2008-26783 ResoRESOLUTION NO. 2008-26783
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND
AUTHORIZING THE REALLOCATION OF FUNDING, TO FUND
CHANGE ORDER NOS. 2 AND 6 FOR THE BELLE ISLE BID
PACKAGE NO. 136 PROJECT AS FOLLOWS: $799,628, FROM
WATER AND SEWER BOND FUND 424, PREVIOUSLY
APPROPRIATED IN THE FISCAL YEAR 2006-2007 CAPITAL
BUDGET, FOR CONSTRUCTION OF THE VENETIAN ISLANDS
NEIGHBORHOOD RIGHT-OF-WAY IMPROVEMENT PROJECT BID
PACKAGE NO. 13C (SAN MARINO, DI LIDO, AND RIVO ALTO
ISLANDS), WITH FUNDING TO BE REPLACED WITH FUTURE
WATER AND SEWER BONDS; IN ADDITION, REALLOCATING
FUNDING IN THE AMOUNT OF $640,000, AVAILABLE FROM
STORMWATER BOND FUND 428, APPROPRIATED IN PREVIOUS
YEARS' CAPITAL BUDGETS FOR THE CONSTRUCTION OF BID
PACKAGE NO. 13C, WITH FUNDING TO BE REPLACED WITH
FUTURE STORMWATER BONDS.
WHEREAS, in August 2005, CIP issued a request for a cost proposal from the Job
Order Contractor (JOC), Alpine Construction Management Corporation (Alpine), for the
construction of the Belle Isle Neighborhood Right of Way (ROW) Improvement Project, Bid
Package No. 13B(Project); and
WHEREAS, the scope of services that were outlined in the proposal for the Project
included the installation of water mains, storm drainage system and pump station, street lighting,
roadway reconstruction, parking, traffic signage and pavement marking, re-grading of the entire
Belle Isle Park, landscaping, irrigation, site furnishings, pedestrian lighting, "bark-park", and new
walkways; and
WHEREAS, on December 2, 2005, Alpine submitted its final negotiated cost proposal,
in the amount of $5,603,638, which was within the budget appropriated for the Project; and
WHEREAS, on December 8, 2005, and May 16, 2006, respectively, the City issued the
First and Second Notices to Proceed (NTP) on the Project; and
WHEREAS, in late 2005, during the permitting process, Miami-Dade County Public
Works-Traffic Engineering Division, mandated extensive changes to the construc)ion documents;
and
WHEREAS, the City Administration also requested changes to the construction
documents; and
WHEREAS, in January 2006, the construction documents were revised as a result of
requested scope changes; and
WHEREAS, in addition to the City requested changes to the scope, there were errors
and omissions, unforeseen conditions, and betterment issues; and
WHEREAS, Alpine has submitted requests for adjustments to the original Contract
price; and
WHEREAS, the total amount of the Change Orders requested by Alpine is $2,841,017;
and
WHEREAS, as a result of extensive analysis and negotiation, the requested amount
was reduced by $764,145, to $2,076,872; and
WHEREAS, of this amount, $587,242, has been previously paid for (from the original
Project contingency appropriation) in Change Order Nos. 1, 3, and 5; and
WHEREAS, a portion of Change Order No. 6 ($24,922) will be paid using Project
contingency from the original appropriation; and
WHEREAS, Change Order No. 4 corresponds to a deductive amount of $485,953, that
was issued for direct purchases of equipment made by the City on Alpine's behalf (in the amount
of $460,873; resulting in $25,080 of tax savings to the City); and
WHEREAS, Change Order No. 2 relates to repairs to unexpected water main breaks; and
WHEREAS, Change Order No. 6 relates to unforeseen and differing site conditions,
which required installation of sheet piles, helical piles and structural slabs, essential work
inadvertently omitted from the construction documents, such as the connection of fire lines to all
high rise and commercial buildings, and additional work resulting from design errors and
omissions; and
WHEREAS, approval is hereby requested for Change Order Nos. 2 and 6, for a total of
$1,439,628; and
WHEREAS, funding, in the amount of $799,628, is recommended to be re-allocated
from previously approved Water and Sewer appropriations for the Venetian Island Right-of-
Way Improvement Bid Package No.13C (Account 424-2127-069357), to be replaced with future
Water and Sewer bonds; and
WHEREAS, funding, in the amount of $367,123, is recommended to be re-allocated
from previously approved Stormwater appropriations for the Venetian Island Right-of-Way
Improvement Bid Package No.13C (Account 428-2127-069357), and $272,877 (from Account
428-2127-060357), to be replaced with future Stormwater bonds; and
WHEREAS, the Administration hereby recommends re-allocation of these funds to
complete the Project.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby approve re-allocation of funding, to fund Change Order Nos. 2 and 6 for the
Belle Isle Bid Package No. 13B Project as follows: $799,628, from Water and Sewer Bond Fund
424, previously appropriated in the Fiscal Year 2006-2007 Capital Budget for construction of the
Venetian Islands Neighborhood Right-of-Way Improvement Project Bid Package No. 13C (San
Marino, Di Lido, and Rivo Alto Islands), with funding to be replaced with future Water and Sewer
bonds; in addition, re-allocating funding, in the amount of $640,000, from Stormwater Bond
Fund 428, appropriated in previous years' Capital Budgets, for the construction of Bid
Package No. 13C, with funding to be replaced with future Stormwater bonds.
