2011-27809 Reso RESOLUTION NO. 2011-27809
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, PERTAINING TO THAT CERTAIN CITY
CONSTRUCTION PROJECT REFERRED TO AS THE "BISCAYNE POINT
NEIGHBORHOOD RIGHT-OF-WAY IMPROVEMENTS PROJECT" (THE
PROJECT)AND, WITH RESPECT TO SUCH PROJECT,ACCEPTING THE
FINDINGS AND RECOMMENDATION OF THE CITY MANAGER IN
DECLARING AN EMERGENCY PURSUANT TO SUBSECTIONS
287.055(3)(a)(1) AND (9)(c)(6), FLORIDA STATUTES, ALL AS MORE
SPECIFICALLY SET FORTH IN THIS RESOLUTION AND THE
ACCOMPANYING COMMISSION MEMORANDUM; AND, AS PERMITTED
PURSUANT TO SECTION 2-367(e) OF THE CITY CODE, WAIVING, BY
5/7THS VOTE, THE COMPETITIVE BIDDING REQUIREMENTS, FINDING
SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY, AND
AUTHORIZING THE CITY MANAGER TO TAKE THE FOLLOWING
ACTIONS TO PROCURE THE NECESSARY EMERGENCY DESIGN AND
CONSTRUCTION SERVICES FOR THE PROJECT, PURSUANT TO A
NEGOTIATED DESIGN-BUILD CONTRACT: 1) PREPARE, WHETHER
THROUGH THE CITY'S PUBLIC WORKS DEPARTMENT OR THROUGH
RETENTION OF AN OUTSIDE DESIGN CRITERIA PROFESSIONAL, AS
DETERMINED BY THE CITY MANAGER,A DESIGN CRITERIA PACKAGE
(DCP) WHICH COMPLIES WITH THE SPECIFICATIONS SET FORTH
UNDER SECTION 287.055(2)01, FLORIDA STATUTES; 2) UPON
COMPLETION OF THE DCP, AUTHORIZING THE CITY MANAGER TO
NEGOTIATE AND, IF SUCCESSFUL, EXECUTE A DESIGN-BUILD
CONTRACT, WITH A GUARANTEED MAXIMUM PRICE (GMP) FOR THE
REMAINING WATER,STORMWATER, LANDSCAPE AND STREETSCAPE
IMPROVEMENTS FOR THE PROJECT, WITH THE FIRM OF DAVID
MANCINI & SONS, INC. (DMSI) WHO, AS THE CITY'S CONTRACTOR
CURRENTLY WORKING ON THE PROJECT UNDER THAT CERTAIN
CONSTRUCTION CONTRACT AUTHORIZED PURSUANT TO INVITATION
TO BID NO.07-10/11 (THE ITB), IS THE ONE APPROPRIATELY LICENSED
CONTRACTOR WHO IS MOST QUALIFIED TO ASSUME THE REMAINING
WORK UNDER THE PROJECT UNDER THE PROPOSED DESIGN-BUILD
CONTRACT BECAUSE DMSI IS CURRENTLY UNDER CONTRACT TO
PERFORM (AND IS PERFORMING) WORK THAT IS AFFILIATED WITH
THE PROJECT;AND 3)FURTHER AUTHORIZING THE CITY MANAGER TO
TERMINATE, FOR CONVENIENCE, THE REMAINING PORTION OF THE
CURRENT CONSTRUCTION CONTRACT WITH DMSI (ENTERED INTO
PURSUANT TO THE ITB) AND REQUIRING THAT, AS A CONDITION TO
THE CITY AND DMSI'S EXECUTION OF THE NEGOTIATED DESIGN-BUILD
CONTRACT,THE PARTIES ENTER INTO AND EXECUTE A SETTLEMENT
AGREEMENT AND RELEASE OF ALL CLAIMS AGAINST THE CITY UNDER
THE FORMER CONTRACT, WHERE THE COMBINED SUM OF THE
NEGOTIATED DESIGN-BUILD GMP AND THE AMOUNT NEGOTIATED AS
PART OF THE SETTLEMENT OF THE EXISTING CONTRACT SHALL NOT
EXCEED $11,998,535, WHICH INCLUDES THE $10,907,759
CONSTRUCTION AWARD VALUE OF THE CURRENT DMSI
Page 1 of 5
A
CONSTRUCTION CONTACT AND THE APPRO VED PROJECT
CONTINGENCY AMOUNT OF $1,090,776.
