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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: ________________________________ DEBRA A. SKOGEN - CITY CLERK