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7.1 Fire and Emergency Services Building Project Request for City Council Action DEPARTMENT INFORMATION ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Emergency Services Emergency Services Director Rausch March 25, 2024 PRESENTER(s) REVIEWED BY: ITEM #: Emergency Services City Administrator/Finance Director Flaherty 7.1 – Fire and Emergency Services Building Project STRATEGIC VISION MEETS: THE CITY OF OTSEGO: X Is a strong organization that is committed to leading the community through innovative communication. X Has proactively expanded infrastructure to responsibly provide core services. X Is committed to delivery of quality emergency service responsive to community needs and expectations in a cost-effective manner. X Is a social community with diverse housing, service options, and employment opportunities. Is a distinctive, connected community known for its beauty and natural surroundings. AGENDA ITEM DETAILS RECOMMENDATION: City staff is recommending the City Council authorize Phase 2 of the Fire & Emergency Services Building Project. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? Yes No BACKGROUND/JUSTIFICATION: In November 2022, the City Council made a unanimous decision to proceed with establishment of a municipally operated fire services department which was formalized by resolution in November 2023 as the Otsego Fire & Emergency Services Department. With a goal to commence operations by January 1, 2027, the City has been actively advancing various elements required for the initiation of the Department. Key accomplishments include the recruitment of an Emergency Services Director, specification and procurement of fire apparatus, discussions on policies and procedures, and engagements with Chiefs of contracted departments concerning the transition from contracted services to Otsego-owned and operated emergency response. In January 2024, the City Council authorized Phase 1 of the Fire & Emergency Services Building Project. The first phase of the project was for the Space Needs Study, Master Site Plan and Conceptual Drawings. This phase also included tours of similar facilities with the City Council, City staff, advisory group members, and project partners from Wold and K/A. Phase 1 has now been completed and was presented to the City Council and Public Safety Commission on March 12. City staff is recommending the City Council authorize Phase 2. Wold has submitted a proposal for full service architectural and engineering services to proceed from the conceptual documents in Phase 1 to a construction ready project by the end of Phase 2. The maximum amount of the contract with Wold would be in the amount of $1,031,469, which will be paid incrementally during Phase 2 as the schematic design, design development, construction document, bid document, and project construction scopes of work are completed. Pending acceptance of the Phase 2 proposal from Wold, the City Attorney would collaborate with legal counsel from Wold to incorporate an amendment to the previously approved AIA Document B132 to reflect the costs in the proposal. Upon final negotiations of the amendment, the document would be executed by the Mayor and City Clerk. The City previously approved AIA Document C132 with Kraus-Anderson (K/A) for Preconstruction Services. This document included a total compensation of $20,000, split equally for Phase 1 and Phase 2 preconstruction services. With Phase 1 being completed, City staff is recommending the City Council authorize the remaining $10,000 for Phase 2. When the Fire & Emergency Services Building Project proceeds to a construction phase, a proposal for construction management services will be received by the City and be incorporated as an amendment to the previously approved AIA Document C132. SUPPORTING DOCUMENTS ATTACHED: • Wold – Phase 2 Proposal dated March 20, 2024 • Kraus-Anderson – Excerpt from AIA C132 Document (Compensation) POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Two Motions are requested: • Motion to accept the Proposal from Wold Architects and Engineers for Phase 2 Architectural Design and Engineering Services in an amount not to exceed $1,031,469 and to authorize the Mayor and City Clerk to execute an Amendment to AIA Document B132 pending approval of the final contract amendment by City Attorney Kendall. • Motion to authorize Kraus-Anderson to complete Preconstruction Phase 2 Construction Management Services in the amount of $10,000. BUDGET INFORMATION FUNDING: BUDGETED: Fund 214 – Fire Reserves Yes March 20, 2024 Daryl Rausch Emergency Services Director 13400 90th Street Northeast Otsego, Minnesota 55330 Re: City of Otsego New Fire Station – Phase II Commission No. 9999 Dear Daryl: After successfully completing our Phase I services for the New Fire Station, we are pleased to provide our proposal for Phase II services. As with the previous Master Planning and design services we have performed for you, Wold establishes a fixed fee at the onset of each project. We provide a comprehensive package of full architectural and engineering professional design and management services for you and manage our time internally to always meet your expectations. We believe that by establishing a fixed fee for each project, based on an agreed upon construction cost, this eliminates the potentially negative dialog that often happens regarding extra services. Our “basic services” contract with you goes well beyond what some other architectural firms would provide. Our commitment to you is to agree on a fixed fee and not request additional fees unless the scope of the project changes significantly. We propose to provide full service architectural and engineering services, including mechanical, electrical, civil, and structural engineering as outlined in the American Institute of Architects Document B132 – Standard Form of Agreement Between