97-734Council File # �� — l 3 �
Green Sheet # �����
RESOLUT�N
NT PAUL;�IUIINNESOTA
P�esented By
Reiessed To
Coximattee: Date
MOTOR POOL SITE
ST. PAUL, MINNESOTA
RESOLVED, that the State of Minnesota acting through its Department of Revenue and
Administration has deternvned that it will relocate the Department of Revenue from its current
location in Saint Paul to a new state owned building beginning on or about November 30, 1998 at
the expiration of the lease for the DeparatmenYs current building.
RESOLVED, that the Department employees approximately 1,300 people and that it is
important to the future vitality of the City for the Department and its employees to be located in the
City.
RE50LVED, that City action is adviseable to demonstrate to the State that constructing a
new buildin� in the City is feasible and consistent with State requirements for a new Revenue
Department buildin�.
RESOLVED, that the City authorizes and supports the execution of a design-build contract
between the State of Minnesota, as owner, and the Wellington Group, as design-builder (which is
enJa�ing Kraus-Anderson Construction, St. Paul Division and Pope Associates, Inc. as contractor
and architect, respectively) for the construction of a new facility (the "ProjecY') for the Minnesota
Department of Revenue at the Motor Pool site in St. Paul in compliance with the requirements of the
State ofMinnesota ("State Praject Requireinents"). The Project will include:
a. A buildin� having approximately 315,000 square feet of usable space and an
estimated gross area of 350,000 square feet of space; and
b. A parking ramp for 950 parkin� stalls;
RESOLVED, that the design-build contract will be for a waranteed maximum sum of $74.5
million, inclusive of a customary percenta�e factor for architects fees, general contractors fees,
construction mana�ement fees, project developer fees, bonding fees, and related soft costs.
Construction costs will be "open book" and based on competitive biddin�; provided further that the
design builder may negotiate a threshold of di minimis subcontracts which do not require competitive
biddin�, may negotiate a minimum price for the Project, and may ne�otiate how cost savings wili be
shared. The guaranteed maximum sum includes a$7.5 million tenant improvement allowance. To
the extent the tenant improvement allowance is not utilized, excess funds will belong to the State of
Vtinnesota.
RESOLVED, that the State of Minnesota will be allocated a reasonable amount, not to
������
�
G��3�
exceed $SOQ000, as par[ of the $74.5 million budget to engage or retain its own architect. The
State's architect shall complete schematic and design work throujh the desi�n development phase
in a collaborative effort with the design-build architect of record. The design-build team will have
the official architect of record, overseen by the State and the State's architect. The State's architect
may atso do desi�n development interior packages and construction inspections as the State's
representative.
RESOLVED, that the City of St. Paul may join in the design-build contract and appropriate
City officials are authorized to enter into agreements for the purpose ofguaranteeing the following
consistent with the State Project Requirements:
a. If and to the extent necessary to assure the Department's location in the city, the costs
ofthe Project (include the hard construction costs, customary soft costs, $7.5 million tenant
improvement allowance, and $SOQ 000 allowance for the State's architect) wil] not exceed
$74.5 million; and
b. The completion schedu{e of the Pro}ect, which includes:
i. Substantial completion of the Project, including both the buildin� and the parking
ramp, on or about September l, 1998;
ii. Facilitatin� the commencement of move-in by the Department of Revenue on or about
September l, 1998;
iii. Completion to facilitate the entire move-in of the Department of Revenue no later than
November 30, 199S; and
iv. The final substantial completion ofthe Project by November 30, 1998 subject to minor
"punch list" items to be completed in a reasonable period thereafter which do not interfere
with the State's use and occupancy of the Project.
v. If the Project is not completed within the forejoing schedule, that the City will be
Iiable for any excess rent paid by the State ofMinnesota durin� any delays, plus any additional
costs of a double-move (collectively the "Delay Damages"). In the event a double-move is
necessary, the City will also a arantee the availability at the same or less renta] rate of interim
office space to be used durin� the delay in a reasonably suitable facility and location (the
"Interim Space").
