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Home My WebLink About2002-24884 Reso RESOLUTION NO. 2Ql02-24884 A RESOLUTION OF THE MAYOR AND CITY COMMISSION, OF THE CITY OF MIAMI BEACH, FLORIDA, APPROPRIATING FUNDS, IN THE AMOUNT OF $69,250, FROM THE CITY CENTER REDEVELOPMENT AGENCY TAX INCREMENT FUND, AS FOLLOWS: $47,161, FOR ADDITIONAL APPROVED CHANGE ORDERS TO DANVILLE. FINDORFF, INC., AND $22,089, FOR ADDITIONAL ASBESTOS ABATEMENT BY DPC GENERAL CONTRACTORS, INC., FOR THE BASS MUSEUM EXPANSION AND RENOVATION PROJECT; AND APPROVING FINAL CLOSEOUT OF THE PROJECT, AND COMPLETION OF FINAL CERTIFICATE OF OCCUPANCY FOR THE BUILDING. WHEREAS, on March 26, 1995, the City entered into an Agreement with the firms of Spillis Candela & Partners (SC &P) and Arata Isozaki and Associates (Isozaki) for Architectural and Engineering services for the Expansion and Renovation of the Bass Museum of Art (the Project); and WHEREAS, on December 3, 1997, the Mayor and City Commission approved award of a construction contract to Danville-Findorff, Inc, (DFI), and Notice to Proceed with construction of the Project was given on February 5, 1998; and WHEREAS, the renovation of the existing building has experienced numerous conditions which necessitated correction and which have added costs to the Project; and WHEREAS, the initial Project contingency allowance, in the amount of $618,637, was exhausted to initially award the Project to DFI, primarily for the six add alternates approved by the City Commission; and subsequently, for additional services approved for SC & P due to the extended construction period; and for the purchase of track lighting for the Museum; and WHEREAS, the Mayor and City Commission approved, at different stages of the Project, the appropriation of additional funds required for the prompt completion of the construction and these funds were used for Change Orders "A through 7C", in the total amount of $274,014; and WHEREAS, the total amount of change orders in the Project is $487,525, including those paid from the initial contingency allowance, and all changes and additional work were verified by the City and by SC&P and Isozaki, and recommended by the Project's Building Committee; and WHEREAS, other Project changes, primarily dealing with unforeseen conditions at the existing building or with regulatory issues, were identified and priced by DFI, in the amount of $230,000, but disputed by SC&P and the City, and only a number of the disputed changes, in the amount of $47,161, are included in this final request for appropriation; and WHEREAS, the amount of change orders for which DFI has abandoned claim has been established at $115,274; and WHEREAS, DFI has requested compensation for extended overhead costs due to the time extensions granted, in the amount of $436,257, and the City has rejected the request, and DFI has agreed not to pursue it any further; and WHEREAS, DFI also requested interest, in the amount at $55,000, on the retain age amount of $344,543, which has been held by the City since the last payment issued on January 4, 2001 and the City also rejected the request, and DFI agreed not to pursue it any further either; and WHEREAS, liquidated damages, in the amount of $36,900, could be assessed for one hundred twenty three (183) days of unjustifiable delays for the Project, and additional liquidated damages for one hundred eighty-one (181) days, in the amount of $54,300, until completion of the punch list items, which did not include corrections to the HVAC, could also be assessed; and WHEREAS, in the interest of resolving the issues, completing the Project, and obtaining the final Certificate of Occupancy, the City and DFI have agreed to forego additional compensation; and WHEREAS, the Administration requests appropriation of funds, in the amount of $22,089, for additional asbestos abatement on the Project, which was required due to unforeseen existing conditions and must be paid to the firm of DPC General Contractors, Inc,; and WHEREAS, the total appropriation requested at this time is for $69,250 for the additional change orders and the asbestos abatement costs; and WHEREAS, funding is available from the Convention Development Tax; and WHEREAS, the retainage amount is part of the original appropriation and the original construction Contract, and the Administration is requesting approval to release the funds to DFI. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission, appropriate funds, in the amount of $69,250, from the Convention Development Tax, as follows: $47,161, for Additional Approved Change Orders to Danville-Findorff, Inc" and $22,089, for additional asbestos abatement by DPC General Contractors, Inc" for the Bass Museum Expansion and Renovation Project; and approve final closeout of the project, and completion of Final Certificate of Occupancy for the building. PASSED and ADOPTED this 29th day of May, 200 ATTEST: ~+p~ CITY CLERK T:\AGENDA\2002\MA Y2902\REGULAR\Closeout Reso1 ,doc APPROVED AS TO FORM & lANGUAGE &. FOR EXECUTION ~ GlnnlOoLIlIII 5 -2-1-0Y DatI EXPANSION AND RENOVATION OF THE BASS MUSEUM PROPOSED CHANGE ORDERS Item Description Reason Comments Amount 7D Demo. 5 Replacement of So. Gallery Keystone Unforeseen Condition Partial Responsibility of Contractor (total Cost is 516,399) 54,510 7E Drain Corrections at Room 520 Unforeseen Condition Existing Drain was found to be cracked and leaking inside wall 54,392 7F Additional Overflow Scupper - Upper Root Regulatory Agency Roof Scupper Req'd by Code for Higher Roof in EXist. Bldg. 53,917 7G Existing Sidewalk Repairn Unforeseen Condition Damaged by City's Imgation Contractor S2.289 7H Storage Trailer Relocation' Owner request Museum Staff Requested Storage Trailer be Relocated on Site S314 71 Additional Services due to Asbestos Unforeseen CondItion Addit'l Asbestos Abatement due to materials not previously detected S2,695 7J Second Floor Ductwork Modificalions Architectural Change AlE Error reimbursed by SC&P 52,249 7K Replacement of AC-E4 at Exist. Bldg. 2nd FI. (Equip.) Architectural Change AlE Error reimbursed by SC&P 56,164 7L Replacement of AC-E4 at Exist. Bldg. 2nd FI. (Labor.) Architectural Change AlE Error reimburned by SC&P $11,294 17M Upgrade of Condenser Pumps and Starters A.rc.'1llectural Change AlE Error reimoursed by SC&P i S9,337 I I I I NETTOTAL $47,161 fA DANVlLLElCI J ANDDRFF FAX AND MAIL TRANSMISSION DAL"NITLE-FlNDORFF, iNC. 2811 S.W. 70th Ave. Miami. FL 33155 (305) 262-9337 Extension 227 - Fax: (305) 262.7349 ~ t:..l~\, \<e V "'? Ii;' \ To: URS Corp. EastemFinancial Building. Suite 1000 700 S. Royal Poinciana Blvd. Miami Springs, FL 33166 ATTN: MR. TODD OSBORN FAX 305~884-2665 March 4, 2002 [ 3], including cover sheet From: Maria L. Houle. Subject: BASS MUSEUM OF ART CONFIRMATION OF OFFER OF SETTLEMENT This letter is to confirm our offer of settlement as discussed at our meeting on Wednesday, February 27,2002, at the offices of the City of Miami Beach. The conditions of our offer include the following: 1. The City of Miami Beach and Oanville-Findorff, Inc. will waive all claim rights against each other. 2. City of Miami Beach will release Oanville-Findorff, Inc., its employees. subcontractors, and bonding company from any future claims, disputes, or other matters in question as related t6 this Project and Oanville-Findorff, Inc. will release the City of Miami Beach and its employees from any claim, dispute, or other matters in question as related to this Project. 3. The City will assign subrogation rights to Oanville-Findorff, Inc. --'" 4. The City will issue Oanville-Findorff, Inc. a final change order for work performed for the total sum of $47,161. The final change order will include RFP 93 ($4,510), RFP 167 ($4,392.24), RFP 184 ($3,917.16), RFP 189 ($2,289.61), RFP 192 ($313.60), RFP 193 ($2,694.68), 194 ($2,249.36), 195 ($6,163.51), 196 ($11,293.84), and RFP 198 ($9;337.00) as outlined in the attached "Bass Museum Settlement Status" prepared by URS dated February 27,2002. 