Owner and Architect inclusive of a Construction Manager. This letter is to serve as an amendment to that contract per Article 11.4., specifically for Phase II design services. For these complete and comprehensive services, we consistently propose fixed fees of 6% for new construction; based on your approved construction cost. To align with our RFP response for Phase I and Phase II services we are crediting back the costs for Phase I. This results in the following calculations for the projects, including our efforts for the overall building design and construction phases: NEW FIRE STATION Construction Budget $ 16,710,966.00 Half of Construction Contingency $ 411,524.00 Total Building Construction Budget Basis $ 17,122,490.00 Full Service Fixed Fee Rate x 6.0% Typical Full Service Fixed Fee $ 1,027,349.00 Credit for Previous Efforts ($ 43,880.00) Full Service Fixed Fee $ 983,469.00 We propose to invoice reimbursable expenses at actual cost with a maximum amount capped at $48,000 resulting in a total maximum contract amount of $1,031,469 for the New Fire Station – Phase II. Letter to Daryl Rausch Page 2 In addition to these phases for design and construction of the projects, Wold Architects and Engineers has full Interior Design and Audio / Visual Systems Design capability. We can provide the services needed to design, procure and administer implementation of these building elements upon request. Our fixed fee approach is the same, and we would use the value of the furnishings or equipment that we are responsible for to calculate the fee based on a percentage of that. We look forward to continuing our work to help improve facilities throughout the City of Otsego and making a difference in the communities we serve! Please let me know if I can provide any additional information. Sincerely, Wold Architects and Engineers Jonathan Loose | P.E., LEED AP Partner cc: Adam Flaherty, City of Otsego Jacob Wollensak, Wold Matt Mooney, Wold AM/Admin/Promo/CI_Otsego/crsp/2024.03.20 Letter to Daryl Rausch Init.AIA Document C132 – 2019. Copyright © 1973, 1980, 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 10:50:29 CT on 02/26/2024 under Order No.3104239500 which expires on 12/11/2024, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1282496850) 22 enforceable. In such case the Agreement shall be construed, to the fullest extent permitted by law, to give effect to the parties’ intentions and purposes in executing the Agreement. 10.10 The Construction Manager shall comply with Minnesota Statute § 471.425, Subdivision 4a to the extent it is applicable to this Agreement. ARTICLE 11 COMPENSATION 11.1 For the Construction Manager’s Basic Services described under Article 3, the Owner shall compensate the Construction Manager as follows: 11.1.1 For Preconstruction Phase Services in Section 3.2: Insert amount of, or basis for, compensation, including stipulated sums, multiples or percentages.) Lump Sum of $20,000.00 for 11 months of Preconstruction Phase Services from the date of this Agreement. Should the Preconstruction Phase exceed the above period, the Construction Manager’s time shall be billed at the hourly rates set forth in Section 11.5. Should the project not mover forward after Phase 1 – Conceptual Design the Owner shall owe $10,000 of the total Preconstruction Phase Services. 11.1.2 For Construction Phase Services in Section 3.3: Insert amount of, or basis for, compensation, including stipulated sums, multiples or percentages.) The Construction Manager shall be paid (i) a fee of 1.6% of the Cost of the Work defined in Article 6, (ii) the Construction Manager’s costs for administrating and managing the Project at the hourly rates set forth in Section 11.5.1, (iii) the costs of Construction Manager’s field labor for general conditions work at the hourly rates set forth in section 11.5.2, and (iv) any Reimbursable Expenses. Once the Project has been sufficiently defined after the Preconstruction Phase, the Owner and Construction Manager shall execute an Amendment setting forth the Construction Manager’s compensation for the Construction Phase of the Project as described herein. Any Construction Phase services performed prior to execution of the Amendment shall be billed at the hourly rates set forth in Sections 11.5.1 and 11.5.2, plus Reimbursable Expenses. 11.2 For the Construction Manager’s Supplemental Services designated in Section 4.1.1, and for any Sustainability Services required pursuant to Section 4.1.3, the Owner shall compensate the Construction Manager as follows: Insert amount of, or basis for, compensation. If necessary, list specific services to which particular methods of compensation apply.) At the hourly rates set forth in Sections 11.5.1 and 11.5.2, plus Reimbursable Expenses. 11.3 For Additional Services that may arise during the course of the Project, including those under Section 4.2, the Owner shall compensate the Construction Manager as follows: Insert amount of, or basis for, compensation.) At the hourly rates set forth in Sections 11.5.1 and 11.5.2, plus Reimbursable Expenses. 11.4 Compensation for Supplemental and Additional Services of the Construction Manager’s consultants when not included in Sections 11.2 or 11.3, shall be the amount invoiced to the Construction Manager plus percent ( %), or as follows: Insert amount of, or basis for computing, Construction Manager’s consultants’ compensation for Supplemental or Additional Services.) 11.5 The hourly billing rates for services of the Construction Manager and the Construction Manager’s consultants are set forth below. The rates shall be adjusted in accordance with the Construction Manager’s and Construction Manager’s consultants’ normal review practices. If applicable, attach an exhibit of hourly billing rates or insert them below.) 11.5.1 Hourly Rates for administrative and management personnel: DocuSign Envelope ID: 51598933-E97D-4572-936A-699CB54AC858