PASSED and ADOPTED this 12th day of March 2008.
APPROVED AS TO
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COMMISSION ITEM SUMMARY
Title:
A Resolution, approving and authorizing the re-allocation of funding in the amount of $799,628, from Water
and Sewer Bond Fund 424; reallocation of funding in the amount of $640,000, from Stormwater Bond Fund
428; all appropriated in previous years Capital Budgets for Bid Package No.13C (San Marino, Di Lido and
Rivo Alto Islandsl: to fund additional construction costs for the Belle Isle Bid Package No.13B Project.
Intended Outcome
quality capital projects.
Supporting Data (Surveys, Environmental Scan, etc.): In the 2007 Community Satisfaction Survey,
indicated that Miami Beach, when compared with similar cities, ranked in the forty percentile for storm
i drainage improvements. Completing the stormwater pump station at Belle Isle, and other needed
improvements will improve this rating.
Issue:
the City Commission
Item Summa /Recommendation:
In August 2005, CIP issued a Request for Cost Proposal to the Job Order Contractor (JOC), Alpine
Construction Management Corporation (Alpine), for the construction of the Belle Isle Neighborhood Right of
Way (ROW) Improvement Project, Bid Package No. 13B (Project). On December 2, 2005, Alpine submitted
its final negotiated cost proposal in the amount of $5,603,638. At that time, this amount was within the
budget appropriated for the Project.
In late 2005, during the permitting process for the Project, Miami-Dade County Public Works Department-
Traffic Engineering Division (County) mandated extensive changes to the Construction Documents (CDs).
In addition, the City's operating department requested changes to the CDs. The changes included pump
equipment modification, piping changes, among others.
In January 2006, as a result of scope changes requested by the regulatory agencies having jurisdiction, the
City's Consultant, Jacobs Edwards and Kelsey, performed a series of revisions to the pre-approved permit
set of CDs. Alpine was advised that revisions to the CDs were necessary to obtain the final permit, and was
subsequently given a Notice to Proceed (NTP) with all other improvements, except those related to the
construction of the pump station. Subsequent changes made to the Pump Station, resulted in requests for
adjustment to the contract price.
Approximately forty-four percent (44%) of Alpine's overall Proposed Change Orders (PCO) can be attributed
to Unforeseen Conditions; twenty (20%) percent to Betterment Issues; thirteen (13%) percent to Regulatory
Agencies' requested changes; twenty-two (22%) percent to Design Errors and Omissions; and one (1 %)
percent to Owner and Resident Requested Scope Changes.
In order to complete the Project, the Administration is requesting the re-allocation of $799,628, from the
previously approved Water and Sewer Bond appropriations; and $640,000, from the previously approved
Stormwater Bond appropriations, to be replaced with future bonds.
