2002-24963 Reso
RESOLUTION NO. 2002-24963
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA,
APPROPRIATING FUNDING, IN THE AMOUNT OF
$250,000, FROM MID-BEACH QUALITY OF LIFE FUNDS,
TO THE SCOTT RAKOW YOUTH CENTER PROJECT,
FOR ADDITIONAL CHANGE ORDERS NECESSARY TO
COMPLETE THE PROJECT.
WHEREAS, on June 19, 1996, the Mayor and City Commission approved the
Master Plan for the improvements to the City's Parks and Recreation facilities of which
the Scott Rakow Youth Center (Project) was a component, and an Agreement with the
firm of Carr Smith Corradino (Corradino) was executed on July 16th, 1996 for design,
bidding and construction administration for the Project; and
WHEREAS, on November 18, 1998, the Administration requested a public
hearing for a development waiver to provide for the largest possible ice rink, and the
waiver was approved at the Commission Meeting of December 16, 1998; and
WHEREAS, bids for the Project were received on October 13, 2000, with seven
responsive, responsible bidders and on January 31, 2001, the Administration
recommended the firm of International Builders Latin America, Inc. (IBLA) as the best
and lowest bidder and requested award of a contract to IBLA, in the amount of
$2,893,000, which included $47,300 in additive alternates and $258,700 for
contingency; and
WHEREAS, Notice to Proceed was given to IBLA on April 9, 2001, and
construction began on April 24, 2001; and
WHEREAS, a contingency allowance was included as part of the Construction
Agreement (Agreement) executed with ISLA and it has since argued that this amount
was to be used by IBLA at its discretion; and
WHEREAS, the City has argued that the contingency allowance was to be used
by the City at its discretion for additional scope of work or to account for unforeseen
conditions; and
WHEREAS, the dispute exacerbated the cash flow problems faced by IBLA
and led to negotiations between both parties because the language in the Agreement
was not definitive on the use of the contingency and, in addition, tile Agreement
showed the amount of the contingency as part of the lump sum bid amount; and
WHEREAS, the negotiations were not successful in defining the use of the
contingency between the two parties without reducing the original scope of Phase II of
the Project, and therefore, the City has established the use of the contingency with
IBLA as part of the Agreement and identified additional change orders needed to
complete the Project for which new funding would be needed; and
WHEREAS, because the contingency is not available to the City to be used
for unforeseen conditions or changes to the scope, additional funding is required to pay
for identified change orders; and
WHEREAS, Phase II of the Project will be completed as originally shown in
the construction documents with the additional funding identified for the change orders;
and
WHEREAS, some change orders may be due to errors and omissions and
will be discussed by Corradino and the City at the conclusion of the Project.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THECITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission appropriate funds, in the amount of $250,000, from Mid-Beach Quality of
Life Funds, for the Scott Rakow Youth Center Project, for additional change orders
necessary to complete the Project.
PASSED and ADOPTED this
day of September 2002.
ATTEST:
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CITY CLERK
F:\CAPI\$all\chartrand\Scott Rakow Rasa.doc
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FORMaLANCIUMII
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CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
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Condensed Title:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,
FLORIDA, APPROPRIATING FUNDING, IN THE AMOUNT OF $250,000 FOR THE SCOTT RAKOW
YOUTH CENTER PROJECT, FOR ADDITIONAL CHANGE ORDERS NECESSARY TO COMPLETE THE
PROJECT.
Issue:
Shall the City Commission authorize appropriation of additional funding in order to complete the Project as
was originally intended and pay for additional change orders required during construction as well as resolve
the issue with the use of the continoencv.
Item Summa IRecommendation:
On January 31 , 2001, after review and evaluation of the bids, for the Scott Rakow Youth Center Project, the
Administration recommended the firm of International Builders Latin America, Inc. (IBLA) as the best and
lowest bidder and requested award of a contract to IBLA, in the amount of $2,893,000. The award included
$47,300 in additive alternates and $258,700 for contingency. The contingency allowance was included as
part of the Agreement executed with IBLA and their contention has been that this amount was to be used
by IBLA at their discretion. The City argued that the contingency allowance was to be used by the City at
its discretion for additional scope of work or to account for unforeseen conditions. The language in the
Agreement was not definitive on the use of the contingency, and in addition, the executed Agreement
showed the amount of the contingency as part of the lump sum bid amount. Both contributed to the
dispute on the use of the contingency. Negotiations were not successful in defining the use of the
contingency between the two parties without reducing the original scope of Phase II of the Project.
