Agenda/Materials

NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY - Agenda NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY BOARD MEETING WEDNESDAY, AUGUST 6, 2014 AT 9:00 A.M. 32 EAST FRONT STREET, FRONT STREET BOARD ROOM AGENDA 1. NOTICE OF PUBLIC MEETING 2. ROLL CALL 3. APPROVAL OF MEETING MINUTES a. Board Open Session Meeting Minutes of July 2, 2014 b. Board Executive Session Meeting Minutes of July 2, 2014 4. AUTHORITY MATTERS a. CEO Report i. Change Orders to Increase Allowance for Impacted and Unsuitable Soils - Jersey City PS# 20 b. Chairman’s Report 5. REPORT AND RECOMMENDATIONS OF THE AUDIT COMMITTEE (CHAIRMAN’S REPORT) a. Experis Finance US, LLC, Amendment to Agreement b. Internal Auditing Consultant Services 6. REPORT AND RECOMMENDATIONS OF THE SCHOOL REVIEW COMMITTEE (CHAIRMAN’S REPORT) a. Preliminary Project Charter – Perth Amboy School District – Seaman Avenue Elementary School b. Preliminary Project Charter – Vineland School District – New Middle School c. Release of Funds from Program Reserve – Hoboken School District – Hoboken Brandt School - Emergent Project – Exterior Masonry d. Release of Funds from Program Reserve – Jersey City School District – Alexander D. Sullivan School #30 - Emergent Project – Exterior Masonry e. Release of Funds from Program Reserve – Jersey City School District – Nicolaus Copernicus School #25 - Emergent Project – Roof and Window Replacement f. Release of Funds from Program Reserve – Jersey City School District – A. Harry Moore School - Emergent Project – Exterior Masonry 7. MONTHLY REPORTS a. For Informational Purposes i. Active Projects Report ii. Project Close Out Status Report iii. Project Status Reports iv. Contracts Executed Report/Amendments & Change Orders Executed Report v. Contract Terminations Report vi. Settlement Activities Report vii. Contractor and Workforce Compliance Report viii. Regular Operating District Grant Activity Report ix. Notification of Amendments to Goods and Services Contracts Not Exceeding $250,000 NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY - Agenda (no activity) x. Communications Report xi. Monthly Financial Report xii. Design Contract De-Obligations Report (new) 8. PUBLIC COMMENTS 9. REPORT AND RECOMMENDATIONS OF THE REAL ESTATE COMMITTEE (CHAIRMAN’S REPORT)– TO BE PROVIDED IN EXECUTIVE SESSION 10. ADJOURNMENT 2 NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY - APPROVAL OF MEETING MINUTES 3 APPROVAL OF MEETING MINUTES NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY - APPROVAL OF MEETING MINUTES 3 JULY 2, 2014 OPEN SESSION MINUTES NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY - APPROVAL OF MEETING MINUTES 3 NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY - APPROVAL OF MEETING MINUTES 3 NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY - APPROVAL OF MEETING MINUTES 3 NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY - APPROVAL OF MEETING MINUTES 3 NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY - APPROVAL OF MEETING MINUTES 3 NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY - APPROVAL OF MEETING MINUTES 3 NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY - APPROVAL OF MEETING MINUTES 3 NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY - APPROVAL OF MEETING MINUTES 3 NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY - APPROVAL OF MEETING MINUTES 3 NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY - APPROVAL OF MEETING MINUTES 3 NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY - APPROVAL OF MEETING MINUTES 3 NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY - APPROVAL OF MEETING MINUTES 3 NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY - APPROVAL OF MEETING MINUTES 3 NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY - APPROVAL OF MEETING MINUTES 3 NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY - APPROVAL OF MEETING MINUTES 3 NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY - APPROVAL OF MEETING MINUTES 3 NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY - APPROVAL OF MEETING MINUTES 3 NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY - APPROVAL OF MEETING MINUTES 3 RESOLUTION—3a./3b. Approval of Minutes WHEREAS, the By-Laws provide that the minutes of actions taken at meetings of the New Jersey Schools Development Authority be approved by the Authority’s Board of Directors; and WHEREAS, pursuant to Section 3(k) of P.L. 2007, Chapter 137, the minutes of the July 2, 2014 Board meeting of the New Jersey Schools Development Authority, for the Open and Executive Sessions were forwarded to the Governor on July 2, 2014. NOW, THEREFORE, BE IT RESOLVED, that the minutes of the New Jersey Schools Development Authority’s July 2, 2014 Open and Executive Session meetings are hereby approved. BE IT FURTHER RESOLVED, that this resolution shall take effect immediately, but no action authorized herein shall have force and effect until 10 days, Saturdays, Sundays and public holidays excepted, after a copy of the minutes of the Authority