RESOLVED, that the proper City officials are authorized to enter into a contract with the
desi�n-build team to receive appropriate assurances that the desi�n-build team will complete the
Project within said schedule and within said a aranteed maximum price, which assurances shal]
consist of
Wellington Group will �uarantee the timely completion of the Project and that it shall be
completed for an amount less than or equa( to the $74.5 million waranteed maximum sum.
Kraus-Anderson will �uarantee the timely completion of the constnxction and that the
construction, after taking into consideration the allowances and soft costs, will not exceed an
amount which would cause the total Project costs to exceed $74.5 million. Kraus-Anderson
�'� tc��
�� ��
will also fumish a payment and performance bond for the amount of the construction. Either
Wellington Group, Kraus Anderson, or bo_th will agree to fizlly indemnify the City in an
agreement structured to the satisfaction of City officials for the payment of any Delay
Damages or the procurement of Interim Space.
RESOLVED, that City staff is authorized to assist in and support the execution and
implementation of the desi�-buiid contract, and work with the State of Minnesota and design-build
team in accordance with a schedule that fully satisfies State Project Requirements.
RESOLVED, that because of the time constraints imposed by state legislation and the
state process for selecting a design bui3d team, the City did not enter into a competitive process for
selection ofa design-build team with which to work. Consequently, the City, with prior authorization
ofthe City Councii, is wiliing to consider entering into a similar agreement with a different design-
build team if the State of Minnesota determines it wants to utilize a different design build team
provided if such other design build team could provide the City adequate assurances and guarantees
for potential City exposure to the State for the Project.
Requested by Department of:
Adopted by Council: Date q
Adoption Certified by Council Secretary
BY= - 0..M<_ �r 1�
Approved by Mayor. Date C��/S�
By: ��� � ,%/
I /
���
B ���,, � v�G�l�
-
Form Approved by City Attorney
BY: I ��� �• ��1�- � ' �� -9�-
Approved by Mayor for Submission to Council
By: � , ��
`
���3y
�823�
DEP11RiMENTADFFICE�COUNCIL DATE INITIATED
Mayor's Office June 12, 1997 GREEN SHEE
CONTACT PERSON 8 PHONE INRIAUDATE INRIAUDATE
� DEPPRTMENT DIRECTOR � CfP/ CqUNCIL
TimMarx,266-8520 ASSIGN CT'ATTORNEV CIT`/C4ERK
NUYBERFON � �
MUST BE ON COUNCIL AGENOA BY (DAT� pOUTING O BUOGEf DIRECTOR � FIN. & M6T. SERVICES �IR.
June 18 1997 OPDER � MAVOR (OR ASSISTANn �
TOTAL # OF SIONATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATURE)
ACTION qE�l1ESTED:
Authorizing and supporting the execution of a design-build contract for the construetion of a new facility for the Minnesota
Department of Revenue at the Motor Pool site in St. Paul.
RECAMMENDATIONS: Approve (A) or Rejeet (R) pERSONAL SERVICE CONTRACT'S MUST ANSWER TNE FOLLOWING QUESTIONS:
_ PLANNING COMMISSION _ CIVIL SERVICE COMMISSION 1. Has this persoNfirm ever worketl untler a comract for this department?
__ CIB COMMITTEE _ YES NO
^ S7AFF 2. Has this personRirm ever been a ciry employee?
— YES NO
_ DISTRiCrCOUaT — 3. Does this personRirm posses5 a skill not normally possessed by any curtent c'rty employee?
SUPPOflTS WHICH COUNCIL OBJECTIVE4 YES NO
Explain a11 yes answers on separate sheet antl attech to green sheet
INITIATING PROBLEM, ISSUE, OPP4IRTUNIN (Who. What, Whan. Where, Why):
ADVANTAGESIFAPPROVED:
OISAOYANTAGES IF APPROVEO�
��iCC� � ��?� t�
JU�i 1 2 i��3 -.. _
�r�_�_a.-�..,� _ , _�. __u�.�
DISADVANTAGES IF NOTAPPROVED:
TO7AL AMOUNT OF TRANSAC710N $ COS7/REVENUE BUDGETED (CIRCLE ONE) YES NO
FUNDIfdG SOURCE ACTIVITY NUMBER
FINANCIAL INFORfIiATION. (EXPLAIN)
Council File # �� — l 3 �
Green Sheet # �����
RESOLUT�N
NT PAUL;�IUIINNESOTA
P�esented By
Reiessed To
Coximattee: Date
MOTOR POOL SITE
ST. PAUL, MINNESOTA
RESOLVED, that the State of Minnesota acting through its Department of Revenue and
Administration has deternvned that it will relocate the Department of Revenue from its current
location in Saint Paul to a new state owned building beginning on or about November 30, 1998 at
the expiration of the lease for the DeparatmenYs current building.
