TO: CRA Board of Commissioners
FROM: Tara Toto, Redevelopment Manager
THROUGH: Renée A. Jadusingh, Executive Director
DATE: January 25, 2022
98 NW 5th AVENUE RENOVATION - UPDATE AND DIRECTION
Recommended Action:
Update and discussion regarding the 98 NW 5th Avenue Renovation Project and direction regarding the following options:
1) Accept the January 5, 2022, Change Order request from Waypoint Consulting, Inc. in the amount of $225,582.60; or
2) Reject the January 5, 2022, Change Order request from Waypoint Consulting, Inc., cancel the October 20, 2021, Agreement with Waypoint Consulting, Inc., and award Invitation to Bid 2021-03 to the next low responsible bidder; or
3) Reject the January 5, 2022, Change Order request from Waypoint Consulting, Inc. and cancel the October 20, 2021, Agreement with Waypoint Consulting, Inc., and rebid the 98 NW 5th Avenue Renovation Project.
Background:
98 NW 5th Avenue (“Subject Property”) is located within the City of Delray Beach’s Historic West Settlers District and was purchased by the Delray Beach Community Redevelopment Agency (“CRA”) in August 2018 for the purchase price of $1,400,000 with the intention of repurposing and renovating the interior and exterior of the building for commercial use (office/retail) to be offered at an affordable rental rate. An Invitation to Bid for the interior and exterior renovation construction work for 98 NW 5th Avenue (“Project”) was published on March 29, 2021 (“ITB 2021-03”) with an extended submittal deadline of May 10, 2021. On May 25, 2021, the Delray Beach CRA Board awarded the Invitation to Bid 2021-03 to Waypoint Contracting, Inc. in the amount of $1,925,000 based on the three (3) responses received to ITB 2021-03:
1. Coastal Quality Construction, Inc. (“CQC”) - $2,369,510
2. Hatcher Construction and Development, Inc. (“HCD”) - $1,980,000
3. Waypoint Contracting, Inc. - (“WC”) $1,925,000
On May 25, 2021, the CRA Board awarded the ITB 2021-03 to WC in the amount of $1,925,000. After negotiations, an agreement between the CRA and WC was executed on October 20, 2021 (“Agreement”). On November 16, 2021, WC submitted a Change Order in the amount of $285,867.01. On November 24, 2021, and on December 13, 2021, CRA staff and CRA consultant, Synalovski Romanik and Saye (“SRS”), met virtually with WC to discuss the Change Order and review the requested back up documentation and information.
Below is a timeline summarizing the events since the Agreement was executed:
10-20-21: Agreement for Project executed.
11-16-21: WC submitted a Change Order request for $285,867.01.
11-24-21: Meeting between CRA, CRA consultant, and WC wherein the CRA stated the Change Order provided by WC did not contain the necessary information for CRA staff to thoroughly review the Change Order. CRA staff and CRA consultant requested additional information from WC that would support the Change Order and is necessary to complete a thorough review of the Change Order.
12-8-21: WC provided additional information to support the Change Order.
12-13-21: Meeting between CRA, CRA consultant, and WC wherein the CRA stated the additional information provided by WC did not contain the necessary information for CRA staff to thoroughly review the Change Order. CRA staff and CRA consultant requested additional information from WC that would support the Change Order and is necessary to complete a thorough review of the Change Order.
12-20-21: WC provided additional information to support the Change Order; and
WC submitted a revised Change Order in the amount of $250,506.37.
1-5-22: WC provided additional information to support the Change Order; and
WC Submitted a revised Change Order in the amount of $225,582.60.
On multiple occasions, CRA staff and CRA consultant SRS have requested WC to provide additional information and supporting documentation related to the Change Order for review and explained the necessity of this additional information and supporting documentation. The information and supporting documentation provided was not adequate to perform a complete analysis of the requested Change Order.
WC has stated that the Change Order reflects the current market conditions.
Due to the Change Order, a notice to proceed has not been issued to WC for the Project.
At this time, the final Change Order submitted by WC on January 5, 2021, is in the amount of $225,582.60, which would bring the total contract sum to $2,150,582.60.
As it relates to the contract sum, Article 3 Contract Sum of the Agreement states the following:
Additionally, ITB 2021-03 expressly stated that the price was firm and fixed, and WC also submitted a signed Bid Pricing Form with the firm and fixed price at the rate of $1,925,000 with its Bid.
ITB Section 2, paragraph 6 states:
Excerpt of the Bid Pricing Form submitted by WC:
The ITB which was incorporated by reference in the Agreement allows the CRA to terminate the Agreement for Convenience.
Section 1, paragraph 27 of the ITB specifically states:
Furthermore, the CRA’s Purchasing Policies and Procedures Manual provides that in the event of the cancellation of a contract with the lowest responsible bidder, the CRA may elect to award the contract to the next low responsible bidder if it is in the best interest of the CRA, rather than rebidding, and the next low responsible bidder agrees to the extension of the bid price for the additional period of time.
More specifically, the CRA’s Purchasing Policies and Procedures Manual states:
Id. at 18.
Based on the above, CRA Staff is seeking direction from the CRA Board regarding the following options:
1) Accept the January 5, 2022, Change Order request from Waypoint Consulting, Inc. in the amount of $225,582.60; or
2) Reject the January 5, 2022, Change Order request from Waypoint Consulting, Inc., cancel the October 20, 2021, Agreement with Waypoint Consulting, Inc., and award Invitation to Bid 2021-03 to the next low responsible bidder; or
3) Reject the January 5, 2022, Change Order request from Waypoint Consulting, Inc. and cancel the October 20, 2021, Agreement with Waypoint Consulting, Inc., and rebid the 98 NW 5th Avenue Renovation Project.
Attachments: Exhibit A - Location Map; Exhibit B - Colored Elevation; Exhibit C - ITB 2021-03 Schedule of Values; Exhibit D - Agreement; Exhibit E - Change Order dated 11.16.21; Exhibit F - Change Order dated 12.20.21; Exhibit G - Change Order dated 1.5.22
CRA Attorney Review:
N/A
Finance Review:
N/A
Funding Source/Financial Impact:
Funds allocated from General Ledger # 6208B - 98 NW 5th Avenue Renovation- Construction