Advisory Board Recommendation:
Amount Account Approved
Source of Funds:
OBPI $799,628 424-2127 - 069357 (Construction)
$367,123 428-2127 - 069357 (Construction)
$272,877 428-2127 - 060357 (Construction)
Total $1,439,628
Department Director sist nt City Manager City anager
JECh TH JMG
T:\AGENDA\2008\February 13\RegularWpine Cons n Contract Adjustrnent Summary.doc
~ MIAMI BEACH
AGENDA ITEM `~.~ ~~/
DATE
[D MIAMIBEACH
City of Miami Beach, 7700 Convention Center Drive, Miami Beach, Florida 33739, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti H. Bower and Members of the City Commission
FROM: City Manager Jorge M. Gonzalez ~ ~ 't~'
DATE: March 12, 2008
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE
REALLOCATION OF FUNDING, IN THE AMOUNT OF $799,828, FROM WATER
AND SEWER BOND FUND 424, PREVIOUSLY APPROPRIATED IN THE
FISCAL YEAR 2006-2007 CAPITAL BUDGET, FOR CONSTRUCTION OF THE
VENETIAN ISLANDS NEIGHBORHOOD RIGHT-OF-WAY IMPROVEMENT
PROJECT BID PACKAGE N0.13C (SAN MARINO, DI LIDO, AND RIVO ALTO
ISLANDS), TO FUND IMPROVEMENTS FOR THE BELLE ISLE BID PACKAGE
NO. 13B, WITH FUNDING TO BE REPLACED WITH FUTURE WATER AND
SEWER BONDS; IN ADDITION, REQUESTING AUTHORIZATION TO
REALLOCATE FUNDING, IN THE AMOUNT OF $640,000, AVAILABLE FROM
STORMWATER BOND FUND 428, APPROPRIATED IN PREVIOUS YEARS'
CAPITAL BUDGETS FOR THE CONSTRUCTION OF BID PACKAGE N0.13C,
WITH FUNDING TO BE REPLACED WITH FUTURE STORMWATER BONDS,
TO FUND ADDITIONAL CONSTRUCTION COSTS FOR THE BELLE ISLE BID
PACKAGE NO. 13B PROJECT.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
FUNDING
Funding in the amount of $799,628, is recommended to be re-allocated from previously
approved Water and Sewer appropriations for the Venetian Island Right-of-Way
Improvement Bid Package No.13C, account 424-2127-069357, to be replaced with future
Water and Sewer Bonds. Funding in the amount of $367,123, is recommended to be re-
allocatedfrom previouslyapproved Stormwater appropriations forthe Venetian Island Right-
of-Way Improvement Bid Package No.13C, account428-2127-069357, and $272,877, from
account 428-2127-060357, to be replaced with future Stormwater Bonds.
ANALYSIS
The Belle Isle Project is a unique and complex capital improvement project located within a
restricted mixed use area, with medium and high density residential, commercial, and single
family homes located along the perimeter of an urban park, and bisected by the Venetian
Causeway. The project offers the multiple challenges associated with working within a limited
and restricted work zone. W ith a wide range of complex activities, the project encompasses:
construction of extensive above-ground facilities; comprehensive underground utilities
installation that include a major storm water pump station and treatment structures; a
drainage collection, treatment and disposal system consisting of over four thousand (4,000)
lineal feet of piping; new water main installations consisting of over three thousand (3,000)
City Commission Memorandum -Alpine Construction Contract Adjustment
March 12, 2008
Page 2 of 7
lineal feet of piping and water service connections; new fire service lines to all high-rise
buildings; complete roadway reconstruction; installation of new sidewalks, curbs and gutters
and pedestrian crossings; site and pedestrian lighting; landscaping and automatic landscape
irrigation; construction of a temporary parking lot to accommodate resident /visitor parking
during construction; and the complete reconstruction of Belle Isle Park, including the planting
of over 100 new trees and the re-planting of existing tree species.
The Belle Isle Project construction also had to be coordinated with multiple other concurrent
construction projects from other agencies which impacted the project schedule and included:
an un-planned major FPL 700-foot long concrete duct bank installation along Island Avenue
South to improve service reliability to the Island; complete replacement of existing CATV
cabling by Atlantic Broadband; complete replacement of existing gas service lines by TECO
Gas; Miami-Dade County refurbishment of the Venetian Causeway bridges adjacent to the
project; construction of the new sewage Pump Station No.10 within the Park; and numerous
renovation and construction activities associated with the contiguous high-rise buildings.
The purpose of this funding request is to fund a series of negotiated Change Order requests
that were primarily generated as a result of unforeseen/unexpected conditions, betterment
issues, errors and omissions, and regulatory agency requested changes.
