Agenda Item Title:
Authorize Mayor and Finance Officer to sign the Standard Form Agreement Between Owner and Architect with Perkins + Will, Inc. for the Civic Center Arena Project
Origination Group:
Legal & Finance Committee
Origination Meeting Date:
07/11/2018
City Council Hearing Date:
07/16/2018
Staff Contact:
Joel Landeen, City Attorney
Agenda Item Summary:
Perkins + Will was selected as architect for this project by the City through a competitive process. Based on past experience, it was important to the City staff that the lead architect have experience actually designing and building an arena of a similar size or larger than the one approved by the Council for the Rushmore Plaza Civic Center. While Perkins + Will is a national firm, it has teamed with JLG Architects which has a local presence to assist on this project. The agreement is based on the standard form agreement prepared by the American Institute of Architects. The City typically uses this agreement for all projects where architectural services are needed. Due to the size and complexity of this project the parties have negotiated various terms of the agreement and amended the standard terms to meet the specific requirements of the project. In addition to input from the City staff and the City Legal Department, the City had input into the contract terms from Tegra, the City’s owners representative, and an attorney from Faegre Baker Daniels LLP. Both firms have extensive experience in negotiating complex architectural and construction agreements for projects like this. While there may still be a few minor tweaks needed prior to the Legal & Finance Committee meeting, the contract has reached a point where it is ready to be approved so we can make sure that the project continues to move forward and the architects can get paid for the work they are performing.
Funding Source & Fiscal Impact (if applicable):
| Funding | Cost Center |
|---|---|
| The total fee is $6,772,000. This fee is approximately 6.25% of the estimated construction cost of $110,000,000 and is already included in the project’s total estimated budget of approximately $130,000,000. The Vision Fund will be used to pay for this project. | |
Recommendations:
Origination Recommendation Action:
Approve
Origination Recommendation Notes:
The City and Perkins + Will had previously entered into an interim agreement for initial services related to helping understand the scope and feasibility of this project. Now that the citizens have ratified the funding for the entire project, this contract will allow Perkins + Will to move ahead with designing and constructing the new arena.
City Council Options:
If you approve the agreement, design work will continue and the project will remain on schedule. If you reject the agreement, it is likely work on the design will be delayed which could negatively impact the project’s estimated completion date in 2021.