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468-2004 RDA Reso RESOLUTION NO. 468-20.04 A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA) AUTHORIZING THE EXECUTIVE DIRECTOR, OR HIS DESIGNEE, TO EXECUTE AN AMENDMENT TO THE AGREEMENT BETWEEN THE MIAMI BEACH REDEVELOPMENT AGENCY AND THE STATE OF FLORIDA DEPARTMENT OF MANAGEMENT SERVICES (DMS), FACILITIES AND BUILDING CONSTRUCTION DIVISION, FOR THE RENOVATION AND RESTORATION OF THE COLONY THEATRE (THE PROJECT);SAID AMENDMENT, IN AN AMOUNT NOT-TO-EXCEED $396,762, WHICH INCLUDES THE FOLLOWING: REQUEST FOR CHANGE ORDER NO. 3 (RCO NO.3); ADDITIONAL SERVICES FOR DMS; AND ADDITIONAL SERVICES FOR RICHARD HEISENBOTTLE & ASSOCIATES (RJHA); APPROPRIATING $1,521,249 FROM CITY CENTER RDA FUNDS AS FOLLOWS: FOR RCO NO.3, AS REFERENCED IN THE AMENDMENT; TO REPLACE $500,000 OF GRANT FUNDING THAT THE CITY APPLIED FOR FROM THE STATE OF FLORIDA'S CULTURAL FACILITIES PROGRAM, BUT WAS NOT AWARDED DUE TO LACK OF FUNDING BY THE STATE; FOR THE PREVIOUSLY DUE ART IN PUBLIC PLACES FUND ALLOCATION FOR THE NEW PORTION OF THE THEATER, IN THE AMOUNT OF $66,849; PROVIDING FOR CIP FEES, IN THE AMOUNT OF $234,486; AND PROVIDING FOR ALLOCATION FOR OWNER REQUESTED ITEMS AND A NEW CONTINGENCY, IN THE AMOUNT OF $323,152; FURTHER DIRECTING THE ADMINISTRATION TO EXPLORE THE OPTION OF REPLACING DMS WITH THE CIP OFFICE, TO PROVIDE CONSTRUCTION MANAGEMENT ON THE PROJECT, AND IF THE CITY ADMINISTRATION CANNOT AGREE ON EFFECTUATING THIS OPTION, HAVING THE ADMINISTRATION PURSUE AND NEGOTIATE A REDUCTION OF DMS' FEE UNDER THE PROJECT AGREEMENT. WHEREAS, the Colony Theater Renovation Project (the Project) began as a $1.5 million concept project in early 1999, and a series of cultural facilities grants were pieced together during the balance of that year; and WHEREAS, in October 1999, the City executed a Professional Services Agreement with the State of Florida Department of Management Services ("DMS") to provide design, pre-construction, and construction management at risk services (the Agreement); and WHEREAS, through the Agreement, DMS provides full service operations and many of the normal duties of the City are fully delegated therein to DMS, as the City's agent, and the Agreement calls for DMS to hire both the architect and the construction manager/contractor for the Project, through its own competitive process, and those respective agreements with each party are executed and administered by DMS; and WHEREAS, the Agreement calls for a number of deliverables during the design and pre-construction stages, and the deliverables are consistent with a standard construction management at risk process, where a general contractor is brought into the design process at an early stage to work with the architect of record in both developing the design documents and in pricing the Project; and WHEREAS, the project architect of record (hired by DMS) is R.J. Heisenbottle Architects ("RJHA"), and the construction manager/contractor is McCartney Construction Company ("McCartney"), and the total fee paid by the City to the DMS/RJHAlMcCartney team for pre-construction services is $313,872, which includes the design fee for RJHA, the constructability review by McCartney, and the management fee by DMS; and WHEREAS, a gross price for the City's budgeting purposes was provided by the Project team in July 2002 of $6,365,000, which served as the basis for the final appropriation by the City and was inclusive of DMS, RJHA, and McCartney's fees, and a Project contingency; and WHEREAS, the City received a copy of the executed guaranteed maximum price (GMP) for construction in April 2003, in the amount of $5,568,002; and WHEREAS, several events occurred in the Project, through no fault of the City, which caused delays to the progress of construction and eventually caused a stop work order by the Building Official of the City; and WHEREAS, in May 2003, DMS provided Request for Change Order (RCO) No.3 to the City, in the amount of $557,769, which was intended to replace the depleted contingency, to increase compensation to McCartney for alleged unforeseen conditions, to pay for City requested items, and to address overruns in budgeted allowance categories that were set aside because project construction commenced prior to completion of design and specifications; and WHEREAS, DMS subsequently submitted a revised RCO No.3, in the amount of $789,019, which is the subject of this Resolution; and WHEREAS, RCO No.3 includes Authorizations 1-6, in the amount of $256,349, which are similar to Change Orders but are used, under the Agreement, to re-allocate funding within the overall GMP amount from other contract items; and WHEREAS, RCO NO.3 consists of a request to restore the funds used from the allowances for the previous authorizations, in the amount of $251,703, and includes further requests for additional costs, in the amount of $537,316, for replacement of a contingency, for additional General Conditions, overhead and profit, management fees, and some City requested items, as well as some unforeseen conditions; and WHEREAS, of the requested amount in RCO No.3, the staff recommends that $56,867 be approved for items which the City requested or which were for legitimate unforeseen conditions; and WHEREAS, City staff also recommends that $62,155 be approved for items which may have been improperly approved by DMS, which were not included in the GMP, but are either necessary or already under construction, and $180,092 previously recommended from Authorizations 1 through 6; all of which add up to a total of $299,114, and are the maximum that the staff is willing to recommend for additional construction costs on this Project; and WHEREAS, City staff also recommends that $13,106 for prospective changes requested by the Theater operators, and $150,000 for an additional contingency be appropriated for the Project, but that they be managed by staff and not be made part of the increase to the GMP in RCO No.3; and WHEREAS, all other costs included in RCO No.3 are considered by City staff to be the responsibility of the DMS project team, including the replacement of the allowances used as additional contingency, and are therefore not recommended for funding by the staff; and WHEREAS, these additional costs in RCO No. 3 are not recommended for varied reasons such as regulatory issues that should have been known; items which should have been foreseen during the pre-construction services phase; and items which should be the responsibility of the contractor as part of their means and methods; and WHEREAS, DMS has also presented separately, a request for additional services to RJHA, in the amount of $56,463.98, which covers three categories: additional threshold inspections and field observations; additional design for unforeseen conditions; and additional design for City requested items which are required for the proper operation of the facility; and WHEREAS, City staff does not recommend additional services for the threshold and field observation costs because the allowances have been exceeded due to the inability of the team to obtain proper permits and the delays caused by the Stop Work order and other structural issues that should have been foreseen and covered under the pre- construction services phase of the Project; staff also does not recommend the additional services for the design of rigging and a catwalk since these are essential items in a theater and should have been covered in the pre-construction services; and WHEREAS, City staff only recommends approval of additional services, in the amount of $10,170, for the design of City requested items and for true unforeseen conditions; and WHEREAS, separate from the recommended additional services request for RJHA, City staff recommends that $25,000 be appropriated for a third party threshold inspector to be contracted by staff independently of the current Project team; and WHEREAS, the City had previously been awarded a 2003 Cultural Facilities Grant, in the amount of $500,000, that was approved by the RDA as funding for this Project which, however, due to funding challenges last fiscal year with the State budget, was eliminated, and will need to be replaced in order to meet present contractual obligations to DMS; and WHEREAS, funding, in the amount of $66,849, was not allocated within the original appropriations for the required Art in Public Places (AIPP) Fund allocation on the new construction portion of the building, in accordance with the City's Art in Public Places Ordinance; and WHEREAS, funding, in the amount of $234,486, was not allocated within the original appropriations for the CIP Office fee based on the percentages established for budgetary purposes; and WHEREAS, based on the RCO No.3, the amountof$316,762 recommended by City staff, which include fees for RJHA and McCartney; the amount of $80,000, for General Requirements, etc. described herein; the amount of$301,335, forthe AIPP allocations and CIP fees; the amount of $500,000, to replace the State grant; and the amount of $323,152 for contingency and Owner requests, the total additional funds to be appropriated for the Project, as herein recommended by City staff is $1,521,249; and WHEREAS, the Administration has been directed by the City Commission to explore the option of replacing DMS with the CIP Office, to provide construction management on the Project, and if the City Administration cannot agree on effectuating this option, having the Administration pursue and negotiatea reduction of DMS' fee under the Project Agreement. NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY OF THE CITY OF MIAMI BEACH, FLORIDA, that the Chairman and Members of the Miami Beach Redevelopment Agency (RDA) authorize the Executive Director, or his designee, to execute an Amendment to the Agreement between the Miami Beach Redevelopment Agency and the State of Florida Department of Management Services (DMS), facilities and building construction division, for the renovation and restoration of the Colony Theatre (the Project); said amendment, in an amount not-to-exceed $396,762, which includes the following: Request for Change Order No.3 (RCO No.3); for additional fees for DMS; and additional services for Richard Heisenbottle & Associates (RJHA); appropriating $1,521,249 from City Center RDA funds as follows: for RCO. NO.3 referenced in the Amendment, to replace $500,000 of grant funding that the City applied for from the State of Florida's cultural facilities program, but was not awarded due to lack offunding by the State; forthe previously due Art in Public Places (AIPP) Fund allocation for the new portion of the theater, in the amount of $66,849; providing for CIP fees, in the amount of $234,486; and providing for allocation for owner requested items and a new contingency, in the amount of $323,152; further directing the Administration to explore the option of replacing DMS with the CIP Office, to provide construction management on the Project, and if the City Administration cannot agree on effectuating this option, having the Administration pursue and negotiate a reduction of DMS' fee under the Project Agreement. PASSED and ADOPTED this 17th day f ,2004. ATTEST: ~~ CITY CLERK T:\AGENDA\2004IMar1704IRegularIRDA Colony Reso.doc MAYOR APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION A h I Jllll . /1 - J.. ,,- ~5 '~\f" Date General Counsel iY '\ CITY OF MIAMI BEACH REDEVELOPMENT AGENCY ITEM SUMMARY m Condensed Title: A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY AUTHORIZING THE EXECUTIVE DIRECTOR, OR DESIGNEE, TO EXECUTE AN AMENDMENT TO THE AGREEMENT BETWEEN THE MIAMI BEACH REDEVELOPMENT AGENCY AND THE STATE OF FLORIDA DEPARTMENT OF MANAGEMENT SERVICES, FACILITIES AND BUILDING CONSTRUCTION DIVISION, FOR THE RENOVATIONS AND RESTORATION OF THE COLONY THEATRE IN AN AMOUNT NOT-TO-EXCEED $396,762; AND APPROPRIATING $1,386,203 FROM CITY CENTER RDA FUNDS FOR THIS CHANGE ORDER AND OTHER ITEMS. Issue: Should the City approve Request for Change Order No.3 presented by DMS for additional costs at the Colony Theater renovation? Item Summa IRecommendation: The Colony