RESOLVED, that the Department employees approximately 1,300 people and that it is
important to the future vitality of the City for the Department and its employees to be located in the
City.
RE50LVED, that City action is adviseable to demonstrate to the State that constructing a
new buildin� in the City is feasible and consistent with State requirements for a new Revenue
Department buildin�.
RESOLVED, that the City authorizes and supports the execution of a design-build contract
between the State of Minnesota, as owner, and the Wellington Group, as design-builder (which is
enJa�ing Kraus-Anderson Construction, St. Paul Division and Pope Associates, Inc. as contractor
and architect, respectively) for the construction of a new facility (the "ProjecY') for the Minnesota
Department of Revenue at the Motor Pool site in St. Paul in compliance with the requirements of the
State ofMinnesota ("State Praject Requireinents"). The Project will include:
a. A buildin� having approximately 315,000 square feet of usable space and an
estimated gross area of 350,000 square feet of space; and
b. A parking ramp for 950 parkin� stalls;
RESOLVED, that the design-build contract will be for a waranteed maximum sum of $74.5
million, inclusive of a customary percenta�e factor for architects fees, general contractors fees,
construction mana�ement fees, project developer fees, bonding fees, and related soft costs.
Construction costs will be "open book" and based on competitive biddin�; provided further that the
design builder may negotiate a threshold of di minimis subcontracts which do not require competitive
biddin�, may negotiate a minimum price for the Project, and may ne�otiate how cost savings wili be
shared. The guaranteed maximum sum includes a$7.5 million tenant improvement allowance. To
the extent the tenant improvement allowance is not utilized, excess funds will belong to the State of
Vtinnesota.
RESOLVED, that the State of Minnesota will be allocated a reasonable amount, not to
������
�
G��3�
exceed $SOQ000, as par[ of the $74.5 million budget to engage or retain its own architect. The
State's architect shall complete schematic and design work throujh the desi�n development phase
in a collaborative effort with the design-build architect of record. The design-build team will have
the official architect of record, overseen by the State and the State's architect. The State's architect
may atso do desi�n development interior packages and construction inspections as the State's
representative.
RESOLVED, that the City of St. Paul may join in the design-build contract and appropriate
City officials are authorized to enter into agreements for the purpose ofguaranteeing the following
consistent with the State Project Requirements:
a. If and to the extent necessary to assure the Department's location in the city, the costs
ofthe Project (include the hard construction costs, customary soft costs, $7.5 million tenant
improvement allowance, and $SOQ 000 allowance for the State's architect) wil] not exceed
$74.5 million; and
b. The completion schedu{e of the Pro}ect, which includes:
i. Substantial completion of the Project, including both the buildin� and the parking
ramp, on or about September l, 1998;
ii. Facilitatin� the commencement of move-in by the Department of Revenue on or about
September l, 1998;
iii. Completion to facilitate the entire move-in of the Department of Revenue no later than
November 30, 199S; and
iv. The final substantial completion ofthe Project by November 30, 1998 subject to minor
"punch list" items to be completed in a reasonable period thereafter which do not interfere
with the State's use and occupancy of the Project.
v. If the Project is not completed within the forejoing schedule, that the City will be
Iiable for any excess rent paid by the State ofMinnesota durin� any delays, plus any additional
costs of a double-move (collectively the "Delay Damages"). In the event a double-move is
necessary, the City will also a arantee the availability at the same or less renta] rate of interim
office space to be used durin� the delay in a reasonably suitable facility and location (the
"Interim Space").