ReauestforJob OrderContractinst Cost Proposal forthe Construction ofthe Belle Isle
Bid Packaste No. 136 Proiect
In August 2005, in an effort to expedite the Project, CIP issued a Request for Cost Proposal
to the Job Order Contractor(JOC), Alpine Construction Management Corporation (Alpine), for
the construction of the Belle Isle Neighborhood Right of Way (ROW) Improvement Project,
Bid Package No. 13B. The Scope of Services in the proposal forthe Belle Isle Neighborhood
Right-of-Way components included: the installation of water mains; storm drainage system
and pump station; street lighting; roadway reconstruction, including milling and resurfacing;
parking; traffic signage and pavement markings; landscaping and irrigation. The
improvements to the Belle Isle Park included re-grading of the entire Park; landscaping and
irrigation, site furnishings, pedestrian lighting, "bark-park",and newwalkways within the park.
The stormwater system is ninety percent (90%) complete; the water main installation is
complete and in service, and most of the other right-of-way improvements are completed.
The contractor is working toward completing the improvements within the Park, and placing
the storm drainage pump station into operation by July of 2008.
Contract Nestotiations and Construction Notice to Proceed
On September 18, 2005, and on November 19, 2005, the City received cost proposals from
Alpine in the amounts of $6,349,495 and $5,895,504, respectively. The City held extensive
negotiations with Alpine, which resulted in the submittal of a third and final proposal on
December 2, 2005, in the amount of $5,603,638, for the construction of the Belle Isle Bid
Package No. 13B Project. The City and its Program Manager, Hazen and Sawyer (H&S)
evaluated the proposal and recommended the execution of the Contract for that amount.
Since funding for the Projectwasalready appropriated by the City Commission in the Capital
Budget, and the proposed Contract amount was within the budgeted amount for the Project,
no further Commission action was required. On December 8, 2005, the City issued Alpine's
First Notice to Proceed (NTP) on the Project, which allowed Alpine to comply with the
preliminary Contract requirements, such as submittal of schedules, and finalization of the
required permits.
Subsequent to the initial Contract negotiations, additional design modifications, including the
stormwater pump station and associated piping, were requested by regulatory agencies,
which resulted in a need to revise the Construction Documents (CDs). Upon completion of
City Commission Memorandum -Alpine Construction Contract Adjustment
March 12, 2008
Page 3 of 7
the initial revision by the City's Consultant, Jacobs Edwards and Kelcey (JEK), it was
possible to move the project into construction while design revisions to the pump station and
associated piping were being completed. It was determined at that point, that no adjustment
to the original Contract Price would be made in anticipation that the redesign would likely
result in a Contract cost increase.
Consequently, on May 3, 2006, during the Pre-Construction meeting, the City advised Alpine,
that the review processes with the agencies having jurisdiction resulted in changes to the
CDs dated November 29, 2005. In addition, Alpine was advised that revisions to the drawings
were necessary to obtain the final permits, and issue the Second NTP. On May 16, 2006, the
City issued the Second NTP, allowing the contractor to mobilize on site, and commence
construction activities.
At that time a revised set of CDs indicating that the pump station and associated piping were
excluded from the project scope provided to Alpine. The pump station and associated
piping revisions were reintroduced to the Project at a later date. The flexibility of using the
JOC construction delivery method facilitated this approach, and allowed the expediting of the
Project construction activities by the contractor.
In late 2005, during the permitting process for the Belle Isle Project, Miami-Dade County
Public Works Department-Traffic Engineering Division (County) mandated extensive changes
to the CDs. The City, in conjunction with the County, reviewed the alternatives and arrived at
a solution on the required modifications. On August 1, 2005, the proposed changes were
presented to, and accepted by the Belle Isle Community. The Construction Documents were
then revised to reflect these changes, which were later presented to the County by JEK and
City staff for final approval during meetings held on December 20, 2005, and January 25,
2006. In January 2006, as a result of scope changes requested by the County, JEK
performed a series of revisions to the pre-approved permit set of CDs. The City, Hazen and
Sawyer, and JEK carefully evaluated whether the changes were regulatoryornnn-regulatory,
and if they would result in material changes to the Project scope, the construction costs and
impact to the project schedule. The changes requested were material, and accounted for a
portion of Change Order No. 1.
