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93-68 Prochaska and Associates - Architechural/Engineering Design for Kodiak Island Hospital Remodel and AdditionBox 1703 Kodiak, AK 99615 February 2, 1994 Kodiak Island Borough Assembly Jack McFarland, Chairman 710 Mill Bay Road Kodiak, AK 99615 Dear Borough Assembly Members, You have shown your commitment to making dependable high-quality hospital services available locally and have set a reasonable course. I encourage you to move forward by remaining united in fulfilling the hospital architectural contract with Prochaska and Associates. I appreciate your concern about future funding. However, considering the lengthy study documenting Kodiak Island hospital needs and problems with code violations, plus 70% voter approval on the bond issue, you have good reason to proceed with Phase I in spite of the risk that State funding for future phases is not 100% guaranteed. Wavering now presents an equally grave risk -- that of jeopardizing funding by not resolutely doing what we have in our power to do. Thank you. Sincerely, in�/ l G� V Carol Hegel t0"ECEIVED FEB 0 21994 Kuuir.,. t3L ND 3UHUUUr CLEHK'S OFFICE "W1ehd4, . C4717AA4* Barbara J. Stevens C43 -(Or 1719 Selief Lane Kodiak, Alaska 99615 11►�af�Y February 1, 1994 TO: Borough Assembly Members Austerman, Burt, and Hancock FROM: Barbara Stevens, 1719 Selief Lane, Kodiak, Alaska RE: Kodiak Island Hospital In the past 12 years, my family and I have availed ourselves of most of the services that Kodiak Island Hospital offers — in-patient and out-patient surgery, emergency room, xrays, CAT scans, etc. Given the choice of local or off -island treatment, I always chose Kodiak Island Hospital for my family and myself. Given that same choice today, I would reconsider -- not because of the care I received (which has always been excel- lent) but because the hospital has become dangerously outdated, overcrowded, and in violation of several state and national safety codes. It has been proven time and time again that the current facility is outdated, overcrowded and potentially unsafe for in- and out- patients as well as those who live and work there. In December, after studying this issue from every possible perspective, you finally agreed by unanimous vote to award the architectural contract to Prochaska & Associ- ates. Now you're not so sure! I urge you, Mr. Austerman, Mr. Burt, and Mrs. Hancock, to reconsider your position to delay implementation of the architectural contract with Prochaska. Mayor Selby has assured you that Phase I could be completed with the bond money approved by your constituents and cash on hand. You have done your job well by studying, researching and discussing this issue at length. It's time for urgently needed action. I urge you to move forward and implement this contract. cc: Kodiak Island Hospital Advisory Board °_7 NED FEB 0 2 1994 wuwn ,irvu J0HUUGH CLERK'S OFFICE KAREN E. BENDLER JOEL H. BOLGER* C. WALTER EBELLA DUNCAN S. FIELDS DIANNA R. GENTRY MATTHEW D. JAMIN WALTER W. MASON* ALAN L. SCHMIIT JAMIN, EBELL, BOLGER, & GENTRY A PROFESSIONAL CORPORATION ATTORNEYS AT LAW 323 CAROLYN STREET KODIAK, ALASKA 99615 TELEPHONE: (907)4B6-6024 FACSIMILE: (907) 486-6112 REPLY TO KODIAK OFFICE 'AOYITTED TO /rtABIfA NO WNXINOTpI BM9 NL OTHFJt8A0YRTEOTO MA91fA BM1R February 1, 1994 VIA FACSIMILE Jack McFarland, Presiding Officer Kodiak Island Borough Assembly c% Borough Clerk's Office 710 Mill Bay Road Kodiak, AK 99615 Re: Prochaska Contract Review Our File No. 4702-483 Dear Mr. McFarland: ANCHORAGE OFFICE: 12001 STREET, SURE 704 ANCHORAGE,ALASK499301 TELEPHONEAHD I" (907) 278.8100 SEATTLE OFFICE: 300 MUTUAL LIFE BUILDING SOB FIRST AVENUE SEATTLE, WASHINGTON 99104 TELEPHONE: (206) 822-7634 FACSIMILE; (206)623-7321 hLZCEIV FEB 0 21994 KOD CLERKS 080FFIEOUGH This letter is in response to the telephone question from Assembly members Austerman and Burt requesting a review of the architectural contract between the Kodiak Island Borough and Prochaska and Associates for the Kodiak Island Hospital and Care Center. The questions presented to me by the clerk included the following: 1. Can the contract with Prochaska be canceled or postponed? 