RESOLVED, that the proper City officials are authorized to enter into a contract with the
desi�n-build team to receive appropriate assurances that the desi�n-build team will complete the
Project within said schedule and within said a aranteed maximum price, which assurances shal]
consist of
Wellington Group will �uarantee the timely completion of the Project and that it shall be
completed for an amount less than or equa( to the $74.5 million waranteed maximum sum.
Kraus-Anderson will �uarantee the timely completion of the constnxction and that the
construction, after taking into consideration the allowances and soft costs, will not exceed an
amount which would cause the total Project costs to exceed $74.5 million. Kraus-Anderson
�'� tc��
�� ��
will also fumish a payment and performance bond for the amount of the construction. Either
Wellington Group, Kraus Anderson, or bo_th will agree to fizlly indemnify the City in an
agreement structured to the satisfaction of City officials for the payment of any Delay
Damages or the procurement of Interim Space.
RESOLVED, that City staff is authorized to assist in and support the execution and
implementation of the desi�-buiid contract, and work with the State of Minnesota and design-build
team in accordance with a schedule that fully satisfies State Project Requirements.
RESOLVED, that because of the time constraints imposed by state legislation and the
state process for selecting a design bui3d team, the City did not enter into a competitive process for
selection ofa design-build team with which to work. Consequently, the City, with prior authorization
ofthe City Councii, is wiliing to consider entering into a similar agreement with a different design-
build team if the State of Minnesota determines it wants to utilize a different design build team
provided if such other design build team could provide the City adequate assurances and guarantees
for potential City exposure to the State for the Project.
Requested by Department of:
Adopted by Council: Date q
Adoption Certified by Council Secretary
BY= - 0..M<_ �r 1�
Approved by Mayor. Date C��/S�
By: ��� � ,%/
I /
���
B ���,, � v�G�l�
-
Form Approved by City Attorney
BY: I ��� �• ��1�- � ' �� -9�-
Approved by Mayor for Submission to Council
By: � , ��
`
���3y
�823�
DEP11RiMENTADFFICE�COUNCIL DATE INITIATED
Mayor's Office June 12, 1997 GREEN SHEE
CONTACT PERSON 8 PHONE INRIAUDATE INRIAUDATE
� DEPPRTMENT DIRECTOR � CfP/ CqUNCIL
TimMarx,266-8520 ASSIGN CT'ATTORNEV CIT`/C4ERK
NUYBERFON � �
MUST BE ON COUNCIL AGENOA BY (DAT� pOUTING O BUOGEf DIRECTOR � FIN. & M6T. SERVICES �IR.
June 18 1997 OPDER � MAVOR (OR ASSISTANn �
TOTAL # OF SIONATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATURE)
ACTION qE�l1ESTED:
Authorizing and supporting the execution of a design-build contract for the construetion of a new facility for the Minnesota
Department of Revenue at the Motor Pool site in St. Paul.
RECAMMENDATIONS: Approve (A) or Rejeet (R) pERSONAL SERVICE CONTRACT'S MUST ANSWER TNE FOLLOWING QUESTIONS:
_ PLANNING COMMISSION _ CIVIL SERVICE COMMISSION 1. Has this persoNfirm ever worketl untler a comract for this department?
__ CIB COMMITTEE _ YES NO
^ S7AFF 2. Has this personRirm ever been a ciry employee?
— YES NO
_ DISTRiCrCOUaT — 3. Does this personRirm posses5 a skill not normally possessed by any curtent c'rty employee?
SUPPOflTS WHICH COUNCIL OBJECTIVE4 YES NO
Explain a11 yes answers on separate sheet antl attech to green sheet
INITIATING PROBLEM, ISSUE, OPP4IRTUNIN (Who. What, Whan. Where, Why):
ADVANTAGESIFAPPROVED:
OISAOYANTAGES IF APPROVEO�
��iCC� � ��?� t�
JU�i 1 2 i��3 -.. _
�r�_�_a.-�..,� _ , _�. __u�.�
DISADVANTAGES IF NOTAPPROVED:
TO7AL AMOUNT OF TRANSAC710N $ COS7/REVENUE BUDGETED (CIRCLE ONE) YES NO
FUNDIfdG SOURCE ACTIVITY NUMBER
FINANCIAL INFORfIiATION. (EXPLAIN)
Council File # �� — l 3 �
Green Sheet # �����
RESOLUT�N
NT PAUL;�IUIINNESOTA
P�esented By
Reiessed To
Coximattee: Date
MOTOR POOL SITE
ST. PAUL, MINNESOTA
RESOLVED, that the State of Minnesota acting through its Department of Revenue and
Administration has deternvned that it will relocate the Department of Revenue from its current
location in Saint Paul to a new state owned building beginning on or about November 30, 1998 at
the expiration of the lease for the DeparatmenYs current building.
