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Receive an update on the Fire Station No. 2 construction budget
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BACKGROUND:
On Thursday, February 28, 2019 sealed bids for the construction of Fire Station No. 2 were opened. Thirty-two bid packages were sent out, with all but one package receiving competitive bids. Gallagher Construction Management (GCM) began vetting the low bidders, and on Monday, March 4th provided the Fire Department an initial construction bid price of $4,963,161. With an estimated construction budget of $4,041,623, the total construction budget was over budget by $921,538 - approximately 23%. It should be noted that the budget was set almost four years ago and tariffs and construction inflation have increased at unplanned levels.
GCM immediately began working with the project's low bidders on Value Engineering (VE) solutions for the project. On Wednesday, March 6th the Fire Department hosted a budget meeting with GCM and PGAL Architects. At this meeting the group reviewed the GCM VE recommendations along with PGAL options for bringing the project into budget.
On Saturday, March 9th GCM provided the Fire Department $789,749 in VE savings that brought the construction budget down to $4,173,412. Working with the City Manager and Director of Finance, the project has been brought in at the original $5,600,000 total Phase I budget - which also includes primarily architect, construction management, and construction/project expenses. Phase II funding now includes the remainder of the original landscape and hardscape portions of the project (east of the dry creek bed) along with the remainder of the Holiday Park improvements to the west. The Phase II cost along with the cost of demolishing the existing Fire Station No. 2 will be off-set by the sale of the existing Fire Station site.
At today's Study Session the Fire Department will present the updated budget and detail the changes made to bring the project in on time and within budget. This includes detail on:
1. Scope and materia...
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