2. What are the repercussions of cancellation or postponement of the contract? I am assuming for purposes of this letter that the cancellation or postponement of the contract does not result from any failure by Prochaska to perform in accordance with the terms of the contract. There is no provision in the contract for termination without cause unless the project is permanently abandoned. Sections 10.2 and 10.3 of the contract provide as follows: 10.2 This Agreement may be terminated by the Owner upon at least seven days written notice to the Architect in the event that the Project is permanently abandoned. Jack McFarland, Presiding Officer February 1, 1994 Page 2 10.3 In the event of termination not the fault of the Architect, the Architect shall be compensated for all services performed to termination date, together with Reimbursable Expenses then due and all Termination Expenses as defined in paragraph 10.4. In addition, there is a special provision of the contract which applies to the suspension of the project for a period of more than three months as follows: 6.4 Project Suspension or Termination. 6.4.1 If the Project is suspended or abandoned in whole or in part for more than three months, the Architect shall be compensated for all services performed prior to receipt of written notice from the Owner of such suspension or abandonment, together with Reimbursable Expenses then due and all Termination Expenses as defined in paragraph 10.4. If the Project is resumed after being suspended for more than three months, the Architect's compensation shall be equitably adjusted. The provisions for project suspension or abandonment include compensation for termination expenses. Termination expenses are defined in § 10.4 of the contract as follows: 10.4 Termination Expenses include expenses directly attributable to termination for which the Architect is not otherwise compensated, plus an amount computed as a percentage of the total Compensation for Designated and Additional Services earned to the time of termination, as follows: .1 Twenty percent if termination occurs during the Pre - Design, Site Analysis or Schematic Design Phase; or .2 Ten percent if termination occurs during the Design Development Phase; or .3 Five percent if termination occurs during any subsequent phase. Jack McFarland, Presiding Officer February 1, 1994 Page 3 In summary, there is no provision in the contract for a termination of the architect without cause unless the project is permanently abandoned. In other words, there is no provision which allows the Borough to terminate Prochaska and then hire another firm if the project is resumed. If the project is permanently abandoned, then the expenses to the Kodiak Island Borough for contract termination would include the following: Compensation for services performed prior to the termination date, 2. Reimbursable Expenses, and 3. Termination Expenses which include expenses directly attributable to termination plus 20 percent of the total compensation earned to the time of termination (assuming that the termination occurs during the Pre -Design, Site Analysis or Schematic Design Phase). If the project is suspended for more than three months, then the compensation for which the Borough would be liable includes the following: Compensation for services performed prior to the notice of suspension, 2. Reimbursable Expenses, 3. Termination expenses including expenses directly attributable to termination plus 20 percent of the compensation earned to the time of termination, and 4. An equitable adjustment (i.e. renegotiation or arbitration) of the total contract compensation upon resumption of the project. You may also want to consider any increased costs which are not compensation paid to the architect, that is increased costs of financing or construction attributable to the delay in the project. Feel free to contact me if you have any questions. Sincerely yours, JAMIN, EBELL, BOLGER & GENTRY I H. Bolger JHB:srp cc: Jerome Selby, Mayor (via fax) 4702\483L.001 M Kodiak Island Borough AGENDA STATEMENT ^__,.... L.... 1 a 1 Q04 ITEM NO. 12.D. 3. Contract No. 93-68 ;VLWW v,. ..... _. _ _. - - - ITEM TITLE: Kodiak Island Hospital Remodel and Addition, Design Services SUMMARY STATEMENT: Under the direction of the Borough Assembly, the Engineering/Facilities Department has begun Architectual/Engineering Design