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Council approves guaranteed maximum price and contractors for new Fire Station No. 2, groundbreaking expected in March
Summary
After several years of planning, the council approved a guaranteed maximum price (GMP) amendment with Holland Construction for Fire Station No. 2 (GMP listed at $8,274,361) and authorized recommended contractors and trade contract assignments; staff said the construction package totaled about $7.66 million for building and site work with an anticipated 12-month schedule and early-March mobilization.
City fire department leadership and Holland Construction representatives presented the council with project history, procurement results and recommended contract approvals for a new Fire Station No. 2 at 400 Pine Lake Road.
"A maximum guaranteed price of $8,274,361," the presenter said, listing the major cost components that led to a guaranteed maximum price. Staff reported the building and site work bids totaled $7,655,548; a 3% construction contingency of $229,666; and construction manager fees of $389,147. When owner-provided operational equipment is included, forward project costs were described at approximately $9,055,968.
Council members asked whether additional costs could push the project higher; staff said the GMP limits building and site costs unless there are change orders, and noted the city has already expended roughly $246,730 for property acquisition and due diligence. Project staff said 63 bids were received across 15 bid packages, producing competitive pricing, and Holland Construction — serving as construction manager at risk — will manage contractors once assigned.
Council approved the ordinance authorizing the mayor to execute the GMP amendment and later approved an accompanying ordinance to award and authorize agreements with recommended contractors and to assign trade contract agreements. Staff said Holland may mobilize soon with an expected early-March groundbreaking and an anticipated 12-month construction schedule.