Theater Renovation project began as a $1.5 million concept project in early 1999. A series of cultural facilities grants were pieced together during the balance of that year and in October 1999, the City executed a Professional Services Agreement with the State of Florida Department of Management Services ("DMS") to provide design, pre-construction, and construction management at risk services. Through its Agreement, which calls for DMS to hire both the Architect and the Construction Manager/Contractor, DMS provides a practically full service operation and many of the normal duties of the City are fully delegated by agreement to DMS as the City's Agent. McCartney, as contractor for DMS, submitted a GMP for construction in the amount of $5,568,002 in February 2003. In May 2003, DMS provided Request for Change Order No.3 to the City in the amount of $557,769. The staff did not believe that the information provided was sufficient to properly demonstrate that the City is contractually responsible for these charges and declined to recommend this Request for Change Order to the RDA Board. DMS subsequently submitted a revised request to staff in February 2004 in the amount of $789,019. This amount has been recommended to the City by DMS for approval. The Request for Change Order contains a number of requests for additional costs, for replacement of contingency, for additional General Conditions, additional Overhead and Profit, additional Management Fees, additional Owner requested items as well as unforeseen conditions. The amount recommended by the staff for RCO No.3 is $396,762. There are additional items not related to the Request for Change Order that should also be funded at this time. These are $301 ,335 for AIPP and CIP fees; $500,000 to replace the State grant; and $188,106 for contingency and Owner requested FF&E items. The total staff recommended a ro riation with all items is $1,386,203. Advisory Board Recommendation: IN/A Financial Information: Source of Funds: I I Finance Dept. AGENDA ITEM DATE 3/\ .3-/7-04 CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 WNW.miamibeachfl.gov To: From: REDEVELOPMENT AGENCY MEMORANDUM Chairman David Dermer and Members of Miami Beach Redevelopment Agency Jorge M. Gonzalez ~ Executive Direct~ L Date: March 17, 2004 A RESOLUTION OF THE CHAIRMAN D MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY AUTHORIZING THE EXECUTIVE DIRECTOR, OR DESIGNEE, TO EXECUTE AN AMENDMENT TO THE AGREEMENT BETWEEN THE MIAMI BEACH REDEVELOPMENT AGENCY AND THE STATE OF FLORIDA DEPARTMENT OF MANAGEMENT SERVICES, FACILITIES AND BUILDING CONSTRUCTION DIVISION, FOR THE RENOVATIONS AND RESTORATION OF THE COLONY THEATRE IN AN AMOUNT NOT-TO- EXCEED $396,762; AND APPROPRIATING $1,386,203 FROM CITY CENTER RDA FUNDS FOR THIS CHANGE ORDER AND ALSO TO REPLACE $500,000 OF GRANT FUNDING THAT THE CITY APPLIED FOR FROM THE STATE OF FLORIDA'S CULTURAL FACILITIES PROGRAM, BUT WAS NOT GRANTED DUE TO A LACK OF FUNDING BY THE STATE; PROVIDING FOR PREVIOUSLY DUE ART IN PUBLIC PLACES ALLOCATION FOR THE NEW PORTION OF THE BUILDING IN THE AMOUNT OF $66,849; AND PROVIDING FOR CIP FEES IN THE AMOUNT OF $234,486; AND PROVIDING FOR ALLOCATION FOR OWNER REQUESTED ITEMS AND A NEW CONTINGENCY IN THE AMOUNT OF $188,106. ADMINISTRATION RECOMMENDATION: Subject: Adopt the Resolution. ANALYSIS: The Colony Theater Renovation project began as a $1.5 million concept project in early 1999. A series of cultural facilities grants were pieced together during the balance of that year and in October 1999, the City executed a Professional Services Agreement with the State of Florida Department of Management Services ("DMS") to provide design, pre- construction, and construction management at risk services. A detailed history of the project was previously provided to you as a Status Report in September 2003 and appears as Attachment 1 to this memorandum. Through its Agreement, DMS provides a practically full service operation and many of the normal duties of the City are fully delegated by agreement to DMS as the City's Agent. The Agreement calls for DMS to hire both the Architect and the Construction Manager/Contractor through its own competitive process and the respective agreements with each party are executed and administered by DMS. The City's obligations under its COLONY THEA TER Commission Memorandum March 17, 2004 Page 2 of 8 Agreement with DMS are primarily to provide funding and to pay timely upon DMS' approval of proper payment applications. The DMS agreement calls for a number of deliverables during the design and pre- construction stages. The deliverables are consistent with a standard construction manager at risk process where a general contractor is brought into the design process at an early stage to work with the Architect of Record in both developing the design documents and in pricing the project. In this project, the Architect of Record hired by DMS is R.J. Heisenbottle Architects ("RJHA") and the Construction Manager/Contractor is McCartney Construction Company ("McCartney"). The total fee paid by the City to the DMS/RJHAlMcCartney team for pre-construction services is $313,872, which included the design fee for RJHA, the constructability review by McCartney, and the management fee by DMS. The final deliverable of the pre-construction process is, by Agreement, a Guaranteed Maximum Price ("GMP"). The DMS Contract with McCartney defines Guaranteed Maximum Price in Article 7.1 as follows: "When the Design Development Documents are sufficiently complete to establish the scope of work for the project or any portion thereof, as generally defined by a design document listing to be provided by the Architect-Engineer and the Construction Manager upon execution of this Agreement, which is to be used only as a guide in developing the specifications and plan data necessary to establish a Guaranteed Maximum Price, or at such time thereafter designated by the Owner, the Construction Manager will establish and submit in writing to the Owner for his approval a Guaranteed Maximum Price, guaranteeing the maximum price to the Owner, for the construction cost of the project or designated part thereof. Such Guaranteed Maximum Price will be subject to modification for changes in the project as provided in Article 10. However, the actual price paid for the work by the Owner shall be the actual cost of all work subcontracts, supply contract, direct labor costs, direct supervision costs, and direct job costs as defined under Article 9, plus the Construction Manager's fees or the GMP, whichever is less when the work is complete (emphasis added)." A gross price for the City's Budgeting purposes was provided by the project team in July 2002 of $6,365,000 which served as the basis for the final appropriation by the City. This amount was inclusive of DMS, RJHA, and McCartney's fees, including project contingency. In this project, a formal GMP that is essentially in line with this final budget amount was executed by DMS on behalf of the City in February 2003. It should be noted that contrary to the language above, City staff was not permitted to review the GMP prior to DMS' acceptance and execution of the GMP, despite several requests to do so. The City finally received a copy of the executed GMP in April 2003. McCartney's GMP for construction is $5,568,002. COLONY THEA TER Comm~s~nMemoffindum March 17, 2004 Page 3 of 8 For reasons of apparent expediency (according to DMS correspondence to the City), DMS authorized construction activities to commence in November 2002, prior to the execution of the GMP document and over the objections of City staff. City staff objections stemmed primarily from the fact that the Construction Documents for the project had not yet been permitted by the Building Department, project specifications were not complete, and a draft GMP had not been provided for the City to consider. Soon after the project began, McCartney experienced several difficulties with getting its temporary shoring for the structure permitted by the Building Department and a Stop Work order was issued on the project. Other issues arose, including a need for pilings, structural repairs, asbestos abatement, and plumbing and electrical issues that, according to the project team, were not addressed within the GMP. However, the Stop Work order, and the issues that caused it, resulted in a 10 week delay to the project. Soon after this occurrence, McCartney submitted to DMS a request to be compensated for this 1 O-week delay as well as for all of the items noted above from the Project Contingency in an amount of $78,596 plus an additional 1 0 weeks of time, which was approved by DMS. Shortly thereafter, DMS further authorized additional charges against the Project Contingency for remobilization, additional plumbing work, actual costs that exceeded the projected budget amounts, and some City requested items. The total Project Contingency of $127,046 was fully expended as authorized by DMS by June 2003. In fairness to the project team, the original contingency was extremely low to address unforeseen conditions and Owner requested changes, although many of the items mentioned above do not fall under these categories. It should be noted that the City is not a signatory on any of these actions and was not recognized as an active participant in this process. This was done despite the fact that Article 7.4 of the Agreement states, in part, ''The Construction Manager will be required to furnish documentation evidencing the expenditures charged to this contingency prior to the release of funds by the Owner." In these contract sets, "Owner" is explicitly defined as "The City of Miami Beach." In May 2003, DMS provided Request for Change Order (RCO) NO.3 to the City in the amount of $557,769. According to the documents that were provided as back-up to this request, this amount was requested to replace the depleted contingency, to increase compensation to McCartney for alleged unforeseen conditions, to pay for City requested items, and to address overruns in budgeted allowance categories that were set aside because construction commenced prior to completion of design and specifications. The staff did not believe that the information provided was sufficient to properly demonstrate that the City is contractually responsible for these charges and declined to recommend this Request for Change Order to the RDA Board at that time. Since May 2003, the Construction Manager and AlE have continued to add items to this RCO and the current request to the Commission/RDA Board is $789,019. This amount has been recommended to the City by DMS for approval. COLONY THEA TER Commission Memorandum March 17, 2004 Page 4 of 8 Of this final RCO amount, $127,301 is requested to address the initial delay issues noted above and to address alleged additional costs to the project that have been incurred and approved by DMS since May 2003. The items in this latter category were funded by DMS from the Contingency Allowance in the original GMP, in the amount of $127,046, which they slightly exceeded. The funding of these items were addressed by DMS through Authorizations, which are similarto Change Orders but are used, under the Agreement, to re-allocate funding within the overall GMP amount from other contract items. A summary of the Authorizations is as follows (See Attachment 2) and will be further described and detailed below: Authorization NO.1 in the amount of $78,596 Authorization No.2 in the amount of $23,320 Authorization No.3 in the amount of $25,385 Authorization NO.4 in the amount of $122,400 (Re-allocation of Seating Allowance) Authorization NO.5 in the amount of $118,357 Authorization No.6 in the amount of $133,091 Authorizations Nos. 1, 2 and 3 were authorized by DMS, without proper Owner participation. In Authorization No.4, DMS reallocated the Allowance set aside in the GMP for Seating in the auditorium in order to cover the shortfalls in the Contingency due to the above described previous authorizations. It should be noted that the use of Authorizations is limited by Contract to move money between line items in the GMP