Res 2017-29 Adjust McGough Staff Fee
RESOLUTION NO. 2017 - 29
A RESOLUTION ACCEPTING AND RATIFYING THE COUNCIL ACTION OF
MAY 22, 2017 TO ADJUST THE ORIGINAL MCGOUGH CONSTRUCTION COMPANY
REQUEST FOR PROPOSAL (RFP) TO ALLOW A MCGOUGH STAFF FEE OF 3.0%,
RATHER THAN 2.4% THIS MODIFICATION WILL NOT IMPACT THE
GUARANTEED MAXIMUM PRICE (GMP) FROM MCGOUGH CONSTRUCTION
COMPANY, FRIDLEY'S CONSTRUCTION MANAGER AT RISK FOR THE CITY OF
FRIDLEY'S CIVIC CAMPUS PROJECT WHICH INCLUDES: CITY HALL, POLICE,
FIRE AND THE PUBLIC WORKS BUILDINGS
WHEREAS,The CityCouncil has contracted with McGough Construction Company, LLC as its
Construction Manager; and
WHEREAS, The City Council has now been presented Guaranteed Maximum Price (GMP) from
McGough Construction Company, LLC, of $43,162,131; and
WHEREAS, A GMP was required to allow McGough Company to be the City's Construction
Manager at Risk CMAR, as opposed to being a Construction Manager Agency (where the City
holds the risk of over-runs in the budget); and
WHEREAS, the GMP's acceptance by the City Council was essential to the advancement of
McGough Construction Company's ability to advance as the City's CMAR, rather than its CMA;
and
WHEREAS, it is in the City of Fridley's best interest to have a Construction Manager At Risk,
guaranteeing pricing and performance, rather than a Construction Manager Agency, with the
City holding the risk on a project this large; and
WHEREAS, the CMAR process to date has revealed that there has been and will continue to be
additional expense beyond that anticipated to administer the CMAR duties due to the uniqueness
of this process and associated administration; and
WHEREAS, an adjustment of McGough Construction Companies fees as stated in their original
response to the City's Request for Proposal (RFP) would be reflected as 3% staff fees, rather than
2.4% staff fees to compensate for those added costs; and
WHEREAS, this adjustment has been mutually agreed upon between the City of Fridley and
McGough Construction Company; and
WHEREAS, the adjustment will not impact the Guaranteed Maximum Price of $43,162,131 as
offered by McGough Construction Company and approved by the City of Fridley on May 22,
2017; and
Resolution No. 2017-29 Page 2
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Fridley approves the
adjustment of staff fee amount from 2.4% to 3% as shown in the supporting documentation to the
GMP offered by McGough Construction Company, its CMAR and approved by the City on
May 22, 2017. This resolution hereby adopted by the City Council of the City of Fridley.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS
12TH DAY OF JUNE, 2017.
______________________________________
SCOTT J. LUND – MAYOR
ATTEST:
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DEBRA A. SKOGEN - CITY CLERK