5. Danville-Findorff, Inc. will withdraw all outstanding claims against the City totaling $115,273.98. The outstanding claims include RFP 104 ($25,679.31), RFP 126 ($2,940.53), RFP 138 ($36,126.02), RFP188 ($474.91), RFP 19030.545.40, RFP 191 ($2,514.24), RFP 199 ($4,587.72) as outlined in the attached "Bass Museum -1- of .2- OANVIU.S-FlNOOfIFF. Inc.. GeneraJ Contractors - conSlrUCllon MUllIQers 2811 S.W, 70111 Ava./f'.O. Box 1409381 Coral Gables. Flonda 33114-0938/ (305) 262-11337 - FAX (305) 262.7349 ElUte 39t'd ~I.:I- 3'T1If\tofflJ 6~Ea:9z;see: ~S:9t z;eeZ;/~e/Ee Settlement Status" prepared by VRS dated February 27,2002. 6. The City will release full and final payment to Danville-Findorff, Inc. in the amount of $391,704.23, which represents the final change order in the amount of $47,161 (Item 2 above) and final retainage in the amount of $344,543.23 by April 30. 2002. 7. Danville-Findorff, Inc. will waive its rights to interest in excess of $55,000, which represents interest on $391,704.23 at the State rate of 10% from the date of substantial completion (September 3D, 2000) through the date Danville-Findorff, Inc. anticipates release of funds (April 30, 2002). 8. The City win not assess any liquidated damages whatsoever against Danville- Findorff, Inc., its subcontractors, and its bonding company. 9. Danville-Findorff, Inc. will waive its rights to extended job costs for delays to Proje.ct completion beyond the control of Danville-Findortf, Inc. In summary, due to the delay in project completion, Danville-Findorff, Inc. incurred additional costs for supervision, labor, trailer rentals, telephone. and other costs not originally contemplated. Danville-Findorff, Inc. is entitled to a 299-day time extension from the Contract completion date of December 5, 1999 through the substantial completion date of September 30,2000 at the agreed rate of $455.71 for a total sum of $136,257.29 (Please refer to previous change orders approved by the City of Miami Beach regarding extended job costs). 9. Danville-Findortf, Inc. will waive its rights to home office overhead for delays to the Project beyond the control of Danville-Findorff, Inc. Accordingly, Danville-Findorff, Inc.'s would employ the "Eichleay" Method to calculate unabsorbed home office overhead, which would result in an estimated claim in excess or $300,000 for increased overhead costs at its home office. SUMMARY OF POTENTIAL LIABILITY CHANGE ORDER DUE DANVILLE.FINDORFF. INC.....................$47.161.00 DISPUTED CHANGE ORDERS ................................................... $115.273.98- RET AINAGE . .... ...................... ....... ....................................... ........ $344,543.23 INTEREST DUE ON RETAINAGE AT STATE RATE (10%) ..........$55.000.00- EXTENDED JOB COSTS .................... .................................. ....... $136,257.29- HOME OFFICE OVERHEAD .... ........................ ............................ $300.000.00- TOTAL POTENTIAL LIABILITy.................................................... $943,290.50- OFFER SETTLEMENT CHANGE ORDER DUE DANVILLE-FINDORFF, INC..................... $47,161.00 AET AINAGE .............. '" ................................................................ $344.543.23 TOTAL AMOUNT DUE TO DANVILL.FINDORFF, INC. ...............$391,704.23 We request you respond to this offer for full and final settlement within 7 days of receipt of the same. If we do not hear from you, we shall consider our offer denied and pursue all legal avenues available to us to recover all costs entitled to our firm. If you have any questions, comments, or concems, please do not hesitate to contact me. .2. of -2- OANVlLl..E-FINOORFF. Ine.. General Conltaclort - ConstNcllon Managers 2811 S.W. 70111 A~..I P.O.SolC 140938/ Coral Gables, florida 33114-0938/ (305) 262-9937. FAX {3QS) 252-7349 ~9/lla 39\td =~I=-31IIAN~ 6t:o~LlSlsae: ps:st l99llt:09/€9 RFP# 93 167 184 189 192 193 194 195 196 198 Bass Museum Settlement Status February 27, 2002 Agree $ Value 4,510.00 4,392.24 3,917.16 2,289.61 313.60 2,694.68 2.249.36 6,163.51 11,293.84 9,337.00 Disagree RFP # $ Value 104 25,679.31 126 2,940.53 138 36,126.02 188 474.91 190 30,545.40 191 2,514.24 199 4,587.72 ~H~~AC ~~2~'6~~:~8~) 1)~~ S e ama d by ate &.... at r pairs - ~ OF.c $ 104,273.98 4,788.66 uo'\O a.Q.L . ~~ ~, <..D o""~"":;' TOTALS $ 47,161.00 \7{)O ~ ~~e~m~s "-J 0-\ ~ ~ DF:\ Contract Required Subtantial Completiqn December 5, 1999 J'-1! Actual Substantial Completion September 30, 2000 Substantial Completion 299 days beyond Contract Time ~~OP.