as needed. Authorizations cannot be used to reduce or increase the scope of the project. In practice, the intent is to use Authorizations to remove funds from line items where the actual costs were lower than budgeted to other line items where actual costs are higher than budgeted. It is City staffs opinion that the Authorizations were utilized improperly in this instance. Approximately $37,822 of the requests in Authorizations Nos. 1, 2 and 3 is for items that are prospective. These items were captured in the original GMP as Allowances due to the fact that the project was not fully designed with specifications when the GMP was executed. As the design and specifications are progressing, these Allowance line items are insufficient to pay for the actual costs of the design and specifications that the AlE is providing to the Construction Manager to price. The present tense is being used here to denote the fact that portions of the building have yet to be designed and/or specifications developed. Additionally, approximately $43,474 of the request in authorizations 1,2 and 3 is due to true unforeseen conditions that were encountered during the course of construction. These include asbestos abatement, and modifications to the electrical and plumbing systems to fit the proposed design to the actual conditions. In addition, there is $3,218 for an Owner change for an audio console for operational reasons. The total is composed of $16,089 in Authorization No.1; $5,218 in Authorization No.2; and $25,385 in Authorization NO.3. The staff recommends payment of these amounts. COLONY THEA TER Commission Memorandum March 17, 2004 Page 5 of 8 The staff does not recommend payment of$62,147 in Authorization NO.1 and of$18,102 in Authorization NO.2 for a total of $80,879 because these are items which should have been foreseen by DMS and its team; are regulatory in nature; should have been addressed during the pre-construction phase of the project; or should be funded by the approved General Conditions in the GMP. The re-allocations of the Seating Allowance in Authorization No. 4 is also not recommended for approval by the staff since it was done without prior consultation with the City and would leave unfunded a fundamental portion of the theater, the seating. DMS has also submitted Authorizations No.5, in the amountof$118,357, and No.6, in the amount of $133,091, which potentially further increase the cost of the project. Authorization Nos. 5 and 6 once again were issued by DMS without the proper participation and against the recommendation of the Owner. At this time the City had already informed DMS that their cost proposals and requests for additional funds were not properly substantiated and that no further approval would be given by the Owner until all items were clearly presented and contractually justified by DMS in accordance with the Agreement. These Authorizations also include several items which exceed allowances established in the GMP which are being exceeded as designs and specifications are completed. Some of the items, in the amount of $76,261, in Authorization NO.5 and $6,200 in Authorization No.6 for a total of $82,461 are for unforeseen conditions in the project and recommended by the staff for payment. $7,000 in Authorization NO.5 is for Owner requested items and is also recommended by the staff for approval. Items in the amount of $43,939, in Authorization No. 6 are for improperly executed changes by DMS which the City may have to fund because they were not included in the GMP, but have either been already installed or because they are needed for the proper operation of the building. These changes are recommended by the staff for payment as required for the project's operations. Items in the amount of $35,096, in Authorization NO.5 and in the amount of $63,618 in Authorization No.6, for a total of$98,714 are not recommended by the staff. These items once again deal with conditions which should have been foreseen; regulatory issues; allowances exceeded by recent designs not completed prior to GMP; time delays not approved by the City; additional sales taxes for items not approved; and for items which should have been funded by the approved General Conditions in the GMP. DMS chose to ignore the City's comments and recommendations and continued to issue authorizations which were not properly funded and which continued to make use of GMP allowances for other required work that would then become unfunded. The allowance for the seating previously mentioned is a case in point. DMS has now partially eliminated another allowance, in the amount of $241,678, for stage rigging in order to cover further shortfalls in the contingency which have not been substantiated or justified. DMS intends to restore this portion of the allowance if Request for Change Order No.3 is approved. COLONY THEA TER Commission Memorandum March 17, 2004 Page 60fB Based on staffs request, this RCO NO.3 amount has been divided by DMS into four separate categories. Some of the total amount is intended to fund the Authorizations previously approved by DMS which were partly funded by available allowances and which were not properly justified and not approved with the participation of the Owner: Owner Requested Changes Regulatory Changes Unforeseen Conditions Scope Chanqes Total $202,252 $111,593 $352,465 $122.709 $789,019 Change Order NO.3 consists of a request to restore the funds used from the allowances for the previous Authorizations (discussed in detail above), in the amount of $251,703. In addition, it includes further requests for additional costs, in the amount of $537,316, for replacement of a contingency, for additional General Conditions, Overhead and Profit, Management Fees, and some Owner requested items as well as some unforeseen conditions. Of the requested amount, the staff recommends that $56,867 in Change Order No.3 be approved for items which the Owner requested or which were for legitimate unforeseen conditions. The staff also recommends that $62,155 be approved for items which may have been improperly approved by DMS which were not included in the GMP, but are either necessary or already under construction. These amounts, coupled with the $180,092 previously recommended from Authorizations 1 through 6, add up to $299,114 and are the maximum that the staff is willing to recommend for additional construction costs on this project. The staff also recommends that $13,106 for prospective changes requested by the theater operators and $150,000 for an additional contingency be appropriated for the project but that they be managed by staff and not be made part of the increase to the GMP in Request for Change Order NO.3. All other costs included in RCO NO.3 are considered by the staff to be the responsibility of the DMS project team, including the replacement of the allowances used as additional contingency. Therefore, the staff does not recommend funding those costs. These additional costs in RCO NO.3 are not recommended for varied reasons. These include known regulatory issues; items which should have been foreseen during the pre- construction services phase; and items which should be the responsibility of the contractor as part of their means and methods. In addition, there are costs related to the RCO that must be adjusted to the approved amounts but are currently included by DMS as if the complete Change Order were approved by the City for funding. Of these items staff recommends that additional General Conditions, Overhead and Profit, Bonds and Insurance be funded based only on the amount recommended for approval which is $299,114 as stated above. In addition, the DMS Agreement calls for its fee to be increased by 2.5% with every addition in funding to the project. This would increase the amount requested in Change COLONY THEA TER Commission Memorandum March 17, 2004 Page 7 of 8 Order NO.3 by $19,725 if the full request were approved. Based on the amount recommended by the staff, the increase to DMS' fee is $7,478. DMS has also presented separately, a request for additional services to RJHA in the amount of $56,463.98. This request covers three categories; additional Threshold Inspections and Field Observations; additional design for unforeseen conditions; and additional design for Owner requested items which are required for the proper operation of the building. The staff does not recommend additional services for the Threshold and Field Observation costs because the allowances have been exceeded due to the inability of the team to obtain proper permits and the delays caused by the Stop Work order and other structural issues that should have been foreseen and covered under the pre- construction services phase of the project. The staff also does not recommend the additional services for the design of rigging and a catwalk since these are essential items in a theater and should also have been covered in the pre-construction services. Therefore the staff only recommends approval of additional services, in the amount of $1 0,170. This amount is acceptable for the design of Owner requested items and for true unforeseen conditions. Separate from the recommended additional services request for RJHA, staff recommends that $25,000 be appropriated for a third party Threshold Inspector to be contracted by staff independently of the current project team. Staff is concerned that the present arrangement where the structural Engineer of Record and the Threshold Inspector are the same entity and may represent a conflict of interest. The City had previously been awarded a 2003 Cultural Facilities Grant in the amount of $500,000 that was approved by the Commission/RDA Board as funding for this project. However, due to funding challenges last fiscal year with the State budget, this funding from the State was eliminated and will need to be replaced in order to meet present contractual obligations to DMS, RJHA, and McCartney. Originally, this project was managed by RDA staff and the project was transferred to the CIP Office in October 2002. Funding was not allocated within the original appropriations for either the CIP Office fee or the Art in Public Places contribution on the new construction portion of the building. The AIPP allocation is determined to be, in accordance with the City Ordinance, $66,849. The CIP management fee allocation is $234,486 based on the percentages established for budgetary purposes. The staff also recommends that an additional contingency be provided in the project to replace the original contingency already exhausted. The staff also requests that $13,106 for Owner identified items be funded in this appropriation. If these fees and other allocations are added, and the total DMS Request for Change Order No.3, in the amount of $789,019, is granted, and the grant amount of $500,000 is replaced, then the request for additional funding at this time would be $1,753,460. However, as noted above, staff does not believe that the Request for Change Order No.3, as presented by DMS/RJHAlMcCartney, is fully warranted. After exhaustive review, staff believes that $316,762 which includes the cost of additional construction, the additional COLONY THEA TER Commission Memorandum March 17, 2004 Page 8 of 8 fees for DMS and the additional services for RJHA is the appropriate amount for which the City should be responsible. There is an additional amount, estimated at $80,000 by the staff, which cannot be clearly established until the final amount of RCO No.3 is approved. These costs are for General Requirements, Overhead and profit, Bond and Insurance which are contractually based on percentages of construction costs and for approved time extensions. Since these are not yet clearly established, the staff is only recommending an estimated amount at this time. By comparison, the amount for the General Requirements requested by DMS but not recommended by the staff is $147,556. This exact amount can be established after approval of Change Order No. 3 and if it exceeds the amount estimated by the staff, the difference would be paid from the additional contingency requested today. Based on the RCO amount NO.3 recommended by the staff of $316,762; the amount of $80,000 for General Requirements, etc. described above; the amount of $301,335 for AIPP and CIP fees; the amount of $500,000 to replace the grant; and the amount of $188,106 for contingency and Owner requests, the total additional funds for the project recommended by the staff is $1,386,203. It should be noted that this represents a disagreement between City staff and the DMS project team. The Request for Change Order No.3 and associated narrative back-up for the RCO is attached as Attachment 2 and has been summarized above. A Summary Chart of the staff recommendation appears in Attachment 3. JMG/RCMITH/lr T:\AGENDA\2004\Mar1704\Regular\RDA MEMO COLONY.doc ATTACHMENT 1 CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 WNW.miamibeac:hfl.gov COMMISSION MEMORANDUM From: Mayor Dermer and Members of Date: September 10. 