Amends a contract with Mortenson/Hunt/Saunders (MHS) by adding $20 million for a total contract in the amount of $385 million for material and labor cost adjustments associated with the completion of the Hotel and Transit Center Program.  There is no additional time added to the contract (201204956). (BUSINESS DEVELOPMENT) Amends a contract with Mortenson/Hunt/Saunders (MHS) by adding $20 million for a total contract in the amount of $385 million for material and labor cost adjustments associated with the completion of the Hotel and Transit Center Program.  There is no additional time added to the contract (201204956). The last regularly scheduled Council meeting within the 30-day review period is on    .  The Committee approved filing this bill at its meeting 4-14-15.
we have had a lot of change orders, changing conditions in that time, labor and materials have gone up. That certainly is adding to increased costs of could those have been avoided? Well, better plans would have meant fewer change orders. I do want to mention that at one point when we set up a the airport, set up a change order committee, and they came to us informing us of this. And I asked at that time, Patrick Hack was the finance director, and I asked Patrick, I said, you know, I don't like change a lot if you decide you're going to do something one way, I would want to be sure it was absolutely necessary to change. I said, Who on this committee would approach things conservatively, i.e. most like me? And he sort of smiled and he said, well, he said, I will tell you who would who would represent your point of view. I would. That's Patrick Hecht speaking. Well, you know, Patrick Heck is nowhere around now, so that leaves concerns for me on change orders. I mean, I don't know if there's anybody there really watching each particular item, but I do know we've come up with on this particular contract a $20 million deficit. There are other things I started to think now those are the things that perhaps we couldn't have controlled. But there are things that as you look at construction projects and I say this more in just in case any of the candidates are watching, certainly for the citizens in this room. These are some of the things I hope that people will start to think about that also add to the cost of construction. First of all, the 1% for art does and. You might still want to do it. You might want to scale it to the size of the project. I don't know. But that is not set in concrete. It's something that you can always evaluate. Incentives were built into this this contract, I think at least 5 million, I think they mentioned. Do we give incentives for meeting time points when we have cost overruns? Should incentives have that extra part that it has still has to be a not only totally at the end on time and on budget, especially that on budget. One thing I have never been able to get a handle on is what the increased cost for the various levels of percentages of goals are in the Minority and Women Business Enterprise Program. Now, I'm not saying that you don't say it's not worth doing, but I am saying it is absolutely inappropriate to me to have a program that continues to grow where nobody can tell me what the cost is. In construction. So those are some things I hope that the candidates ask questions. And for those who are elected here, I hope they will take up the banner of saying we want to keep costs under control. These have gotten too high for me. 500,000 or 500 million was what it was supposed to be. That's. All, I'm willing to go. And so I'll be voting against this. Thank you, Councilwoman Fox. Councilwoman Ortega. Thank you, Mr. President. We had some lengthy discussion about this when it came to committee, and I had some additional questions. So I sat down and met with our folks from the airport to walk through my questions and concerns. And we have to finish this project, no doubt. And it's one that I think we're all going to be very proud of, and it's going to provide an additional service to our airport by folks being able to come in and attend a conference and not have to leave the airport and fly out quickly. For folks that may be delayed and may have to spend the night at the airport, sometimes the airlines will put you up for the night. So this might be one of those opportunities where you don't have to travel far. But I think the important thing for me is looking at the cost and they are what they are. But it's important for us to actually know all the real costs. So when you hear that the cost of doing, you know, the the hotel project is only now at 544 million. That doesn't factor in. The bridges and the roads that had to be done. And, you know, so for me, it's. Looking at the big picture, we would not have otherwise done those roads and bridges if it were not for doing this project. And and so when we talk about what the total cost is, it's important for us to know all of those costs. And I was able to sit down and and look at what those all are. And, you know, I'm supportive of the project moving forward. Not happy that it's cost more money. But we also know that because there's so much construction going on in this city, that. Everybody who's building is having a hard time trying to find workers to do their projects. And when they have to travel 25 miles out and pay the cost of driving back and forth, that adds to the cost of construction for this particular project. So my only point in in making comment is that when we talk about this project, it's important to know the total cost of what we have had to spend to do this. I do have one question and I'm not sure who from DIA can address this, but given the fact that we're adding $17 million in 2015 and. Kim Dae mentioned that it's coming out of IP funds. I'd like to know what sippy projects are not going to get done in 2015 because we're having to use. $17 million of CIP monies for this to complete this project through the end of of the timeframe. So, Stu, are you the one that wants to answer this question for me? This is Stew Williams. Good evening, members of Council Mr. Williams, senior. Vice president of the Hotel and Transit Center in special projects for Denver International Airport. The actual funding of the shortfall for the Hotel and Transit Center program is coming out of cash reserves, at least initially. How that's handled out ultimately is part of an overall debt structure, or whether it will just be done through cash has not yet been determined. So at this point in time, this particular cost did not bump either projects out of the list. Okay. I'm just a little baffled because I thought when I had asked the question in committee, Kim Dae had said that it would come out of the CIPA budget. It's basically. Being reimbursed from reserves and then into the. CIPA. But it wasn't like the line four line that we had to deduct to a particular project for this. It was part of the CCP plan. So we're keeping a copy budget hole by taking the money from the cash reserves and replenishing that. That's correct. Okay. So. All right. Thank you. I have no further questions. Thank you. Thank you again, councilman. Thank you. Mr. President, I hope my colleagues will join me in Councilwoman Ortega in in supporting this bill. We could spend a lot of time talking about the the costs associated with the hotel and transit project and what costs should be rolled into the price tag and what costs shouldn't be credited to that account. Because, as Councilwoman Ortega points out, some things were added to the scope of the work out there that aren't part of the hotel and transit center. We could also talk about the costs of the various sort of add on features of the program, the MWB program, the 1% for art. We could also talk about the impact of the the rise in construction pricing. There's a there's there's plenty of grist for this particular mill. But I think what's important to understand here is that we are facing a certain amount of cost increases to complete this project. And what the team out at DIA has done has very elegantly tied up the end game for this project neatly in a package. So we know now precisely the cost that we're dealing with. And all change orders are wrapped into even though we don't may not know what those change orders are, all the change orders will be wrapped up into this price. And so we can move forward with the last was it six months, eight months of this project and know exactly what we're getting and know exactly what the price is. So there may be question marks that, you know, the lines of inquiry we could pursue with respect to the financing and construction of this all along. But here at the end game, I think this is a very elegant solution to get us to a neat, tidy and expeditious conclusion to this project. And so I hope everyone will vote for this final package. Thank you. Thank you, Councilman. Any other comments or questions on two 2229 Madam Secretary? Raquel Potts. No. Carnage. Layman Lopez AI. Montero Nevitt Ortega I. Rob Shepherd I. Susman Brown. I. Mr. President. Madam Secretary, please close the voting and now the results. 11 Ice, one nay. 11 eyes, one nay. Council Bill 222 has been ordered published. All right, Madam Secretary, that was the last one. So we are now ready for the block votes. All of the all other bills for introduction are already published. Councilman Shepard, would you please put the resolutions on the floor for adoption? Thank you, Mr. President. I move that resolutions 206 and 248 series of 2015 be adopted. It has been moved and seconded. Seen no comments. Madam Secretary, roll call. SUSSMAN Hi, Brown. Hi.