2003-25162 Reso
RESOLUTION NO. 2003-25162
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA,
APPROPRIATING FUNDING, IN THE AMOUNT OF
$200,000, FROM MID-BEACH QUALITY OF LIFE FUNDS,
TO THE SCOTT RAKOW YOUTH CENTER PROJECT,
FOR ADDITIONAL CHANGE ORDERS NECESSARY TO
COMPLETE THE PROJECT AND FOR A CONTINGENCY
FOR PHASE II OF 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, 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 IBLA and IBLA argued that this
amount was to be used by IBLA at its discretion; and
WHEREAS, 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; 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, the 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 had 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 was not available to the City to be used
for unforeseen conditions or changes to the scope, additional funding was required to
pay for identified change orders; and
WHEREAS, On September 11, 2002, the City Commission appropriated
$250,000 for change orders that required funding; and
WHEREAS, additional change orders are now necessary to complete the
Project as designed, in the amount of approximately $77,500, beyond the $250,000
previously anticipated, for work already performed by IBLA; and
WHEREAS, there are additional proposed change orders, in the amount of
$22,300, which are currently under review and for which a final cost has not been
established; and
WHEREAS, the total expected change orders amount is $99,881 and an
additional contingency of approximately $100,000 is required for Phase II 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 $200,000, from Mid-Beach Quality of
Life Funds, for the Scott Rakow Youth Center Project, for additional change orders
necessary to complete the Project and for a contingency for Phase II of the Project.
PASSED and ADOPTED this
ATTEST:
~
CITY CLERK
T:\AGENDA\2003\apr0903\regularlScottRakowAppropriationReso.doc
APPROVED AS TO
FORM & LANGUAGE
.. fOR EXECUTION
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u.
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
~
Condensed Title:
A resolution appropriating funding, in the amount of $200,000 for the
Project, for additional change orders necessary to complete the Project.
Scott Rakow Youth Center
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?
Item Summary/Recommendation:
A Notice to Proceed was given to International Builders Latin America, Inc. (IBLA) on April 9, 2001 and
construction began on April 24, 2001. On September 11,2002, the City Commission approved a resolution
appropriating funds in the amount of $250,000 for additional change orders which required funding such as
sanitary pipe re-routing, electrical relocations, new electrical installations related to existing conditions,
additional fire alarm devices, water main repairs, modifications to the HV AC system, code related changes
and additional painting of existing spaces. To date, change orders in the amount of $206,000 have been
executed with IBLA for Phase I of the project. Additionally, other costs not previously budgeted have been
approved. Some of these have included geotechnical testing, threshold inspections, and FPL and Bell
South charges. Proposed change orders in the amount of approximately $77,500 have been negotiated for
such items as louver & ductwork relocation at existing mechanical room; additional electrical relocations due
to the phasing of the project; additional emergency exit lights, strobes and panic devices requested by the
Fire Department; modification of new sanitary sewer line due to existing elevation conflicts; new wall rail at
entrance due to ADA; and other miscellaneous items. Other proposed change orders, in the approximate
amount of $22,300, are still being reviewed. Total expected change orders amount is $99,881. The
requested amount of $200,000 includes a contingency of approximately $100,000 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
expeditiouslv.
Advisory Board Recommendation:
I N/A
Financiallnfonnation:
Approved
City Clerk's Office Legislative TraCking:
I Jorge E. Chartrand
n-Offs:
D partment Director
City Manager
T:\AGENDA\2003\apr0903\regular\Scott Rakow Appropriation Cover.doc
AGENDA ITEM
DATE
c7B
r- ~-O3
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.miamibeachfl.gov
COMMISSION MEMORANDUM
From:
Mayor David Dermer and
Members of the City Commission
Jorge M. Gonzale~. r------.r-
City Manager ~v-' - rJ
A RESOLUTIO OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROPRIATING FUNDING IN THE
AMOUNT OF $200,000, FROM THE MID-BEACH QUALITY OF LIFE
FUNDS, TO THE SCOTT RAKOW YOUTH CENTER PROJECT, FOR
ADDITIONAL CHANGE ORDERS AND CONTINGENCY NECESSARY TO
COMPLETE THE PROJECT.
Date: April 9, 2003
To:
Subject:
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.
The firm of Corradino was given direction to proceed with the design and completion of the
construction documents on the basis of an adopted Resolution to design the largest ice
rink possible within the available property. 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. (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. 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.
