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RESOLUTION 90-19877 RESOLUTION NO. 90-19877 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, TO AUTHORIZE THE INCREASE IN THE SCOPE OF THE CONVENTION CENTER EXPANSION PROJECT CONTRACT WITH GEORGE HYMAN CONSTRUCTION COMPANY IN THE AMOUNT OF $1,500,000 FOR THE PURPOSE OF INCREASING THE CONTRACT'S CONTINGENCY ALLOWANCES TO ACCOMPLISH FURTHER CHANGE ORDERS; AND FURTHER AUTHORIZING THE DISTRIBUTION OF THESE FUNDS TO THE CONTRACTS FOR PHASE II AND THE WEST WRAPAROUND AS NECESSARY; AND FURTHER AUTHORIZING UP TO $100,000 OF THESE FUNDS TO BE SPENT ON THE PREMIUM PORTION ONLY OF DOUBLE SHIFTING AND OVERTIME. WHEREAS, it is necessary to increase the scope of the Convention Center Expansion Project Contract with George Hyman Construction Company to increase the existing Contingency Allowances; and, WHEREAS, it has been determined that the amount of $1,500,000 is necessary for completion; and, WHEREAS, funds are available from Bond Fund 358 . NOW, THEREFORE, be it resolved by the City Commission of the City of Miami Beach, Florida, that the Contract between the City of Miami Beach and the George Hyman Construction Company be increased in the amount of $1,500,000, for the purpose of increasing the Contingency Allowances to accomplish further Change Orders, and further that these monies be administered in the Contract as necessary as an additional Contingency Allowance, including up to $100,000 total to be spent on the premium portion only of double shifting or overtime. PASSED and ADOPTED this 17th day of Janaury , 1990. 4009 Vice-Mayor Attest: City Clerk Form Approved Legal Department By Date: /////;/7/901, VEG: lcd Project consisted not only of new construction of 500,000 square feet, but renovation of 600,000 square feet, the requested additional amount of $1,500,000 is slightly more than two percent of the construction cost. ADMINISTRATION RECOMMENDATION It is the recommendation of the Administration, that the Contract with George Hyman Construction Company be increased in the amount of $1,500,000 and further that distribution of these funds between the Phase II Contract and the West Wraparound Contract will be as necessary, with up to $100,000 of these funds going to pay for the premium portion only of double shifting and overtime. It should also be understood, that the allocation of these funds will be accomplished by a companion resolution which will allocate the funds from the sale of the recent Completion Bond Issue. RWP:VEG: lcd 4 0,0 Fead \P eq FLORIDA 3 3 1 3 9 INCORP ORATED* "VA CA TIONL A ND U. S. A. " %,-.,\„4 OFFICE OF THE CITY MANAGER CITY HALL ROB W.PARKINS 1700 CONVENTION CENTER DRIVE CITY MANAGER TELEPHONE: 673-7010 COMMISSION MEMORANDUM NO. S' 90 DATE: January 17 , 1990 TO: Mayor Alex Dao • . d Members of e City Com ssi%►- FROM: Rob W. P. 'ns10,4401/.-, tfi City Manager , SUBJECT: INCREASE IN THE SCOPE OF THE CONVENTION CENTER AND WEST WRAPAROUND CONTRACTS BETWEEN THE CITY OF MIAMI BEACH AND THE GEORGE HYMAN CONSTRUCTION COMPANY IN ORDER TO ACCOMPLISH CHANGE ORDERS BEYOND THE ORIGINAL CONTINGENCY FUNDING. In November 1989, we informed the City Commission that additional funds would be necessary to complete the Convention Center Project. We have delayed this process as long as possible to give us the information to determine as close as possible what the dollar requirements might be. The original Contracts that were awarded for the Convention Center Project consisted of Phase I and Phase II, add alternates for meeting rooms and finally a Contract for the West Wraparound. The sum of all these contracts totals $72,864,000 . During the process of completing Phase I, it was necessary to increase the scope of the Contract because of changes made by Service America in the kitchen area. These changes, plus the lack of sufficient underground information, were the main causes in the delay of the completion in Phase I, and for an increased cost of $325,000 . So far, we have issued over three hundred Change Orders for this project. Except for the Phase I overtime and the dressing rooms which were specifically approved by the City Commission, all Change Orders have been paid for from the Contingency Allowances that were part of the original Contracts or from reallocation of funds budgeted for the Project. I might add that out of the $489,000 reallocated $370,000 resulted from credits to the Construction Contract. We are requesting at this time an additional appropriation of $1,500,000 to be administered as an additional Contingency Allowance. This money will be for Change Orders for which we already have an estimated value and for an allowance to complete those that may arise. Up to $100,000 of these funds will be spent on the premium portions of double shifting and overtime. Obviously, any money not spent remains the City' s. This sum does not include the sound system which is estimated at $400,000 and will be handled as a separate Contract, nor does it include any sound insulation system for Hall D, estimated at $175,000 . Adding all of these items together, exclusive of the sound system and insulation for Hall D, but including the additional architects fee, is what technically could be defined as, cost "over-run" of the project. Based on the fact, that this AGENDA (/-1 ITEM DATE 1 — 1 C/0 ORIGI AL RESOLUTION NO. 90-19877 To authorize the increase in the scope of the Convention Center Expansion Project Contract with George Hyman Construction Company in the amount of $1,500,000 for the purpose of increasing the contract's contingency allowances to accomplish fur- ther change orders; and further authoriz- ing the distribution of these funds to the contracts for Phase II and the west wraparoung as necessary; and further authorizing up to $1,000,000 of these funds to be spent on the premium portion only of double shifting and overtime.