negotiations with Prochaska and Associates. Proposal from Prochaska in the amount of $1,752,000 was received on 12/6/93. This amount represents 10% of the estimated $18,128,700 total cost. This amount falls within the industry standard amount for such services. Request approval for Mayor to negotiate contract in an amount not to exceed $1,752,000. FISCAL NOTES ACCOUNT NO. [ ] N/A Expenditure Amount Required Budgeted APPROVAL FOR AGENDA: ,, y Kodiak Island Borough December 16, 1993 TO: Kodiak Island Borough Assembly Jerome Selby, Mayor - Kodiak Island Borough FROM: Steve Hobgood, Dir. - Engineering/Facilities Dept. SUBJECT: Kodiak Island Hospital Addition/Remodel A/E Contract Prochaska and Associates 01-4Y 3-6 At the direction of the KIB Assembly, the Mayor's office and the Engineering/Facilities Department began negotiations with Prochaska and Associates of Omaha, Neb. Their initial proposal to provide A/E services for the design of the Hospital's four phase, four year plan was $1,752,000.00 plus reimbursables. Prochaska has estimated their expected reimbursables for hotel, transportation, phones, meals, copies, etc. at $240,000 over the four year phase. The E/F Department has estimated reimbursables at $180,000 to $200,000. After several offers and counter-offers, the Borough Administration and Prochaska and Associates have tentatively agreed upon a fee of $1,840,000.00 including all reimbursables on a Stipulated Sum Contract, no escalation costs or clauses, design services for the relocation of the existing house on the site to another location on the site, to perform all design and application requirements for Grants, and that the contract is contingent upon State matched funds being available to complete the last half of the project as planned. This total comes to 10.15% of the total estimated project cost of $18,128,700.00. This is below the average cost and standard for a project of this type. Making this a Stipulated Sum Contract including the reimbursables allows the Borough to have a firm A/E budget to work with and allows the Borough to have the flexibility it needs to complete a project of this magnitude with their required budget. Recommend award of this contract to Prochaska and Associates in the amount of $1,840,000.00 as stipulated above and verified by the attached change in contract. DEC -16-'93 THU 17:49 ID:PROCHRSKR & ASSOC. TEL NO:402-334-096e #079 P02/02 .1 ARTICLE 14 BASIS OF COMPENSATION The Owner shall compensate the Architect for the Scope of Services provided, in accordance with Article 6, Payments to the Architect, and the other Terms and Conditiont of this Agreement, as follows: 14,1 AN INITIAL PAYMENT of None dollars (i -0- shall be made upon execution of this Agreement and credited to the Owner's account as follows! 14,2 COMPENSATION FOR DESIGNATED SERVICES 14,2.1 FOR DESIGNATED SERVICES, as identified and described in the Scope of Designated Services attached to and made a part of this Agreement, and any other services included In Article 15 as part of Designated Services, com- pensation shall be computed by the following methods for the particular Services so Indicated In the Scope of Designated Services: See Method E. Were Identify aptr ofcompirmolfen, Including fixed amo Vag, Niel, muhlple, m penrnuya, u eptirs"Wr, and Nrntlly Ms... Iv whh, pr,Ih„ Ir, malhadl W Wenpematlon appN„ N approprq;ed METHOD A: MULTIPLE OF DIRECT SALARY EXPENSE Compensation for services rendered by Pri 6PAIS and employees shall be based on a multiple of ( ) times their Direct Salary Expense is defined In Paragraph 4.1, and for consultants as described in Subparagraph 14.4.2. METHOD B: MULTIPLE OF DIRECT PERSONNEL EXPENSE Compensation for sen -ices rendered by Principals and employees shall be booed on a multiple of ( ) times their Direct Personnel Expense as defined in Paragraph 42, and for consultants as described in Subparagraph 14.4.2. METHOD C: PROFESSIONAL FEE PLUS EXPENSES Compensation shall be,based on a Frofesslonal Fee of dollars (S )Plus compensation forsif servicestimes their Delrectb(Salary) (Personnel) nnel Eals grid xpense asased on a defied in Arttf• Cie 4, and for consultants as described in Subparagraph 14.4.2, METHOD D: PERCENTAGE OF CONSTRUCTION COST Compensation shall be based on percent ( ek) of