2003 the Miami Beach Redevelopment Agency Jorge M. Gonzalez \I'-""c..-/' City Manager 0 - U STATUS REPORT ON THE COLONY THEATER RENOVATION PROJECT To: Subject: BACKGROUND The Greater Miami Concert Association. on behalf of the City of Miami Beach, initiated a process to procure grant funding for the renovation and repair of the Colony Theater. With the efforts of the Concert Association, in early 1999, Miami-Dade County Cultural Affairs Department engaged, on a pro-bono basis, the Zeidler Roberts Partnership, Inc., to develop conceptual plans and cost estimates for the expansion and renovation of the Colony Theater. In September 1999, the City was awarded a $775,000 Miami-Dade County Cultural Affairs Grant; but the Plan failed to address many important elements and contained a preliminary cost estimate of $1.5 Million to undertake the Project. On July 21 , 1999, the City Commission authorized the City Administration to apply to the State of Florida, Division Of Cultural Affairs (SOF), for a $500,000 Cultural Facilities Grant. The City pledged $1,000,000 in (2-for-1) matching funds, from the following sources: Miami-Dade County Cultural Affairs Grant ADA Improvements (Bond Fund 351) Cultural Arts Council Loan Total Funding Available: $775,000 $ 60,000 $165.000 $1,000,000 On October 6, 1999, the Mayor and City Commission adopted Resolution No. 99-23348, authorizing the City to execute a Professional Services Agreement with the State of Florida, Department of Management Services (OMS) for construction management of the Colony Theater. The OMS Program provides construction-management-at-risk and provides municipalities with project management services from the onset of a project, throughout the design phase, bidding process (resulting on a guaranteed maximum price), and culminating with construction oversight and coordination. On March 6, 2000, OMS authorized R.J. Heisenbottle Architects (RJHA) - the Architect-of- Records, selected through an RFQ process administered by OMS - to proceed with programming and conceptual/advanced schematic design phases for the expansion and renovation of the Colony Theater. The design had to address programmatic requirements, historic preservation scope, ADA and other code-related deficiencies. It should be noted that the design development phase was subject to extensive programming with input received from the operator and users of the Colony Theater. the City's Historic Preservation Office, Property Management and the Agenda Item f(.D/t - 3A Date 9-/0-03 886 September 10, 2003 Commission Memorandum Colony Theater status Report Page 20f7 Planning and Zoning Department. In September 2000, RJHA presented three alternative design concepts to address expansion of backstage areas, ADA requirements and other identified improvements. The alternatives involved: 1. expanding the Colony into and over the alley on the south side of the building, 2. expanding below grade (basement), or 3. expanding to the east by incorporating a portion of the adjacent privately owned property. Given the extent of the improvements/enhancements identified during this process, RJHA exhausted attempts to design the Colony Theater's renovation within the parameters of the existing footprint of the building. Because the Colony Theater has never been substantially altered from its initial use as a cinema, the addition of a fly-space was considered a vital element to become a true performance theater. The only way to accomplish this was to provide an "addition" to the structure. At the very least, plans called for demolition of the back of the house, which was found to have asbestos and other code and fire violations, and to build a vertical addition, accommodating a fly-space, technical storage and dressing rooms. On December 15, 2000, RJHA - represented by Richard Heisenbottle, Terry Siegel and Gregory Saldano - presented to a committee comprised by Jorge Gomez, William Cary, and Tom Mooney from the City's Planning Department, Brad Judd from Property Management, Kent Bonde from the Redevelopment Agency, and Eric Fliss from the Colony's Operations Department, a new scheme, calling for the removal of the rear 45 feet of existing building, construction of a new stage house, small second and third floor service areas behind the stage, a fourth floor "Backstage" area, elevator, stairs, and the addition of a new vestibule and exterior access ramp to provide ADA access to the stage. The historic preservation scope involves removing the existing marquee and storefront on Lincoln Road and returning this fascia to its original historic appearance and modifying the interior lobby, office and concession area to be more consistent with the building's original design. RJHA presented Options "A" and "B" for this scheme, involving different size add itions to the facility. Option "A" involved the addition of 7,950 square feet at a hard construction cost estimate of approximately $3.6 Million. Option "B" comprised a 9,520 square foot addition, for a total construction/hard cost of $4.5 Million. According to RJHA, the design could not undergo further value engineering without adversely impactin9the scope and purpose of the project. The Administration concurred with this assessment and recommended proceeding with Option "B". According to OMS, the total estimated cost of the project, inclusive of soft costs, would be approximately $4.615,000, significantly exceeding the available budget. On March 16, 2001, the City was awarded a National Park Service-Save America's Treasures Grant, in the amount of $835,000, of which $700,000 was appropriated for the Colony Theater project. Total available funding sources at the time comprised the following: 887 September 10, 2003 Commission Memorandum Colony Theater status Report Page 3 of 7 County Cultural Arts Grant/PACT: ADA Improvements (Bond Fund 351) Florida Dept of State Cultural Facilities Grant- Phase I: Cultural Arts Council Loan National Park Service - Save America's Treasures Grant: Total Available Funding: Estimated Budget: Estimated Shortfall: $ 775,000 $ 60,000 - City Match $ 500,000 - 2 for 1 City Match Required $ 165,000 - City Match Revised Amount $ 700,000 $2,200,000 $4.615.000 ($2,415,000) On May 14, 2001, the Administration presented to the City's Finance and Citywide Project Committee a request for additional funding for the Project, in the amount $1,415,000 from the Miami Beach Redevelopment Agency (RDA). The Committee voted in favor of recommending the appropriation. Based on the Committee's recommendation, the RDA appropriated the funds on June 27, 2001. The remaining $1,000,000 shortfall was expected to be funded from future applications to the SOF- Cultural Facilities Grant Program (Phases II and III). On July 10,2001, Design Development Plans received formal approval by the Design Review and Historic Preservation Boards. Design and Construction Documents proceeded with anticipated completion by March, 2002. In August, 2001 , the City applied for a second Cultural Facilities Grant in the amount of $500,000 from the SOF - Division Of Cultural Affairs. The City identified the additional appropriation from the RDA and the National Parks Service Grant, as fulfilling the matching funds requirements. SOF Funds from the second application were appropriated by the State in May, 2002. The revised funding status at the time comprised the following: Total Available Funding: Estimated Budget: Estimated Shortfall: RDA Appropriation on June 27, 2001 Florida Dept of State Cultural Facilities Grant - Phase II: Revised Estimated Shortfall (at the time): $2,200,000 $4.615.000 ($2,415,000) $1,415,000 - City Match to the SOF Grant $ 500,000 - 2 for 1 City Match Required ($ 500,000) A third application in the amount of $500,000 was submitted in August, 2002, which was intended to bridge the projected shortfall. Due to the recent budgetary issues at the State of Florida, the funding process has been delayed. The Project has been ranked favorably and is included in a priority list for the FY2004 application period. Using RJHA preliminary Design Documents and cost estimates, in October, 2001, following a bidding and selection process administered by DMS, a Contract was awarded to McCartney Construction, for the Construction phase of the Project. At the time, the Contractor reviewed the existing Construction Documentation and submitted a total Construction Budget Amount of $3,100,000. 888 September 10, 2003 Commission Memorandum Colony Theater status Report Page 4 of7 In January 2002, Florida Power and Light mandated the placement of an 18 sq.ft. transformer vault within the confines of the Colony Theater property, to handle the facility's anticipated electrical load. Since there was virtually no room inside the Colony to place the vault, RJHA presented a proposal to pad mount the vault in the public-right-of way, just north of the 9 ft easement area, on the west side of the Colony. The proposal required the approval of the City's Historic Preservation and Design Review staff as well as a right-of-way easement from the City in order to proceed. The easement was contingent upon certain plans and specifications to be provided by FP&L. On February 8, 2002, Design and Construction Documents underwent preliminary review by building trade, accessibility/ADA and fire inspectors, which triggered the need to apply for certain regulatory waivers due to hardships encountered in dealing with certain code-related issues, including, but not limited to: . Flood plain elevation - in order to preserve the historically significant interior portions of the building (terrazzo flooring, walls, etc.), a variance application to the City's Flood Variance Board was submitted and approved on April 5, 2002. . Wind-load criteria - the existing elements of the building that do not comply with the technical requirements of the Code required an application for a waiver. The Project was set to go before the Board of Rules and Appeals (BORA) for a waiver on April 25, 2002, however due to changes to the Building Code, jurisdiction over waiving certain technical codes for historic buildings, including but not limited to, the alteration, repair and restoration thereof, was shifted from BORA to the local Building Official. As such, the Colony Theater became the first waiver application to be reviewed by the City's Building Official and Structural Plans Examiner. The wind load requirements in the historic portion of the building, required extensive coordination with the City's Historic Preservation Office to determine the impacts to the project. A mutually acceptable solution was reached in September, 2002. . Accessibility - Waivers were sought from the State of Florida's Historic Preservation Office to avoid a required enlargement ofthe lobby area to meet accessibility requirements. If implemented, the enlargement would have adversely impacted its historic characteristics and reduce adjacent circulation space needed to comply with NFPA egress requirements. A waiver was also sought from the Florida Building Commission because vertical accessibility is not possible to all levels of the facility. The waivers have been granted. subject to certain conditions involving the provision of handicapped accessible seating with specific sight-line requirements, which have since been addressed in the final Documents. On March 26, 2002, McCartney Construction presented the design development cost estimates, which exceeded the available construction budget of $3.1 million by $577,140. The most significant line item differences from the budget approved in March 2001 were concrete work, life- safetylfire sprinkler systems, HVAC, Equipment and Finishes. Additional cost overruns not contemplated in the estimate, included certain interior finishes, required for Historic Preservation, including but not limited to, the creation of a free-standing ticket booth in the entrance lobby. 