, field offices, temporary facilities, etc.) 4. Remobilization fees no longer needed: $50,000 The original Contract Value was....................................................................................................................... $ 80,000.00 Sum of changes by prior Prime Contract Change Orders................................................................................ $ 6,880.00 The Contract Value prior to this Prime Contract Change Order was................................................................ $ 86,880.00 The Contract Value will be changed by this Prime Contract Change Order in the amount of .......................... $ 0.00 The new Contract Value including this Prime Contract Change Order will be .................................................. $ 86,880.00 The Contract duration will be changed by........................................................................................................ 180 Days The revised Substantial Completion date as of this Prime Contract Change Order is ..................................... 6/28/2020 Prolog Manager Printed on: 11/21/2019 Nabholz Page 1 1NiFEflIIy � t• I I Prime Contract Change Order Arkansas Confidential Nabholz Construction Corporation CITY OF FAYETTEVILLE CONTRACTOR 3301 N 2nd St (72756), PO Box 277 Rogers, AR 72757 Address By John Strack SIGNATURE DATE j OWNER 113 W MOUNTAIN ST FAYETTEVILLE, AR 72701 Address By Lioneld Jorda SIGNATUR ��. DATE Prolog Manager Printed on: 11/21/2019 Nabholz Page 2 Mr. Peter Nierengarten Environmental Director City of Fayetteville September 26, 2019 RE: Combined Parking Garage / FCAC Savings Dr. Mr. Nierengarten, t:o �� L la Below are a few examples of quantifiable savings the city of Fayetteville would recognize if the proposed parking garage was built by Nabholz Construction sequentially with the two phases of the Cultural Art Corridor Project. The overall project duration is assumed to be 31 months. The most economical approach would for Nabholz Construction to begin Phase 1(Fay Jones and Streetscapes) on Month 1, the Parking Garage in Month 3 and the Civic Space in month 16. Preconstruction Services: Standard Preconstruction fees range between 0.25% & 0.30% of the projects estimated costs. In the event the parking garage is added to our contract, Nabholz Construction will absorb all preconstruction fees for the parking garage. This equates to a savings of $25,000-$30,000. Fee Evaluation: The fee for a $10,000,000 Parking Garage with a 12 -13 month duration would typically be around 4.5%, ($450,000). Due to shared resources, within a given period of time, the proposed fee by Nabholz Construction to include the Parking Garage in the FCAC project is 2.5% of the $10,000,000. ($250,000) This equates to a savings of = $200,000 GC/GR Assessment: The estimated GC's and GR's for all 3 projects if they were all stand alone is $2,415,799.55. The estimated GC's and GR's if all 3 projects were constructed sequentially is $2,283,725.85. This equates to a savings of $132,073.70. Based on past experience, due to the duration of the project, factoring in vacation, holidays and sick leave this number will increase. Sum Total: Based on the totals above, the approximate savings recognized by the city will be around $360,000. In addition to the savings described above, we strongly believe subs and suppliers will take contract values into consideration and discount fee. Please let us know if any additional questions exist and or if we can be of further assistance. Sincerely; John M. Strack Sr. Project Manager Nabholz Construction MAINTENANCE BOND Bond No.: 38BCSJC9927 KNOWN ALL BY THESE PRESENTS: That we Nabholz Construction as Principal, and Hartford Fire Insurance Company , a corporation organized and existing under the Laws of the State of Connecticut , Surety are held and firmly bound unto City of Fayetteville.Arkansas as Obligee, in the total sum of Thirty Eight Thousand Two Hundred Seventy Three Dollars and 00/100`• U.S. Dollars ( 38,273.00 )for the payment whereof said Principal and Surety bind themselves, jointly and severally, as provided herein. WHEREAS, the Principal entered into a contract with the Obligee dated September 8,2020 for Public Improvements/Utility Work-Downtown Fayetteville Parking Deck ("Work"). NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that if the Principal shall maintain and remedy said Work free from defects in materials and workmanship for a period of 2 year(s) following substantial completion of the Work (the "Maintenance Period"), then this obligation shall be void; otherwise it shall remain in full force and effect. PROVIDED, HOWEVER, that any suit under this bond shall be commenced no later than one (1) year from the expiration date of the Maintenance Period; provided, however, that if this limitation is prohibited by any law controlling the construction hereof, such limitation shall be deemed to be amended so as to be equal to the minimum period of limitation permitted by such law, and said period of limitation shall be deemed to have accrued and shall commence , to run on the expiration date of the Maintenance Period. Signed this 5th day of December 2023 Tilltillir lidliIII IllIEFINIIII illalIn Doc ID: 021392780002 Type: LIE Nabholz Construction Corporation Kind: BOND (Principal) Recorded: 12/20/2023 at 02:52:41 PM Fee int: n2C un y, A 1 Of 2 ••�' E�r,p'�4. �^��� 1lashlnpton County, AR ,.