~ 8~~~~l'r Summary Disagreement Amount j 0"'. :1171 9& j); '5 p.:::::t:D 89,766.00 ~ 47,161.00 o~ _ 42,S:J9.00 O',~ ~ Liquidated Damages .. Negotiated Change Orders Imbalance in favor of City (LD's - CO's) e:la;e:~ 39';1'd .:I~T +- TnT ^I'MIT ~"~J7Q~~~~ hr.-OT 7nnT/hn/en RFP# 93 167 184 189 192 193 194 195 196 198 TOTALS Bass Museum Settlement Status February 27, 2002 Agree $ Value 4,510.00 4,392.24 3,917.16 2,289.61 313.60 2,694,68 2,249,36 6,163,51 11,293.84 9,337,00 $ 47,161.00 4,788.66 Disagree RFP # $ Value 104 25,679.~ 126 2,940.53)fJ= ,...t.....;b ... 138 36,126.02- ~ .~" ~~~ 188 474.91 So.1t ,.......' 190 30,545.40 191 2,514.24 199 4,587.72 - !)~?...k r;' ' HVAC 12,405.85':' ?""-+ -~ <;i- Comp (11,000.00) Server damaged by water at Door Repairs $ 104,273.98 Liquidated Damages - DFJ: J~p~ "'""'P+'"" "'-'\j +-7P~ "" 1..]) ~l ' ...J. .,; dO' 53 J"'-i5 a.!'<.. Contract Required Subtantial Completion . ''4.'''IuL) .................1 ~w ,_ <:) . .~ ;:;-=(;~mber 5,1999 c".,oIj. :-J SJ.J'fsfs ~.;;( /f i!-;tk...,s/,,:.' '., ~ r,.J<~ ~ OO;Lr 4...J .-? ~ 'i.s ~~/j'1 "3 ~ w ili,,;.:JL . v l4is,; clll''''''''>' j t'-"\ .",tl:h'tA.l...{ 3?i.} cf":'j5 ~ +."'-4- Substantial Completion 299 days beyond Contract Time Actual Substantial Completion September 30,2000 299 days X $300 per day = 89,700.00 Summary Disagreement Amount 104,273.98 Liquidated Damages .. Negotiated Change Orders 89,700.00 47,161.00 Imbalance in favor of City (LD's - CO's) 42,539.00 Yc\ \:::- 7 rJ ..t. t;L _ .. boe7 '10+ ~J:wd'- +0 Wa~oJl2 cL"'j r~"+S -14> $io<E. ?a,.f,'e.<; ~ 4"1 .,. " lJ QI.l,(~ If~ -t.Lz 1/04/ '2-13, 'f~ ~ ~ ayLI~ sf ,.;4 L})<j ewJ ,-tl.t~ ~ r,d. -tk 'f f7, I &i. . ~ tJ~"J>> ~rt.i- c:hv w",;'\Je, (J,t,'j bJe.rW ii'YI GZ"'-J ~ c.1k.J ~ {iN\...woiV1- \ .:", \ ~ - CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY Condensed Title: A Resolution of the Mayor and City Commission of the City of Miami Beach, Florida, appropriating funds, in the amount of $47,161, for aditional approved Change Orders to Danville-Findorff, Inc., and funds, in the amount of $22,089, for additional Asbestos Abatement by DPC General Contractors, Inc., for the Bass Museum Expansion and Renovation Project, and approving Final Closeout of the Project, and completion of Final Certificate of Occupancy for the building, Issue: Shall final payment be made to Danville-Findorff, Inc. on the Bass Museum Expansion and Renovation Project in order to closeout the Project with the General Contractor and obtain Final Certificate of Occupancy. Design issues are still being discussed and evaluated with the City's Consultant, Spillis CandelalDJMJ and a resolution will be brought to the Mayor and City Commission at a later time. Item Summary/Recommendation: The Administration is requesting approval of final negotiations with Danville-Findorff, Inc, (DFI), on the closeout of the Bass Museum Expansion and Renovation Project, appropriation of funds, in the amount of $47,161, for additional change orders, and funds, in the amount of $22,089, for asbestos abatement work previously performed. The Administration, assisted by URS, the City's Program Manager, has negotiated with DFI a number of claims made for additional time extensions, overhead costs and change orders, as well as the amount of liquidated damages to be assessed due to unjustifiable time delays on the Project Both parties have agreed not to seek any additional compensation beyond those included in this final closeout Agreement. The amount of liquidated damages charges to DFI are more than balanced out by the value of the change orders and overhead costs, which DFI has agreed not to pursue. Therefore, the Administration recommends that the Mayor and City Commission adopt the Resolution, Advisory Board Recommendation: I Not Applicable Financial Information: Amount to be expended: $69,250 ~ Finance Dept. City Center Redevelopment Agency Tax Increment Fund AGENDA ITEM R7fV 5-29-02- DATE CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.cj.miami-beach.fl.us COMMISSION MEMORANDUM To: From: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez ~_. },ho..