2002-24873 Reso
RESOLUTION NO. 2002-24873
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROPRIATING FUNDS, IN THE
AMOUNT OF $222,352.92, FROM THE CITY CENTER
REDEVELOPMENT AGENCY TAX INCREMENT FINANCING FUND
168; AND APPROVING ISSUANCE OF FINAL PAYMENT TO Sol.
NICHOLAS, INC, IN THE AMOUNT OF $222,352.92, FOR THE
LINCOLN ROAD IMPROVEMENTS PROJECT, BID NO. 79-94195.
WHEREAS, on July 12, 1995, the Mayor and City Commission authorized award of a construction
contract to the firm of S. I. Nicholas, Inc. (SIN) for the construction of the Lincoln Road Improvements
Project (the Project) and the City gave notice to Proceed on the same date with construction on the
Project commencing on the subsequent week; and
WHEREAS, due to varied circumstances, the construction period extended beyond the original
projection and lasted over four years; the Project was inspected and approved by stages depending on
the areas finished by SIN; and on November 1999, the Project was considered substantially complete and
the City issued a check to SIN for Payment Application No. 30; and
WHEREAS, SIN chose to enter litigation with his electrical sub-contractor for electrical work
that the City contested, and was successful with the litigation and subsequently abandoned request for
payment by the City, in the amount of $197,847 for this portion of the work; and
WHEREAS, SIN did not include in Payment Application No. 30, additional costs for fittings, in the
amount of $199,733, which were not substantiated; and
WHEREAS, subsequent to the last payment application, SIN provided the City with a complete
listing of all fittings included in the Project, in accordance to the construction documents and the schedule
of values, and provided copies of all fitting invoices obtained from the supplier, Ferguson Enterprises, Inc.;
and
WHEREAS, the current Final Payment Application No. 31 (revised), In the amount of $222,352.92,
was submitted to the architect of record, Thompson and Wood, for review and certification of t/:1e
requested amount, as is required by the contract, and Mr. Wood reviewed and approved it on April 20,
2002; and
WHEREAS, the Project's final construction cost is $15.534,376, due to additional change orders
approved to SIN, which represents a total change order percentage well within industry standards of 3.3%;
and
WHEREAS, funding is available from the City Center Redevelopment Agency Tax Increment
Financing Fund 168; and
WHEREAS, the Administration is recommending approval of this Resolution and appropriation of
the necessary funding, in the amount of $222,352.92, for the Final Payment to S.1. Nicholas, Inc., for the
construction of the Lincoln Road Improvements Project.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission appropriate funds, in the
amount of $222.352.92. and approve issuance of final payment to S. I. Nicholas, Inc, in the amount of
$222,352.92, for the Lincoln Road Improvements Project, Bid No. 79-94/95.
PASSED and ADOPTED this 29th day of May,
MAYOR
ATTEST:
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CITY CLERK
T:\AGENDA\2002\MA Y2902\REGULAR\Uncoln Closeout Reso.doc
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
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CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
~
Condensed Title:
A Resolution Recommending Appropriation of Funds, in the Amount of $222,352.92; and Approving
Issuance of Final Payment to S.1. Nicholas, Inc., in the Amount of $222,352.92, for the Lincoln Road
Improvements Project, Bid No. 79-94/95.
Issue:
Shall the Mayor and City Commission recommend appropriation of the necessary funding from City Center
RDA TIF funds and approve final payment to S. I. Nicholas, Inc. for the construction of the Lincoln Road
Improvements Project.
Item Summary/Recommendation:
On July 12, 1995, the Mayor and City Commission authorized award of a construction contract to the firm
of S. I. Nicholas, Inc. (SIN) for the construction of the Lincoln Road Improvements Project. The City gave
notice to Proceed on the same date and construction on the Project commenced on the subsequent week.
Due to varied circumstances, the construction period extended beyond the original projection and lasted over
four years. The Project was inspected and approved by stages depending on the areas finished by SIN. On
November 1999, the Project was considered substantially complete and the City issued a check to SIN for
payment application No. 30. SIN did not include in Payment Application No. 30, costs for fittings, in the
amount of $191,733, which were not substantiated. SIN provided the City with a complete listing of all fittings
included in the Project in accordance to the construction documents and the schedule of values. Additionally,
SIN provided copies of all fitting invoices obtained from the supplier, Ferguson Enterprises, Inc. The current
final Payment Application No. 31 (Revised), in the amount of $222,352.92, was submitted to the Architect of
Record, Thompson and Wood, for review and certification of the requested amount as is required by the
contract with the consultant. Mr. Wood reviewed the payment application and approved it on April 20, 2002.
The Administration is recommending adoption of this Resolution and appropriation of the necessary funding,
in the amount of $222,352.92, which includes the costs for the fittings, the remaining retainage and costs
for concrete curbs, and the Final Payment to S. I. Nicholas, Inc. for the construction of the Lincoln Road
Improvements Project.
Advisory Board Recommendation:
I Not applicable.
Financial Information:
Amount to be expended:
$222,352.92
Source of
Funds:
IFi&~
City Center Redevelopment Agency
Tax Increment Financing Fund 168
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AGENDA ITEM
DATE
A78
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miami-beach.fl.us
COMMISSION MEMORANDUM
To:
Mayor David Dermer and
Members of the City Commission
Date: May 29,2002
From:
Jorge M. Gonzalez \A.~
City Manager 0 y- U
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, REQUESTING APPROPRIATION
OF FUNDS, IN THE AMOUNT OF $222,352.92, FROM THE CITY
CENTER REDEVELOPMENT AGENCY TAX INCREMENT FINANCING
FUND 168; AND APPROVING ISSUANCE OF FINAL PAYMENT TO
Sol. NICHOLAS, INC, IN THE AMOUNT OF $222,352.92, FOR THE
LINCOLN ROAD IMPROVEMENTS PROJECT, BID NO. 79-94/95.