• FAH NSLa� ��V/////—'_\ Kyle Sylvester Circuit Clerk File B039 00000059 _ � By: �:1.---. _• •'n= Hartford Fire Insurance CompanyN1� Can, By: ° Ok i Sherese Escovedo- ,Attorney-in-Fact 039 El Sul Direct►nquiries/C/alms to: THE HARTFORD e POWER (JF ATTORNEY Hartord Connect cut06155 Bond.Clalma(®theharttQrd.oOm call:Boa-266J488 orlax:86O-757-S 35 KNOW ALL PERSONS BY THESE PRESENTS THAT: Agency Name: STEPHENS TNStJRANCB LLC Agency Codo: 3 8-5 93 0 62 IX I Hartford Fire Insurance Company,a corporation duly organized under the laws of the State of Connecticut CJ1 Hartford Casualty Insurance Company,a corporation duly organized under the laws of the State of Indians . � Hartford Accident and Indemnity Company,a corporation duly organized under the laws of the State ofConnttiicut Hartford Underwriters insurance Company,a corporation duly organized under the laws of the State of Connecticut Twin CIty Fire Insurance Company,a corporation duly organized under the laws of the Slate of Indiana Hartford Insurance Company of Illinois,a corporation duly organizcd,tmder the laws of the State oflllinois Hartford Insurance Company of the Midwest,a corporation duly organized under the laws of the State of Indiana Hartford Insurance Company of the Southeast,a corporation duly organized under the laws of the State of Florida having their home office in Hartford,Connecticut,(hereinafter collectively referred to as the'Companies')do hereby make,constitute and appoint, up fo trio amount of Unlimited Stephanie Lively, Stanley Guy Payne, Felicia M. Prince, J.R. Bizzell, Samantha Davis, Sherese Escovedo, Ted Grace, Kathy Jones of LITTLE ROCK, Arkansas their true and lawful Attorney(s)-In-Fact,each in their separate capacity if more than one Is named above,to sgn its came as surety(ies) only as deflneated above by ®, and to execute, seal and acknowledge any and all bonds, undertakings,contracts and other written instruments in the nature thereof,on behalf of the Companies in their business of guaranteeing the fidelity of persons,guaranteeing the performance of contracts and executing or guaranteeing bonds and undertakings required or permitted in any actions or proceedings allowed by law. f In Witness Whereof, and as authorized by a Resolution of the Board of Directors of the Companies on May 23,2016 the Companies have caused these presents to be signed by its Assistant V ce'President and Its corporate seals to be hereto affixed,duly attested by its Assistant Secretary. Further,pursuant to Resolution of the Board of Directors of the Companies,the Companies hereby unambiguously affirm that they are and will be bound by any mechanically applied signatures applied to this Power of Attorney. a .� lylt�i' ` tw.,r i • ie e r ,d•••oa L ._,'.k ; is f \• J ��'M„ram/� r wN �D 7� F .jeTy� �r e 2'464/1t4- 96114-b(67&•41"1 . Shelby Wiggins,Assistant Secretary Joelle L.LePlerre,Assistant Vice President STATE OF F1.ORIDA Ss. Lake Mary COUNTY OF SEMINOLE On this 20th day of May,2021,before me personally came Joelle LaPierre,to me known,who being by me duty sworn,did depose and say:that (s)ho resides In Seminole County,State of Florida[that(s)he is the Assistant Vice President of the Companies,the corporations described In and which executed the above Instrument:!hat(s)he knows the seals of the said corporations;that the seals affixed to the said Instrument are such corporate seals; that they were so affixed by authority of the Boards of Directors of said corporations and that(s)he signed his/her name thereto by like authority- h14—:.te -.,t,, oi?. Jess ca Ciccone' ,, My Commission HH 122250 Expire"Jima 20.2023 1,the undersigned,Assistant Vice President of the Companies,DO HEREBY CERTIFY that the above and foregoing is a true and correct copy of the Power of Attorney executed by said Companies,which Is still In full force effective as of December 5th, 2023 Signed and sealed in Lake Mary,Florida. • 4arls.- ,,,,N,403, 4 . ' t oar - : 2 is„,.....4::\ 1,(10..:"...4.4.1. . *.`roli '''.i*;.,iit, t `S••I .i tear • . ,r ' • Keith D.Donis,Assistant Vice President