Citv of Miami Beach
Following the receipt of the final JOC proposal, but prior to the issuance of the NTPs, the City
requested additional changes to the CDs. The modifications included the selection of
different size pumps and associated electrical panels, and changes to piping materials, from
PVC to ductile iron for the stormwater lines on the Venetian Causeway. The Project team
(JEK, H&S, CIP) evaluated these changes, and determined that they were necessary since
changes in the pump selection alone, would significantly reduce equipment energy
consumption and long term maintenance costs. Alpine was subsequently issued the second
NTP with all other improvements, except those related to the construction of the pump
station. At that time, Alpine was advised that when the pumps were reincorporated into the
project scope of work, any associated impacts to the contract price would be addressed.
Unforeseen/Unexpected Conditions:
Unforeseen/Unexpected conditions include differing site conditions, such as sub-surface or
hidden conditions, that could not be anticipated based on the existing available geotechnical
data, underground conditions, and incomplete or inaccurate records. These may have a
significant impact on the time and cost of performing the work.
City Commission Memorandum -Alpine Construction Contract Adjustment
March 12, 2008
Page 4 of 7
Sheet Piles Helical Piles & Structural Slabs
During the design phase of the project, soil samples were taken in several locations which did
not detect conditions found in the vicinity of the pump station. As operations commenced to
install the sheet piling and pump vault structure, unsuitable soil materials were discovered in
the vicinity of these structures. Therefore, additional soil samples and geotechnical
evaluations were conducted to determine soil conditions in the locations scheduled to receive
these underground structures. The unsuitable soils encountered, require that the sheet pile
equipment rentals, included in the original contract price, would now have to remain in place
to stabilize the surrounding unsuitable soils. This affected the contractor's construction
Means and Methods, thus resulting in unexpected additional construction costs. Additional
engineering design was required for the pump station vault, placement of helical piles, and
support slabs. Suitable fill material had to be brought on site, and the unsuitable soils
disposed of properly off site.
Emeraencv Reaairs and Relocation of Aaed Utilities
During the installation of the new 12-inch water main on Century and Farrey Lanes, there
were numerous unexpected water main breaks in the existing 2-inch water service lines to the
properties, primarily because they were found to have been installed too shallow, and were
old and corroded. In addition, there were breaks to larger unmarked water mains, all repaired
by Alpine. Water mains not indicated in the plans had to be re-routed along the Venetian
Causeway to accommodate the installation of new infrastructure.
Betterment Issues:
Betterment Issues include items that can be categorized as inadvertent omissions in the CDs,
requested by the City or the Consultant, after the Project bid acceptance date that would have
otherwise been included in the scope of work under contract.
Fire Sprinkler Service Piaes Omission
During the installation of the new 12-inch water main on Island Avenue South, the Contractor
identified that all the existing fire lines serving the existing buildings on Island Avenue South,
and Island Avenue North, were not scheduled to be replaced in the CDs. This meant that
once the new 12-inch water main was placed into service, and the old 6-inch line abandoned,
those buildings would not have fire service lines. As a result, ten (10) additional 4-inch and 6-
inch lines, including valves and appurtenances, had to be installed from the new 12-inch
water main to the buildings. The available record drawings at the time of the design of the
Project, did not reflect these lines, therefore, they were not. included in the CDs.
Although the CDs required milling and resurfacing of Century and Farrey Lanes, it was
determined during the construction phase that due to the insufficient depth of the existing
road base, these sub-surfaces needed to be reconstructed. The sub-surfaces were
reconstructed and a new 2-inch lift of asphalt pavement installed. These conditions were not
encountered until the excavation operations in the area commenced.
Design Errors and Omissions include design defects and errors which generally result in an
adjustment to the Contract time and/or cost because installations performed in accordance to
the CDs are found to be incorrect and the contractor has to be directed to re-construct and/or
re-install such work.
