Price for Hill Slide Stabilization Increases
At a special meeting tonight, the Sheridan City Council will consider an amendment to the contract with Hayward Baker, Inc. for the Hill Slide Stabilization Project which increases the guaranteed maximum price (GMP) to $7.8 million.
In 2017, a portion of the hillside failed, affecting property owned by the City of Sheridan and by Sheridan County School District #2 (SCSD#2). In March 2018, the two entities agreed to hire an engineering firm to determine the best way to correct the failure and also prevent further failures.
The City of Sheridan and Hayward Baker, Inc. entered into a contract in August 2018. As required in the original agreement, Hayward Baker has submitted a GMP cost proposal that is broken down into three sections: construction services, construction management, and project contingency.
In a memo to the council, City Engineer Hans Mercer recommended they approve the amendment in the amount of $7,819,243.78.
A GMP contract allows the contractor to bill actual costs, plus a set fee, with a predetermined cap to how much they can spend overall. This type of contract is often used when the scope of a project may contain multiple unknowns.
The totals for each section are: $6,804,718 for construction services, $674,290 for construction management, and $340,236 for project contingency.
Mercer also supplied the council with a breakdown of funding sources for the project:
USDA Grant for Construction Costs = $3,750,000
USDA Grant for Engineer, Design, and Quality Assurance = $600,000
Mineral Royalty Grant = $350,000
State Revolving Fund Loan = $1,500,000
SCSD2 = $1,584,664
One Percent Capital Facilities Tax = $485,000
Total Funding = $8,269,664