ADMINISTRATION RECOMMENDATION:
Subject:
Adopt the Resolution.
FUNDING:
Funding is available from the City Center Redevelopment Agency Tax Increment Financing
Fund 168.
ANALYSIS:
On July 12, 1995, the Mayor and City Commission authorized award of a construction
contract to the firm of S. I. Nicholas, Inc. (SIN) for the construction of the Lincoln Road
Improvements Project. The City gave notice to Proceed on the same date and
construction on the Project commenced on the subsequent week.
Due to varied circumstances, the construction period extended beyond the original
projection and lasted over four years. The Project was inspected and approved by stages
depending on the areas finished by SIN. On November 1999, the Project was considered
substantially complete and the City issued a check to SIN for payment application No. 30.
The previous payment application did not include amounts contested by the City for
electrical installations and for piping fitting installations, which had not been substantiated
by SIN at the time. SIN chose to enter litigation with his electrical sub-contractor for the
electrical portion of the work that the City contested. SIN was successful with the litigation
and has subsequently abandoned request for payment by the City, in the amount of
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Commission Memorandum
Lincoln Road
May 29. 2002
Page 2
$197,847, for this portion of the work. This amount will not be a part of any future claims
to the City and a release for this work will be obtained from SIN prior to the release of
funds.
In addition, SIN did not include in Payment Application No. 30, the costs for fittings, in the
amount of $191,733, which were not substantiated and thus contested by the City. The
fittings on the bid documents were to be priced by weight and as such were presented in
the Project's schedule of values. The City's contention was that SIN had not provided
sufficient information for the evaluation of the item in the schedule of values and that during
the process of construction, observations by City staff did not justify the amounts
requested. However, the City did acknowledge that if the costs for the fittings could be
substantiated, then SIN should be compensated for them as part of the original contract.
Verifying installation of the fittings by weight during the construction was a difficult task and,
since SIN did not provide the City at the time with sufficient information to ascertain
whether all fittings included in the schedule of values had been purchased and installed,
the City rejected this portion of the schedule of values. Subsequent to payment application
No. 30, SIN provided the City with a complete listing of all fittings included in the Project
in accordance to the construction documents and the schedule of values. Additionally, SIN
has provided copies of all invoices for fittings obtained from the supplier, Ferguson
Enterprises, Inc.
The invoices submitted show the purchases of fittings by weight as well as by pieces. This
additional submittal of information by SIN has allowed the City to cross-reference the list
of fittings required for the Project by pieces against the fitting invoices provided by weight
and pieces. This cross checking has shown that the additional request made by SIN for
payment of the fittings, in the amount of $191,733, is justified and in accordance with
contract provisions and conditions. Therefore, SIN has submitted his final application for
payment, which now includes the acceptable amounts for the fittings.
The final application also contains a request for the retainage on the construction of the
Lincoln Road Visitors Center, in the amount of $20,000, and for some additional concrete
curbs, in the amount. of $10,619.92. These amounts were not previously paid to SIN and
SIN had agreed to only include them in the final payment application after the questions
raised by the City on the fittings and the electrical were resolved.
The current final Payment Application No. 31(Revised), in the amount of $222,352.92,
which includes the three amounts described above, was submitted to the Architect of
Record, Thompson and Wood, for review and certification of the requested amount as is
required by the City's contract with the consultant. Mr. Wood reviewed the payment
application and approved it on April 20, 2002. The same substantiating materials provided
to the City by SIN were provided to Mr. Wood for the review.
Commission Memorandum
Lincoln Road
May 29, 2002
Page 3
The original construction contract bid amount was for $14,497,898, which was reduced
during the Project's progress to $14,332,788 due to adjustments in quantities in the
schedule of values. Because the project was bid as a unit price contract, these
adjustments were made as progress in the Project determined that certain quantities could
be reduced. In addition, the initial Project budget included allowances for the Lincoln Road
Visitors Center structure at Washington Avenue, in the amount of $250,000; for the Project
Contingency, in the amount of $285,000; and for a decorative fountain, in the amount of
$9,500. These amounts were subsequently added to the SIN contract and used for the
Project's construction, including some of the change orders that were approved during
construction. This increased the Project's original construction budget to $15,042,398.
The Project's final construction cost is $15,534,376 due to additional change orders
approved for SIN during construction that were not part of the allowances described above,
and for which funds were appropriated by the City Commission. The total additional cost
of the Project after City requested/initiated change orders, not funded from the allowances,
is $491,978, which is the difference between the original appropriations and the final
payment application. This amount represents a total change order percentage of 3.3%,
which is well within industry standards. It is important to note that the amount requested
in this Resolution is for work included in the original schedule of values and the unit price
contract and is part of the original construction budget.
The overall Lincoln Road Improvements Project has expended all of its funds. Contracts
with the consulting firms, with the construction manager and others have been closed. The
Standing Order for SIN was also closed out. No funds remain from the original
appropriations to account for the final payment requested by SIN. Therefore, it is
necessary to obtain a new appropriation for the funds included in this Resolution in order
to make final payment to SIN for work performed and for which SIN is entitled.
The Administration is recommending that the Mayor and City Commission adopt the
Resolution and recommend appropriation of the necessary funding, in the amount of
$222,352.92, for the Final Payment to S. I. Nicholas, Inc. and for the closeout of the
Lincoln Road Improvements Project construction.
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