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Council authorizes CMAR agreement for Light & Power and Traffic facility; project estimated at $19M

Sioux Falls City Council · December 17, 2024
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Summary

Council approved a construction manager‑at‑risk agreement with Feagin Construction for a new Light & Power and Traffic Operations facility; construction estimate $15.75M, all‑in project estimate $19M, funded from the Light & Power enterprise fund without additional debt.

The City Council authorized the mayor to enter into a construction manager‑at‑risk (CMAR) agreement with Feagin Construction to deliver a new Light & Power and Traffic Operations facility.

Public Works Project Manager Mark Cotter said the Light & Power and Traffic divisions have outgrown existing facilities and that the recommended CMAR delivery provides early contractor involvement to optimize design and costs. Cotter said Feagin Construction and Koch Hazard provided a cost estimate based on about 60% design: construction cost estimated at $15,750,000 and total project cost (design, construction administration, furniture/fixtures/equipment, testing, owner contingency and legal fees) estimated at $19,000,000. He said the Light & Power enterprise fund will support the project and no additional debt is anticipated.

Council voted 8–0 to approve the agreement and directed staff to finalize guaranteed maximum price and proceed with construction planning; Cotter said construction is anticipated to take about 16 months once underway.