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Home My WebLink AboutORD-2026-015-Approval of the Guaranteed Maximum Price for the Construction of the Crisis Diversion Facility, and Approval of Budget Amendment #12-A 1 ORD-2026 -015 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date : June 16 , 2026 Action Agenda Item No . 6-c SUBJECT : Approval of the Guaranteed Maximum Price for the Construction of the Crisis Diversion Facility , and Approval of Budget Amendment # 12 -A DEPARTMENT : Asset Management Services ATTACHMENT (S ) : INFORMATION CONTACT . I . Gilbane Contract Amendment Alan Dorman , AMS Director, 919-245 - 2 . Gilbane GMP Cost Summary 2627 3 . Year-to - Date Budget Summary 4 . Presentation PURPOSE : To : 1 . ) Review and approve the final design of the Crisis Diversion Facility ; 2 . ) Review and approve the Guaranteed Maximum Price for the Construction of the Crisis Diversion Facility as submitted by Gilbane ; 3 . ) Review and approve an amendment to the existing Gilbane Contract for Construction Manager-at- Risk services to incorporate the Guaranteed Maximum Price as well as other changes ; 4 . ) Approve Budget Amendment # 12 -A ; and 5 . ) Authorize the County Manager to execute the Gilbane contract amendment , subject to final review by the County Attorney , and any subsequent amendments for contingent and unforeseen requirements up to the approved budget amount on behalf of the Board of County Commissioners . BACKGROUND : The County has been developing a plan to build a Crisis Diversion Facility since 2019 . These plans culminated in the selection of the architecture firm CPL to design the facility in 2024 and the selection of Gilbane Construction Company to provide Construction Management at Risk Services in 2025 . Initial design and cost estimates showed that the final project would exceed the original budget . of $26 , 053 , 350 . In October 2025 , the Board reviewed a series of design options to reduce the overall project budget . The Board approved Option C , a design with an estimated construction cost of $27 , 180 , 542 . The total estimated project cost , including land aquistion , design , and other construction costs , based on Option C , was $ 30 , 749 , 007 , This would have required an additional $4 , 695 , 657 in funding . In April 2026 , Gilbane completed the formal bid process for the project and proposed a Guaranteed Maximum Price (" GMP " ) of $ 22 , 906 , 906 . Including project costs already spent or encumbered for professional services and land acquisition , the new project budget will be $ 29 , 412 , 035 . To address the increased cost , the the Board will need to approve $ 3 , 358 , 685 in 2 additional funding . While the intention had been to provide the Board with a series of additional construction options , including more daylighting and solar installation , due to the tremendous cost savings achieved through the bidding process , these elements have already been incorporated into the GMP . Crisis Diversion Facility - Final Project Budget - June 6th GMP ( Construction and Indirect Costs ) $22, 906, 906 Land $ 1, 353, 266 Design / Other Services $2, 142, 227 Furniture $ 5253983 Environmental Impact and Related Fees $ 132 , 785 Special Inspections $75 , 000 Commissioning $ 100 , 868 Owner ' s Contingency $ 10850 , 000 Offsite lighting $ 100 , 000 AN $25 , 000 Low Voltage $75 , 000 Security $ 125 , 000 Total: $29,412, 035 The current project schedule , as shown below , projects construction starting in August and occupancy expected in the spring of 2028 . Project Schedule Schedule for the Construction of the Crisis Diversion Facilit Board Approval of GMP June 2026 Start of Construction August 2026 Construction Completed Winter 2028 Occupancy Spring 2028 FINANCIAL IMPACT : Budget Amendment # 12 -A allocates $ 3 , 358 , 685 in additional funding to cover the increased cost for the construction of the facility over the original project funded in the FY 2025 -35 Capital Investment Plan . Staff also worked with Alliance and confirmed that $ 1 , 100 , 000 of the Cardinal Reserve could be dedicated towards the Crisis Diversion Facility . These two (2 ) changes are reflected in the amended project ordinance : Crisis Diversion Facility ($3, 358, 685) - Project # 10080 Revenues for this project : Current FY 2025-26 FY 2025-26 FY 2025-26 Amendment Revised Cardinal Reserve $ 1 , 823 , 121 ($ 7231121 ) $ 1 , 100 , 000 From General Fund $250 , 000 $0 $250 , 000 Alternative Financing $23 , 980 , 229 $4 , 081 , 806 $ 28 , 062 , 035 Total Project Funding $26, 053 , 350 $ 3 , 358 , 685 $29 , 412 , 035 3 Appropriated for this project : Current FY 2025-26 FY 2025-26 FY 2025-26 Amendment Revised Project Expenditures $26 , 053 , 350 $3 , 358 , 685 $29 , 412 , 035 Total Costs $26, 053 , 350 $3 , 358 , 685 $29 , 412 , 035 As previously noted , this increase was lower than the amount initially anticipated in the debt model after the approval of Option C . This will result in decreasing the anticipated tax increase in FY 2028 to fund debt service by 0 . 