Title/Name/Summary
Downtown Main Street Parking Deck - Walsh Design-Build Contract
History
On August 26, 2015, the Village published a Request for Proposals (RFP) seeking a design-build team to construct a new multi-level public parking structure and other improvements in the Downtown Main Street District associated with the University of Chicago Medicine project.
The Village received proposals on September 29, 2015. After review by Village staff and our consultants, three firms were selected for interviews conducted on October 13, 2015. Based upon the interview and evaluation process, the selection committee found Walsh Construction Company II, LLC (Walsh) to meet or exceed the expectations established in the RFP. The total proposed Guaranteed Price (GMP) in the proposal was $14,627,000.
On October 19, 2015, the Board of Trustees authorized staff to enter into exclusive contract negotiations with Walsh in a timely manner in order to meet project delivery expectations associated with the neighboring University of Chicago Medicine project.
At this time, staff and Walsh have come to an agreement on the major deal terms, including:
Project Specifications:
Walsh shall construct a new 520+ space, multi-level public parking deck and other improvements on roughly 2.0-acres of vacant municipal-owned land as detailed in the Request for Proposals #15-022. In addition to designing and constructing a parking deck, Walsh will perform other ancillary activities including general site preparation, demolition, and utility work, as well as deliver a cold, dark shell space for a +/- 12,000 sf restaurant to be integrated into the north side of the parking deck.
Guaranteed Maximum Price (GMP):
The Contract GMP is $14,560,000. This includes three components: (1) Utility Installation ($499,400); (2) Site Demolition and Preparation ($737,390); and the Parking Structure ($13,323,210 - reduced from the original proposal by $67,000 through contract negotiations). The Parking Structure itself is comprised of two elements, which generally breakdown as: (1) the parking area ($12,323,210) and (2) the tucked-in future restaurant shell ($1,000,000). Thus the cost per space for the parking area is approximately $23,698, which assumes a minimum of 520 spaces. Working concepts by Walsh suggest that this parking number may reach as many as 550 (this may change based upon final design refinement, but in no case shall be less than 520), thereby reducing the cost per space to $22,405. At either rate, the cost is below the Village’s estimate of $25,000 per space.
Contingency:
Built into Walsh’s GMP total is a contingency amount of $432,000, or approximately 3%, which can be utilized only with Village approval.
Alternatives:
As part of the RFP and the contract negotiations, the Village presented alternatives. These modifications, most cost reductions, included, but were not limited to: reducing the floor-to-ceiling heights; providing additional CCTV cameras; and modifying one of the stair towers. Moreover, the complete fire suppression system (i.e. sprinklers) is included in the GMP, and the Board can choose to keep this component as is and exceed code requirements, or modify the fire suppression design while maintaining full code compliance.
In total, and depending on the degree of changes executed, these alternatives could potentially yield an additional savings to the Village of over $500,000. The Contract establishes a date of January 8, 2016 for the Village to provide final direction on these options based upon additional study on the part of the Village, and design studies and technical data to be provided by Walsh in the very near future.
Substantial Completion Date:
The Contract reflects a substantial completion date of November 15, 2016, which is the same as announced in the RFP. Substantial completion is defined as delivering at least 300 usable spaces. Modifications to the substantial completion date shall be considered only due to extraordinary issues, and will be determined through a meet and confer process.
Contract Status
The Village Attorney has reviewed the contract and has found the general deal terms acceptable. At this time, minor functional and legal elements are being finalized by the Village and Walsh. The draft Contract is attached.
Timing
Should the Board approve and authorize Staff to finalize the Contract after approval by the Village Attorney, Walsh anticipates delivering Design Development drawings within a few weeks, and mobilization on-site may occur as early as the first week of January 2016.
Financial Impact
Funds for these services are included in the FY2016 Main Street Triangle TIF Fund budget. In addition, as part of the Village’s agreement with the University of Chicago Medicine that group shall contribute $10,619,730 toward the construction of the parking structure and 207-space surface parking lot (not part of this Contract).
Recommended Action/Motion
I move to approve and award the design/build contract, pending Village Attorney review and approval, to Walsh Construction Company II, LLC of Chicago, IL, for design and construction of the Downtown Main Street Parking Deck in an amount not to exceed $14,560,000, which contains a contingency amount of $432,000 to be utilized only with Village approval.