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LTC 199-2003 CITY OF MIAMI BEACH Office of the City Manager Letter to Commission No. /99 -.2tJo 3 m From: Mayor David Dermer and Members of the City Commission Jorge M, Gonzalez \ ' /' City Manager 0 ~ Date: August 28, 2003 To: Subject: NORTH SHORE PARK AND YOUTH CENTER The purpose of this Letter to Commission is to advise you that the general contractor for this project is experiencing delays that will postpone the previously reported completion date. The project is split into three different phases, each with its own completion dates with substantial completion scheduled for July 2003 for Phases I & II and August 2003 for Phase III. For reference, Phase I is the Ball fields, Phase II is the Tennis Center, and Phase III is the Youth Center. Currently, the Contractor believes that he can complete all phases sometime in October, however, the staff estimate places substantial completion in December 2003 based on the current status of remedial work, remaining work, and the number of staff present on the job in recent weeks. The Contractor is presently incurring liquidated damages in the amount of $300 per day per phase, for a total of $900 per day. The City is withholding remaining amounts (if any) on remedial work as well as liquidated damages incurred from the Contractor's pay applications. Staff is tracking progress on a daily basis and is using all of the available contract provisions to enforce the Contract with the Contractor as appropriate and applicable. In order to limit the City's financial loss or exposure, the City's contract set works in a manner that transfers the financial liability for the project to the Contractor. The contract structure, typical for a public agency, does not allow the City to take formal action to direct the contractor's actions. Our remedies become available upon a demonstrated failure of the contractor, which must then be fixed/addressed. A brief summary of each phase appears below, Phase I The Baseball Fields were originally scheduled for September 2002 Substantial Completion, however, when Additive Alternate NO.2 (Concession Stand/ Restroom Facility) was not awarded it became necessary to relocate the electrical distribution system from the proposed Concession Stand which was not constructed, to the Tennis Center Maintenance building. This tied the Baseball Field's completion to the Tennis Center, as the electrical needs of the Baseball Field could not be met until power was energized at the Tennis Center. As a result, Substantial Completion was rescheduled for July 2003. Remaining work generally encompasses the removal of the two trees, trimming of trees, baseball dugouts, and finishing the field's clay and sod layers, The Contractor has experienced difficulty with maintaining consistent quality, performing remedial work, and progressing with construction. This has impacted his ability to finish according to schedule. The City has directed the Contractor to provide a recovery schedule and plan to finish timely. LTC-North Shore Park and Youth Center August 27, 2003 Page 2 of 3 Phase II The Tennis Center was originally scheduled for a March 2003 Substantial Completion, however through the course of construction, change orders that increased the scope of work and extended the Contract Time were issued. As a result, Substantial Completion was rescheduled for July 2003, Remaining work includes remedial concrete work, installation of restroom fixtures, and finishes. The Contractor has experienced difficulty with maintaining consistent quality, remedial work, and current construction activities. This has adversely impacted his ability to meet his contractual timeline. The City has directed the Contractor to produce a recovery schedule and plan to finish the project timely. Phase III The Youth Center was originally scheduled for a June 2003 Substantial Completion, however through the course of construction, change orders that increased the scope of work and extended the Contract Time were issued. As a result, Substantial Completion was rescheduled for August 2003. These change orders were primarily owner requested items that were added as additional funding came available. Many of the items were requested by the North Shore Youth Center Oversight Committee. Remaining work generally includes remedial concrete work, remedial stucco work, tile, flooring, HVAC, Gym floor and finishes, cabinetry, some windows, restroom fixtures and partition and general finish work. The current Contractor Progress Schedule has Substantial Completion for all (3) Phases in late October 2003, however, given the current pace of construction and recent staffing levels, December 2003 may be more realistic. Additionally, since all (3) Phases are past their contracted Substantial Completion dates and since the Consultant has determined that Liquidated Damages are warranted, the Contractor will be assessed damages in the amount of $300.00 dollars per calendar day, per Phase, totaling $900.00 per day. It should be noted that this project began with about a five (5) percent construction contingency. The City's normal contingency is ten (10) percent of construction value. Change Orders due to errors and omissions has been less than one (1) percent of construction cost which is excellent for this industry. Up until the recent problems experienced by the Contractor, the project has gone extremely well. The Contractor has taken steps this week to triple his staffing of the project. Should this staffing level continue, the Contractor should be able to finish before the end of the calendar year. Staff will continue to monitor the project daily and will continue to enforce the contract. During recent walk-throughs with members of the Commission and with the City Manager, a request was made to add a City seal to the large wall on the south side of the building, A copy of this proposal prepared by the Consultant is attached. Please contact me if you have questions or concerns about this project. J~ Attachment C: North Shore Youth Center Oversight Committee General Obligation Bond Oversight Committee Robert C, Middaugh, Assistant City Manager Kevin Smith, Parks and Recreation Director Tim Hemstreet, CIP Director , . II I ~ 5 ; .. !GS:EI i ~ 1~ iW E31 I !~'.I , , ! (J r I is i~' ~! II~ ~PH! ; i I rill (J (J i (J ~ , , <J ~ i(D , (J C C (D (D o o (D o (J C C () I!:I () ~ ~ , , , . b , , , , , , , II t I I I I I I I J JUi ~I ~JJII Ii tlO 8~ f I11I111 ;10 !!iJ Ii tlll~ i!!ii "I, ~ ~ n I I \ flj! ~ illll , LTC-North Shore Park and Youth Center August 27,2003 Page 3 of 3 F:\CAPI\$all\TIMHEMSl\L TC - NSP& YC 082603.doc