889 September 10, 2003 Commission Memorandum Colony Theater status Report Pegs 50f7 ~ On May 31, 2002, Staff met with the Design Team, McCartney Construction (Contractor) and the State of Florida's Department of Management Services (OMS), to review the 100% construction document cost estimates. The total projected cost of the Project stood at $6,335,000 or $1,720,000 over the Project Budget of $4,615,000. The increase in cost included, but was not limited to, an estimated $405,000 in requested enhancements that were necessary to make the Project operational, including rigging, lighting, new seating, acoustical fabric panels and railings in the auditorium. On June 2, 2002, the Administration again went before the City's Finance and Citywide Project Committee (Committee) to request the additional funding to bridge the shortfall. The Committee voted in favor of appropriating $1,750,000 towards the Project. The RDA subsequently appropriated the funding at its meeting on July 10, 2002. At that time, the total funding dedicated towards the Project was as follows: Source City Center RDA TIF funds . ADA Improvements (Bond Fund 351) Cultural Arts Council Loan Miami-Dade County Cultural Affairs National Park Service State of Florida - Cultural Facilities Ph I State of Florida - Cultural Facilities Ph II State of Florida - Cultural Facilities Ph III Total: Funding $ 3,165,000 60,000 165,000 775,000 700,000 500,000 500,000 500,000 $6,365,000 % ofTotal 50% 1% 3% 12% 10% 08% 08% 08% (Pendinq) 100% On September 18, 2002, the 100% Construction Drawings were re-submitted to the City for final review and approval for permitting. The plans reflected changes and comments requested by the various building trade Plan Reviewers, the Fire Department, Miami-Dade County, and all other applicable local and state regulatory entities. On November 5, 2002, the Documents received final approval, allowing the Permit to be issued for the Project. Contract administration of the OMS Construction Administration Agreement Project was officially handed over to the Capital Improvements Projects Office. On February 25, 2003, the Construction Manager contractwas amended to reflect a Guaranteed Maximum Price (GMP) of $5,568,002 for construction. The Total Project Cost, including RJHA's and OMS' professional fees, is $6,314,61 O. The balance ofthe funding in the amount of $50,390 remains unallocated. CURRENT PROJECT STATUS Despite objections from the CIP Office to DMS to release the Project without a completed GMP amount, ground breaking occurred during the first week of December, 2002, with extensive asbestos abatement throughout the structure. DMS communicated to the City its authority to start the construction process, pursuant to the conditions of its Contract with the City. In mid- December demolition of the main stage house and the non-historic elements of the lobby began. 890 - -".- ~ Commission Memorandum Colony Theater status RepoTf Page 60f7 During this process, certain alleged unforeseen conditions have come to light, which in turn have contributed to delays and additional cost requests from the Contractor. Contractor identified conditions include, but are not limited to, weakened/corroded concrete ceiling support beams over the lobby area, additional asbestos material uncovered in the marquis, a determination by the structural engineer that specifications for the structural bracing required extensive modification in order to adequately shore the remaining structure, unanticipated dewatering, and a complete replacement of a corroded plumbing system beneath the building. Additionally, it should be noted that at the time of the last appropriation (July 10, 2002), many of the line items, particularly for interior furnishings, fixtures and equipment, including certain mechanical and HVAC components, were identified as allowances in the GMP, based on current unit pricing. Since then, as RJHA has developed specifications and drafted details and final designs, many of these items have been priced higher than originally estimated. The CIP office is in the process of performing a cursory review of the Construction Documents to evaluate the extent of the issues affecting the Project Cost. Collectively, these issues, if not contested by the City, will deplete the Project's Contingency, which represents less than 2.3% of the Project's Budget. At the request of the CIP Office, OMS and McCartney Construction have been asked to provide a breakdown of McCartney's additional costs for which they have requested additional funds. The estimate, in the amount of $557,769, was submitted on August 12, 2003 and is being evaluated by the CIP Office. This amount also includes RJHA additional services in the amount of $40,000 and an adjustment to OMS' Construction Administration fee of $13,605. Additionally, in order to operate the theater, phone lines and a genie lift need to be installed. This cost is estimated at $10,000 and is not currently included in the GMP amount. It should also be noted that certain additional administrative costs associated with this Project have not been included in the original Budget, but need to be factored in now. These include the CIP Project Management fee of 4.8% of the total Project's cost and the Art In Public Places (AIPP) allocation of 1.5% of the new construction cost (AIPP applies only to 40% of the Construction Budget). Based upon the current information available, the CIP office is not in agreement with OMS that the full amount of additional funds are warranted. CIP is requesting additional information to support OMS' findings before any further action is taken, or an increase to the Project is recommended for Commission/Board consideration. It is still premature to determine what the final recommendation of staff will be. We will provide regular updates as the Project progresses. As noted above, this Project is officially and legally managed by the Florida Department of Management Services (DMS). Within this structure, both the Project Architect (RJHA) and the Contractor (McCartney) have agreements with OMS and not with the City. However, through DMS' Contract, the City is required to pay each entity upon approval by OMS. 891 September 10, 2003 Commission Memorandum Colony Theater status Report Page 70f7 ~ CURRENT COST STATUS Project Costs to Date as of August 6, 2003 Construction (Hard) Costs: Architectural & Engineering (Soft) Costs: OMS Management: Total Project Cost: Budget: $5,568,002 $ 585,272 $ 161.336 $6,314,610 Payments To Date: $1,121,995 $ 508,184 $ 101.095 $1,731,274 Cost To Complete: $4,446,007 $ 77,088 $ 60.241 $4,583,336 It should also be noted that even though the Project has been ranked favorably by the Cultural Facilities Committee, the City's Phase III Cultural Facilities funding application to the State of Florida, in the amount of $500,000, was not funded this year due to funding shortfalls at the State level. As such, the City or RDA may have to front these funds until funding is approved, if ever. PROJECT SCHEDULE Even though the Project has experienced certain delays due primarily to conditions not uncharacteristic of many historic structures in the City, work has been proceeding at a steady pace. All grade beams and the concession and stage slabs have been poured, electrical under grounding has been completed up to the south west corner of the building, the fire alarm rough-in conduits at the front lobby and under seating areas are underway, clipping and strapping of the Auditorium framing (wind-load related code requirements) is almost complete, and HVAC air return duct fabrication is underway. The current critical path schedule reflects substantial completion of the Project mi ay, 2004, approximately 6 months behind the original schedule. : .JEC:A~' p 003'regular'colony_status_report.dOC 892 ATTACHMENT 2 This is a request for additional funding for Colony Theatre. We are requesting an approximate 14% increase to the cost of the contract. Historically, restoration projects of this scope tend to cost 20-25% above the amount originally figured. This 14% increase is considered below average for this type of project. Increase in funding is necessary for owner requested changes, building departrnent and governrnental changes, unforseen field conditions, and scope changes. Also included in this change order is $150,000.00 set aside for contingency for future items that may be affected by the above four categories. Please note that this contract is being performed under a CM at risk agreement. The owner only pays for the actual labor, material and subcontractor costs that are incorporated into the project. Unspent funds in this category are returned to the owner at the end of the project. Due to the nature of this project, sorne of the line items are estimates of future costs. The actual costs may be more or less than projected. Again, the owner only pays for the actual cost of work for these line items. The following pages show a cornplete breakdown of the requested funding. In order to fund ongoing construction operations, budgeted items such as seating and rigging have been eliminated and the funds transferred to categories that needed additional funding. After this request is approved, we will replace the funds in those line iterns. When the guaranteed rnaxirnurn price was established, the interior design of the lobby and auditorium was not cornplete. Amounts were budgeted at the time for these areas, but an accurate figure could not be provided until the actual plans and specifications were completed. This contributed to the arnount of additional funds needed. Unforseen conditions such as asbestos and code violations were found atter selective demolition was performed. Because of the asbestos removal, new finishes are required in the existing bathrooms which were not to be touched as part of the contract. In certain areas, the existing roof was not tied down to the building. New tie beams had to be poured and structural rnernbers anchored to the new beams. Since plans of the building did not exist, the structural engineer did not know the exact location of existing pilings and grade beams. Structural adjustments had to be made as construction progressed. The existing ceiling conditions dictated changes to structural mernbers and HVAC. After rernoval of the lobby floor, it was discovered that the existing plumbing lines to the existing restaurant and bathrooms were deteriorated and had to be replaced. The ceiling in the lobby was structurally unsound and had to be reinforced. The project was also impacted by preparation for the FTAA Conference. All work pertaining to this change order is itemized in the following pages. The funding request is for: 1. CO #3 for construction costs including contingency for future changes $789,019.00 2. AlE additional services 3. DMS Fee $ 52,316.00 $ 19,725.00 Total $861,060.00 Department of Management Services Division of Faeilities Management and Building Construetion CONSTRUCTION CONTRACT CHANGE ORDER Change Order Number' ~ State Prqject Number' COMA - Ql)f14?OO State Prqject Name' Re:nov~1ionli: ::too Rp:dor~tinn~ rolnny Tht"~lrp ArehiteetJEngineer' R 1 H~i<~nholtl~ Ar"hit~ct< P A Address' ~40 Minorl"J:I Ave:nnp Suite: 10 City' Cor"1 (;"hl~< State/Zip. Florid" ~ ~ 1 ~4 Phone' 'O~..44li-7799 Contractor: M.,('"rtn~.y Con<lrnction rOmp"ny Address. 