Item Coversheet
      

5919 MAIN STREET .  NEW PORT RICHEY, FL 34652 . 727.853.1016


TO:City of New Port Richey City Council
FROM:Robert M. Rivera, Public Works Director
DATE:6/18/2024
RE:Fleet Maintenance/Utility Purchasing Warehouse & Storage Building Construction Project – Guaranteed Maximum Price (GMP)

REQUEST:

Attached for City Council’s review and consideration for approval is the guaranteed maximum price in the amount not to exceed $4,600,000 from Hennessy Construction Services Corporation (HCSC), for the construction phase of the City’s Fleet Maintenance/Utility Purchasing Warehouse & Storage Building.



DISCUSSION
:

Subsequent to the April 30, 2019 structural assessment analysis, it was the consultant’s recommendation the city construct a new Fleet Maintenance/Utility Purchasing Warehouse and Storage Building.   The analysis was the first step in a multi-year process intended to ensure that the city continues to be provided with adequate Public Works infrastructure maintenance and utility services in the future as well as maintenance to all City owned vehicles and equipment.  The existing facility located at 6420 Pine Hill Road was constructed in 1973 and housed the Public Works Department.  This included administrative offices and operation centers for water and sewer utilities, streets and right-of-way maintenance, stormwater utility, construction management, fleet maintenance, utility and automotive purchasing and inventory storage until 2009.  In its current operational state, the facility is utilized to perform fleet maintenance and utility purchasing and inventory storage.  In addition to material storage, the building and site houses heavy maintenance equipment, ancillary equipment, construction materials, and police seizure vehicles.  As the size and complexity of our public works operation has increased over time, it is readily apparent the need for the city to construct a new facility in order to maintain the appropriate level of public works services in the future.

 

As City Council may recall, on January 17, 2023 RFP23-001 was approved and awarded to HCSC for bidding and construction management services for the construction of the proposed Fleet Maintenance and Utility Warehouse and Storage Building.  During the project cost review process by HCSC and City staff, it was determined that the construction cost escalation of the project from the original estimate of probable cost was due to the pandemic and material shortages.  As a result, this caused HCSC and City staff to perform Value Engineering (VE) on the project to reduce the cost of construction.  A reduction in the size of the building, a change in the roof structure, site stormwater redesign, and change in material were identified and included in the redesign VE phase to the final ready for construction (RFC) documents edited by Stroud Engineering. 

 

Subsequent to the completion of the RFC documents, HCSC began the bidding process with their list of vetted subcontractors. The competitive bids were reviewed and totaled by HCSC staff to derive at a total cost for construction of the project or a maximum guaranteed price.  This type of service is known as a “Contractor at Risk”; should the construction cost exceed the MGP then HCSC will be responsible for the increase.  Should the cost be lower than the MGP, then the city will receive the balance in deductive change order. 

 

Staff has worked with Hennessy Construction on the Sims Park Improvements and the Recreation and Aquatic Center Fitness Expansion projects and are confident that the firm has the expertise to deliver a product that meets and or exceeds the demands and standards set by City Council and staff. 

 

Should City Council approve the GMP, it is anticipated that the construction phase would begin in August of 2024.



RECOMMENDATION:

Approval of the GMP is recommended.



BUDGET/FISCAL IMPACT:

The project is included in the City’s current Capital Improvement Program and funds are identified as Water & Sewer fund account number 405533-46299. 

ATTACHMENTS:
DescriptionType
GMPBackup Material
Existing Building PhotosBackup Material