Item Coversheet

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


TO:Members of the Community Redevelopment Agency
FROM:Robert M. Rivera, Public Works Director
DATE:5/6/2025
RE:2025 Railroad Square Improvements Phase 1 Construction Project – Guaranteed Maximum Price (GMP) - Page 18

REQUEST:

Attached for the Board of Directors review and consideration for approval is the guaranteed maximum price in the amount not to exceed $2,989,790 from Hennessy Construction Services Corporation (HCSC) for the construction phase of the Railroad Square Improvements Phase 1.




DISCUSSION:

Improvement elements to the area of Railroad Square along Nebraska Avenue east of Grand Boulevard include the conversion of overhead service lines to underground where practical, overhead Café style lighting, hardscape improvements such as stamped pavement, seating areas, planters, shade structures, the creation of green space that includes artificial turf, seating areas with swings and an activity area, construction of dumpster areas, upgrades to Cavalier Square, and improvements to the existing public vehicle parking areas. Finally, in an effort to maximize public space the existing two-way traffic pattern will be limited to a one-way westerly traffic movement on Nebraska Avenue from Adams Street to Grand Boulevard.    

 

As the Board of Directors may recall, on September 3, 2024 CRA meeting, Board of Directors approved HCSC to perform construction management services for the Railroad Square Improvements Phase 1 Project.  Included in the Request for Proposals (RFP) for the construction management services was a “Contractor at Risk” clause.  This is where the construction management firm selected would perform value engineering of the ready for construction plans, perform the bidding process with vendors in accordance with the construction documents, and oversee the construction phase of the project.  Once the bids were reviewed and totaled, HCSC is required under the contract to submit the total cost of the project to the city for the Boards review and approval. In addition, HCSC is required to guarantee the total cost submitted will not be exceeded otherwise known as the Guaranteed Maximum Price (GMP).  Basically, HCSC takes all of the risk and is responsible for all costs associated with any project cost exceedance. In addition, should the project cost be lower than the GMP, then the city will receive the balance in deductive change order submitted to the city with the final pay request. 

Staff has worked with Hennessy Construction on the Sims Park Improvements, the Recreation and Aquatic Center Fitness Expansion, the Library Renovation, and currently the Fleet Maintenance and Utility Warehouse construction 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 the Board and staff.  Should the Board approve the GMP, it is anticipated that the construction phase would begin in the Spring of 2025.




RECOMMENDATION:

Approval of the GMP is recommended.




BUDGET / FISCAL IMPACT:

The project is included in the City’s current Capital Improvement Program. Funding is allocated in account number 630080.46399.4001 financed through the issuance of a Tax-Exempt Non-Ad Valorem Revenue Note, Series 2025A, for costs related to Phase 1 of the redevelopment of Railroad Square.

ATTACHMENTS:
DescriptionType
GMPBackup Material
Concept DrawingBackup Material