WHEREAS, on November 30, 2010, Invitation to Bid No. 07-10/11 for the Biscayne
Point Neighborhood Right-of-Way Improvements Project (the Project) was issued with an
opening date of January 27, 2011 (the ITB or the Bid); and
WHEREAS, on March 9, 2011, the Mayor and City Commission adopted Resolution
No. 2011-27621, approving and authorizing the Mayor and City Clerk to execute a
construction contract with David Mancini & Sons, Inc. (DMSI or Contractor), as the
successful bidder pursuant to the ITB, and also authorized the Administration to engage in
value engineering to further reduce the cost and time for completion of said Project (the
Construction Contract); and
WHEREAS, the Construction Contract was fully executed on April 4, 2011; and
WHEREAS, the first Notice-to-Proceed (NTP) was issued to Contractor on May 5,
2011; and
WHEREAS, the Contractor's value engineering proposal consisted of a conceptual
design that would reduce the number of stormwater pump stations in the Project from the
four (4) specified by EAC Consulting, Inc., the City's consultant and engineer-of-record for
the Project(Consultant), to two (2); affirming that a two pump station design could meet the
same level of service provided by the Consultant; and
WHEREAS, the City's Public Works Department (PWD) evaluated Contractor's
proposal, and determined that the conceptual design would meet its minimum requirements,
and provide lower operation and maintenance costs for the City; and
WHEREAS, the Contractor's value engineering proposal would require a re-design
and re-permitting of the stormwater system, which the Contractor agreed could be finalized
and re-permitted during construction; and
WHEREAS, a concern was raised after the Florida Department of Environmental
Protection (FDEP) issued a Request for Information (RFI) to Consultant regarding the 90-
second detention design provisions for the stormwater runoff prior to being discharged
through the drainage wells; and
WHEREAS, PWD determined that detention structures would be required to meet the
90-second detention treatment requirement; and
WHEREAS, a permit for construction of the drainage wells could not obtained from
FDEP or PWD, requiring a re-design of the stormwater system to incorporate the required
detention structures or other means of satisfying the stormwater pre-treatment requirements;
and
WHEREAS,the City agreed that the value engineering re-design would address the
reduction in the number of pump stations; and
WHEREAS, the incorporation of the detention structures would be considered
Page 2 of 5
additional scope of work; and
WHEREAS, the City further agreed that the shared cost of implementing the value
engineering re-design would be approved via deductive change order as per the
Administration's interpretation of the provisions in the construction contract; and
WHEREAS, the City agreed to issue the 2nd Notice-to-Proceed for the Project on
August 24, 2011, with the understanding that the revisions to the design of the stormwater
system, and associated re-permitting, could be procured prior to finalizing the water main
construction, allowing construction of the stormwater improvements to proceed with no
impact to the construction schedule; and
WHEREAS, the Project was scheduled to be completed within a 15-month period,
contingent on the Contractor's procurement of the design and all the necessary construction
permit revisions; and
WHEREAS, as construction of the water main improvements progressed, various
inconsistencies between the construction documents, technical specifications, and the
construction contract were raised by the Contractor; and
WHEREAS, the Project team has encountered multiple potential errors and
omissions in the construction documents; and
WHEREAS, the change order costs for these potential errors and omissions will
exceed the allocated construction contingency early in the Project, and are also attributing to
delays to the Project schedule; and
WHEREAS, the Administration is also concerned that the Consultant has not
responded in a timely fashion to the inconsistencies raised throughout construction, nor
provided clear directives to the Contractor; and
WHEREAS, the current Construction Contract requires the Contractor to proceed
based on the Consultant's design (as the engineer-of-record), and does not allow for a
"design" component, which would allow the Contractor to assume re-design of the
stormwater system (by retaining its own design professional); and
WHEREAS, any desired re-design would either have to be undertaken by the
Consultant, or re-bid in compliance with the provisions of Section 287.055, Florida Statutes
(also known as the "Consultants Competitive Negotiation Act" or CCNA); and
WHEREAS, due to the Consultant's performance, the Administration recommends
that the Consultant not be used for the re-design of the stormwater system, and that a new
design professional be retained for delivering the required corrective design services; and
WHEREAS, the Contractor is finalizing the construction of the watermain
improvements and, with the stormwater system re-design pending, will have no alternative
but to demobilize; and
WHEREAS, the demobilization and delays would be detrimental to the Project
construction budget and result in additional hardships for the residents of this community,
including: a life safety concern due to existing low water main pressure which could result in
Page 3 of 5
issues with fire suppression, should the need arise; a prolonged period that residents could
risk potential flooding of private residences and associated financial repercussions;
accessibility concerns due to unfinished pavement conditions; violations of the Americans
with Disabilities Act(ADA)due to the disturbance of grade transitions to existing sidewalks;
and potential increases in incidental crime due to poor lighting conditions; and
WHEREAS, it is critical that the Administration be able to pursue and alternative
methodology in prosecuting the re-design and construction of the Project which would
include: 1.)retaining a new design professional to perform the necessary re-design services
and any other corrective actions; and 2.) continuing with construction of the Project with
Contractor, with minimal or no disruption and/or interruption; and
WHEREAS, the CCNA permits an exemption (or waiver) of its competitive bidding
requirement in cases of valid public emergencies; and
WHEREAS, in this instance, and for the aforementioned reasons,the Administration
believes that potentially unsafe site conditions; potential community hardships; quality of life
issues; and potential impacts to the Project budget and schedule (as a result of corrective
work necessitating change orders) all lend ample support to the existence of a potential
public emergency; and
WHEREAS,accordingly,finding that a public emergency exists, and for purposes of
waiving the bidding requirements under the CCNA, the Administration further recommends
that the City Commission authorize it to proceed with the following course of action relative to
the Project: 1)that competitive bidding requirements be waived, by 5/7ths vote,as permitted
pursuant to Section 2-367(e)of the City Code, finding such waiver to be in the best interest
of the City, and authorize the City Manager to negotiate a Design-Build contract with
Contractor and authorizing the City Manager to prepare a Design Criteria Package (DCP)
which complies with the specifications set forth under F.S.287.055(2)(j),whether through the
City's Public Works Department or through retention of an outside Design Criteria
Professional, as determined by the City Manager; 2)upon completion of the DCP, authorize
the City Manager to negotiate and, if successful, execute a Design-Build contract in a not-to-
exceed amount [essentially, the equivalent of a Guaranteed Maximum Price(GMP)]for the
remaining water, stormwater, landscape and streetscape improvements for the Project with
DMSI, as the appropriately licensed contractor who is most qualified to undertake the Project
under the proposed Design-Build contract; 3) authorize the City Manager to terminate, for
convenience, the remaining portion of the current Construction Contract with DMSI, and
enter into and execute a settlement agreement and release of all claims against the City
under such Contract, as a condition to the City and DMSI's execution of the negotiated
Design-Build contract; and 4) cap the total sum of the combined negotiated Design-Build
contract and the negotiated settlement of the existing Construction Contract,at$11,998,535
[which includes the $10,907,759 construction award value of the current Construction
Contract, and the approved Project contingency amount of$1,090,776]; and
WHEREAS, as referenced in the attached letter from DMSI (Attachment No. 1), DMSI has
agreed to close-out the existing Construction Contract, and enter into the proposed Design-
Build contract for the agreed total amount (which is inclusive of the work under the
Construction Contract and the work under the proposed Design-Build Contract) of
$11,998,535.
