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