AGENDA CAPTION:
Title
Receive a project update and hold discussion on the pre-development services relating to the new Public Services Center, and provide direction to the City Manager.
Body
Meeting date: April 7, 2020
Department: Public Services - Tom Taggart, Director
Amount & Source of Funding
Funds Required: NA
Account Number: NA
Funds Available: NA
Account Name: NA
Fiscal Note:
Prior Council Action: Resolution 2019-197R, Awarding a Predevelopment Services Agreement to Hunt Companies, Inc.
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Background Information:
A Predevelopment Services Agreement (PSA) was awarded to Hunt Companies, Inc. (Hunt) in the not-to-exceed amount of $1,500,000 for pre-development phase services including financial development, design development, constructability reviews, cost estimating/budgeting, procurement of additional professional services, etc. prior to the execution of a Development Agreement and financial closing.
Within 4 months of the execution of the Predevelopment Services Agreement, Hunt will provide the City with a Guaranteed Maximum Purchase Price (GMPP) proposal for review and negotiation based on a detailed development schedule and preliminary construction drawings and specifications. The GMPP is the total cost to complete the project comprised of financing costs, design fees, construction cost, project contingency, 3rd party testing services, and building commissioning. A negotiated GMPP will be presented to City Council for approval at which time the City will execute the Development Agreement to proceed with completing the design and begin construction phase services. If the City and Hunt cannot come to an agreement on the GMPP proposal, the City reserves the right to terminate the PSA for convenience, reimburse Hunt for predevelopment services performed, and retain ownership of any drawings, specifications, models, renderings or other materials prepared in connection with the project.
This procurement methodology provides the City with the maximum flexibility to help minimize the potential cost of the development because Hunt and the City of San Marcos will work together throughout the process to develop the most efficient program as it relates to the various building components and the related design features such as building materials. It is anticipated that the GMPP will be presented to Council in May 2020.
This presentation will provide an update to Council on the on-going activities of this project.
Council Committee, Board/Commission Action:
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Recommendation:
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