Page 4 of 5
NOW,THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA,that the Mayor and City Clerk be authorized to
execute the Resolution of the Mayor and City Commission of the City of Miami Beach,
Florida, pertaining to that certain City construction project referred to as the"Biscayne Point
Neighborhood Right-of-Way Improvements Project" (the Project) and, with respect to such
Project, accepting the findings and recommendation of the City Manager in declaring an
emergency pursuant to Subsections 287.055(3)(a)(1) and (9)(c)(6), Florida Statutes, all as
more specifically set forth in this Resolution and the accompanying Commission
Memorandum; and, as permitted pursuant to Section 2-367(e) of the City code,waiving, by
5/7ths vote, the competitive bidding requirements, finding such waiver to be in the best
interest of the City, and authorizing the City Manager to take the following actions to procure
the necessary emergency design and construction services for the Project, pursuant to a
negotiated design-build contract: 1) prepare, whether through the City's Public Works
Department or through retention of an outside Design Criteria Professional, as determined
by the City Manager, a Design Criteria Package (DCP) which complies with the
specifications set forth under Section 287.055(2)(j), Florida Statutes; 2) upon completion of
the DCP, authorizing the City Manager to negotiate and, if successful, execute a design-
build contract, with a Guaranteed Maximum Price (GMP) for the remaining water,
stormwater, landscape and streetscape improvements for the Project,with the firm of David
Mancini & Sons, Inc. (DMSI)who, as the City's Contractor currently working on the Project
under that certain construction contract authorized pursuant to Invitation to Bid No. 07-10/11
(the ITB), is the one appropriately licensed contractor who is most qualified to assume the
remaining work under the Project under the proposed design-build contract because DMSI is
currently under contract to perform (and is performing)work that is affiliated with the Project;
and 3) further authorizing the City Manager to terminate, for convenience, the remaining
portion of the current construction Contract with DMSI (entered into pursuant to the ITB)and
requiring that, as a condition to the City and DMSI's execution of the negotiated design-build
contract,the parties enter into and execute a settlement agreement and release of all claims
against the City under the former contract, where the combined sum of the negotiated
design-build GMP and the amount negotiated as part of the settlement of the existing
contract shall not exceed$11,998,535,which includes the$10,907,759 construction award
value of the current DMSI construction contact and the approved project contingency
amount of$1,090,776.
PASSED and ADOPTED this Mil day of DQCembe r 2011.
ATTEST:
ltinktk ctActui ,,,,,
ROBERT E, PARCHER, CITY % p ' •.` ', �^ TI HERR RA :OWER, MAYOR
1INCORP ORATED' *'
JMG/DB/FV
Attachment No I Letter from DMSI Inc dated Decf 0111•••' •�C5.6 r
F\T_Drive''AGENDA12011\12-14-11\BIscayne Point\ci'' �'•2`" nt-GMP Contract-RESO doc
APPROVED AS TO
FORM&LANGUAGE
1 FOR EXECUTION
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Page 5 of 5 O
City tom le (k_ Date
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution of the Mayor and City Commission of the City of Miami Beach, Florida,pertaining to that certain City construction
project referred to as the"Biscayne Point Neighborhood Right-of-Way Improvements Project"(the Project)and,with respect to
such Project, accepting the findings and recommendation of the City Manager in declaring an emergency pursuant to
Subsections 287.055(3)(a)(1) and (9)(c)(6), Florida Statutes, all as more specifically set forth in this Resolution and the
accompanying Commission Memorandum;and,as permitted pursuant to Section 2-367(e) of the City code,waiving,by 5/7ths
vote,the competitive bidding requirements,finding such waiver to be in the best interest of the City, and authorizing the City
Manager to take the following actions to procure the necessary emergency design and construction services for the Project,
pursuant to a negotiated design-build contract: 1) prepare,whether through the City's Public Works Department or through
retention of an outside Design Criteria Professional, as determined by the City Manager, a Design Criteria Package (DCP)
which complies with the specifications set forth under Section 287 055(2)(j),Florida Statutes;2)upon completion of the DCP,
authorizing the City Manager to negotiate and, if successful, execute a design-build contract, with a Guaranteed Maximum
Price (GMP)for the remaining water, stormwater, landscape and streetscape improvements for the Project,with the firm of
David Mancini & Sons, Inc. (DMSI) who, as the City's Contractor currently working on the Project under that certain
construction contract authorized pursuant to Invitation to Bid No. 07-10/11 (the ITB), is the one appropriately licensed
contractor who is most qualified to assume the remaining work under the Project under the proposed design-build contract
because DMSI is currently under contract to perform(and is performing)work that is affiliated with the Project;and 3)further
authorizing the City Manager to terminate, for convenience, the remaining portion of the current construction Contract with
DMSI (entered into pursuant to the ITB)and requiring that, as a condition to the City and DMSI's execution of the negotiated
design-build contract, the parties enter into and execute a settlement agreement and release of all claims against the City
under the former contract,where the combined sum of the negotiated design-build GMP and the amount negotiated as part of
the settlement of the existing contract shall not exceed$11,998,535,which includes the$10,907,759 construction award value
of the current DMSI construction contact and the approved project contingency amount of$1,090,776.
Key Intended Outcome Supported:
Ensure well designed quality capital projects.
Supporting Data (Surveys, Environmental Scan, etc.):
Completed Capital Improvement Projects are a key positive driver in resident perceptions on overall quality of life.
The 2009 Customer Satisfaction Survey indicated that 51.8%and 85.0%of North-Beach residents rated storm drainage and
landscape maintenance in right-of-ways and public areas as excellent or good,respectively.Completing this Project will add to
the needed upgrades in this area and improve overall rating.
Issue:
Shall the Mayor and City Commission approve the Resolution?
Item Summary/Recommendation:
On March 9, 2011,the Mayor and City Commission approved the award of the construction contract adopted Resolution No.
2011-27621 for the Project to David Mancini&Sons, Inc. (DMSI or Contractor), as the selected bidder pursuant to ITB#07-
10/11.The Contractor submitted a value engineering proposal consisting of a conceptual design that would reduce the number
of stormwater pump stations in the Project from four(4)specified by Consultant,to two(2);affirming that a two pump station
design could meet the same level of service provided by the Consultant.The City's Public Works Department(PWD)evaluated
Contractor's proposal, and determined that the two (2) pump station design met the City's minimum requirements. The
Contractor's value engineering proposal would require a re-design and re-permitting of the stormwater system.
