HomeMy WebLinkAboutResolution_33-21_7/8/2021RESOLUTION 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.
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
Direct Owner Purchases + Tax Savings/Adjustments (Changes to bid set )
N/A
1-3
$
Subcontractor cost components; time delay of 51 calendar days
4
43
(434 , 20.11)
Plumbing changes per code
160,11.35
7794.07
Truss modifications
5
47
,
Electrical owner requests
6
13,647.20
Barometric relief damper
7
6,293.49
Sink/shroud change
8
2,598.079
Additional fencing at Seabrook
(634.44)
Add 1 panel to opera- partition
10
3,998.19e
Lumber cost escalation
11
1,256.95
Correction to remove markup on price escalation items
12
15,298.34
Ductwork price escalation
13
(1,,)
14
928.0
22928.00
N/A — "Voided"
15
0.0016
Milling and overlay at Dover Road
22,771.56
Adjustment of tax savings — A/V Equip. (The Experts)
Adjustment of tax savings — structural steel (Epic Metals)
17
Revised contract sum to date (Hedrick Bros. Construction)
18
-- --
7,555.50
$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 Amount
Original Construction Bud et $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)
RESOLUTION
Date
33-21 07/08/2021
Motion Council Member Laurie Brandon Second Vice -Mayor Kyle Stone
FOR
AGAINST
ABSENT
CONFLICT
Mayor Frank D'Ambra, III
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Vice -Mayor Kyle Stone
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Council Member Laurie Brandon
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Council Member Molly Young
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Council Member Bruce Prince
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The Mayor thereupon declared the Resolution duly passed and adopted.
MAYOR OF TEQUESTA:
Frank D'Ambra, III
ATTEST: SEAL
INCORPORATED
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Lori McWilliams, MMC
Village Clerk