Commission Memorandum
Scott Rakow Youth Center
April 9, 2003
Page 2
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 of the Agreement executed with IBLA and
their contention was that the allowance 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. After many
unsuccessful negotiations, the City accepted the use ofthe contingency with IBLA as part
of the construction Agreement and identified additional change orders needed to complete
the Project for which new funding was needed.
On September 11, 2002, the City Commission approved a Resolution appropriating funds
in the amount of $250,000 for additional change orders such as sanitary pipe re-routing,
electrical relocations, new electrical installations related to existing conditions, additional
fire alarm devices, 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 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.
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 ninety five 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 may begin as soon as Phase I is completed.
To date, change orders in the amount of $206,000 have been executed with IBLA for
Phase I of the project. Some of these change orders have included modifications to
electrical, fire alarm, and ammonia connections to satisfy additional Building Department
requirements. Additionally, geotechnical testing, threshold inspections, FPL charges, and
Bell South charges, in the amount of $46,000, which were not previously budgeted, have
had an impact on the Project's funding. The above costs have exhausted the $250,000
previously appropriated.
Commission Memorandum
Scott Rakow Youth Center
April 9, 2003
Page 3
Proposed change orders, in the amount of approximately $77,500, have been negotiated
for such items as louver & ductwork relocation at existing mechanical room; additional
electrical relocations due to the phasing of the project; emergency exit lights, strobes and
panic devices to satisfy additional Fire Department comments; modification of a new
sanitary sewer line due to existing elevation conditions; new wall rail at entrance requested
for ADA compliance; additional interconnections between the ammonia system and the fire
alarm system requested by the Fire department ;and other miscellaneous items. Most of
the above work has already been performed by ISLA. There are proposed change orders,
in the amount of $22,300, which are currently under review and a final cost has not been
established. Total expected change orders amount is $99,881 (See Attachment).
ISLA has provided an updated construction schedule to complete the current scope of
work, the Phase II scope and the additional change order work. Some time extensions
have been granted to ISLA through previous change orders. Expected completion at this
time is the end of May 2003 for Phase I and October 2003 for the remainder of the project.
However, the contractor continues to experience internal cash flow problems. This has
affected their relationship with their sub-contractors and subsequent completion of the final
components of Phase 1. The City has contacted the bonding company and has put the
contractor on notice for these delays. The bonding company is currently assisting the City
in making payments to the contractor and their sub-contractors in order to ensure that ISLA
uses the Project funds appropriately and in a timely fashion. The City and the bonding
company intend to continue making payments in this fashion until the completion of the
Project.
The requested amount of $200,000 includes a contingency of approximately $100,000 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.
T:IAGENDA12003lapr0903\regular\ScottRakowAppropriation .doc
PROJECT NAME: SCOTT RAKOW YOUTH CENTER - Additions and Renovations Project
Outstandina Chanae Order Reauest Status ReDort
PROPOSED
C.O. C.O.R. SCOPE OF WORK AMOUNT TIME(Days) Class.
No. No.
71R New Louver and Ductwork Modifications at Existing $ 26,780.92 0
Mechanical RoomlWater Tower
74 Optional sand layer for new ice rink Floor $ 13,442.42 0
77 New Emergency/Exit Lights $ 6,419.26 0 5
90 Labor for Ice Rink Floor Watering $ 470.40 0
92 RemovelReplace Existing Curb on Sheridan Ave $ 7,795.00 0 3
93 New Sidewalk Continuation at ADA Ramp (RFI#207) $ 3,668.00 0 3
94 Modifications to sanitary 6" line (RFI#209) $ 10,404.00 0
96 42" Wall Rail @ New Ramp Landing $ 647.00 0
97 Relocate lights at new ramp $ 1,591.00 0
98 Interconnection of ammonia Discharge fan switch with $ 3,336.00 0
Ammonia Panel
99 New Louvers for Locker Room doors $ 586.00 0
100 Additional Horn Strobes requested by Electrical Plan $ 454.00 0 5
Reviewer at FA Plans 2/2003
Connection of Exhaust Fan controls at Ice Rink Room to
101 Fire Alarm Panel (Requested by Fire Department $ 3,397.00 0 5
Inspector 2/2003)
CMS New Interior Signage $ 6,000.00 0 3
CMS Connection of new HVAC units to existing EMS. $ 14,890.00 0
CLASSIFICATIONS:
1. ERRORS & OMMISSIONS
2. UNFORESEEN CONDITIONS
3. OWNER REQUESTED CHANGE
4. CONTRACTOR REQUESTED CHANGE
5. BUILDING DEPARTMENT CHANGES: PERMITTING/INSPECTIONS