RESOLVED, that the Department employees approximately 1,300 people and that it is
important to the future vitality of the City for the Department and its employees to be located in the
City.
RE50LVED, that City action is adviseable to demonstrate to the State that constructing a
new buildin� in the City is feasible and consistent with State requirements for a new Revenue
Department buildin�.
RESOLVED, that the City authorizes and supports the execution of a design-build contract
between the State of Minnesota, as owner, and the Wellington Group, as design-builder (which is
enJa�ing Kraus-Anderson Construction, St. Paul Division and Pope Associates, Inc. as contractor
and architect, respectively) for the construction of a new facility (the "ProjecY') for the Minnesota
Department of Revenue at the Motor Pool site in St. Paul in compliance with the requirements of the
State ofMinnesota ("State Praject Requireinents"). The Project will include:
a. A buildin� having approximately 315,000 square feet of usable space and an
estimated gross area of 350,000 square feet of space; and
b. A parking ramp for 950 parkin� stalls;
RESOLVED, that the design-build contract will be for a waranteed maximum sum of $74.5
million, inclusive of a customary percenta�e factor for architects fees, general contractors fees,
construction mana�ement fees, project developer fees, bonding fees, and related soft costs.
Construction costs will be "open book" and based on competitive biddin�; provided further that the
design builder may negotiate a threshold of di minimis subcontracts which do not require competitive
biddin�, may negotiate a minimum price for the Project, and may ne�otiate how cost savings wili be
shared. The guaranteed maximum sum includes a$7.5 million tenant improvement allowance. To
the extent the tenant improvement allowance is not utilized, excess funds will belong to the State of
Vtinnesota.
RESOLVED, that the State of Minnesota will be allocated a reasonable amount, not to
������
�
G��3�
exceed $SOQ000, as par[ of the $74.5 million budget to engage or retain its own architect. The
State's architect shall complete schematic and design work throujh the desi�n development phase
in a collaborative effort with the design-build architect of record. The design-build team will have
the official architect of record, overseen by the State and the State's architect. The State's architect
may atso do desi�n development interior packages and construction inspections as the State's
representative.
RESOLVED, that the City of St. Paul may join in the design-build contract and appropriate
City officials are authorized to enter into agreements for the purpose ofguaranteeing the following
consistent with the State Project Requirements:
a. If and to the extent necessary to assure the Department's location in the city, the costs
ofthe Project (include the hard construction costs, customary soft costs, $7.5 million tenant
improvement allowance, and $SOQ 000 allowance for the State's architect) wil] not exceed
$74.5 million; and
b. The completion schedu{e of the Pro}ect, which includes:
i. Substantial completion of the Project, including both the buildin� and the parking
ramp, on or about September l, 1998;
ii. Facilitatin� the commencement of move-in by the Department of Revenue on or about
September l, 1998;
iii. Completion to facilitate the entire move-in of the Department of Revenue no later than
November 30, 199S; and
iv. The final substantial completion ofthe Project by November 30, 1998 subject to minor
"punch list" items to be completed in a reasonable period thereafter which do not interfere
with the State's use and occupancy of the Project.
v. If the Project is not completed within the forejoing schedule, that the City will be
Iiable for any excess rent paid by the State ofMinnesota durin� any delays, plus any additional
costs of a double-move (collectively the "Delay Damages"). In the event a double-move is
necessary, the City will also a arantee the availability at the same or less renta] rate of interim
office space to be used durin� the delay in a reasonably suitable facility and location (the
"Interim Space").