the Construction Cost as defined in Article 3. METHOD E: STIPULATED SUM Compensation shall be a Stipulated Sum of One Million Eight Hundred Forty Thousand dollars A$ 1,840,000). METHOD F! HOURLY BILLING RATES Compensation for serylees Pandered by Principals and employees shall be based on the following hourly rates, and for consultants as described in Subparagraph 14.4.2: 1, Principals' time at the fixed rate of dollar (S ) per hour. For the purposes of this Article, the Principals are: 2, Supervisory time et the fixed rate of dollars tS 1 per hour. For the purposes of this Article, Supervisory personnel Include those in the following positions: S. Technical Level 1 time at the fixed rale of dollars (11 ) per hour. For the purposes of this Article, Technical Level I personnel include those in the followint positions: 4, Technical Level a time at the fixed rate of dollars ($ ) per hour. For the purposes of this Article, Technical Leval If personnel include those in the following positional S. Technical level III time at the fixed rate of dollar Is ) per hour, For the purposes of this Article, Technical Level III personnel include those in the following positions: AIA DOCUMENT BIM r DWONATSO aRRVICIS AOR1eM1Nt • NOVSAgga 1x17 0017ION • AIA 9 r O 1177 /161.1977 9 THS AWRICAN INITITM OF AtCHIT1C S, Ira NEW VORx AVENUS, N.W., WASHINOTON, D.C. 2= KODIAK ISLAND BOROUGH 710 MILL BAY ROAD KODIAK, ALASKA 99615 Project Name, Number & Location CONTRACT CONTRACT CHANGE ORDER Contract No. <, Change Order No. Amount of Contract & Change Orders J. L k. - J -) ,.:.GU The time provided become an amen Accepted By:. - of the contract is (unchanged) (increased) (decreased) by �,. %4,3a nmwnns of the contract will apply thereto Date Date Recommended' Facility Coordinator Approved By: contracting 0111N, ----------------- Original to Facility Copra Canary to Contractor Pink to Project Inspector * 1 / , CV U . J , dDCUMOW Date C&APrwvbng & C"- Culla rigina'Contract Original Contract )a Previous Changes Previous Contractor I V s C g This Change Contract Adjusted Co tr Cost Description of Change J. L k. - J -) ,.:.GU The time provided become an amen Accepted By:. - of the contract is (unchanged) (increased) (decreased) by �,. %4,3a nmwnns of the contract will apply thereto Date Date Recommended' Facility Coordinator Approved By: contracting 0111N, ----------------- Original to Facility Copra Canary to Contractor Pink to Project Inspector * 1 / , CV U . J , dDCUMOW Date C&APrwvbng KODIAK ISLAND BOROUGH CONTRACT CHANGE ORDER 710 MILL BAY ROAD KODIAK, ALASKA 99615 Contract No. cs_t s Change Order No. 9 Project Name, Number & Location Amount of Contract 8 Change Orders KODIAK ISL HOSPITAL ADDN/RENOYATION Original Contract S 1.840.000.00 425-540-452-140-95-4 Previous Changes 17,070.00 Contractor This Change 2,500.00 PROCHASKA S ASSOCIATES Adjusted Contract 11317 CHICAGO CIRCLE OMAHA NE 68454-2633 $ 1,859,570.00 Description of Change Cost ARTIST RENDERINGS OF HOSPITAL AS REQUESTER BY JEROME SELBY 2,500.00 The time prov►ded forcoMONion of are contracts (undraw) by -0- calendar days. This &CIA rKshall become an amandmanfto are confractand ad i ions of are conblct w►►1 aPP1Y dwOb Accepted By: } ` _v J Date (5— ..��^ Contractor's Representative Recommended: J �� 4 '\ t` c �'/ Date -w ' e - I Facility C or inator,� Approved By: �w - /�'� L i Date Original to Facility Coordinator Canary to Contractor Pink to Prolsot Inspector KODIAK ISLAND BOROUGH 710 MILL BAY ROAD KODIAK, ALASKA 99615 Contract No. CONTRACT CHANGE ORDER 93-68 Change Order No. 3 Project Name, Number & Location KODIAK ISL HOSPITAL ADDN/RENOVATION Amount of Contract & Change Orders Original Contract .$ 1_g4n_jM fm 425-540-452-140-95-4 Previous Changes 19 570.00 Contractor PROCHASKA & ASSOCIATES This Change 350.68 Adjusted Contract I� Sri 9Z0 �a$ 11317 CHICAGO CIRCLE, OMAHA, NE 68154-2633 Description of Change Cost OBTAIN PROFESSIONAL FULL SIZE PHOTOGRAPHS OF RENDERING. 