A concern was raised during permitting of the drainage wells regarding the 90-second detention design provisions for the
stormwater runoff. The PWD determined that detention structures would be required to meet the 90-second detention
treatment requirement from the Florida Department of Environmental Protection (FDEP). A permit for construction of the
drainage wells could not obtained from FDEP or PWD, requiring a re-design of the stormwater system to incorporate the
required detention structures.The City agreed that the value engineering re-design would address the reduction in the number
of pump stations; however,incorporation of the detention structures would be considered additional scope of work.The City
also agreed to issue the 2nd Notice-to-Proceed (NTP), on August 24, 2011,with the understanding that the revisions to the
design of the stormwater system,and associated permitting,could be procured prior to finalizing the water main construction.
As construction of the water main improvements progressed,various inconsistencies between the construction documents,
technical specifications,and the construction contract were raised by the Contractor.The Project team encountered multiple
errors and omissions in the construction documents.
The current construction contract with DMSI requires the Contractor to proceed based on the Consultant's design, as the
engineer-of-record,and does not allow for a"design"component,which would allow the Contractor to undertake a redesign of
the stormwater system. Therefore, any subsequent agreement to provide design services under the existing contract is
prohibited under Section 287.055, Florida Statutes(also known as the"Consultants Competitive Negotiation Act"or CCNA).As
such,any desired re-design would have to be undertaken by the Consultant,as the Engineer of Record,or be re-bid.However,
due to the Consultant's performance,the Administration recommends that the Consultant not be used for the re-design of the
stormwater system, and that a new design professional be retained for delivering the required corrective design services.
The Contractor is finalizing the construction of the watermain improvements and, with the stormwater system re-design
pending,will have no alternative but to demobilize. Demobilization and delays would be detrimental to the Project construction
budget and result in various hardships for the residents of this community.
These hardships include:
1 A life safety concern due to the water main pressure tests results conducted by PWD on the existing water distribution
system along Stillwater Drive and the system connection. The pressure tests on the existing system have resulted in
pressures lower than anticipated.The low pressure results could mean that the required fire suppression pressures may
CjA MIAMI BEACH
Page 1 of 2 AGENDA ITEM C
DATE
not be available in the event of a high flow demand.The proposed water main improvements along Stillwater Drive were
anticipated to resolve these concerns; however, these improvements are currently non-constructable.
2. The community will continue to deal with a stormwater system which provides a low level of service,allowing right-of-ways
and residences to experience above average flooding during regular stormwater events;a prolonged period that residents
could risk potential flooding of private residences and associated financial repercussions.
3. Accessibility concerns due to unfinished pavement conditions;violations of the Americans with Disabilities Act(ADA)due
to the disturbance of grade transitions to existing sidewalks;and potential increases in incidental crime due to poor lighting
conditions.
4. The potential for change orders for corrective work which may result in the City incurring additional costs,including delay
damages.
The Administration believes continuing with the current construction contract is a non-viable option. It is critical that the
Administration be able to retain a new design professional to perform the necessary re-design services and continue with
construction of the Project with minimal or no disruption and/or interruption.
To that end,the Administration has been meeting with the City Attorney's Office to determine the most practical approach that
would allow the City to meet the aforestated goals, without violating CCNA laws which require municipalities to publicly bid
certain professional services except in cases of valid public emergencies. In this instance, the Administration believes that
current unsafe site and neighborhood conditions;potential community hardships;quality of life issues;and potential impacts to
the Project budget and schedule as a result of corrective work necessitating change orders all giving ample support to find that
a public emergency,necessitating a CCNA waiver of the bidding requirements,exists here.As required by the CCNA statute,
"the agency head must declare an emergency and authorize negotiations with the best qualified design-build firm available at
that time". In the case of the City,the agency head is the City Manager.
Accordingly, given that the facts support the existence of a public emergency, and for the purpose of waiving the bidding
requirements under the CCNA,the Administration recommends the following action: 1)that competitive bidding requirements
be waived by 5/7ths vote as permitted pursuant to Section 2-367(e)of the City Code, finding such waiver to be in the best
interest of the City,and authorize the City Manager to procure a design-build contract,allowing the City Manager to prepare a
Design Criteria Package(DCP)which complies with the specifications set forth under F.S.287.055(2)(j),whether through the
City's Public Works Department or through retention of an outside Design Criteria Professional, as determined by the City
Manager; 2)upon completion of the DCP,authorize the City Manager to negotiate and, if successful,execute a design-build
contract with a Guaranteed Maximum Price (GMP) for the remaining water, stormwater, landscape and streetscape
improvements for the Project with DMSI, as the appropriately licensed Contractor who is most qualified to undertake the
Project under the proposed design-build contract;3)authorize the City Manager to terminate,for convenience,the remaining
portion of the current construction Contract with DMSI and enter into and execute a settlement agreement and release of all
claims against the City under the former Contract, as a condition to the City and DMSI's execution of the negotiated design-
build contract; and 4)cap the total sum of the combined negotiated design-build GMP and the negotiated settlement of the
existing contract at$11,998,535,which includes the$10,907,759 construction award value of the current DMSI construction
contract and the approved project contingency amount of$1,090,776.The above stated conditions have been reviewed with
DMSI Inc. (see attachment No. 1: Letter from DMSI Inc. dated December 8, 2011).
The Administration believes this course of action would serve as the most responsible avenue having the following benefits,
thus avoiding public inconvenience and public safety concerns:
• absorb the majority of the delays attributed to the redesign of the stormwater system;
• incorporate the design of the required detention and associated costs;
• capitalize on a shared savings (50/50)for the deletion of the two(2) stormwater pump stations and other credits;
• rectify the errors and omission in the construction plans;
• keep the Contractor mobilized onsite; and
• maintain the Project on budget.
Advisory Board Recommendation:
Financial Information:
Source of Amount Account
Funds: 1
OBPI Total
Financial Impact Summary: No additional funding is required.