RESOLVED, that the proper City officials are authorized to enter into a contract with the
desi�n-build team to receive appropriate assurances that the desi�n-build team will complete the
Project within said schedule and within said a aranteed maximum price, which assurances shal]
consist of
Wellington Group will �uarantee the timely completion of the Project and that it shall be
completed for an amount less than or equa( to the $74.5 million waranteed maximum sum.
Kraus-Anderson will �uarantee the timely completion of the constnxction and that the
construction, after taking into consideration the allowances and soft costs, will not exceed an
amount which would cause the total Project costs to exceed $74.5 million. Kraus-Anderson
�'� tc��
�� ��
will also fumish a payment and performance bond for the amount of the construction. Either
Wellington Group, Kraus Anderson, or bo_th will agree to fizlly indemnify the City in an
agreement structured to the satisfaction of City officials for the payment of any Delay
Damages or the procurement of Interim Space.
RESOLVED, that City staff is authorized to assist in and support the execution and
implementation of the desi�-buiid contract, and work with the State of Minnesota and design-build
team in accordance with a schedule that fully satisfies State Project Requirements.
RESOLVED, that because of the time constraints imposed by state legislation and the
state process for selecting a design bui3d team, the City did not enter into a competitive process for
selection ofa design-build team with which to work. Consequently, the City, with prior authorization
ofthe City Councii, is wiliing to consider entering into a similar agreement with a different design-
build team if the State of Minnesota determines it wants to utilize a different design build team
provided if such other design build team could provide the City adequate assurances and guarantees
for potential City exposure to the State for the Project.
Requested by Department of:
Adopted by Council: Date q
Adoption Certified by Council Secretary
BY= - 0..M<_ �r 1�
Approved by Mayor. Date C��/S�
By: ��� � ,%/
I /
���
B ���,, � v�G�l�
-
Form Approved by City Attorney
BY: I ��� �• ��1�- � ' �� -9�-
Approved by Mayor for Submission to Council
By: � , ��
`
���3y
�823�
DEP11RiMENTADFFICE�COUNCIL DATE INITIATED
Mayor's Office June 12, 1997 GREEN SHEE
CONTACT PERSON 8 PHONE INRIAUDATE INRIAUDATE
� DEPPRTMENT DIRECTOR � CfP/ CqUNCIL
TimMarx,266-8520 ASSIGN CT'ATTORNEV CIT`/C4ERK
NUYBERFON � �
MUST BE ON COUNCIL AGENOA BY (DAT� pOUTING O BUOGEf DIRECTOR � FIN. & M6T. SERVICES �IR.
June 18 1997 OPDER � MAVOR (OR ASSISTANn �
TOTAL # OF SIONATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATURE)
ACTION qE�l1ESTED:
Authorizing and supporting the execution of a design-build contract for the construetion of a new facility for the Minnesota
Department of Revenue at the Motor Pool site in St. Paul.
RECAMMENDATIONS: Approve (A) or Rejeet (R) pERSONAL SERVICE CONTRACT'S MUST ANSWER TNE FOLLOWING QUESTIONS:
_ PLANNING COMMISSION _ CIVIL SERVICE COMMISSION 1. Has this persoNfirm ever worketl untler a comract for this department?
__ CIB COMMITTEE _ YES NO
^ S7AFF 2. Has this personRirm ever been a ciry employee?
— YES NO
_ DISTRiCrCOUaT — 3. Does this personRirm posses5 a skill not normally possessed by any curtent c'rty employee?
SUPPOflTS WHICH COUNCIL OBJECTIVE4 YES NO
Explain a11 yes answers on separate sheet antl attech to green sheet
INITIATING PROBLEM, ISSUE, OPP4IRTUNIN (Who. What, Whan. Where, Why):
ADVANTAGESIFAPPROVED:
OISAOYANTAGES IF APPROVEO�
��iCC� � ��?� t�
JU�i 1 2 i��3 -.. _
�r�_�_a.-�..,� _ , _�. __u�.�
DISADVANTAGES IF NOTAPPROVED:
TO7AL AMOUNT OF TRANSAC710N $ COS7/REVENUE BUDGETED (CIRCLE ONE) YES NO
FUNDIfdG SOURCE ACTIVITY NUMBER
FINANCIAL INFORfIiATION. (EXPLAIN)