HomeMy WebLinkAboutDocumentation_Regular_Tab 15_7/8/2021Agenda Item #15.
Regular Council
STAFF MEMO
Meeting: Regular Council - Jul 08 2021
Staff Contact: Hugh Dunkley, Finance Director Department: Finance
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RESOLUTION 33-21, A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, FLORIDA, INCREASING THE FISCAL YEAR 2020/2021 CAPITAL IMPROVEMENT
FUND AND CAPITAL PROJECTS FUND BUDGETS BY INCREASING REVENUES AND
EXPENDITURES IN THE AMOUNT OF $196,000.00 TO RECOGNIZE AN INTER -FUND TRANSFER
FROM THE CAPITAL IMPROVEMENT FUND TO THE CAPITAL PROJECTS FUND
Staff is recommending to use unspent infrastructure surtax funds from the Capital Improvement Fund
to cover a cost overrun of $196,000.00 on the Community Center project.
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Amend the Fiscal Year 2020/2021 Capital Improvement Fund and Capital Projects Fund Budgets by
increasing revenues and expenditures in the amount of $196,000.00 to recognize an inter -fund transfer
from the Capital Improvement Fund to the Capital Projects Fund.
2021.07.08 REC CENTER APPROPRIATION RESOLUTION 33-21.ADA
2021.07.08 REC CENTER APPROPRIATION RESOLUTION 33-21 BackUp Amended
Page 148 of 287
Agenda Item #15.
RESOLUTION 33-21
A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, FLORIDA, INCREASING THE FISCAL YEAR 2020/2021
CAPITAL IMPROVEMENT FUND AND CAPITAL PROJECTS FUND
BUDGETS BY INCREASING REVENUES AND EXPENDITURES IN THE
AMOUNT OF $196,000.00 TO RECOGNIZE AN INTER -FUND
TRANSFER FROM THE CAPITAL IMPROVEMENT FUND TO THE
CAPITAL PROJECTS FUND; PROVIDING AN EFFECTIVE DATE; AND
FOR OTHER PURPOSES.
WHEREAS, on February 11, 2021 the Village entered into a contract for
Construction Manager at Risk services with Hedrick Brothers Construction in the amount
of $6,013,394.00 to construct the new community center; and,
WHEREAS, unforeseen circumstances such as changes in the scope of the
project, increases in the cost of construction materials, delays in the transportation of
construction materials and the addition of threshold inspection and testing services have
created a cost overrun for this project of $196,000.00; and,
WHEREAS, staff is recommending to use unspent infrastructure surtax funds from
the Capital Improvement Fund to cover the cost overrun; and,
WHEREAS, the following accounts will be increased:
Capital Improvement Fund
Revenues
Appropriate Fund Balance, 301-990-399.999 $196,000.00
Expenditures
Transfer to Capital Projects Fund, 301-900-591.303 $196,000.00
Capital Projects Fund
Revenues
Transfer from Capital Imp. Fund, 303-900-381.301 $196,000.00
Expenditures
Buildings, 303-231-662.600-40001 $196,000.00
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS:
Section 1: Resolution 33-21 is hereby approved, amending the Fiscal Year
2020/2021 Capital Improvement Fund and Capital Projects Fund Budgets by increasing
revenues and expenditures in the amount of $196,000.00 to recognize an inter -fund
transfer from the Capital Improvement Fund to the Capital Projects Fund;
Section 2: This Resolution shall become effective immediately upon passage.
Page 149 of 287
Agenda Item #15.
On February 11, 2021, the Village entered into a contract for Construction Manager at
Risk services with Hedrick Brothers Construction in the amount of $6,013,394.00 to
construct the new community center. On June 10, 2021, the Village Council approved
Change Order No. 1 totaling $160,711.35. As a condition of approval, staff was
instructed to work with Hedrick Brothers to determine if any credits could be generated.
Since that time, Hedrick Brothers has received several subcontractor change order
requests that were necessitated by steep material pricing increases brought about by an
overall disruption in the global construction supply chain. According to Associated
General Contractors, government data released earlier during the year, revealed that
costly pricing increases and supply chain disruptions have perpetuated further
hardships on contractors, not only driving up construction costs, but also slowing down
progress on their projects. In some cases, prices per unit have almost doubled.
Additionally, the data found that more than three -fourths of construction firms have
indicated projects are being postponed or canceled altogether due to unavailable
materials or cost overruns.
The total additional change orders amount to $100,847.01, which brings the total
change orders to date to $261,558.36. A summary of the net change by change orders
is below:
Description/Reason for Change Order
Revision
Change No.
Amount
Original Contract Sum
N/A
$6,013,394.00
Direct Owner Purchases + Tax Savings/Adjustments (Changes to bid set)
1-3
(434,320.11)
Subcontractor cost components; time delay of 51 calendar days
4
160,711.35
Plumbing changes per code
5
4,794.07
Truss modifications
6
13,647.20
Electrical owner requests
7
6,293.49
Barometric relief damper
8
2,598.07
Sink/shroud change
9
(634.44)
Additional fencing at Seabrook
10
3,998.19
Add 1 panel to operable partition
11
1,256.95
Lumber cost escalation
12
15,298.34
Correction to remove markup on price escalation items
13
(1,418.34)
Ductwork price escalation
14
22,928.00
N/A — "Voided"
15
0.00
Milling and overlay at Dover Road
16
22,771.56
Adjustment of tax savings — A/V Equip. (The Experts)
17
1,758.42
Adjustment of tax savings — structural steel (Epic Metals)
18
7,555.50
Revised contract sum to date (Hedrick Bros. Construction)
$5,840,632.25
The change orders/adjustments reflected above will create a cost overrun for this
project of approximately $196,000.
The cost overrun was calculated as follows:
Description I Amount
Page 150 of 287
Agenda Item #15.
Original Construction Budget
$6,157,841
Less: Hedrick Bros. Construction
5,840,632
Less: Direct owner purchases
495,722
Less: Other ancillary expenses to completion
17,000
Budget Deficit(Funding Amount Needed
195,513
Page 151 of 287