18 cents . ALIGNMENT WITH STRATEGIC PLAN . This item supports : • GOAL 2 : HEALTHY COMMUNITY OBJECTIVE 1 . Improve harm reduction , prevention , and support services for adults and children experiencing behavioral health issues , substance use disorder, and intellectual or developmental disability . OBJECTIVE 4. Reduce impacts and barriers for justice -involved children and adults through deflection , diversion , therapeutic interventions , and re -entry support , including housing . RECOMMENDATION (S ) : The Manager recommends that the Board : 1 . ) Approve the final design of the Crisis Diversion Facility ; 2 . ) Approve the Guaranteed Maximum Price for the Construction of the Crisis Diversion Facility as submitted by Gilbane ; 3 . ) Approve an amendment to the existing Gilbane Contract for Construction Manager-at- Risk services to incorporate the Guaranteed Maximum Price as well as other changes ; 4 . ) Approve Budget Amendment # 12 -A which increases the authority in the County Capital Fund by $ 3 , 358 , 685 ; and 5 . ) Authorize the County Manager to execute the Gilbane contract amendment , subject to final review by the County Attorney , and any subsequent amendments for contingent and unforeseen requirements up to the approved budget amount on behalf of the Board of County Commissioners . 4 Attachment I NORTH CAROLINA CONTRACT AMENDMENT ORANGE COUNTY THIS CONTRACT AMENDMENT ("Amendment") is made and entered into this _ day of 20_ by and between ORANGE COUNTY (hereinafter referred to as "County") and Gilbane Building Company (hereinafter the "Construction Manager at Risk" or "CM" or "CMAR") . WITNESSETH : THAT WHEREAS , the County and CMAR entered into a contract dated April 22 , 2025 (hereinafter the "Original Agreement") , for the procurement of hardware and provision of services and WHEREAS , the County and CMAR desire to amend the Original Agreement while keeping in effect all terms and conditions of the Original Agreement not inconsistent with the terms and conditions set forth below . NOW THEREFORE, for and in consideration of the mutual covenants and agreements made herein , the parties agree to amend the Original Agreement as follows : 1 . Section 2 . 6 . The "Total Construction Budget" is first described in the RFQ Data Sheet, and consists of the Cost of the Work, as more fully defined in section 4 below, the CMAR-GMP Contingency, as more fully defined in section 5 below, the Early Completion Bonus Fund , if offered and made part of this Contract, as more fully defined in section 24 below, the CMAR General Conditions , as more fiilly defined in section 3 below . Upon approval by the Owner of the Total Construction Budget as presented on June 16" , 2026 , the I Total Construction Budget will not be allowed to exceed the agreed upon Total Construction Budget ("TCB ") . The Owner reserves the right to adjust the Total Construction Budget at any time prior to agreement on the final GMP . 2 . Section 3 . 2 . Provided that the Total Construction Budget remains $ 22 , 906 , 906 , the CMAR Fee shall not exceed $ 850 , 820 , subject to modification and limitation as set forth herein . If the Owner changes the Total Construction Budget, the CMAR Fee shall not exceed three percent (3 . 75 %) of the sum of (i) the Cost of the Work, ( ii ) the CMAR-GMP Contingency, and (iii) the CMAR General Conditions , (but not including the Early Completion Bonus Fund) all as more fully defined in this Contract, as of the date when the final GMP is established and approved by the Owner, subject to modification and limitation as set forth herein . The CMAR Fee will include all CMAR home office personnel costs , including officers as well as home office and local office support staff not included in General Conditions below, together with all other CMAR overhead costs and profit. This Fee shall also include all home office quality control and safety reviews , as well as all required services of a home office Project executive, by whatever name called . CMAR costs which are not to be included in the CMAR Fee are the costs of all Subcontracts , on-site field staff, General Conditions costs j (as provided below) , and the CMAR-GMP Contingency described below. 3 . Section 3 . 4 . In addition to the foregoing Fee, an allowance for the General Conditions on a "not-to-exceed" basis will be submitted by the CMAR with each GMP for the Owner ' s approval . No costs associated with the CMAR ' s main office or its main office or other off-site personnel , including the costs associated with the use of items or equipment of the main office , are covered under the General Conditions allowance . All such costs are deemed to have been included in the CMAR Fee . Subject to approval by the Owner ' s Representative , each GMP may include special designated allowances for defined expenses . Each GMP shall contain an allowance for General Conditions fixed as an estimated lump sum for each GMP . The entire General Conditions allowance shall be fixed based on the Total Construction Budget at the time of the final GMP , after which the General Conditions shall not be adjusted unless an amount is negotiated with Owner-requested Change Orders to the Work of the Project. The sum of the entire General Conditions at the time the final GMP is i 3 s