Broward County Commission Regular Meeting

Authorizing the advance of funds at the not-to-exceed amount of $15,000,000 requires Board action.

THE TRANSPORTATION DEPARTMENT AND COUNTY ADMINISTRATION RECOMMEND APPROVAL.

This action is in furtherance of the Board's Value to support "[C]ooperatively delivering an efficient and accessible regional intermodal transportation network."

As discussed during consideration and approval of the Third Amendment to the Project Agreement on January 23, 2018 (Item No. 41), one of the strategies employed by the Wave's design team, in an effort to realize a cost-feasible project, was to significantly reduce the size of, and elements included within, the Vehicle Maintenance Storage Facility (VMSF). The previous solicitation's VMSF accommodated anticipated light-rail expansions (ability to house more than twice the number of vehicles needed for this project, washing facility, tools, equipment, and office space). The "base bid" design in this solicitation also eliminates the non-revenue track loop around the facility. The County was unwilling to accept the requested scope changes proposed by FDOT's design team to the VMSF; the resulting compromise was to included Exhibit A-1 to the Third Amendment to the Project Agreement requiring bidders to include in their submittals both a base bid and a bid alternate (VMSF full build-out). The ability to achieve a scalable, built-out VMSF now reduces expenses in the future; as it is expected to cost significantly more to retrofit the facility and lay the necessary trackwork in later phases. The elements of a fully-built-out VMSF are detailed in Exhibit 1.

The County and FDOT agreed to scope reductions which were disclosed to the Board when it approved the Third Amendment to the Project Agreement; assuring the County's long-term maintenance costs are not negatively affected and that the system retains its intended functionality, safety and integrity. Scope reductions cannot materially affect the Project Descriptions accepted by the FTA and USDOT without additional approvals or amendments (which have not occurred). Minor adjustments to the design that have occurred since the Board's previous actions are non-material and agreed to by the parties.

The County Administrator's ability to exercise the bid-alternate option is conditioned on Board authorization of a not-to-exceed amount in advance of bid opening (scheduled for April 26, 2018). The ability for the County to actually exercise its option requires two additional conditions being met: the bids are opened and the project is found to be cost feasible by the parties; the difference between the base bid and the bid-alternate (delta) does not exceed the authorized not-to-exceed amount.

FDOT's cost estimators have evaluated updated project scope elements and recalculated the Project Cost. Based on the best information available to the County at this time, we are requesting Authorization for a not-to-exceed amount of $15,000,000 for the scalable VMSF. The County is only legally obligated to pay one-quarter of the actual amount necessary to effectuate the build-out. Section 6 of the Amended and Restated ILA sets forth the responsibilities of the parties as follows: "Allocation of Financial Obligation for Enhanced VMF Costs. Additionally, if the work identified within Exhibit A-1 (including as Exhibit A-1 to the Third Amendment may subsequently be amended) is included in the Project, all resulting Enhanced VMF Costs initially paid by the County shall be reimbursed to the County as follows: the DDA shall reimburse the County 25% of each payment amount; and the City shall reimburse the County 50% of each payment amount. The County shall be responsible for the remaining 25% of each payment amount." If the actual amount necessary to include a full build-out of the VMSF were to reach the maximum level of $15M, the County's portion would be $3.750M.

Formal notice requirements placed upon the County, set forth within the existing agreements (to either FDOT and/or City), will be adhered to, with copies furnished to the Board and Project stakeholders. Specifically, should bids open on schedule, April 26, 2018, formal notice will be given to the Board of County Commissioners (Board) and Fort Lauderdale City Manager on that day, detailing whether or not the winning bid exceeds $142.5M (125% of Project Estimate). Even if the bid opening reveals cost feasibility, the parties (FDOT, County, City and DDA) intend to meet and discuss Project elements as soon as is practicable, including, but not limited to: the bid alternate, any alternative design concepts, and general procedural issues. Results of partners discussions, decisions, and recommendations will be regularly shared with the Board and County Administration. Should the County determine that is in in its best interest to include the bid alternate in the Design Build Contract, the County must then formally notify FDOT of its intent to exercise the option and advance the entire amount of the difference between the base bid and the bid alternate (delta) to FDOT within 14 days.