Council approves Hennessy Construction as construction manager for Railroad Square project

City staff recommended and the council approved entering into a construction-management contract with Hennessy Construction Services for the Railroad Square redevelopment. Staff said Hennessy was the only respondent to the RFP, but the firm has prior experience on several city projects, including Sims Park, the recreation and aquatic center expansion and recent library renovations.

The proposed fee structure includes a fixed staff-cost component of $219,353 for pre-construction through post-construction services and a negotiated construction management fee equal to 5.5% of the guaranteed maximum construction cost (reduced from an initial 6% proposal). Staff said the $219,353 covers preconstruction, construction and post-construction fixed costs and was calculated assuming a 35-week construction period, though the actual schedule will be driven by design choices and property-owner preferences on phasing.

Council members voiced both support and caution. Several members said Hennessy'—s previous work with the city was positive; one member asked staff to emphasize oversight due to past project-ending issues and to ensure the city receives good value on future projects. A motion to approve the contract was moved and seconded; the council voted to authorize staff to enter the agreement.

Staff noted the contract approach is intended to minimize business-disruption downtown and to allow a contractor-at-risk model to help refine remaining design decisions and bid packages.

Council requested staff consider how the contractor might be used on other city projects, consistent with procurement rules and oversight requirements.