4ROO SW 64th Av~n"~ S"it~ 109 CitY' n"vi~ State/Zip' Florid" ~~~ 14 Phone' 9~4-liR9-7R7R DESCRIPTION OF CHANGE {Attach additional Dal!es if rNIuired\ Decrease In Increase In See attached: ~ I. Cost breakdown labeled 3 Revised C .. - 2. Description of items 3. Revised Change Summary dated 2/10/04 Owner requested changes $202,252.00 Building Dept. and Governmental changes $111,593.00 Unforseen Conditions $352,465.00 Scope changes $111.,70900 $789,019.00 Notice To Proceed Date: 11118/02 Original Contract Sum: $5,568,002.00 Contract Time: D""s Date* . Contract Sum: t5 568 002.00 $5 568 002.00 Oril!inal Contract Time 427 1113/04 Subtotal Present Contract Time 497 3/28/04 Net Add(Deduct\ $ 789019.00 This Change Pres. Contract Swn $5,568,002.00 Add(Deduct\ 112 New Contract Time 609 7/26/04 New Contract Swn $6357021.00 This Change Order is an amendment to the Contract Agreement between Contractor and the Owner, and all contract provisions shall apply unless specifically exempted. The amount and time change designated are the maximum agreed to by both the Owner and the Contractor for this ehange. Tn mnli;:icit'T~tinn nfthp- fnTf~gning Rrljml,tmp.nt~ in cl'lntrRd time: Rmi l"I\ntrncl ~nm thp. r.nntr::\r1or hf>:rp:hy rp.Ip:RlI::p~ OwnP:T from All r.1RlmQ nf":mRnlh: nr C"$II1<:P<: of AM-ion Ari!.::ine Ollt of thp.: trAn~Actinn~ f":vent~ Anill\C"~l1rrP.nN"$: gjvine ri~P.: to this rhzmgp: Ordp.:r Thic;:: writtp:n ChAngr Orilp:r is thp: f":ntire: agr""m~nt h"tw~~n Own"r And C.ontr"ctor with r~~p"d tn thi< r.h"ngr- Ord",. No other agreements or modifications shall apply to this contract amendment unless expressly provided herein. Thi< rh"ngr. Ord"r rep......~nt< fino' ag~n'1' oction pn<<','nt to ~~ction 110 ~7, Florid" St"tllt~< umJ. 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OUl _c ~ w ~ 8 CD 51 al__ GlC 68 6 ==: :::i co ..c; .- 'iij - "C c~ I- u. 0.... 0 c.- CD +:it.- "CC CD- Ol Ol I- 0:: 0 ._ ..J :I: ic :em c::J EGI ..c;..c; Z 0- ~ =.!!! ::JL1. -- 0 0- W ., ,Gl "C'\1 ._ .0 GI C I- 8 Uj~C - :::0 () ~ 0:: C> ~- 0-0 o~ z CDcCD -GI al- W en 0 1ii '5. C> ....- CUI C Ol en ::J () 0 Glt'll ~l lllUi < 0 ~ z E- CD ..... CD iii .D "E .!: w 5 w ro(j) 0 - oE :e t'll"C 0:: W I- ~iiiCii Ol 1Il t'll .0 GI C 0 - 0 C= "C -::J 0:: 0 ~ <(.EO :E -Ol ~-.r 0.._ ~ e... l- e ~ Change order # 3 Cost breakdown A Plaster 320 S F @ 20.00 ( budaet) 6400 p Plaster@Aud ceilina( budaet) Reoairs - Lumo sum 12000 Sorav Tex 4144 S F@ 1.00 4144 16144 C Caroontrv and form work ( budaet) Foreman 1 man 320 Hrs tfiJ 35.00 11200 Laborer 2 men 620 Hrs tfiJ 15.00 9300 Grout 300 Forms 440 Lumber 800 Fasteners 300 22340 D Bathroom finishes ( budaet\ Demo 3500 o-iVWall 2500 Tile 12000 Partitions 4000 22000 E Proiection room ( budaetl Demo 1067 Drywall 2464 Vct 610 Elect. 800 4941 F . Wateroroof mechanical room( budaetl Wood base 140 L F tfiJ 1.75 245 Drain 744 Reoair wall 200 Waterproofina 560 S F tfiJ 4.00 2240 3429 G Renovate MO 1 ( budaetl Doors I hardware I louvers 2420 Installation 600 Cut and oreo ooenino 2500 HVAC duct 2460 Fire damoor 1000 Elect. 600 Plumbino 2472 12052 H Structual chanaes ( budaet) Caroonter 1 man 120 Hrs @ 30.00 3600 Carpenter heloer 1 man 120 Hrsta520.00 2400 . Laborer 1 man 120 Hrs (fi) 15.00 1800 Scaffold 600 Material 1000 9400 I Roof hatch ( budget) Hatch 1860 Framina 1140 Ladder 1200 4200 J Staae riaht Steel - Eaale 9850 Riooino - budaet 5000 14850 K Hardware additions and chanaes Farrevs 3565 less 708 credit 2757 Farrevs 4250 Farrevs - auto ooeners 8,405 less 138 credit 8267 Formes and surfaces - revised 50 484 less oria. 35,314 15170 Installation 1 man 80 Hrs (ci) 35 2800 33244 L Electrical UPS - Mr. Electric UPS 7711 Credit -1900 5811 M HVAC - Southeast Mechanical Auditorium 8750 Lobbv 9350 18100 N Draperv pocket Steel - budaet 1035 Orvwall - patriot 1385 2420 0 Lobby framinQ ( budQetl 1100 S F @2.00 2200 P Public works fees --- Deposit for new water line 5900 Tap fees - City 19420 less credit from Boys (9 000) 10420 Derm fees 500 Plans processor 75.00 per trip. 4 Derm, 6 BO, 6 PW 1200 Printina - COMB, Office, Field, BO, PW 750 18770 Q Clean up and trash removal Laborer 2 men 640 Hrs@ 15 9600 Trash removal 6x300 1800 11400 R Scaffold rental 2 months (ci) 2835 per month 5670 v Police Officers 8 weeks x16 Hrs x 30.00 3840 8 weeks x 8 Hrs x 30.00 1920 5760 T Trailer rental and utilities Rental - Trailers 4 months 1128 Utilities 4 months @650.00 2600 Phone - 4 months 640 Temp toilet - 4 months 760 5128 U Security for FTAA Statewide Security 1666 Mobile Mini trailers 569 Labor 160 2395 V Continoencv 150000 W General Reauirements 60 days x 959.00 57540 X Overhead and profit C M fee 6% 47300 Y Bond 6716 Extend proPerty and windstorm insurance throuah 6/30/04 36000 sa Genie lift ( budaet) 8000 bb Microphones and rack - Mavco 5106 Change Order #3 revised narrative: This change order was reviewed specifically in a meeting on September 16, 2003. It was presented in two different formats. The first format is the actual change order wi th specific line items for each category. It was then rewritten into a separate format to show the difference between owner changes, building department and governmental changes, scope changes, and unforeseen conditions. Items 1 & 2 are self explanatory. Item A: This +s for additional plaster repairs for the lobby area in front of the bathrooms. This ceiling was scheduled to remain as it was on the original plans, but it was discovered through selective demolition that the original ceiling profile was still in place above. Since that discovery of the ceiling was made, the architect and the city's preservation office decided it was appropriate to restore the ceiling to its original condition as required by the Secretary of State standards. This is the CM's estimate based on the present condition of the ceiling. Item B: This is for additional holes that have been cut in the existing auditorium ceiling. Due to all the work that was necessary in the previous submitted authorizations, the ceiling needs extensive patching, and we need a texture coating in order to blend with the original finish. These addi tional holes were made necessary because of the added roof bracing and ductwork modifications. This is an estimate based on the current and projected holes in the ceiling. Item C: This is an estimate for additional carpentry and form work that we anticipate will be necessary to complete the project. This includes framing at the-rGbby for linear diffuses and form work to grout cells at the drapery pockets. Item D: The finishes at the existing first floor restrooms have to be replaced because asbestos was found in these locations. This was not a part of the original scope of work. This is a budget item until this area has the finishes selected and the actual work completed and documented. Item E: Item E: The City's representative Eric Fliss brought this to our attention. The projection room was not to be upgraded in the original scope of work. Due to the vast amount of work that will be necessary in and around the projection room, it was suggested that new finishes be installed in this room as well. This is a budget until finishes are specified. Item F: waterproofing the floor and adding a drain to mechanical room #3 is strongly recommended, because the mechanical is directly above the lobby. If there was to.-be an overflow in the Ale unit drain pan, it could damage the lobby ceiling below. Again this is an estimate with the actual cost to be submitted once this is specified. Item G: Mechanical room #1 does not meet current code. This area was originally used for storage by the restaurant and our consultants did not have access to this area. Once the room was emptied, it was found that the room does not meet current codes. Item H: This is for structural changes to accommodate air conditioning duct work and equipment. This was not visible until selective demolition was performed. Item I: A new roof hatch is necessary because the current one at the projection room will be covered by new Ale duct work. This is necessary so future maintenance personnel can access the roof conveniently. A fixed ladder will be necessary for access. Item J: This is for an additional stage right catwalk and associated rigging. This was initially discussed at the beginning of the project, but was not incorporated into the plans at that time. After the rigging was designed, it was determined that the stage right catwalk and associated rigging would be necessary. An alternate to this would be to install a pin rail only. Item K: Throughout the course of the project, several doors have been added in previous Authorizations that were not included in the original scope. New doors and hardware were added at openings 104, 105, 123, Mal-AX. Additional hardware was added to 110D. Also the design of the lobby doors had not been completed at the time of the original contract. This item is for additional hardware, changes to the hardware scope from the original schedule prepared by the supplier, and automatic openers for handicap access. See attached list for complete breakdown. Item L: For safety concerns,-the electrical engineer determined it would be best to install a UPS system at the ZZ step lights. When the power in the theatre is interrupted, the step lights would be illuminated. Item M: The changes for HVAC include both the auditorium and lobby adjacent to the restrooms. Due to the tight conditions, it was determined that the original duct work designed for the branch ducts would not fit in the space available. New duct work was constructed to fit in this area as per the engineer's revised design. The original ceiling was found in the main lobby and the lobby adjacent to the restrooms. After the discovery, the duct work had to be redesigned and new linear grills installed in the lobby ceiling. Item N: After selective demolition on the ceiling and the area of the drapery pocket, it was found that the steel designed for this area needed to be modified. It was also determined after reviewing existing field conditions that the pocket needed a drywall barrier. Item 0: After selective demoli tion, the lobby was found to be out of square with the existing ceiling. This new frame is to be installed so the frame walls are symmetrical on both sides of the ceiling. Item P: We were recently informed that there would be Public Works fees for site utili ties. The cost of the addi tional Public Works fees were not figured in the original budget for this project. This item also includes estimated additional DERM fees for revised plans and processing costs. Item 0: This is self-explanatory and is for clean up and trash removal. Item R: Due to the above mentioned work, the scaffolding currently in place will need to be used for an additional two months. This is a cost of two months rental of the scaffold. Item S: After the project began, we were instructed that off-duty police officers would then be necessary to direct traffic. We had budgeted an amount previously without knowing what the exact cost of the officers' impact would be. Based on what we now know, this is the additional cost to the. Item T: This is additional trailer rental and utili ties for both contractors and owners trailers located in staging area. This is for four months rental due to time extension necessary to complete the project. Item U: This is security requested by the owner for the week of the FTAA. Item V: Based on the contingency cost needed to date and the percentage of job completion, the construction team agreed that this amount would be necessary to complete the job. Please note that the City only pays for the actual cost of the work and any contingency balance is returned to the City. Item W: These General Requirements are for the time it will take to perform work contained in Change Order #3. Item X: Overhead and profi t is based on the amount of the change order according to our Contract Agreement. Item Y: The Bond cost is based on the amount of the change order. Item Z: Property insurance is for extending the completion of the project. (January 2004 - June 2004) Item aa: Owner requested to include a 40' Genie lift to access rigging and for maintenance purposes. Item bb: Owner requested additional microphones, wall rack, and portable stage managers console. In order to fund ongoing activities, the rigging budget of $241,678.00 was eliminated and moved into contingency by Authorization No.7. As we have documented previously in_this summary, the team reco~ded that this change order be funded in both July and September of 2003. In the last five months some of the work has had to be completed in order to keep the job progressing. Therefore at the present time, the funds for rigging have. been eliminated and used for ongoing construction purposes. That is why there is no rigging budget today. AUTHORIZATION TO ADJUST LINE ITEMS WITHIN THE GUARANTEED MAXIMUM PRICE (G D teCtEBV~~ JUN 11 IDJ3 \\1lj Renovation & Restoration of the Colony The 1040 Lincoln Road, Miami Beach, FL OWNER'S REP: State of Florida Department of Management Services Division of Building Construction 921 N Davis Street, Jacksonville, FL 32209 AUTHORIZATION No. DATE: 5/15/03 CONTRACTOR: McCartney Construction Company 4800 Southwest 64th Avenue, Suite 109 Davie, FL 33314 STATE PROJECT No. COMB-99042000 ARCHITECT: R.J. Heisenbottle Architects, P.A 340 Minorca Avenue, Ste 10 Coral Gables, FL 33134 CONTRACT DATE: 10/22101 The following is a description of changes to adjust the line item values within the Guaranteed Maximum Price (GMP). TlJis adjustment does not change the GMP Schedule Item Reason for Change Line Amount Subcontractor Item Move the following items from contingency to each category. Actual Budqet Permit and Process Fees 7,547 3,000 1012 . 