Council approves Kraus Anderson construction‑manager‑at‑risk contracts for civic campus; passport contract passes 3–2

Roseville’s City Council on Nov. 10 approved construction‑manager‑at‑risk (CMAR) agreements with Kraus Anderson for two civic‑campus projects: the licensed passport center/dance studio and the maintenance operations center.

Public Works Director Jesse Fryhammer summarized the procurement and fee structure. The contracts are split into two agreements: the licensed passport center/dance studio (estimated contract fees and budgeting included in the packet) and the maintenance operations center. Fryhammer explained that some CMAR fees are flat amounts while other components are percentage‑based on final construction costs; if construction costs increase, the percentage‑based fees will also rise. He said the overall project budget includes soft costs (design, LHB and CMAR fees) and a construction contingency.

Council action: The council approved the CMAR agreement for the licensed passport center and dance studio on a 3–2 vote (two council members voted nay after debate). The maintenance operations center CMAR agreement was approved unanimously.

Fryhammer and staff told council they will return during schematic and design development phases with budget updates and any necessary change‑order requests; council emphasized the need for regular, transparent budget check‑ins during design and prior to bid release. Staff noted the CMAR approach transfers cost‑overrun risk to the CMAR after the guaranteed maximum price is set but carries a premium for that risk and reduces staff workload for managing a large project.

Quote: "When we develop that guaranteed maximum price... it's on them to meet that goal," Fryhammer said of the CMAR arrangement.

What happens next: Staff will proceed with design phases; the council will receive periodic budget updates and will consider final GMP and contract adjustments before major cost exposures.