City Clerk's Office Legislative Tracking:
n-Offs:
Department Director Assistant ana er Ci M er
FV (,j DB JMG
JMG/DB/FV
Attachment No. 1:Letter from DMSI Inc.dated December 8,2011
F\T_Drive\AGENDA\201 1\12-14-11\Biscayne Point\Biscayne Point-GMP Contract-SUMMARY doc
Page 2 of 2
® MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www miamibeachfl goy
COMMISSION MEMORANDUM
TO: Mayor Matti H. Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: December 14, 2011
SUBJECT: A RESOLUTION OF THE MAYOR AN I MMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, PERTAINING TO THAT CERTAIN CITY CONSTRUCTION
PROJECT REFERRED TO AS THE "BISCAYNE POINT NEIGHBORHOOD RIGHT-
OF-WAY IMPROVEMENTS PROJECT" (THE PROJECT)AND, WITH RESPECT TO
SUCH PROJECT, ACCEPTING THE FINDINGS AND RECOMMENDATION OF THE
CITY MANAGER IN DECLARING AN EMERGENCY PURSUANT TO SUBSECTIONS
287.055(3)(A)(1)AND(9)(C)(6),FLORIDA STATUTES,ALL AS MORE SPECIFICALLY
SET FORTH IN THIS RESOLUTION AND THE ACCOMPANYING COMMISSION
MEMORANDUM; AND,AS PERMITTED PURSUANT TO SECTION 2-367(E) OF THE
CITY CODE, WAIVING, BY 5/7THS VOTE, THE COMPETITIVE BIDDING
REQUIREMENTS, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE
CITY, AND AUTHORIZING THE CITY MANAGER TO TAKE THE FOLLOWING
ACTIONS TO PROCURE THE NECESSARY EMERGENCY DESIGN AND
CONSTRUCTION SERVICES FOR THE PROJECT, PURSUANT TO A NEGOTIATED
DESIGN-BUILD CONTRACT: 1) PREPARE, WHETHER THROUGH THE CITY'S
PUBLIC WORKS DEPARTMENT OR THROUGH RETENTION OF AN OUTSIDE
DESIGN CRITERIA PROFESSIONAL,AS DETERMINED BY THE CITY MANAGER,A
DESIGN CRITERIA PACKAGE (DCP) WHICH COMPLIES WITH THE
SPECIFICATIONS SET FORTH UNDER SECTION 287.055(2)(J), FLORIDA
STATUTES; 2) UPON COMPLETION OF THE DCP, AUTHORIZING THE CITY
MANAGER TO NEGOTIATE AND, IF SUCCESSFUL, EXECUTE A DESIGN-BUILD
CONTRACT,WITH A GUARANTEED MAXIMUM PRICE(GMP)FOR THE REMAINING
WATER,STORMWATER, LANDSCAPE AND STREETSCAPE IMPROVEMENTS FOR
THE PROJECT, WITH THE FIRM OF DAVID MANCINI & SONS, INC. (DMSI) WHO,
AS THE CITY'S CONTRACTOR CURRENTLY WORKING ON THE PROJECT UNDER
THAT CERTAIN CONSTRUCTION CONTRACT AUTHORIZED PURSUANT TO
INVITATION TO BID NO. 07-10/11 (THE ITB), IS THE ONE APPROPRIATELY
LICENSED CONTRACTOR WHO IS MOST QUALIFIED TO ASSUME THE
REMAINING WORK UNDER THE PROJECT UNDER THE PROPOSED DESIGN-
BUILD CONTRACT BECAUSE DMSI IS CURRENTLY UNDER CONTRACT TO
PERFORM (AND IS PERFORMING) WORK THAT IS AFFILIATED WITH THE
PROJECT; AND 3)FURTHER AUTHORIZING THE CITY MANAGER TO TERMINATE,
FOR CONVENIENCE, THE REMAINING PORTION OF THE CURRENT
CONSTRUCTION CONTRACT WITH DMSI (ENTERED INTO PURSUANT TO THE
ITB) AND REQUIRING THAT, AS A CONDITION TO THE CITY AND DMSI'S
EXECUTION OF THE NEGOTIATED DESIGN-BUILD CONTRACT, THE PARTIES
ENTER INTO AND EXECUTE A SETTLEMENT AGREEMENT AND RELEASE OF ALL
CLAIMS AGAINST THE CITY UNDER THE FORMER CONTRACT, WHERE THE
COMBINED SUM OF THE NEGOTIATED DESIGN-BUILD GMP AND THE AMOUNT
NEGOTIATED AS PART OF THE SETTLEMENT OF THE EXISTING CONTRACT
Page 1 of 8
SHALL NOT EXCEED $11,998,535, WHICH INCLUDES THE $10,907,759
CONSTRUCTION AWARD VALUE OF THE CURRENT DMSI CONSTRUCTION
CONTACT AND THE APPROVED PROJECT CONTINGENCY AMOUNT OF
$1,090,776.
ADMINISTRATION RECOMMENDATION
Approve the Resolution.
KEY INTENDED OUTCOME
Ensure value and the timely delivery of a quality capital project. Includes
FUNDING
Funding has been previously appropriated; no additional funding will be required.
BACKGROUND
On July 27, 2005,the Mayor and City Commission adopted Resolution No. 2005-25973, approving and
authorizing the Mayor and City Clerk to execute a professional services agreement, pursuant to Request
for Qualifications (RFQ) No. 42-03/04, with EAC Consulting, Inc. (the Consultant), to provide
engineering and landscape architecture consulting services for the Biscayne Point Neighborhood Right-
of-Way (ROW) Improvement Project.
After the design and permitting phase of the Project was substantially completed, Consultant submitted
Phase III 100% Bid Plans were submitted to the City. On November 30, 2010, Invitation to Bid No. 07-
10/11, for the Biscayne Point Neighborhood Right-of-Way Improvements Project (the Project) was
issued with an opening date of January 27, 2011 (the ITB or the Bid). The City received six (6)
responsive bids, of which David Mancini &Sons, Inc. (DMSI or Contractor)submitted the lowest bid, at
$10,907,758.61 (on a Project with an estimated construction cost of$13.4-million at the time of Bid).The
Technical Review Panel (TRP) convened to shortlist and interview bidders on February 14, 2001 and
February 17, 2011, respectively. The TRP scored and ranked DMSI as the lowest and best bidder.
