Title
Consider a memorandum/resolution authorizing the execution of Amendment No. 1 to the Professional Services Agreement with Randall Scott Architects, Inc., for the Community and Senior Center Expansion and Renovation Project, in the amount of $390,631.00.
Summary
DATE: September 5, 2023
TO: Kent Cagle, City Manager
FROM: Edwin Revell, Executive Director of Development Services
SUBJECT: Authorize the execution of Amendment No. 1 to the Professional Services Agreement with Randall Scott Architects, Inc., in the amount of $390,631.00 for the Community and Senior Center Expansion and Renovation Project.
BACKGROUND AND FINDINGS:
The Killeen Community Center is located near the intersection of Veterans Memorial Boulevard and W S Young Drive. In 2019, an initial Needs Assessment and Conceptual Design Project was awarded to Randall Scott Architects. The Needs Assessment and Conceptual Design Project was completed in June 2020. On January 19, 2021, the City Council approved a professional services agreement, with Randall Scott Architects, in the amount of $543,825.00 (12.6% of the estimated project construction cost) for the design of the expansion and renovation of the Killeen Community Center and necessary support services during construction.
The agreement that was used for this project is a standard AIA (American Institute of Architects) Agreement, which included standard escalation clauses to the contract amount. The escalation clauses provided for a cost for services adjustment that is derived from the difference of the actual construction cost compared to the original project construction cost estimate, multiplied by an 8.5% design fee.
The Killeen Community Center expansion and renovation project was advertised for bid twice. The first bidding in December 2022 resulted in no bids received and required the project to be rebid. On March 16, 2023, the City received bids for the construction of the Community Center and Senior Center Expansion and Renovations project. Council approved the low bid of $7,416,835.00 to HCS Inc. on May 9, 2023.
In accordance with the professional services agreement, Randall Scott Architects is requesting an adjustment to the contract amount due to the increased cost of the project based on the actual accepted bid. At the time of negotiations, the estimated cost of construction for the project was $4,300,000.00. Additionally, the consultant is also requesting adjustments based on delays incurred during the design including a 9-month delay to obtain surveys.
Staff has reviewed the request for the additional fees and found them to be reasonable for work needed to complete this project. Staff reviewed the fee amounts of other similar and ongoing design projects and determined that the average design costs to be 15% of the estimated construction cost. Construction support is an additional 8%-10% of the construction costs. As a result of this review, staff has concluded that this overall additional services request is within the expected cost for design and construction support even with the original estimated cost of construction. The total contact amount with the proposed increase is $934,456.00; or 21.7% of the original project estimate of $4,300,000.00.
THE ALTERNATIVES CONSIDERED:
Alternative 1 - Do not approve this amendment. Doing so would pose a threat of not fulfilling the contractual requirements with the consultant and possibly delay to the needed construction support for the project.
Alternative 2 - Approve Amendment No. 1 to the Professional Services Agreement with Randall Scott Architects, Inc., in the amount of 390,631.00 for the Community Senior Center Expansion and Renovation Project.
Which alternative is recommended? Why?
City Staff recommends Alternative 2 be pursued. In review of the contract and the work performed by Randall Scott Architects, the request is within expectation. The total design fee percentage with this contract amendment request, is in line with the other ongoing projects the City currently has and budgets. Staff reviewed the request and found the total adjusted contract amount would be within the expected percentages based on the original estimated cost. The requested time due to the delays encountered during this project is justified.
CONFORMITY TO CITY POLICY:
This item conforms to state, city and local purchasing polies and regulations. Amendment No. 1 is over $50,000, which requires City Council approval.
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
The contract amendment is $390,631.00.
Is this a one-time or recurring expenditure?
This is a one-time expenditure.
Is this expenditure budgeted?
Yes, funding for this project is available in the Governmental CIP Fund account 349-8930-493.69-01.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this expenditure?
Yes
RECOMMENDATION:
Staff recommends that the City Council authorize the City Manager to execute Amendment No. 1 to the Professional Services Agreement with Randall Scott Architects, Inc. in the amount of $390,631.00 for the Community Senior Center Expansion and Renovation Project, and that the City Manager is expressly authorized to execute any and all change orders within the amounts set by the state and local law.
DEPARTMENTAL CLEARANCES:
Development Services
Finance
City Attorney
ATTACHED SUPPORTING DOCUMENTS:
Agreement
Amendment No 1.
Supplemental Services Proposal
Certificate of Interested Parties