4,547 Bldg Permit Srvc Grp Actual Budqet 2 Blueprints and miscellaneous 6,676 3,900 1023 . 2,776 Precision Blueprinting 3. Office Trailer - add 10 weeks to contract 1013 705 Workspace Plus 4. Temporary Utilities A. Electric - add 10 weeks to contract 1014 125 FPL Actual ~ 0813 4,580 Mr. Electric B. Temporary Utilities - add restaurant and owner's trailer 14,980 10,400 C Phone - add 10 weeks 1014 400 Bell South D. Temporary I oilet - add 10 weeks 1014 280 5. Scaffold rental at Auditorium A. - add 10 weeks to contract 1021 7,088 Brand Scaffold B. - reconfigure at Stage Area due to job conditions 1021 1,440 Brand Scaffold 6. Demolition - remobilization charge due to asbestos discovery and structural changes 0113 3,000 Wildcat 7. Pilings A. - additional piling length (for pilings completed to date, approximately 50%) 0117 2,076 Ebsary Foundation B. - remobilization 0117 2,650 Ebsary Foundation 8. Asbestos - discovery of additional asbestos at marquee 0121 5.350 Wortech 9. Concrete - tie beam, columns and slab changes required by Building Department and changed by engineer 0211 8,269 International Builders Authorization # 1 Page 1 of 2 Sc""dule Item Reason for Change Line Amount Subcontractor Item Actual BudQet Bradford Plumbing L Plumbing - repair of existing lines and hidden under slab 7,021 2,422 0812 4,599 & installation of new lines to allow restaurant to keep operating 11. Electric at Food Concessionaire and telephone & data outlets in Room 200 0813 3,140 Mr. Electric 12 General requirements for job delay due to the following: A - Discovery of asbestos at marquee B _ Review and changes to Lobby slab by engineer C. _ Review of deteriorated tie beams at Lobby by engineer D. _ Review and repair of ceiling joists at Lobby E. _ Engineering, fabrication and installation of structural steel lateral brace at Stage Area F _ Discovery and review of existing grade beam and joists joist condition at Stage-- Area G. _ Additional concrete work as noted above H. Delay 10 weeks (50 business days) - contract amount $959 per business day. Since McCartney Construction was not on the job full-time for 10 weeks, we are adjusting the general requirements as noted below: I. - 15 days x $959 1100 14,385 McCartney J. - 20 days x $959 x 50% 1100 9,590 McCartney K. - 15 days x $959 x 25% 1100 3,596 McCartney Amount to be moved from contingency 3127103 (78,596) Contingency Beginning Balance Authorization 1 127,046 (78,596) Balance 48,450 Architect: Contractor: Date: McCart7 Construction Date: 5/15103 Authorization # 1 Page 2 of 2 AUTHORIZATION TO ADJUST LINE ITEMS WITHIN THE GUARANTEED MAXIMUM PRICE (G ... Renovation & Restoration of the Colony Th at 1040 Lincoln Road, Miami Beach, FL OWNER'S REP: State of Florida Department of Management Services Division of Building Construction 921 N Davis Street, Jacksonville, FL 32209 AUTHORIZATION No. 2 DATE: 5/13/03 CONTRACTOR: McCartney Construction Company 4800 Southwest 64'" Avenue, Suite 109 Davie, FL 33314 STATE PROJECT NO. COMB-99042000 ARCHITECT: R.J. Heisenbottle Architects, P.A 340 Minorca Avenue, Ste 10 Coral Gables, FL 33134 CONTRACT DATE: 1 0/22/01 The following is a descn'ption of changes 10 adjust the line item values within the Guaranteed Maximum Price (GMP). This adjustment does not change the GMP Schedule Item Reason for Change Line Amount Subcontractor Item Move the following items from contingency to each category. Revised OriQinal Changes to MA VCO's contract requested by staff 154,564 151,346 0822 3,218 MAVCO Actual . BudQet Eagle Metal 2. Structural steel lateral bracing that exceeds allowance 21,027 15,000 0711 . 6,027 Fabricators, Inc. Actual BudQet Patriot Specialized 3. Temporary Partition at Stage that exceeds allowance 24,075 12,000 0611 \ 12,075 Construction, Inc. 4. Demolition remobilization to remove north slab 0113 2,000 Wildcat Authorization 2 127,046 (78,596) (23,320) Contingency Beginning Balance Authorization 1 Balance 25.130 Architect: Contractor: Date: Date: (o~((~d' Authorization # 2 Page 1 of 1 : / I r j ! AUTHORIZATION TO ADJUST LINE ITEMS WITHIN THE GUARANTEED MAXIMUM PRICE (GMP) , . ;' ) '~~. JUN 2 5 2003 Renovation & Restoration of the Colony Theatre 1040 Lincoln Road, Miami Beach, FL 7/0//1 ( ,# <lV"'~n ~ OWNER'S REP: State of Florida Department of Management Services Division of Building Construction 921 N Davis Street, Jacksonville, FL 32209 AUTHORIZATION No. 3 DATE: 6/24/03 CONTRACTOR: McCartney Construction Company 4800 Southwest 64th Avenue, Suite 109 Davie, FL 33314 STATE PROJECT No. COMB-99042000 ARCHITECT: R.J. Heisenbottle Architects, P.A 340 Minorca Avenue, Ste 10 Coral Gables, FL 33134 CONTRACT DATE: 1 0/22/01 The following is a description of changes to adjust the line item vatues within the Guaranteed Maximum Price (GMP). This adjustment does not change the GMP. Schedule Item Reason for Change Line Amount Subcontractor Item Move the following items from contingency to each category. Miami Shores Replace sanitary and water lines 0821 25,385 Plumbing . Contingency Beginning Balance Authorization 1 Authorization 2 127,046 (78,596) (23,320) (25,385) (255) Authorization 3 Balance Architect: Contractor: Owner's Rep: R.J. Heisenbottle Architects, P,A State of Florida Dept of Mngmt Svc Date: Date: Authorization # 3 Page 1 of 1 AUTrlORIZATION TO ADJUST LINE ITt:MS WITHIN THE GUARANTEED MAXIMUM PRICE (G . I l '-''-1' '{'""l (\J l.- Renovation & Restoration of the Colony Th 1040 Lincoln Road, Miami Beach, FL OWNER'S REP: State of Florida Department of Management Services Division of Building Construction 921 N Davis Street, Jacksonville, FL 32209 AUTHORIZATION No. 4 DATE: 7/17/03 CONTRACTOR: McCartney Construction Company 4800 Southwest 641h Avenue, Suite 109 Davie, FL 33314 STATE PROJECT No. COMB-99042000 R.J. Heisenbottle Architects, P.A ARCHITECT: 340 Minorca Avenue, Ste 10 Coral Gables, FL 33134 CONTRACT DATE: 10/22/01 The following is a description of changes to adjust the Me item values within the Guaranleed Maximum Price (GMP). This adjustment does not change the GMP. Schedule Item Reason for Change Line Amount Subcontractor Item Move the following items from each category to contingency. ~9plenish Contingency - 1. Move seating allowance to contingency 0727 (122,400) Irwin Seating Contingency Beginning Balance Authorization 1 - 3 Authorization 4 127,046 (127,301 ) 122,400 Balance 122,145 Architect: L1/~ --- Contractor: R.J. Heisenbottle Architects, P.A Date: .g/s;jrJ'$ Date: Authorization # 4 Page 1 of 1 AUTHORIZATION TO ADJUST LINE ITEMS WITHIN THE GUARANTEED MAXIMUM PRICE (GMP) Renovation & Restoration of the Colony Theatre 1040 Lincoln Road, Miami Beach, FL OWNER'S REP: State of Florida Department of Management Services Division of Building Construction 921 N Davis Street, Jacksonville, FL 32209 AUTHORIZATION NO. 5 Revised DATE: 7/31/03 CONTRACTOR: McCartney Construction Company 4800 Southwest 64th Avenue, Suite 109 Davie, FL 33314 STATE PROJECT NO. COMB-99042000 ARCHITECT: R.J. Heisenbottle Architects, P.A 340 Minorca Avenue, Ste 10 Coral Gables, FL 33134 CONTRACT DATE: 10/22/01 The following is a description of changes to adjust the line item values within the Guaranteed Maximum Price (GMP). This adjustment does not change the GMP. Schedule Item Reason for Change Line Amount Subcontractor Item Move the following items from contingency to each category. '7e!d Conditions 1. Structural steel (for marquee, air conditioning openings and steel braces) 0711 15,417 Eagle Metal (Breakdown of labor and material is on last page of package) 0411 3,722 labor & material . 2. Marquee (modify for field conditions) 0718 2,900 Nordquist Sign Co 3. Install additional framing, bolts and straps (at Auditorium ceiling, lobby ceiling and storage area) (Breakdown of labor and material is on last page of package) 0411 21,630 labor & material 4. HVAC (change duct work to fix existing conditions at Auditorium ceiling) 0811 5,057 SE Mechanical . 0114 9,977 Griffin Dewatering 5. Dewatering (amounts that exceed budget) 0812 507 Miami Shore Plumb 0813 7435 Mr. Electric 6. Computer upgrade for stage lighting (1,000 channel, emphasis 30) 0823 7,000 Miami Stagecraft 7. Piling (additional footage for Phase II) 0117 1,508 Ebsary Foundation 8. Provide off duty police officer for closing of alley 1023 4,000 Police 0411 960 Labor & Material 9. Demolition (Breakdown of labor and material is on last page of package) 1028 1,200 Labor & Material 1030 450 Labor & Material 10. Fire alarm devices (added at Building Department's review) 0813 3,997 Mr. Electric L... Authorization # 5 Revised Page 1 of 2 j 0113 700 Labor (I, Material 11 Remove block and pour tie beam - existing 2'" Floor Mechanical Room and weld straps to existing steel 0711 1.080 Eagle Metal I 1030 250 Labor (I, Material 411 10,380 Labor (I, Matenal 0711 5,160 Labor (I, Material 12 Waste line for future grease trap 0812 7,355 Miami Shore Plumb 13. General Requirements for job delay - 8 business days 1100 7,672 McCartney Balance 127,046 (127,301 ) 122,400 (118,357) ....,rv()( 3,788 Contingency Beginning Balance Authorization 1 - 3 Authorization 4 Authorization 5 Date: 1s/~/o ~ ~~ C{f: ~.(r~ 0/''/ Architect: I II ~ ___ Contractor: ~~~TSe~ttJe Architects, P.A Date: 7/31/03 Authorization # 5 Revised Page 2 of 2 , rr::-~' . ; ; ,-~.'n \'/1 r::= r;:0, Au I HORIZATION TO ADJUST LINE 11 i......iS ln1,lS ~7 .= J .._'~ ,. WITHIN THE GUARANTEED MAXIMUM PRICE (GM t~~ \ j,,, -: I I ._J Renovation & Restoration of the Colony Thea :IUlL IC:J 1040 Lincoln Road, Miami Beach, FL - OWNER'S REP: State of Florida Department of Management Services Division of Building Construction 921 N Davis Street, Jacksonville, FL 322 AUTHORIZATION No. 6 Revised CONTRACTOR: McCartney Construction Company 4800 Southwest 64'" Avenue, Suite 109 Davie, FL 33314 m: c ~ 0 ~~'!r\\ DATE: I /.1" .j f<iJ~'; \ . I S;ATE~~ CT No. J 7/31/03 COMB-99042000 RJ. Heisenbottle Architects, P.A ARCHITECT: 340 Minorca Avenue, Ste 10 Coral Gables, FL 33134 CONTRACT DATE: 10/22/01 The following is a description of changes to adjust the line dem values within the Guaranteed Maximum Pnce (GMP). This adjustment does not change the GMP. Schedule Item Reason for Change Line Amount Subcontractor Item Move the following items from contingency to each category. ':hange Order Proposal # 1, 2 & 3 and Miscellaneous Items 1. Acoustical treatment at east and west walls of Auditorium. Change material 0619 18,450 Kenney Drapery from acoustical panels to manual operated curtains. Install structural steel 0611 8,700 Patriot Spec Const angles and drywall soffits. 