Therefore, after considering the review and recommendation of the TRP, the City Manager conducted
his due diligence and, in concurrence, recommended that the Mayor and City Commission award the
construction contract to DMSI. On March 9, 2011, the Mayor and City Commission approved the award
of the construction contract pursuant to the ITB to DMSI. Resolution No. 2011-27621 approved and
authorized the Mayor and City Clerk to execute the construction contract with DMSI, and authorized the
Administration to engage in value engineering to further reduce the cost and time for completion of the
Project. The construction contract was finalized on April 4, 2011, and the 1st Notice-to-Proceed was
issued on May 5, 2011.
During the value engineering phase, various meetings were held with DMSI and the Consultant to
evaluate value engineering proposals presented by DMSI. One of DMSI's proposals consisted of a
conceptual design that would reduce the number of stormwater pump stations in the Project from the
four (4) specified by Consultant, to two (2); affirming that a two pump station design could meet the
same level of service provided by the Consultant. This proposal was presented to the City's Public
Works Department (PWD), which evaluated and determined that the two (2) pump station design met
the City's minimum requirements, and offered a more desirable approach to the stormwater
improvements for the Biscayne Point priority basin. However, implementation of DMSI's value
engineering proposal would require a re-design of the stormwater system and re-permitting through the
Public Works Departments and the Miami-Dade Department of Environmental Resources Management
(DERM).
Prior to the award of the construction contract to DMSI, but after receiving approvals from DERM, the
Page 2 of 8
Consultant had submitted for conceptual permit approval from the Florida Department of Environmental
Protection (FDEP) for the gravity and pressurized drainage wells (injection wells), a component of the
stormwater system. FDEP regulates the injection, via wells, of nonhazardous fluids into the State of
Florida's Underground Sources of Drinking Water(USDW)and, as such, reviews and approves only the
drainage well component of the stormwater design.A stormwater design which includes drainage wells
must be approved by three (3) permitting agencies: DERM, FDEP, and PWD.
A conceptual approval was being sought in lieu of a standard permit approval since the Contractor and
Well Drilling Subcontractor's information would be determined after the construction contract award,and
such information is required by FDEP to finalize the approval and issue a permit. The Consultant
continued processing the conceptual permit approval through FDEP after the construction contract
award, while value engineering discussions were underway.
On March 28, 2011, a concern was raised after FDEP issued a Request for Information (RFI) to the
Consultant, regarding the design provisions for the required 90-second detention of stormwater run-off
prior to being discharged through the drainage wells. Florida Administrative Code, Chapter 62-25,
requires the treatment of stormwater run-off prior to its disposal to a USDW. An acceptable method of
treatment is the use of appropriately sized stormwater structures, based on a 90-second detention time,
that retain sediment and oils prior to entering waters of the State(detention structures). The Consultant
argued that a waiver of the 90-second detention provision was granted by DERM. The waiver cited that
incorporation of the required detention structures would be difficult, or impossible, due to the physical
limitations requiring utility relocations. Relocation of utilities, for the purpose of incorporating detention
structures,was considered and undue hardship by DERM.Although the Consultant managed to obtain a
waiver from DERM, they failed to obtain same waiver from FDEP or PWD. After various interactions
among the three (3) regulatory agencies, the Consultant, and DMSI, it was determined that the design
would be acceptable to DERM and FDEP if PWD would approve a modified 90-second detention
concept where the detention of solids would occur within the stormwater structures and piping in lieu of
providing detention structures.After careful consideration, PWD stated that the modified concept would
require additional maintenance concerns for the City; therefore, the detention structures would be
required.
Since a permit for construction of the drainage wells cannot be obtained from FDEP or PWD, and since
the system, as a whole, will not function without the drainage wells, the entire stormwater design is
essentially unpermittable, and must be re-designed to incorporate the required detention structures or
other means of satisfying the stormwater pre-treatment requirements.
Value engineering discussions were prolonged due to the aforementioned FDEP permitability concerns.
In July 2011, after multiple discussions regarding the pump station reduction, level of service, and 90-
second detention requirements, the City agreed that the value engineering re-design would address the
reduction in the number of pump stations. However, the incorporation of the detention structures would
be considered additional scope of work. The shared cost of implementing the value engineering re-
design by DMSI would be approved via deductive change order, and the addition of the detention
structures would be addressed via separate change order. Moreover, in efforts to move forward with the
water main improvements, which were not a part of any value engineering discussions, the City agreed
to issue the 2nd Notice-to-Proceed with the understanding that the revisions to the design of the
stormwater system, and associated re-permitting, could be procured prior to finalizing the water main
construction, allowing construction of the stormwater improvements to proceed with no impact to the
construction schedule. The 2nd Notice-to-Proceed was issued to the Contractor on August 24, 2011,
establishing the commencement of construction with a 15-month duration, having an anticipated
construction completion of November 2011.
As construction of the water main improvements progressed, various inconsistencies between the
construction documents, technical specifications, and the construction contract were raised by the
Contractor, which included the following:
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1. Ambiguity regarding the trench compaction requirements;
2. Limitations and requirements relating to the removal of organic soils;
3. Under-sizing and over-sizing of proposed water mains;
4. Changes to the designed water main connections;
5. Additional water services needed to meet PWD single water meter service requirements; and
6. Discrepancy in the limerock base and subbase specifications delineated in the bid documents for the
utility trench restoration associated with the water main installation.
In addition, PWD's requirement to provide detention structures in the re-design of the storm water
system would likely impact the realignment of the proposed water main along Stillwater Drive, since the
structures would take up a substantial area within the right-of-way and impact the location of the main. In
combination with the Consultant's failure to size the Stillwater Drive watermain to the satisfaction of
PWD, and in accordance with the minimum pressure requirement as specified in the permitting
application executed by the Department, the water main along this stretch of right-of-way is currently
non-constructable. The construction of this portion of the water main infrastructure will be exclusively
dependant on the final redesign of the stormwater system, as it will need to conform to the revised
design and allow for proper clearances from this gravity system.
It is currently estimated that change order costs for potential errors and omissions in the plans, as well
as the addition of the detention structures,would exceed the allocated Project construction contingency,
and are also currently attributing to delays to the Project. The Consultant has not responded in a timely
fashion to the inconsistencies raised throughout construction, and has not provided clear directives to
the Contractor. The delays in response and general lack of guidance have attributed to further delays to
the Project schedule, and raises the concern of whether, going forward, the City should proceed using
the current Consultant.
