Reso 2012-1927 - Laserfiche WebLink

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'r* or sWd F' TO: FROM: DATE: RE: City of Sunny Isles Beach 18070 Collins Avenue Sunny Isles Beach, Florida 33160 (305) 947 -0606 City Hall (305) 949,3113 Fax MEMORANDUM The Honorable Mayor and City Commission Alan J. Cohen, City Manager 6/21/2012 Shoreline Foundation, Inc Construction Change Order #1 through #5 for the Newport Pier Project. RECOMMENDATION: Staff is recommending Commission approve the attached resolution. REASONS: Due to time constraints, the City instructed Shoreline Foundation, Inc. to start construction prior to obtaining all permits. As a result of delays in receiving the permits, the project was halted, and Shoreline demobilized. Upon obtaining the necessary permits to resume work, Shoreline remobilized to continue the project. The remobilization costs were not considered in the original contract and is resulting in a $37,605 change order. The City has a sales tax incentive program in place which allows the City to recognize additional savings after a construction project has been awarded to a contractor. The savings are recognized when the City purchases materials directly from the subcontractor on behalf of the contractor for the benefit of the public project. The City is exempt from paying sales tax, where the contractor is not. The authority to make these purchases is under the master contract. As a result of these direct purchases, the City prepares a deductive change order (for the gross amount) to recognize the decrease in the direct contractual obligation to the vendor. Attached includes deductive change orders #14 for a total of $818,158.79, the City will recognize a savings on these change orders for $40,557.92. FUNDING SOURCE: Funding is available in account number 35- 600 -5670. ail.