Incorrect Sidewalk Elevation at Island Avenue South
During the installation of the new sidewalks on Island Avenue South, Alpine advised the City,
that the proposed finish elevations of the new sidewalk, would result in a difference in the
City Commission Memorandum -Alpine Construction Contract Adjustment
March 12, 2008
Page 5 of 7
elevation of the buildings' driveways, landscaping, and otherfeatures located at the property
line. A new survey and layout had to be commissioned, and design adjustments were made
by Alpine to correct this condition. The extent of the work included the removal and
reinstallation of approximately one thousand three hundred (1,300) lineal feet of Miami Beach
Red sidewalk. The Engineer of Record did not produce corrected drawings to Alpine in a
timely manner, resulting in additional mobilization and demobilization charges associated with
this added scope of work.
The electrical service point of connection, for the landscape irrigation system was identified in
the CDs by the Design Engineer of Record. However, the service point of connection for the
new stormwater pump station was not identified. Coordination of the new service point of
connection for both facilities was performed directly by Alpine and FPL. This resulted in the
routing of the electrical service point of connection for the pump station through the Park, and
an alternate route for the irrigation system. This necessitated the establishment of a new
executed Utility Easement in favor of FPL to provide electrical service to the pump station. In
addition, the landscape irrigation controller identified in the CDs to be re-used did not exist. A
new irrigation controller and associated electrical wiring had to be installed, resulting in
additional costs to the City.
Conflicts with Existino Structures. Utilities, and Design Standards
Several modifications to the underground utilities, and the design of above-ground
improvements had to be made as a result of conflicts with existing conditions and proposed
improvements. Existing light poles, a water pipe running through the Belle Isle Park, and
sidewalk locations all had to be modified, resulting in Proposed Change Orders (PCO). Given
that a survey had been commissioned prior to the completion of the design phase, these
issues are considered design errors that the Citywill further address with the Consultant prior
to the project closeout phase.
Reaulatorv Aaencv Requested Changes:
Regulatory Agency Requested Changes are those changes requested by state, local or
federal regulatory agencies having jurisdiction over the project.
The City requested that a 10-inch water main scheduled to be installed pursuant to the
current CDs, be further upsized to a 12-inch water main. The upsizing of approximately one
thousand two hundred and forty two (1,242) lineal feet of piping resulted in an increase to the
Contract price. Further, the City requested the use of Type S-1 & S-3 asphalt pavement in
lieu of SP-12; the use of epoxy coated ductile iron pipe (DIP) in lieu of PVC storm sewerforce
main under the Venetian Causeway; relocation of the backflow valves from the structures to
the end of the outtalk; and that the two (2) existing lines crossing the Belle Isle Park be
capped and abandoned in place. The City further requested the installation of a new sidewalk
along the inner perimeter of the Parkas requested by the County's Public Works Department
and the island residents to address their concerns regarding roadway widths. The County
directed changes on Island Avenue North and South, including modifications to the overall
signage and pavement markings. In addition, they also directed that Century Lane be
realigned; pavement markings be significantly changed, and the pedestrian ramps on the
north and south sides of the Venetian Causeway be realigned.
While evaluating all Change Orders, it was determined that the causes can be categorized
as follows:
• Forty-four percent (44%) due to Unforeseen/Unexpected Conditions
• Twenty (20%) percent due to Betterment Issues
City Commission Memorandum -Alpine Construction Contract Adjustment
March 12, 2008
Page 8 of 7
• Twenty-two (22%) percent due to Design Errors and Omissions
• Thirteen (13%) percent due to Permitting and Regulatory Agencies requests
• One (1 %) percent due to Owner and Resident requests.
Proaosed Chance Order Summary:
Six (6) Change Orders comprised of sixty-five (65) individual scope-specific requests, in the
amount of $2,841,017, have been submitted by Alpine during the course of construction of
the project. As a result of extensive analysis and negotiation, the above requested amount
was reduced by $764,145 to $2,076,872, of which $587,242 have been previously paid for in
Change Order Nos. 1, 3, and 5. Additionally, $24,922 will also be paid for item Nos. 40, 44,
and 45, that are part of Change Order No. 6. The above combined amounts of $612,164
were funded using project contingency from the original project appropriation.
