Broward County Commission Regular Meeting
Director's Name: Bertha Henry
Department: County Administration
Information
Requested Action
title
MOTION TO APPROVE change order to GMP No. 2 of the Master Development Agreement Between Broward County and Matthews Holdings Southwest, Inc., (MSW) for the Convention Center Expansion and Headquarters Hotel Project (RFP No. N1337414R3) in a not-to-exceed amount of $6,948,235 for the construction of various projects elements arising from the suspension of the rest of the Project and necessary to reopen the existing Convention Center facility.
body
Why Action is Necessary
In accordance with the Broward County Procurement Code, Section 21.94.a, amendments to agreements exceeding the award authority of the Director of Purchasing must be approved by the Board.
What Action Accomplishes
Approves funding for items necessary for the additional construction work arising from the suspension of the rest of the Project and completion of the West Expansion phase of the Convention Center Expansion and Headquarters Hotel project.
Is this Action Goal Related
Yes
Previous Action Taken
April 26, 2016 Regular Meeting (Item No. 35), May 10, 2016 Regular Meeting (Item No. 35), August 16, 2016 Regular Meeting (Item No. 95), November 1, 2016 Regular Meeting (Item No. 34), April 4, 2017 Regular Meeting (Item No. 43), October 3, 2017 Regular Meeting (Item No. 32), February 27, 2018 Regular Meeting (Item No. 61), August 14, 2018 Regular Meeting (Item No. 102), January 8, 2019 Regular Meeting (Item No. 56), April 16, 2019 Regular Meeting (Item No. 36), June 11, 2019 Regular Meeting (Item No. 78), August 27, 2019 Regular Meeting (Item No. 44), November 5, 2019 Regular Meeting (Item No. 77), June 16, 2020 Regular Meeting (Item No. 80).
Summary Explanation/Background
This agenda item supports the Board's goal of increased economic strength and impact of revenue generating County enterprises balancing economic, environmental, and community needs.
The work authorized in the Master Development Agreement (Agreement) with Matthews Southwest (MSW) for the Convention Center Expansion and Headquarters Hotel project (Project) is phased with different project components, each with its own Guaranteed
Maximum Price (GMP). The Board gave final approval for GMP No. 1 at the August 27, 2019 Regular Meeting (Item No. 44), and for GMP #2 at the November 5, 2019 Regular Meeting (Item No. 77).
Due to the global coronavirus pandemic and the impact it had on the economy and the bond markets, the Board approved at the June 16, 2020 Regular Meeting (Item No. 80) an amendment to the MSW Agreement that temporarily suspended the rest of the Project until such time as economic conditions improve to the point where the County determines that developing the remaining phases of the Project, based on a series of factors to be analyzed by the County, is prudent.
While each GMP phase is for a defined phase of the Project, there are interrelationships between phases. The yet to be approved Hotel, East Expansion and Plaza phases contain Project elements that are necessary for the completion of the Western Expansion phase of the Convention Center, for example a shared exit stair tower to be used by both the Convention Center and the Headquarters Hotel. For the existing facility to be able to obtain a Certificate of Occupancy, a stair tower will have to be constructed now, separate from the remaining phases. In addition to the stair tower, change order project elements include an enclosed corridor on the north side of the Convention Center, a north-south road connecting E. 20th Street in front of the Convention Center to Grand Blvd. and a stucco finish to the north façade of the Convention Center.
This work is anticipated to have an all-in net Project cost of no more than $6.4M ($6,348,235), after approximately $2.5 million worth of deductions are made from GMP No. 2 for other work (test piles and permanent piles for the East Expansion) that will not be needed at this time due to the suspension of the East Expansion phase (please see Exhibit 1). An additional $600,000 is being added to the Owner Contingency line to cover unanticipated expenses that might be required after project design and regulatory review by the City of Fort Lauderdale, bringing the change order total the Board is being asked to approve to $6.948,235.
Staff still has some questions on the project pricing that need to be negotiated and finalized with MSW, which should result in a lower project cost if all estimating assumptions are accurate. Given the need to get this work done in time for the opening of the facility in October 2021, pricing was developed prior to design documents being developed. Staff is presenting for Board approval a not-to-exceed amount, inclusive of a contingency, in the event that unknown conditions result in unanticipated costs for this change order, noting the identification of unknown conditions on the site in a previous phase.
Source of Additional Information
Alan Cohen, Assistant County Administrator, (954) 357-7364
Fiscal Impact
Fiscal Impact/Cost Summary
This change order will be funded by the appropriate source at the time of release.