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HomeMy WebLinkAboutInv# Pay App 6 - Burkhardt Construction - 12/16/2024 (2)From:Marc Kleisley To:Waren, Cassi Cc:Brandon Rhodes Subject:Re: FW: Burkhardt Pay App 6 Date:Thursday, December 19, 2024 4:03:35 PM Attachments:image001.png image002.png image003.png image004.png image005.png image006.png image007.png image008.png image009.png CAUTION: This email originated from outside the City of Dania Beach. Do not click links or open attachments unless you recognize the sender and expect the content. Cassi, Responses to Frank below in red. Essentially, the amounts on the Burkhardt change order match the amounts of our PO’s. However, the Burkhardt change order amounts should be higher as they include tax. The difference between the Burkhardt change order amount and our total of ODP purchase orders = the tax savings. - That statement is correct Additionally, I expect that the Burkhardt CO amounts are from the original GMP. That is correct – for example, if an item was originally $107,000 inclusive of tax, our ODP cost would be $100,000. But if the PO was issued for $90,000 due to changes in the purchase (unit price or item quantities, etc), then the Burkhardt change order should reflect the original $107,000 amount so we realize both the tax savings and the purchase change savings. We are not keeping the tax, however, it will be reconciled at the end once all of the vendor PO's are signed up. The idea of a GMP is to avoid change orders. Once the final PO is issued and signed up we will credit the entire tax savings as it relates to the PO issued total ($ 1,051,078.26). If there are additional funds left over similar to your example the underruns are credited at the end of the project in case we have to accommodate other changes within the project. Essentially, its like another contingency. All of these savings need to be reflected in the GMP. These savings are reflected in our original GMP and will be credited accordingly. If there are additive change orders to be approved - This is the exact reason why we wait to credit any underruns so that we don't have to request change orders., we will look first to Contingency and then we can tap into these tax / ODP savings if needed. In summary, once the final PO - Athletic Resources is issued we will provide a credit for that PO and all of the sales tax based on the total shown in the email chain. We will identify any underruns at that time and reflect it in the construction contingency. That can be used to address any CO's in the PO's. If we agree that a CO for a PO is acceptable we can provide you with that deduct to pay for it. Please understand that at the end of the day any unused contingency will revert back to you. We are trying to eliminate too many back and forth shifting of funds because the values get lost and at the end of the day we need to pay everything within the GMP amount. Underruns will be credited, overruns are addressed with available funds within the GMP to avoid CO requests. We will be glad to jump on a call to discuss if needed. On Thu, Dec 19, 2024 at 3:26 PM Waren, Cassi <cwaren@daniabeachfl.gov> wrote: Brandon/Marc, See below from Frank regarding the ODP and the change order done on the last pay application. Thank you, Cassi Waren , Director of Parks and Recreation cwaren@daniabeachfl.gov | daniabeachfl.gov  100 W Dania Beach Blvd, Dania Beach, FL , 33004 Phone: 954.924.6800, x3731 R.I.S.E. ‑ RESPECT, INTEGRITY AND STANDARD OF EXCELLENCE Please note: Florida has a very broad public records law. Most written communications, including emails, to or from City officials regarding City business are public records and may be subject to public disclosure. From: DiPaolo, Frank <fdipaolo@daniabeachfl.gov>  Sent: Thursday, December 19, 2024 3:10 PM To: Waren, Cassi <cwaren@daniabeachfl.gov> Cc: Guzman, Yeimy <yguzman@daniabeachfl.gov>; Stevens, Tania <tstevens@daniabeachfl.gov> Subject: FW: Burkhardt Pay App 6 Hi Cassi, As we discussed, our team reconciled the ODP purchase orders to the Burkhardt ODP change order. Essentially, the amounts on the Burkhardt change order match the amounts of our PO’s. However, the Burkhardt change order amounts should be higher as they include tax. The difference between the Burkhardt change order amount and our total of ODP purchase orders = the tax savings. Additionally, I expect that the Burkhardt CO amounts are from the original GMP – for example, if an item was originally $107,000 inclusive of tax, our ODP cost would be $100,000. But if the PO was issued for $90,000 due to changes in the purchase (unit price or item quantities, etc), then the Burkhardt change order should reflect the original $107,000 amount so we realize both the tax savings and the purchase change savings. All of these savings need to be reflected in the GMP. If there are additive change orders to be approved, we will look first to Contingency and then we can tap into these tax / ODP savings if needed. Please let me know if you wish to arrange a meeting to discuss. Thanks, Frank Frank DiPaolo , Chief Financial Officer fdipaolo@daniabeachfl.gov | daniabeachfl.gov  100 W Dania Beach Blvd, Dania Beach, FL , 33004 Phone: 954.924.6800, x3609 R.I.S.E. ‑ RESPECT, INTEGRITY AND STANDARD OF EXCELLENCE Please note: Florida has a very broad public records law. Most written communications, including emails, to or from City officials regarding City business are public records and may be subject to public disclosure. From: Stevens, Tania <tstevens@daniabeachfl.gov>  Sent: Thursday, December 19, 2024 2:34 PM To: DiPaolo, Frank <fdipaolo@daniabeachfl.gov> Cc: Guzman, Yeimy <yguzman@daniabeachfl.gov> Subject: Burkhardt Pay App 6 Hi Frank. I reconciled the Change Order to the POs that have been issued. Please see below and attached. Thanks. VENDOR AMOUNT PAYMENT STATUS Shades Systems $ 72,961.45 unpaid GameTime $ 95,067.54 unpaid Rep Services $ 21,235.00 unpaid Forms & Surfaces $ 87,329.00 unpaid Iron Age Designs $ 20,064.00 unpaid Source Furniture $ 8,740.00 unpaid Daktronics $ 12,903.00 unpaid Most Dependable Fountains $ 21,465.00 unpaid Pole-Tech $ 5,535.00 unpaid Synthetic Turf Resources Corp $ 217,447.23 unpaid Landscape Forms $ 108,570.00 unpaid BSN Sports $ 3,775.98 unpaid Edward Don & Company $ 25,530.14 unpaid All Specialty Sales $ 24,151.40 unpaid Interaktivo Solutions $ 29,750.00 unpaid Xcel Fitness Products $ 71,270.00 deposit paid Atlantic Doors & Hardware $ 83,439.26 unpaid J.C. White Architectural $ 46,402.09 unpaid Performance Sports Systems $ 33,525.47 unpaid "The difference is in the details." MARC R. KLEISLEY VICE PRESIDENT BURKHARDT CONSTRUCTION, INC. 1400 Alabama Avenue, Suite 20 West Palm Beach, Florida 33401tel (561) 659-1400 | fax (561) 659-1402 $ 989,161.56 Athletic Resources $ 61,916.70 PO wasn't issued $ 1,051,078.26 Tania Stevens , Senior Accountant tstevens@daniabeachfl.gov | daniabeachfl.gov  100 W Dania Beach Blvd., Dania Beach , FL , 33004 Phone: 954.924.6800, x3671 R.I.S.E. ‑ RESPECT, INTEGRITY AND STANDARD OF EXCELLENCE Please note: Florida has a very broad public records law. Most written communications, including emails, to or from City officials regarding City business are public records and may be subject to public disclosure. --