~ City Manager (j" - () Date: May 29, 2002 Subject: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROPRIATING FUNDS, IN THE AMOUNT OF $69,250, FROM THE CITY CENTER REDEVELOPMENT AGENCY TAX INCREMENT FUND, AS FOLLOWS: $47,161, FOR ADDITIONAL APPROVED CHANGE ORDERS TO DANVILLE-FINDORFF, INC., AND $22,089, FOR ADDITIONAL ASBESTOS ABATEMENT BY DPC GENERAL CONTRACTORS, INC., FOR THE BASS MUSEUM EXPANSION AND RENOVATION PROJECT; AND APPROVING FINAL CLOSEOUT OF THE PROJECT, AND COMPLETION OF FINAL CERTIFICATE OF OCCUPANCY FOR THE BUILDING. ADMINISTRATION RECOMMENDATION: Adopt the Resolution. FUNDING: Funding is available from the City Center Redevelopment Agency Tax Increment Fund. ANALYSIS: On March 26, 1995, the City entered into an Agreement with the firms of Spillis Candela & Partners (SC&P) and Arata Isozaki and Associates (Isozaki) for architectural and engineering services for the Expansion and Renovation of the Bass Museum of Art (the Project). On December 3, 1997, the Mayor and City Commission approved award of a construction contract to Danville- Findorff, Inc, (DFI), and Notice to Proceed with construction of the project was given on February 5, 1998. CURRENT STATUS The renovation of the existing building and the new construction has experienced unforeseen conditions that needed correction and have added costs to the project. These conditions can be separated into two distinct categories. First, those corrections that were remedied by DFI and which are the subject of this appropriation. Of the Change Orders listed in the Attachment some are related to design issues corrected by DFI and some are due to other events during the Project construction, To date, DFI has completed all work required by their construction contract Second, there are other design issues and corrections, which have been resolved independently of DFI, but are the subject of evaluation by the City and are being discussed with SC&P. The resolution of these matters will be brought to the Mayor and City Commission at a later time. One of the primary design concerns has been the Heating, Ventilating and Air Conditioning (HVAC) conditions at the building, These problems were evaluated by SC&P, Johnson Controls, Inc. (Johnson), and by the City's Program Manager, URS, Inc. (URS), because the system as installed was not maintaining the required temperature and relative humidity. In addition, an independent consulting and test and balance engineering firm, GFS Consulting, Inc. (GFS), was retained to assist in the evaluation of all installations as well as the design. The costs for some of the previous Commission Memorandum Bass Museum Closeout May 29, 2002 Page 2 of 4 corrections and evaluations were borne by SC&P and DFI under their contract responsibilities. Corrections and adjustments were made to the HVAC system and the controls in order to improve the building space environment conditions, but the inconsistent performance of the overall system continued, As a result, additional corrections were performed in order to obtain proper space climate control levels within some areas of the building, These additional corrections included the installation of a new air conditioning unit in the Loading Dock area to separate this space from the Art Collection Storage Room in order to obtain better control of the humidity and temperature levels. In addition, both URS and SC&P recommended that several control sensors initially located within the return air ducts be relocated to a location near the hygrothermographs for each particular space, which will provide a more effective and efficient operation of the HV AC units and a faster reaction to environmental conditions within the museum spaces. The Building Energy Management System (BMS) was re-programmed to allow the HVAC units