Therefore, the City has established the use of the contingency with IBLA as part of the construction
Agreement and identified additional change orders needed to complete the Project for which new funding
would be needed. Based on the above, the original Project scope will be completed as intended, with the
contractor using the contingency to fund changes caused by the construction process. Since the
contingency is not available to the City to be used for unforeseen conditions or changes to the scope,
additional funding is required to pay for identified change orders. The change orders which require funding
include: sanitary pipe re-routing, electrical relocations, new electrical installations related to existing
conditions, additional fire alarm devices, Bell South repairs, water main repairs, modifications to the HVAC
system, code related changes and additional painting of existing spaces. Some of the change orders are
due to unforeseen conditions, some are attributed to requests by the Building Department related to code
interpretations and others are due to, in the City's consideration, errors and omissions by the consultant,
Corradino. The City will discuss with the consultant the concerns with the documents and will negotiate an
appropriate resolution on the basis of the conditions of the Agreement with Corradino. The requested
amount of $250,000 includes a contingency of approximately $30,000 in case any additional unforeseen
conditions occur during the renovation of the existing building in Phase II. At this time, the Administration
recommends that the additional fundin be a roved in order to com lete the Pro'eet ex editiousl .
Advisory Board Recommendation:
I N/A
Financial Information:
Source of Amount Account Approved
~ 1 $250,000 Mid-Beach Quality of Life Funds
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Finance Dept. lQ1l1 $250,000
islative Trackin
AGENDA ITEM
DATE
C7F
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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: September 11, 2002
From:
Jorge M. Gonzalez
City Manager
Subject:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROPRIATING FUNDING, IN THE
AMOUNT OF $250,000, FROM MID-BEACH QUALITY OF LIFE FUNDS,
FOR THE SCOTT RAKOW YOUTH CENTER PROJECT, FOR
ADDITIONAL CHANGE ORDERS NECESSARY TO COMPLETE THE
PROJECT.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
FUNDING
Funding is available from Mid-Beach Quality of Life Funds.
ANALYSIS
The Scott Rakow Youth Center Improvements Project was initiated by the Mayor
and City Commission in 1994 and was a part of the original $15 million Parks Bond issue.
The original scope called for the expansion and renovation of the ice rink and other
improvements to the center. On June 19, 1996, the Mayor and City Commission approved
the Master Plan for the improvements to the City's Parks and Recreation facilities of which
the Scott Rakow Youth Center (Project) was a component. An Agreement with the firm of
Carr Smith Corradino (Corradino) was executed on July 16th, 1996 for design, bidding and
construction administration for the Project.
At the July 15, 1998 Commission meeting, the Administration presented a recommendation
for an ice rink size that was in line with the Parks Master Plan and the Bond issue. The
Mayor and City Commission directed the Administration to study the construction of a
larger ice rink, based on requests from citizens and youth center users. At the September
9, 1998 Commission meeting, the Administration presented a larger ice rink that satisfied
the previous request. This ice rink size would require a waiver of development regulations
as well as additional dollars for construction. The Mayor and City Commission adopted the
Resolution and directed the Administration to obtain the development waiver.
Commission Memorandum
Bayshore Golf Course Clubhouse
Page 2
On November 18, 1998, the Administration requested a public hearing for the development
waiver to provide for the larger ice rink. The hearing was set for the Commission Meeting
of December 16, 1998. At this meeting, the Mayor and City Commission adopted a
resolution approving the development waiver and directed the administration to design the
largest possible ice rink as previously requested.
