On April 17, 2023, upon receipt of all required permits, Maurice Gibb Park was closed for construction. During the progress of work, between June 23, 2023, and July 5, 2023, Lunacon discovered large amounts of unforeseen abandoned concrete structures, foundations and slabs, old catch basins and piping buried two (2) feet below grade, primarily along the South end of the site. Areas with petroleum contamination, not previously identified, were also discovered. The debris removal and additional work for remediation of the contaminated areas, were necessary for execution of the project scope of work. Lunacon requested compensation for the additional work required for the removal, hauling and disposal of the debris and contaminated fill, in the amount of $133,139. Upon review and analysis by the Coastal and City staff, compensation for the additional work was approved in September 2023, using funds from the Owner’s Contingency.
During the progress of work between July 27, 2023, and September 1, 2023, Lunacon discovered additional large expanses of asphalt paving and concrete slabs and found evidence of multiple underground fuel storage tanks at the south and north portions of the site. Though the site was known to have petroleum contamination from previous use as a gas station, these tanks were never identified in geotechnical or environmental testing performed during the development of the project. Lunacon worked with Coastal and the City to notify Miami Dade County Department of Environmental Resource Management (DERM) of the discovered tanks, apply for tank removal permits, develop the required procedures for the removal of the tanks and their appropriate disposal. The debris and tanks had to be removed for the execution of the park project. Lunacon requested compensation for the additional work required for the removal of the debris and six (6) underground fuel storage tanks, the required hauling and disposal, and the additional fill material required to fill the void once the tanks are removed, in the amount of $330,345.06. Upon review and analysis by the Coastal and City staff, compensation for the additional work was approved in November 2023, using funds from the Owner’s Contingency.
The unforeseen debris, the underground fuel storage tanks and additional remediation work encompasses the majority of the site. Attached is a site plan and photos of the underground storage tanks and debris discovered during construction (Exhibit A).
Addressing the unforeseen debris, removal of the underground storage tanks and the required permits has delayed the park project about three (3) months. Lunacon is working to minimize the delays, but the project completion date has shifted to March 3, 2025, from the initial date of December 8, 2024. As of the end of March 2024, the work is approximately fifty percent (50%) completed.
Addressing the unforeseen additional scope of work has reduced the Owner’s contingency significantly. There are also other scopes of work required for the completion of the project, additional to the agreement with Lunacon, which are being reviewed, or have been approved, further reducing the available contingency. This additional work includes, to name a few, changes in the layout of the seawall to save existing mature mangrove trees, escalation in the price of the specified light fixtures, additional foundations required for the custom playground equipment, and removal of several trees that are in bad condition and the required mitigation, at the cost of approximately $454,000. The available Owner’s Contingency balance is now $21,625.04.
Use of contingency funds is always subject to multilevel review and approval by the project’s architectural and engineering consultants and the City’s staff as to the appropriateness of the request and use of the funds. In review of the project, staff noticed that the project has expended more than ninety-seven percent (97%) of the Owner’s Contingency, whereas the project is only fifty percent (50%) completed. A majority of the contingency funds have been used to address conditions below the surface of the site.
City staff hereby requests a change order to the contract with Lunacon Engineering Group, Corp., to increase the project’s Owner Contingency. This will ensure that sufficient funding is available to address future unforeseen, required changes in the project scope in a timely manner. The requested amount of $425,000, will increase the available project contingency balance to $446,625.04. This will result in thirty-three percent (33%) Owner’s Contingency available for the remaining fifty percent (50%) of construction.
Any unused contingency funds available at the end of the project, will be returned to the City via a change order.
Change Order No. 1, in the amount of $425,000, will revise the total contract amount for Lunacon Engineering Group, Corp to $10,760,380, which would include a revised total Owner’s Contingency of $1,364,580.
LOBBYIST DISCLOSURE
In accordance with Resolution No. 2023-32857, adopted by the City Commission on December 13, 2023, the following information has been provided by the Administration as it relates to the subject resolution:
1. Was the Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No
2. If so, specify name of lobbyist(s) and principal(s): N/A