to operate on humidity priority rather than on temperature priority as initially installed, which will allow the HVAC system to provide both temperature and humidity conditioning under any external or internal environmental situation. These corrections are completed and the system is being monitored to determine if the performance is now consistent. SC&P and URS did not recommend the addition of a humidification system in view of the fact that humidity levels in the South Florida area are generally acceptable for the conditions required in an art museum, and for those periods when humidity levels may be too low, both consultants recommended having on hand portable humidifying units, which can be utilized on a temporary basis. The City has reconsidered this recommendation and has decided to determine the cost of the design and installation of a humidifying system. This system will not be installed until the recent corrections have been monitored and more information is obtained on humidity levels. The above corrections to the HVAC system, the addition of the humidifying system and the re-programming of the controls are the subject of the discussions with SC&P, NECESSARY ACTIONS TO CLOSE-OUT PROJECT The initial project contingency allowance has been exhausted. This amount of $618,637 was used as follows: 1) initially, upon award of the Project to DFI, for the six add alternates approved by the City Commission; 2) for additional services approved for SC & P due to the extended construction period; and 3) for the purchase of track lighting for the museum, These costs were all funded from the contingency allowance. An additional source of funds, the reimbursable allowance of $241,840, was also exhausted. This amount was used for expenses related to design services, the threshold inspector required by the Building official, and a site survey. In addition, the Mayor and City Commission approved, at different stages of the Project, the appropriation of additional funds required for the prompt completion of the construction. These funds were used for Change Orders "A through 7C., in the total amount of $274,014. Total amount of change orders in the Project is $487,525, including those paid from the initial contingency allowance. All changes and additional work have been verified by the City and by the ArchitecVEngineer of record, Spillis Candela & Partners/Arata Isozaki & Associates. The Project's Building Committee reviewed these changes and additional work and recommended that they be implemented. Other project changes, primarily dealing with unforeseen conditions at the existing building or with regulatory issues, were identified and priced by the contractor. For these items, SC&P and the City disputed the pricing. There was also an estimated $230,000 of Contractor requested change proposals previously denied by SC&P and by the City, some of which were disputed by DFI. Of these, SC&P, DFI and the City resolved some of the disputed change orders, totaling $47,161, and they are included in this final request for appropriation. Should the City agree to pay the now undisputed change order amount of $47,161 along with the remaining Commission Memorandum Bass Museum Closeout May 29, 2002 Page 3 of 4 retainage already owed to DFI, then DFI has agreed to abandon the requests for the remaining disputed change orders. The amount of change orders for which OFI would abandon claim has been established at $115,274. If is important to note that the total approved change order amount for the Project, including those presented in this commission memorandum, is $487,525. This amount represents 7.5% of the original construction value of $6,450,000 and is well within the industry standards of 6% to 10% for a renovation project of this kind. It is also important to note that the change order amount is only $223,388 more than the amount of $264,137 used from the contingency to award the Project alternates and $130,612 less than the contingency amount of $618,137 originally allocated to the Project These facts demonstrate that the Project would have been