PROJECT BUDGET
Alpine's Original JOC Proposal 6,349,495
Negotiated Contract Amount 5,603,638
Original Contingency 612,164
Total Original Project Budget: 6,215,802
CHANGE ORDERS
Total Change Order Request: $2,841,017
Negotiated/Rejected Change Orders ($/Ei4,'14b)
Negotiated Change Orders $2,076,872
Change Orders paid from contingency ($587,242)
Funded (40,44, 45) (24,922)
Change Order No. 4 (P-Card Credit) (25,080)
Negotiated Change Orders: 1,439,828
Fundtng Request: 1,439,628
Of the six (6) Change Orders, No. 1, 3, and 5, have been negotiated and paid from project
contingency, and a credit was given to the Cityfor Change Order No. 4. They are as follows:
• Change Order No.1 totaling $98,611, included: additional General Conditions items
that were inadvertently left out of the original JOC proposal; a City request to upsize
the proposed 10-inch water main to 12-inch; and the installation of six (6) additional
acorn light pole fixtures that were omitted from the CDs.
• Change Order No. 3 totaling $52,150, was to reimburse Alpine for the Bond
Continuation Certificate for the Project, which is required pursuant to the JOC
Contract.
• Change Order No. 5 totaling $436,480, included: commercial vehicle loading zone
redesign on Island Avenue South, as requested by residents; full pavement
restoration of Century and Farrey Lanes; new sidewalk along most of the Park
perimeter, as requested by the Miami-Dade County Public Works Department;
additional work to correct sidewalk, curb and gutter, and roadway elevations along
Island Avenue North and Island Avenue South; and the installation of various
building fire service line connections that had been omitted from the plans.
• Change Order No. 4 corresponds to a deductive change order in the amount of
$485,953 that was issued against Alpine's Contract for direct (P-Card) purchases of
equipment made by the City on Alpine's behalf, in the amount of $460,873. This
resulted in $25,079 of tax savings to the City.
City Commission Memorandum -Alpine Constructlon Contract Adjustment
March 12, 2008
Page 7 of 7
This funding request addresses only Change Orders Nos. 2 and 6, which have been
negotiated and are detailed in Attachment "A". A total of $2,191,909 was requested by
Alpine for Change Orders Nos. 2 and 6. This amount has been negotiated down to
$1,489,630, of which $50,002 is funded from remaining project contingency and P-Card
credit combined.
The total funding request is $1,439,626, of this amount, $799,828, is recommended to be re-
allocetedfrom previously approved Water and Sewer appropriations forthe Venetian Islands
Neighborhood Right-of-Way Improvement Project Bid Package No.13C, (San Marino, Di Lido,
and Rivo Alto Islands), to be replaced with future Water and Sewer Bonds.
In addition, it is recommended that $640,000 be re-allocated from previously approved
Stormwater Bond Fund appropriations for the Venetian Islands Neighborhood Right-of-Way
Improvement Project Bid Package No.13C Construction, to be replaced with future
Stormwater Bonds.
Funding Repuest Summary for Chansle Orders No. 2. & 6 only:
• Change Orderamount requested by Alpine $2,191,909
• Negotiated Change Order amount $1,489,630
• Funded $ 50.002
• Unfunded $1,439,828
Proposed Funding:
• Available Water & Sewer Fund 424 (Re-allocation) $ 799,628
• Available Stormwater Fund 428 (Re-allocation) 640 000
• Total Re-allocation Requested: $ 1,439,828
It should also be noted that the latest Engineer's Estimate of Probable Construction Costs for
the Venetian Islands Neighborhood Right-of-Way Improvement Project Bid Package No.13C
significantly exceeds the current allocated budget. Therefore, utilization of these funds will not
impact the commencement of the construction phase of the Venetian Islands Neighborhood
Right-of-Way Improvement Project Bid Package No.13C Project. The Administrationlntends
to request additional funding during this year's Budget Development Process to adequately
fund this project.
CONCLUSION:
The Administration is requesting the re-allocation of $799,626, from the Water and Sewer
Bond Fund 424 previously appropriated for the Venetian Islands Neighborhood Right-of-Way
Improvement Project Bid Package No.13C, to be replaced with future Water and Sewer
Bonds; and the re-allocation of $640,000, from the Stormwater Bond Fund 428 previously
appropriated for Bid Package No. 13C, to be replaced with future Stormwater Bonds.
Reallocation of this funding is necessary to complete the Project.
Attachment
JMG/TH/JECH/JC/CDV
T:WGENDA\2008\Febmary 13\RegularWlpine Construction Contract Adjustment Memo Rev.doc