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Work at the Airport Basin continues, with a Holiday Inn Express claiming their stake in the new business development.
Public Works Director Kyle Zimmerman was in council chambers Tuesday to ask council to move forward with Guaranteed Maximum Price #2 for the Airport Basin Project, which would increase GMP #2 to $50,804,480.
The council passed the motion to increase the GMP, with a 7-0 vote.
According to county documents, the Design Development Submittal for the Airport Basin Site Project was awarded on May 15, 2008 to Construction Manager-at-Risk Hensel Phelps.
The award was based in part on an Initial Guaranteed Maximum Price of $56,433,607, which included New Mexico gross receipts tax in the amount of $3,722,707, escalation in the amount of $1,369,375, and contingency in the amount of $2,054,063.
Council awarded GMP #1 in the amount of $14,811,011 plus applicable gross receipts tax on June 24, 2008.
According to the documents, GMP #1 authorized the start of mobilization, earthwork, utilities, some structural work and the procurement of long-lead time or marked sensitive materials. Work began on June 30, 2008 and is currently on schedule.
The design work package for another significant portion of the remaining ABS construction is complete and staff is requesting approval for Amendment No. 2 of GMP #2. The amendment would increase the compensation to Hensel Phelps from the GMP #1 amount of $14,811,011 by GMP #2 amount of $35,993,469 for a total amended compensation amount of $50,804,480 plus applicable gross receipts tax.
Items included in GMP #2 include asphalt pavement, covered storage and parking area foundations, as well as an above-grade vehicle wash structure and structural steel.
Towards the end of the calendar year, staff will return to Council to request a third amendment for GMP #3, which will address scope changes to accommodate the electric scheduler/dispatch function requirements recently added to the project.
Staff anticipates that GMP #3 may cover additional costs for elements still being designed and not yet included in design documents.
“We need to move forward with GMP #2,” Zimmerman said. “We're at the point where work is growing beyond the GMP #1 price. We'll have to come back to council with an amendment to this,” he continued. Zimmerman said that GMP #3 should be the final price.
He also said that he and project manager David Apple are evaluating whether they need certain items, such as 72 overhead doors, which would cost the county about $718,000.
Zimmerman said that they are slightly over budget at this point, with the project's drawings being 90 percent complete.
Councilor Michael Wheeler asked Zimmerman, “If we make the revisions in phase two, how do we carry the saving over into phase three?” Zimmerman said, “If there's a reduction in cost, the money will move back into the contingency (fund).”
In referring to the cost cuts, Zimmerman also said that things could possibly be added on as far as quality. Councilor Jim West said, “We're not getting rid of stuff to stay in budget, are we?” Zimmerman responded with, “no.”
Apple reassured council about the work being done by saying that he doesn't sign any payment vouchers without first inspecting them to make sure that the work being claimed was, in fact, done.
“I'm confident that we'll get the project completed, and it'll be a good project,” he said. Councilor Ken Milder told Apple that he appreciates his comments about not signing the vouchers without looking at them. “I appreciate that you are considering that it's the tax payers' money,” Milder said.
Councilor Nona Bowman wanted to know whether the project was still on schedule.
Zimmerman said that the drawings had taken longer than anticipated, so there was a little bit of a delay.
“The physical construction work is going well,” he said. Bowman seemed optimistic about the project when she said, “I think it's something the community will be proud of.”