The firm of Corradino was given direction to proceed with the design and completion ofthe
construction documents on the basis of the adopted resolution. Bids for the Project were
received on October 13, 2000 with seven responsive, responsible bidders. On January 31,
2001, after review and evaluation of the bids, the Administration recommended the firm of
International Builders Latin America, Inc. (ISLA) as the best and lowest bidder and
requested award of a contract to ISLA, in the amount of $2,893,000. The award included
$47,300 in additive alternates and $258,700 for contingency. Funds were previously
appropriated from different funding sources such as the Parks Bond Fund, the General
Obligation Bond Series 2000, Safe Neighborhood Parks Bond Fund and the City's Capital
Projects Bond Fund.
Notice to proceed was given to IBLA on April 9, 2001 and construction began on April 24,
2001. Several unforeseen conditions arose as well as other issues, which delayed portions
of the construction and added costs to the Project. In addition, IBLA has had cash flow
problems that also generated delays to the prompt completion of the Project. The most
significant problem has been the use of the contingency allowance included in the award of
the Project to IBLA.
The contingency allowance was included as part ofthe Agreement executed with IBLA and
their contention has been that this amount was to be used by IBLA at their discretion. The
City argued that the contingency allowance was to be used by the City at its discretion for
additional scope of work or to account for unforeseen conditions. This dispute exacerbated
the cash flow problems faced by IBLA. The language in the Agreement was not definitive
on the use of the contingency, and in addition, the executed Agreement showed the
amount of the contingency as part of the lump sum bid amount. Both contributed to the
dispute on the use of the contingency. In order to resolve the conflict, the City
Administration consulted with the City Attorney's Office and they recommended that the
Administration negotiate the use of the contingency with IBLA.
The negotiations were not successful in defining the use of the contingency between the
two parties without reducing the original scope of Phase II of the Project. Therefore, the
City has established the use of the contingency with IBLA as part of the construction
Agreement and identified additional change orders needed to complete the Project for
which new funding would be needed. This resolution of the conflict is primarily due to the
value of the change orders and to the need for additional funding beyond the original
contract value and the original contingency. Sased on the above, the original Project scope
will be completed as intended, with the contractor using the contingency to fund changes
caused by the construction process. Since the contingency is not available to the City to be
used for unforeseen conditions or changes to the scope, additional funding is required to
pay for identified change orders.
'\
Comm~sronMemorendum
Bayshore Golf Course Clubhouse
Page 3
Phase I work, which includes the construction of the new ice rink and related facilities such
as the new locker rooms and restrooms, the skate rental and pro shop, the new ticket
booth, new ice rink equipment and offices is approximately sixty percent complete. Phase
II of the Project, which includes construction of the multi-purpose room, installation of
auger piles, new First Floor Restrooms, removal of existing ice rink equipment, installation
of HV AC equipment, irrigation and landscaping, elevator upgrades, additional renovation of
the existing 2nd Floor, some additional offices and storage rooms, new restrooms in the
existing building, a portion of the asbestos abatement, and some other minor renovations
will begin as soon as Phase I is completed.
The additional change orders which require funding include: sanitary pipe re-routing,
electrical relocations, new electrical installations related to existing conditions, additional
fire alarm devices, Bell South repairs, water main repairs, modifications to the HV AC
system, code related changes and additional painting of existing spaces. Some of the
change orders are due to unforeseen conditions, some are attributed to requests by the
Building Department related to code interpretations and others are due to, in the City's
consideration, errors and omissions by the consultant, Corradino. The City intends to ask
Corradino to reimburse the City for the costs of those change orders. Negotiations on this
matter will commence at the completion of the Project.
IBLA has provided an updated construction schedule to complete the current scope of
work, the Phase II scope and the additional change order work. Expected completion at
this time is the end of December 2002. Some time extensions will be granted to IBLA and
they have committed to expedite the completion of the construction once the change
orders are approved. IBLA has increased their manpower at the Project already in view of
the contingency issue resolution and the expectation that the additional funding will be
approved by the City Commission. The requested amount of $250,000 includes a
contingency of approximately $30,000 in case any additional unforeseen conditions occur
during the renovation of the existing building in Phase II. At this time, the Administration
recommends that the additional funding be approved in order to complete the Project
expeditiously.
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