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Agenda Item: 15(b) |
Prepared By: Jeffrey E. Poteet |
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Business: City Council Item |
Department: Water and Sewer |
Subject:
Title
Ratify the Approval of Change Order #1 to American Design Engineering Construction, Inc. for the City Hall Annex Second Floor Reconfiguration Project in the Amount of $193,421.00 - Jeffrey E. Poteet, General Manager, Water & Sewer Department
Body
BACKGROUND:
The Water & Sewer (W&S) Department is reconfiguring the second floor of the Annex, adjacent to City Hall on San Marco Road, to serve as the department’s administrative headquarters. The project scope includes nine offices, three bathrooms, a kitchenette, and a combined training and conference room.
The project was awarded through a public bidding process (ITB#2023-014), with the contract approved by City Council on July 24, 2023. The City received the following bids:
• American Design Engineering Construction Inc. $804,000.00
• Waypoint Contracting Inc. $1,231,298.00
• DEC Contracting Group, Inc. $1,646,450.74
Following issuance of the demolition permit, demolition of the second floor began in late 2023. Approval of the building permit was subsequently delayed due to Florida Building Code compliance issues. Staff kept City Council informed of these issues through the Department’s monthly reports and, in the February W&S Departmental Report, provided the newly seated City Council with a project update that included the financial impact of Change Order #1. Final building permit approval was granted in August 2024.
Code-related design modifications, identified in Change Oder #1, resulted in a $193,421.00 change order - less than 25% of the original $804,000 contract. While the City’s purchasing policy permits administrative approval for changes under this threshold, subsequent review determined that the change exceeded the City Manager’s signature authority and should have been presented for formal City Council approval.
Subsequently, the contractor requested an additional $53,012.21 to complete the project, an amount exceeding both the City Manager’s signature authority and the 25% contract increase threshold, thereby requiring formal City Council approval. This request, identified as Change Order #5, is being presented to City Council under a separate agenda item.
To date, there have been four change orders issued for this project, with a fifth pending. Only Change Orders #1 and #5 involve financial adjustments; the others added time to the schedule without cost impact.
• Original Contract Amount: $804,000
• Change Order #1: $193,421.00 → New Contact Amount: $997,421.00 (24% increase over the original contract)
• Change Order #5: $53,012.21 → Total Project Cost: $1,050,433.21 (31% increase over the original contract)
FUNDING SOURCE / FISCAL IMPACT:
Funding in the amount of $193,421.00 has been allocated from available unappropriated funds and incorporated into the contract budget.
RECOMMENDATION:
Ratify Change Order #1 in the amount of $193,421.00 to American Design Engineering Construction, Inc.
POTENTIAL MOTION:
“I move to ratify a Change Order to American Design Engineering Construction, Inc. in the amount of $193,421.00.”