0711 3,905, Eagle Metal 1021 3,119 Brand Scaffolding 2. HVAC (EMS upgrades, fire damper upgrade and additional duct work) 0811 5,500. SE Mechanical 3. Access panels at 202C and 202D 0611 1 ,025, Patriot Spec Const 4. Electrical- (GFI's, concession, step lights, relocate panels) 0811 40,704 Mr. Electric . 0811 4,602 Mr. Electric 5. Fire Sprinkler (revisions) 0815 3,300 Alpha Automatic 6. Seating 0727 (4,682) Irwin Seating 7. Carpentry (new steps and front rows at seating) 0411 6,401 Labor and Material 8. Plumbing (concession) 0812 6,200. Miami Shores Plumb 9. Chandelier that exceed allowance I 0813 19,112 . Urba n 10. Stage Lighting that exceeds allowance 0823 10,042 Miami Stagecraft 11. General Requirements - 7 business days 1100 6,713 McCartney Authorization # 6 Revised Page 1 of 2 Contingency Beginning Balance Authorization 1 - 3 Authorization 4 Authorization 5 Authorization 6 Balance Architect: ~/~ R.J. Heisenbottle Architects, P.A Date: '6/~/o'J I . ~s:; Contractor: Date: /' 7/31/03 127,046 (127,301 ) 122,400 (118,357) (133,091) vd~5 (129,303) .-"' Date _4-r i~, 01 Authorization # 6 Revised Page 2 of 2 Additional narrative to existing items listed in Authorizations 1, 2, 5R, & 6R. Authorization #1: Items 1 & 2: Permi t/Process fees and Blue Printing expenses were items were budgeted to the best knowledge we had at the time of the GMP. Due to owner change requests, building department change requests and other scope changes due to unforeseeable field conditions, additional blueprint costs were incurred along with additional permit and processing fees for the City of Miami Beach Building Department. These additional costs were justifiably funded out of contingency. Items 3, 4A, 4B, 4C, 4D, 5A, & 12: Each of these items relates to the time extension. This extension was necessary due to the items listed in #12 A-H. When a job is delayed, items in place such as office trailer, temporary toilet, electric, scaffolding, and utilities have to be paid for as part of the project cost. See schedule dated 2/17/03. Actual delays that affected critical path were the asbestos and selective demolition delay 7 weeks, the delay in completing the temporary enclosure and lateral bracing 14 weeks, and the piling delay 10 weeks. The City of Miami Beach was responsible for asbestos testing and the additional asbestos that caused the delay was not discovered until we started selective demolition. After asbestos removal and selective demolition, it was also found that the lobby floor could not proceed without the engineer's review and redesign of the slab due to an unforeseeable structural condition. You should be aware that there were no existing drawings available for this building in the city's archive. Accordingly, the architects and engineers developed there drawings based upon field measurements of what was visible. After selective demolition, we found deteriorated tie beams at the front on the lobby. These had to be immediately shored up, inspected by the engineer, and repaired according to the engineer's specifications. The building department changed the requirements of the temporary wall and lateral bracing. The temporary wall and lateral bracing had to be designed and installed to meet the wind load that applies to a permanent building. Item 5B: The scaffolding was erected at the stage area in order to work on the ceiling structure. After selective demolition of the floor slab, grade beams on the existing building were not found to be as anticipated. They were in a different location and the scaffold had to be removed in order to access and complete the remedial slab and beam work. Item 7A: The piling length specified on the plans was the average expected length of piling for this area. For pilings projegts, 2 ft is a minimal amount for addi tional piling length. Florida soils conditions can vary in a matter of a few feet and we were fortunate to be as close as we were to the footage specified in the bid document. Item 7B: The piling could not be installed in one phase as originally anticipated due to the existing conditions. Only after selective demolition, was it known where existing grade beams and pile caps were located. Several areas of the piling had to be redesigned or relocated in order to accommodate the existing pile cap and grade beam conditions. In addition, this project was anticipated to start in the dry season. Due to earlier delays, the extremely wet conditions further hampered installing piling in one phase. Item 9: It is normal during plan review of complex projects such as this for the building department to request changes or modification to plans. This is a valid change that the contractor had to make in order to comply with building departments requirements. Items 12A-H: This extension was necessary due to the items listed in #12 A-H. After reviewing the delay, DMS and McCartney Construction agreed to reduce the fee. McCartney Construction was not obligated to do so, and could have charged the project the full amount allotted under the contract for the delays which were not the fault of the contractor. This is courtesy discount that we extended to the city. Authorization #2: Item 1: The changes to the audio console system were requested by the owner. For further clarification, this can be reviewed with the City's technical consultant, Eric Fliss. Items 2 & 3: The structural steel lateral bracing and temporary parti tion at the stage were budgeted as temporary structures. During the course of the building department review, as stated earlier, the building department decided these items had to be designed and constructed to accommodate permanent wind load calculations. This seriously impacted not only the cost, but the time to construct the lateral bracing and temporary wall. Due to the lack of original building drawings, little was known about the capacity of the existing structure, an enormous amount of design calculations had to be researched in order to meet the building department's criteria. Item 4: This was at the accommodate the changes were made work in this area. owner's request. In order to adjacent restaurant, substantial to the schedule and scope of the Authorization #5R: Item lA: Structural steel for the marquee had to be modified after selective demolition took place. Please note in the previous authorization that asbestos was found at this area. Removal of this asbestos required additional cost as did redesign of the structure. It was physically --lmpossible to ascertain these conditions until after selective demolition had been completed. Item IB: After removing sections of the auditorium ceiling, it was found that the duct work as designed would not fit. Until selective demolition was completed, the engineer could only make his best evaluation of the amount of room available for the duct work. This change was made to accommodate the existing field conditions. Item 2: This relates to item lA. This marquee/signage change again was due to field conditions not discovered until after selective demolition was completed. Item 3: After cutting holes in the existing ceiling to install the air conditioning, it was discovered that existing roof structure would not meet code. The engineer reviewed this area and determined that the roof would need additional bracing and straps not included on the original plan. Once again, this was due to field conditions that could not have been discovered until after selective demolition was completed. Item 4: Once again is due to existing conditions at the auditorium ceiling in the space that was needed for this work. It was only discovered again after selective demolition that there was not enough room to install the duct work as designed. Items SA, 5B, & 5C: It was never anticipated that the entire stage house si te and handicapped access ramp would have to be dewatered. The original GMP budget anticipated only partial dewatering of the site during the seasonal dry period. Had the project not been delayed until the rainy season was upon us, some of these added costs may not have been necessary. All items listed were necessary for the dewatering process. In order to accommodate the adjacent neighbors, electrical service was installed in lieu of a generator for the dewatering process. Documentation from Griffin Dewatering, Miami Shores Plumbing, and Mr. Electric was provided in the authorization packet. Item 6: This computer upgrade was requested by the owner. Proposal was enclosed from Miami Stage Craft. Item 7: The amount of footage for piling was stipulated on the plans. The engineer's estimate of the length of the pilings was very close to that which was installed. The difference is a minor amount considering how soil conditions can vary greatly in South Florida. Item 8: The requirement for an off-duty police officer was not mandated by the city until we started the project. This requirement was not included in any correspondence from the owner to the construction team. After demolition had been completed, we were informed by Alex Rolandelli that in the future the city would like police officers directing traffic when a crane or other heavy equipment was blocking the alley or the street. The cost had to be added to the contract price. --Items 9A, 9B, & 9C: A breakdown of these items was included in the package. See the last page of original packet. Item 10: During the plan review process, the building department required additional fire alarm devices that were not included on the original plans. This cost was for the additional devices that were not shown on the original plan and were not in the original subcontractor's bid and our GMP. Items llA & 11B: Structural changes: After selective demolition, we found there was no tie beam holding the roof at the mechanical rooms. A review by the structural engineer determined that it was necessary to form and pour tie beams and install straps to the roof structure at this location. This was unforeseeable. Item llC: During selective demolition we found there were no columns or tie beams around the exterior double door on the west elevation. Since we were putting a new door in the existing openingL a new tie beam and columns were added to meet - code. This was unforeseeable. Item 12: This was substantiated in meetings with architect, and the rest of the team. revised to reflect owner's decision additional piping for a future grease confirmed in meeting minutes 7/29/03. the city, Plans were to add the trap. This is Item 13: Our request for an 8 business day time extension is a minimal amount of time for the scope of work noted in Author~zation 5R. Please see schedule previously submitted dated 8/1/03 and 8/26/03 for delay of completion of project. Authorization #6R: Items 1-8: These interior finish items were not designed at the time we signed the GMP. The city added the auditorium interior and acoustical work to the _$cope of the project at a later date. Plans were then issued and labeled Change Proposal Request No.1, 2, & 3. The actual cost for the items on the plans has been included in the packet. Our request of a 7 business day time extension to complete this amount of work is extremely modest. This work affects the critical path of the auditorium. Please see revised plans marked Change Proposal 1, 2, & 3 to review changes. See schedule completion date on schedules dated 8/1/03 and 8/26/03. e ,.. M1NORCA ^V'ENUE COIlAl GABLES FLORIDA ))1].4 305.446. 7799 HEISENBOTTLE ARC HIT E C T S e e ^-- MCOO1513 no 00 February 10, 2004 Mr. Richard Arcuri Project Manager State of Florida Department of Management Services 1313 N. Tampa Street, Suite 106 Tampa, Fl 33602 Reference: Colony Theater Miami Beach, Florida Additional Service Authorizations RillA Project Number 01-3141 Dear Mr. Arcuri: Per your request please allow me to clarify that there are three (3) outstanding Additional Service Request on the Colony Theatre project, some of which was out of necessity, some of this work has already been performed. These Additional Service Proposals fall into three categories as follows: 1. Additional Threshold Inspection Services Additional Field Observations $20,000.00 $20,000.00 2. 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