ANALYSIS
The current construction contract with DMSI (the one awarded pursuant to the ITB) is a straight
construction contract, requiring the Contractor to proceed based on the Consultant's design, as the
engineer-of-record, and does not allow for a "design" component, which would, should the City
determine, allow the Contractor to undertake a redesign of the stormwater system. Any subsequent
agreement to for the provision of design services is subject to competitive bidding under Section
287.055, Florida Statutes (also known as the "Consultants Competitive Negotiation Act" or CCNA).
Consequently, any desired re-design of the stormwater system, under the existing contract structure, per
the value engineering proposal provided by the Contractor, would either have to be undertaken by the
Consultant, as the engineer-of-record, or re-bid. Due to the fact that the Consultant has already
provided an unpermittable set of plans;the ongoing discovery of discrepancies in the Consultant's plans;
Consultant's inability to make sound engineering decisions in a timely manner; and the Consultant's
general lack of guidance during the construction of the Project thus far, the Administration recommends
that the Consultant not be used for the re-design of the stormwater system, and that a new design
professional be retained for delivering the required corrective design services.
The Contractor is currently finalizing water main installations within the Biscayne Point Island and
Biscayne Beach sub-neighborhoods. A portion of the water main installations along Stillwater Drive
commenced in early December. At this time, DMSI is scheduled to be completed with all water main
installations by the end of this month,with the exception of the remaining portions along Stillwater Drive.
Once this work is completed, and without a permittable stormwater system, the City will have no
alternative but to allow DMSI to demobilize until this matter is resolved; abandoning the construction site
and most likely causing additional delays to the Project schedule. The cost of demobilization would also
be detrimental to the Project construction budget. The additional delays will result in additional hardships
for the residents of this community.
Page 4 of 8
An abandoned construction site can create public safety concerns, such as a lack of emergency
accessibility due to unfinished pavement conditions; violations of the Americans with Disabilities Act
(ADA) due to the disturbance of grade transitions to existing sidewalks; and potential increases in
incidental crime due to poor lighting conditions. Construction sites which have been abandoned may be
prone to blight in surrounding neighborhoods. Conditions such as these can be detrimental to the
welfare of the community; contribute to the decline of property values throughout the neighborhood; and
jeopardize the City's credibility with the community for failing to provide essential services in return for
tax payer's hard-earned money.
The postponement of the long-awaited stormwater improvements for this priority basin will also
contribute to community hardships.The community will continue to deal with a stormwater system which
provides a low level of service, allowing right-of-ways and residences to experience above average
flooding during regular stormwater events.An extended postponement of the stormwater improvements
means a prolonged period that residents must risk flooding of private residences and the associated
financial repercussions.
PWD has conducted water main pressure tests on the existing water distribution system along Stillwater
Drive and the system connection. The pressure tests on the existing system have resulted in pressures
lower than anticipated. The low pressure results are cause for concern because it could mean that the
required fire suppression pressures may not be available in the event of a high flow demand within this
area. The proposed water main improvements along Stillwater Drive were anticipated to resolve these
concerns. However, since the Consultant provided an under-sized design, and the proposed water main
is non-constructable, this situation may persist for a longer period of time than the City anticipated, since
part of the scope of work in the Project was intended to correct this.
The ongoing discrepancies in the Consultant's plans; the added cost due to changes in the scope of
work due to potential errors and omissions; the pending delays to the construction schedule; and the
hardships facing the community, lends support to an elevated level of urgency, necessitating an
immediate need for a comprehensive solution to remedy the current situation. For the reasons already
set forth herein, the Administration believes continuing with the current construction contract is a non-
viable option. In the alternative, it is critical that the Administration be able to immediately avail itself of a
process which would enable it to: 1.) retain a new design professional to perform the necessary re-
design services and any other corrective actions; and 2.) continue with construction of the Project with
minimal or no disruption and/or interruption. To that end, the Administration has been meeting with the
City Attorney's Office to determine the most practical approach which would allow the City to meet the
aforestated goals,while complying with public procurement laws including,without limitation,the CCNA.
While the CCNA requires municipalities to publicly bid certain professional services, including
architecture and engineering services, this requirement can be waived in cases of valid public
emergencies. In the instant case (and for the reason previously, and hereinafter, set forth in this
Memorandum),the Administration believes that given: 1.)current conditions, both at the Project site and
within the neighborhood; 2.) the potential community hardships, quality of life issues, and unsafe
conditions that will continue to result, potentially aggravated due to a postponement of the current work
in order to undertake a procurement process; and 3.)the likely potential, should the City continue on the
current path and continue to prosecute the Work based on a design that the City not only has concerns
over, but that the Contractor has stated may affect the Project budget and timeline (as a result of
corrective work necessitating change orders),the City Administration, in assessing the totality of factors
giving rise to this situation, believes there is ample support to find that a public emergency, necessitating
a CCNA waiver of the bidding requirements, exists here.
For example, if the City Commission does not waive the public bidding requirement(as both the CCNA
and City Code allow it to do, should it find that, based on the facts set forth herein, the urgency of the
situation merits it), the alternative approach would be to issue an RFQ to obtain a design consultant to
Page 5 of 8
revise the stormwater system; provide the new design consultant with an adequate amount of time to re-
design and permit the stormwater system; and then procure another construction contract through the
standard bidding process. It is estimated that this alternative could potentially take between nine (9) to
twelve (12) months; leaving, in the interim, an abandoned construction site for the duration of the
procurement process.
Given that the facts do indeed support the existence of a public emergency,to the extent that a waiver of
the bidding requirements under the CCNA is justified, the Administration recommends the following
course of action:
1. That the competitive bidding requirements be waived by 5/7ths vote as permitted pursuant to Section
2-367(e) of the City Code, finding such waiver to be in the best interest of the City, and that the City
Manager be authorized to take further actions to procure the necessary emergency design and
construction services for the project,via a design-build contract, including authorizing the preparation
of a Design Criteria Package (DCP) which complies with the specifications set forth under F.S.