350.68 the tlme provided for compf�fori ofthe contralx ls(urKahangsdJXMdNUAtlf14g1Np6IpNfAI become an amendment to ON contract and al provialow of do wn&W Will bl' -0- Calendar days This olownera shad ttrereto Accepted By: T Contractor's Representative Date Recommended: Facilly Co rdinatoU Date Approved By: -- -- Cohtracting Date 3 / < L4 t `/l.7� pies: original tD Fadlity Coordlnitor RYeM In Kochk Alukabr C&APrk*v kn Canary to Contractor KODIAK ISLAND BOROUGH CONTRACT CHANGE ORDER 710 MILL BAY ROAD KODIAK, ALASKA 99616 Contract No. 93-68 Change Order No. 4 Project Name, Number & Location Amount of Contract &Change Orders Oriail l Contract $ 1 9840 9000 .00 42ti rnn n52in11i a Previous Changes Contractor This Change Adjusted Contract 111; CWTCAQQ Will WAIIA. Ilk 6l 2633----7— Description of Change UESIM CONDUIT, OUTLETS & CABLE TRAY FOR DATA COhMUN'ICATIONS SYSTEM FOR KODIAK ISLAND HOSPITAL. The time provided for completion of the c0ntlact Wool an amendment to fie oonhW and a1 p Accepted By: on a or sen at Recommended: Approved By: Original to Facility Coordinator Canary to Contractor Pink to Protect Inspector by -0- 22,899,.E 61 I, SV,313,L j ;uati>I-� Cost days. This document Date 1 l• "I t 14 Date _ L^/)T_� I Date 1+, 1, )DIAK ISLAND BOROUGH 0 MILL BAY ROAD )DIAK. ALASKA 99615 ct Name, Number & Location IAK ISL. HOSPITAL ADON/RENOVATIUN -tAU-452-14U-55-4 CONTRACT CHANGE ORDER Contract No. 93-68 Change Order No. 5 Amount of Contract & Change Orders Contract $ 1,640 ,000.00 Previous Changes 42,811.68 This Change 3,908.82 Adjusted Contract $ 1,886,72U.5U Description of Change Cost k SERVICES RENDERED BY ADAMS, MORGENTHALER & CO, INC. C/A SERVICES UNDSE PHASE I AS'UTHERWISE DIRECTED (.80) PHASE Ii SERVIDES REQUESTED UNDER UESIGN PHASE 1 (.31) VGEBAL NTP ON DESIGN PHASE 11 (.32) become an amenarnem w ow wu Accepted By: 1 —' Recommended: Approved By: J spies: Orlglnal to Fadlity Coordinator Canary to Contractor TOTAL comilacf and a1 a b4U.OU 2,b63.82 705.U0 3,908.82 -U_ calendar days. This document Date 6 :-2 "'� � Date (1-, .y t - 9 (O �F Date IOfficer i _ _.. .._.._�_. uW._wr.a ♦Pdlana 11 KODIAK ISLAND BOROUGH ENGINEERING & FACILITIES DEPT. 710 MILL BAY ROAD Project Name, Number & Location CONTRACT CHANGE ORDER Contract No. 93-68 Kodiak Island Hospital & Care Center-Remodel/Renovation Design Services KIB 425-540452-140-95-4 Contractor Prochaska and Associates 11317 Chicago Circle, Omaha, NE 68154-2633 Description of Change Change Order No. 6 Amount of Contract & Change Order Original Contract Previous Contract This Change Adjusted Contract Architectural & Engineering Design Services for the Energy Conservation Management (ECM) Projects dealing with the Mechanical and Electrical upgrades to the existings facility. This will reduce the actual use of mechanical and electrical usage and reduce monthly utility costs. $ 1,840,000.00 $ 46,722.31 $ 172,185.00 $ 2,058,907.31 Cost $ 172,185.00 The time provided for completion of the contract is increased by 180 calendar days. This document shall become an I amendment to the contract and all provisions of the contract will apply thereto. Accepted By: a Date ZS-rL7 Contractor's Representative Director Approved by: :±Con=tractingOfffific=er Approved by: Presiding Officer, Borough Assembly (if required) 00564. change Order Date: 14-aaa - qri Date: ALT Date: Zz rKODIAK IAK ISLAND BOROUGH CONTRACT CHANGE ORDER MILL BAY ROAD11 ALASKA 99615 Contract No. 93-68 Change Order No. 7 Project Name, Number & Location Kodiak Island Hospital & Care Center Remodel/Renovation Contractor Prochaska and Associates 11317 Chicago Circle, Omaha, NE 69154-2633 Description of Change Amount of Contract & Change Order Original Contract $ 1,840,000.00 J Previous Contract $ 218,907.31 I This Change $ 65,384.60J Adjusted Contract Project Management Representative Services supplied by Prochaska and Associates. The Project Manager was Louie DesRosiers. Representation included monitoring General Contractor workmanship, reviewing correspondence, reviewing pay estimates, coordinating inspectors, assisting with design clarifications and acting on behalf of the Kodiak Island Borough. The time frame involved was from February, 1996 to November, 1996. $ 2,124,291.91 Cost $ 65,384.60 The time provided for completion of the contract is (unchanged) by 0 calendar days. This document shall become an amendment to the contract and all provisions of the contract will apply thereto Date Accepted By:. Contractor's Representative Recommended. Date: s Approved by: Approved by: Presiding officer, Borough Assembly (if required) 00564 - Change Order Date: 2 Date: �Z