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Council approves $3.19 million GMP amendment for Municipal Services Building; staff cites $2.5 million in savings elsewhere
Summary
Council approved Amendment 4 to increase the guaranteed maximum price for the Municipal Services Building renovation to a not-to-exceed $9,016,561. Staff described cost savings, allowances, and relocation logistics; 207 employees were displaced to temporary locations during project work.
The Clearwater City Council approved Amendment 4 to the construction agreement with Ajax Building Company LLC, increasing the guaranteed maximum price (GMP) for municipal services building renovations by $3,193,901 and bringing the project total to a not-to-exceed $9,016,561.
Public Works Director Marcus Williamson and project partners described scope refinements, negotiated savings and reallocations of internal budgets to cover IT upgrades and move costs. Williamson said the project team reduced approximately $2.5 million in costs during procurement and scope review and converted some move-related budget into long-term investments such as furniture and swing space preparation.
Williamson said allowances remain in the GMP for items that require further investigative work, including roof drain repairs and life-safety/elevator scope that needs additional site teardown to fully evaluate. He described efforts to schedule durable investments while access is available (for example, replacing HVAC and LED lighting at the same time as ceiling work) and said certain movement and relocation costs were initially higher but expected to be negotiated down from prior move estimates.
Council members asked about alternates and allowances. Williamson said alternates listed in the contract document are not currently anticipated to be required, and that allowances were retained to address items that require additional investigation once work begins. City Manager Jennifer Poirier and assistant city manager Dan Slaughter praised staff and contractors for the move planning and for the condition of temporary facilities; Poirier said about 207 employees had been displaced to temporary locations during the renovation period.
Council approved the amendment by voice vote. Staff said the work is intended to reduce long-term energy and maintenance costs through HVAC replacements, LED lighting, and standardized furniture purchases negotiated at favorable pricing.
The project timeline and any additional budget requests will return to the council if allowances are spent or alternates are selected.