within budget if additional costs such as track lighting, additional services to the consultants, extensive asbestos abatement and significant unforeseen conditions in the existing building had not arisen during the construction process. With the approval of the change orders, a total of seventy-eight days of justifiable time extensions were granted. Based on an analysis of the project timetable, DFI substantiation and documentation, and negotiations with DFI, the City was willing to grant additional time extensions in the amount of one hundred and seventy six days up to the time of substantial completion, This would leave a balance of one hundred twenty three days of unjustifiable delays for the project for which liquidated damages could be charged. The total amount of liquidated damages would be $36,900 at $300 per day as stipulated in the Agreement. Additional liquidated damages for 181 days, in the amount of $54,300, until completion of the punch list items, which did not include corrections to the HV AC, could also be assessed. The completion date of the project was extended from the original date of September 30, 1999 to December 7, 1999 via the previously approved change orders. Substantial completion was granted on September 30, 2000, A temporary Certificate of Occupancy was issued on September 29, 2000. It should be noted that due to the provision of liquidated damages within the contract, actual damages couldn't be assessed for late completion of the project. The $91,200 in liquidated damages noted above are the only damages that can be claimed by the City based on time delay. DFI has requested compensation for extended overhead costs due to the time extensions granted. In accordance with the provisions of the construction Agreement, these costs were to be negotiated by both parties, the City and DFI. DFI has requested costs, in the amount of $436,257 for the extended overhead at the project site and the home office, The City rejected this request for lack of proper substantiation and OFI has agreed not to pursue it any further, upon approval of this resolution. DFI also requested interest on the retainage amount of $344,543, which has been held by the City since the last payment issued on January 4, 2001. DFI calculated this amount at $55,000. The City rejected this request as excessive and OFI has therefore agreed not to pursue it any further either, upon approval of this resolution. The amounts discussed above are subject to contract evaluation and interpretation as well as statutes and contract law, If the City and DFI had not reached an agreement to closeout the Project and entered litigation, the Courts could grant the additional costs, or a portion of them, to OF!. In the interest of resolving the issues, completing the Project and obtaining the final Certificate of Occupancy, both DFI and the City, have agreed to forego additional compensation. DFI has agreed to accept payment for the last group of approved change orders, in the amount of $47,161 (Attachment 1), and the release of the remaining retainage in the amount of $344,543, and nothing else. The City has agreed to not pursue the liquidated damages as part of the settlement. In addition to the above, the Administration requests appropriation of funds, in the amount of $22,089, for additional asbestos abatement on the Project. This work was required due to unforeseen existing conditions Commission Memorandum Bass Museum Closeout May 29, 2002 Page 4 of 4 and must be paid to the firm of DPC General Contractors, Inc. The total appropriation requested at this time, in the amount of $69,250, is for the additional change orders and the asbestos abatement costs. The retainage amount is part of the original appropriation and the original construction Agreement and the Administration is requesting approval to release the funds to DFI. Based on the above analysis, the Administration is recommending that the Mayor and City Commission adopt the attached Resolution for the Bass Museum Expansion and Renovation project. T:\AGENDA\2002\MA Y2902\REGULAR\Closeout Memo2.doc