meeting at which this resolution was adopted has been delivered to the Governor for his approval, unless during such 10 day period, the Governor shall approve same, in which case such action shall become effective upon such approval. Dated: August 6, 2014 NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY - AUTHORITY MATTERS 4 AUTHORITY MATTERS NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY - AUTHORITY MATTERS 4 CEO REPORT (ORAL) NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY - AUTHORITY MATTERS 4 CHANGE ORDERS TO INCREASE IMPACTED AND UNSUITABLE SOILS ALLOWANCE - JERSEY CITY PS #20 NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY - AUTHORITY MATTERS 4 MEMORANDUM TO: Members of the Authority FROM: Corrado Minervini Program Director, Program Operations DATE: August 6, 2014 SUBJECT: Ratification of Actions Taken to Increase an Allowance to Address Unsuitable Soils Jersey City Public School District – New P.S. No. 20 Elementary School COMPANY NAME: Dobco Inc. DISTRICT: Jersey City Public School District CONTRACT NO: JE-0010-C01 PMF/CM: Gilbane Building Company SCHOOL NAME: New P.S. No. 20 Elementary School CHANGE ORDER NOS.: 3 and 4 REASON: Additional Unsuitable Soils AMOUNT: $788,887.94 TIME EXTENSION: TBD CONTRACT STATUS: 8.49% Paid to Date against the Current Contract Value OCCUPANCY DATE: September 2016 INTRODUCTION I am writing seeking ratification from the Members of the Authority of actions taken by Authority staff regarding two related change orders, each of which increased the dollar value of a contractually-defined Allowance. The above-referenced contract established an Allowance of $500,000 to address the excavation and removal of unsuitable soils and replacement with suitable material. Change Order No. 3 increased the Allowance value by $488,887.94 to address additional work already performed. Change Order No. 4 increased the Allowance by $300,000 to provide for additional work that is ongoing. The NJSDA Operating Authority adopted by the Board on December 1, 2010, as amended March 7, 2012, provides that approval by the Members of the Authority is required for a change order that singularly exceeds $500,000 or 10% of the contract value. Neither Change Order No. 3 nor Change Order No. 4 singularly exceeds $500,000 or 10% of the contract value. Nonetheless, recognizing that the aggregated value of the two change orders exceeds $500,000, we are seeking ratification by the Members of the Authority of the actions taken which, as described below, were necessary to maintain site condition integrity and project progress. NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY - AUTHORITY MATTERS 4 Members of the Authority Change Order – Dobco Inc. Jersey City School District – New P.S. No. 20 Elementary School August 6, 2014 Page 2 of 4 BACKGROUND On August 23, 2013, Dobco, Inc. (Dobco) was issued a Notice of Award for a contract in the amount of $28,735,000 for the construction of the New Public School No. 20 Elementary School (New PS No. 20 E.S) in the Jersey City School District. When completed, the New Public School No. 20 will be a new 108,867 square foot facility designed to educate 628 students in grades Kindergarten through Five. On September 16, 2013, Dobco was issued a Notice-To-Proceed to perform a Constructability Review. Upon completion of the Constructability Review and after a series of negotiations Change Order No.1 was executed by the NJSDA on February 28, 2014 to address items identified during the Constructability Review, and Dobco was issued a Notice to Proceed for construction activities. Based upon information provided by the Design Consultant SSP, the Contract established a $500,000 Allowance to address excavation, disposal, relocation and replacement of unsuitable and impacted material in order to achieve appropriate subgrade preparation for specified footings and foundations, with those activities performed on a time and material basis. REASON FOR CHANGE In March, 2014, Dobco began excavation work for footings and foundations. Excavation activities have encountered unsuitable soils to a greater degree than had been predicted by SSP in its assessment. Because of that, the amount valued by the Contract Allowance value has been expended in full. During June and July, 2014, removal and replacement of additional unsuitable soils beyond the established Allowance value was performed unilaterally by Dobco, without prior approval. When made aware of the additional removal over the $500,000 amount on July 16, 2014, SDA directed Dobco to stop work on the excavation of any additional unsuitable soils, in order to assess and value the additional work performed and still needed. That assessment identified 1) that the activities already performed in excess of the $500,000 allowance were at an additional cost of $488,887.94 as of July 16, 2014 and 2) that an appropriate adjustment to the Allowance value to address the remaining unsuitable soils is approximately

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