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HomeMy WebLinkAboutItem 05 Approval of Change Order No. 1 for Phase I of the South Bluford Sewer Service Area OCOPe florida AGENDA ITEM COVER SHEET Meeting Date: January 21, 2020 Item # 5 4004( Reviewed By: Contact Name: T'Jean Tomlinson Department Director: Charl- S ;;,p P.E. Contact Number: 407-905-3159 City Manager: Robert Fra; , ;0 •Subject: Approval of Change Order No. 1 for Phase I of the South Bluford Sewer Service Area Commission District#3— Richard Firstner Background Summary: The City is currently working with Mac4 Ventures, LLC, (Top Gun Cheer development), to provide central sewer to the South Bluford Sewer Service Area (SBSSA). On August 6, 2019, City Commission approved Top Gun's proposal to construct sanitary sewer and reclaimed water utilities (Utility Improvements) in Phase 1 of the SBSSA. To complete Phase I, the City agreed to reimburse Top Gun for the Utility Improvements in the amount of$452,927.04 which is based on the total off-site construction cost minus the cost Top Gun would have incurred in the amount of$52,445.80 to have connected directly to the 16" force main on Columbus St. (see the itemized breakdown attached). Top Gun and the City entered into a partnership on September 11, 2019, through a contractual Letter of Understanding to move forward with the Utility Improvements (see Letter of Understanding attached). It was determined by the contract that Top Gun would be required to provide payment and performance Bonds. The price for such bonds were not included in the original proposal approved by the City Commission. Staff is recommending the approval of Change Order No. 1 to increase the Contract price to include the Payment and Performance Bonds. Staff also recommends that the City Manager be authorized to approve change orders for this project up to $25,000 of the contingency amount of$35,061.00. The Utilities Department shall be available for questions. Issue: Should the Mayor and City Commission approve Change Order No. 1 for the South Bluford Sewer Service Area? Recommendations: Motion for Mayor and City Commission to authorize City Mayor to approve Change Order No. 1 with Mac4 Ventures LLC in the amount of$7,971.70 and authorize City Manager to approve change orders for this project up to $25,000. Attachments: 1. Change Order No. 1 2. Mac4 Ventures, LLC. contractor's (Keator Construction) Construction Cost Proposal 3. Staff Breakdown of Construction Cost Proposal — Phase I of South Bluford Sewer Service Area 4. Performance and Payment Bonds Financial Impact: The estimated total construction cost is $502,537.82 based on construction cost of $452,927.04, hydraulic modeling by Reiss Engineering $7,400, construction material testing of$4,000, Duke Energy electrical service $2,000, FDEP permits (2) $1,150.00, permit ex and 7.5% contingence. Funding for the project will come from Capital Carry Forward account (408). The construction cost will increase to $460,898.74 due to Change Order No. 1 in the amount of $7,971.70. Funding will be available for Change Order No. 1 from the contingence. Type of Item: (please mark with an "x) Public Hearing For Clerk's Deot Use: Ordinance First Reading )C Consent Agenda Ordinance Second Reading Public Hearing Resolution Regular Agenda X Commission Approval Discussion&Direction Original Document/Contract Attached for Execution by City Clerk Original Document/Contract Held by Department for Execution Reviewed by City Attorney N/A Reviewed by Finance Dept. ' (T on A, t Lia N/A Reviewed by 0 N/A 2 ocoee florida CITY OF OCOEE 150 North Lakeshore Drive Ocoee, Florida 34761 *This Change Order Requires Action by the City Commission* South Bluford Sewer Service Area Phase One CHANGE ORDER NO. 1 DATE: 1/13/20 PURCHASE ORDER: 1426519 The following changes are hereby made to the LETTER OF UNDERSTANDING (CONTRACT). Original CONTRACT PRICE $452,927.04 Current CONTRACT PRICE ADJUSTED by previous CHANGE ORDERS $452,927.04 Net Increase (Decrease) Resulting from this CHANGE ORDER $7,971.70 The current CONTRACT PRICE including this CHANGE ORDER $460,898.74 Original CONTRACT COMPLETION DATE: N/A Current CONTRACT COMPLETION DATE adjusted by previous CHANGE ORDERS N/A Net Increase Resulting from this CHANGE ORDER 0 days Current CONTRACT COMPLETION DATE including this CHANGE ORDER N/A CHANGES ORDERED: I. REQUIRED CHANGES 1. This change order will cause a net increase to the contract total in the amount of$7,971.70 2. Increase in Pay Items to complete the project: N/A 3. Added Pay Items to complete the project: CO1.01 Performance and Payment Bonds by (1) Lump Sum in the amount of Seven Thousand Nine Hundred Seventy-One and 70/100 ($7,971.70) Dollars II. JUSTIFICATION After the proposal from Mac4 Ventures LLC was approved by City Commission, it was determined by the City that they would be required to provide a payment and performance bond. This was not part of the original proposal from Mac4 Ventures. This change order will serve to add the bonds to the proposal approved by City Commission. III. NARRATIVE OF NEGOTIATIONS N/A IV. PAYMENT The proposal from Mac4 Ventures LLC in the amount of$452,927.04 included a construction cost in the amount of$505,372.84 minus the credit for Top Gun's private work in the amount of $52,445.80. A total cost in the amount of$502,537.82 was budgeted from the Capital Carry Forward Account(408) which includes hydraulic modeling from Reiss Engineering, construction material testing, Duke electrical service, FDEP permits, and a 7.5% contingence. Change Order One in the amount of$7,971.70 shall come from the contingence. V. APPROVAL AND CHANGE AUTHORIZATION The original project and funding allocation was established by issuance of a CITY purchase order, subject to the terms and conditions contained in the CITY's solicitation, Project Manual, Drawings, Specifications, and/or the DEVELOPER's service and price proposal, which collectively form the terms of an agreement between the CITY and the DEVELOPER for the performance of the Work. This proposed change to the agreement requires approval by the City Commission under the CITY's Purchasing Rules and Regulations and is consistent with any prior action by the City Commission to award the Work to the DEVELOPER. It is expressly understood and agreed that the approval of the Change Order shall have no effect on the original agreement other than matters expressly provided herein. DEVELOPER acknowledges, by its execution and acceptance of this Change Order, that the adjustments in contract price and time shown hereon constitute full and complete compensation and satisfaction for all costs and modifications of performance time incurred by the DEVELOPER as a result of this Change Order. No other claim for increased costs of performance or modifications of time will be granted by the CITY for the Work covered by this Change Order. The DEVELOPER hereby waives and releases any further claims for cost or time against the CITY arising from or relating to the matters or Work set forth or contemplated by this Change Order. [Balance of this page was left blank intentionally] RECOMMENDED BY: ACCEPTED BY: CITY OF OCOE ALO DA Mac4 Ventures LLC By: ( By: 4ievia4 7111a./a :ignature Date: �Z� Date: 113 -26) Title: aA (, 6r, l/1 P Title: Oil e APPROVED BY: CITY OF OCOEE, FLORIDA By: Date: Rusty Johnson, Mayor Attest: Melanie Sibbitt, City Clerk FOR USE AND RELIANCE ONLY BY THE APPROVED BY THE CITY OF OCOEE CITY OF OCOEE,APPROVED AS TO FORM COMMISSION IN A MEETING HELD ON AND LEGALITY THIS DAY OF , 20 UNDER , 20 AGENDA ITEM NO. By: City Attorney