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TO: Mayor Keis and Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: January 9, 2018 <br />RE: Construction Management Services for Old Fire Hall <br />As you will recall, we hired RVK Architects to put together the final workscope for pricing <br />renovations to the exterior at the Old Fire Hall. Dick Krumm of RVK has also submitted the attached <br />proposal for Construction Management Services. We have used Mr. Krumm in this additional capacity <br />on past projects such as the Spooner Park shelter, Historical Society addition, the Fire Barns Warming <br />House project. He has performed admirably in this capacity. <br />If we retain RVK for these services, he will essentially be our agent acting as the General Contractor <br />for the work versus using a general contractor in the traditional sense. The advantages of this process <br />are we get some value engineering on the front end of the project to help us make good decisions on <br />finishes rather that deal with change orders later on, we don’t pay a general contractor mark-up on any <br />subcontractors used on the job, we ensure the lowest responsible bid for all work components, and we <br />can make direct material purchase for major items (bricks and garage doors for example) thereby <br />saving sales tax. Historically, we have lowered the overall project cost using this construction method <br />and also ensured a good quality job. <br />Staff would recommend we retain RVK Architects as our Construction Manager for the Old Fire Hall <br />Exterior Renovation project based on his quote of 6.5% of the construction costs of the project. <br />3