287.055(2)(j)(whether through the City's Public Works Department or through retention of an outside
Design Criteria Professional, as determined by the City Manager);
2. That upon completion of the DCP, the City Manager be authorized to negotiate and, if successful,
execute a Design-Build contract in a not-to-exceed amount [essentially, a Guaranteed Maximum
Price(GMP)]for the remaining water, stormwater, landscape and streetscape improvements for the
Project, with DMSI (as the appropriately licensed Contractor who is most qualified to undertake the
Project under the proposed Design-Build contract because DMSI is currently under contract to
perform work and is currently working on the Project);
3. That the City Manager be authorized to terminate, for convenience, the remaining portion of the
current construction contract with DMSI and that, as a condition to the City and DMSI's execution of
the negotiated Design-Build contract,the parties enter into and execute a settlement agreement and
release of all claims against the City under the former contract; and
4. That the total sum of the combined negotiated Design-Build contract and the negotiated settlement
release of the existing contract be capped at $11,998,535 (which includes the $10,907,759
construction award value of the current DMSI construction contract and the approved Project
contingency amount of$1,090,776).
The above recommended alternative would absorb the majority of the delays attributed to the redesign
of the stormwater system, keep the Contractor mobilized on-site; and only extend the construction
schedule by three (3) months, bringing the new anticipated Project completion date to February 2013,
versus an original completion date of November 2012.
In addition to the immediate time related benefits realized by keeping the current Contractor on-site,
there are also inherent benefits in having DMSI finalize the improvements of the Project via the Design-
Build method. DMSI has invested a substantial amount of time and effort researching every aspect of
the Project. It has a working knowledge of the area,the community, and the challenges lying ahead.The
current Project team has overseen several major capital projects throughout the City. Some examples
include water main and drainage replacements along Sheridan Avenue and West 41st Street; water
main installations along 6th Street and Espanola Way; installation of sanitary sewer, water mains, and
drainage along 5th to 15th Streets; and the water main improvements along 86th Street. During these first
four (4) months of construction of the Project, the Administration has received praises by community
representatives on the work being performed by DMSI, despite the ongoing issues. Most importantly,
DMSI is immediately available at this time, as they are currently mobilized on the site, and are willing to
work with the City to minimize the impacts to the community.
The proposed Design-Build contract shall incorporate all remaining scope of work elements of the
Page 6 of 8
Project, and provide any additional scope of work required to modify the current construction documents,
as required by PWD under the original scope, and construct a permittable stormwater system. In
general, the water main improvements and lighting improvements within Biscayne Point Island and
Biscayne Beach shall be completed, in their entirety, as part of the current construction contract. DMSI
will be required to finalize and place into service those portions of the water main installation work that
has been completed, to-date, as part of the current construction contract. The current construction
contract also includes landscape improvements within Biscayne Point Island. The remaining scope of
work will be performed as part of the proposed Design-Build contract. This scope of work includes, but
not limited to, the following:
1. The stormwater improvements, in their entirety;
2. The remainder of the watermain improvements along Stillwater Drive;
3. The paving and hardscape improvements within Biscayne Point Island, Biscayne Beach, and
Stillwater Drive;
4. The landscape improvements within Biscayne Beach and Stillwater Drive;
5. The lighting improvements along Stillwater Drive;
6. The irrigation improvements, in their entirety; and
7. The incorporation of the stormwater detention.
As a condition to the City and DMSI's execution of the negotiated Design-Build contract,the parties shall
enter into and execute a settlement agreement that will release the City of all claims pursuant to the
current construction contract.The exact amount of the settlement agreement shall be determined based
on the actual cost of the Work performed through the date of termination of the current construction
contract. The negotiated settlement shall capitalize on a shared savings (50/50)for the deletion of the
two (2)stormwater pump stations and other credits to offset the cost of the stormwater system redesign
effort, delay claims, time extensions, and absorbed risk. In no event shall the combined amount of both
the current construction contract settlement and the Design-Build contract exceed $11,998,535 (which
includes the approved Project contingency amount of$1,090,776). The above stated conditions have
been reviewed with DMSI Inc. (see attachment No. 1: Letter from DMSI Inc. dated December 8, 2011).
PWD has requested that certain additional work be added to the Project.The Administration is currently
evaluating and identifying funding for this additional scope, which would include:
1. Upsizing the existing 6-inch watermain with an 8-inch watermain along 84th Street, within Biscayne
Beach;
2. Replacing existing water services along 85th Street, within Biscayne Beach;
3. Replacement of direct buried electrical street lighting cable within the Biscayne Beach sub-
neighborhood;
4. Design and construction of drainage improvements at three (3) locations ("hot spots") within
Biscayne Point Island:
• Intersection of Normac Avenue/S. Biscayne Point Road;
• In front of 7955 Biscayne Point Circle; and
• In front of 1825 Daytonia Road;
5. A retrofit of the new water distribution system (already constructed as part of the current Project
contract) to connect the future 8-inch watermain connection between Biscayne Point Island and
Normandy Isle; and
6. Traffic signal modifications at the intersections of Hawthorne Avenue/ 77th Street and Hawthorne
Avenue/Crespi Boulevard.
Upon determination of appropriate funding, the Administration will proceed with the additional scope of
work either via JOC or as an amendment to the proposed Design-Build contract; the request for
additional scope would be presented to the City Commission for approval at a future date.
Page 7 of 8
CONCLUSION
The Administration recommends that the Mayor and City Commission approve the Resolution pertaining
to that certain City construction project referred to as the "Biscayne Point Neighborhood Right-of-Way
Improvements Project" (the Project) and, with respect to such Project, accepting the findings and
recommendation of the City Manager in declaring an emergency pursuant to Subsections
287.055(3)(a)(1) and (9)(c)(6), Florida Statutes, all as more specifically set forth in this Resolution and
the accompanying Commission Memorandum; and, as permitted pursuant to Section 2-367(e) of the
City code,waiving, by 5/7ths vote, the competitive bidding requirements,finding such waiver to be in the
best interest of the City, and authorizing the City Manager to take the following actions to procure the
necessary emergency design and construction services for the Project, pursuant to a negotiated design-
build contract: 1) prepare, whether through the City's Public Works Department or through retention of
an outside Design Criteria Professional, as determined by the City Manager, a Design Criteria Package
(DCP)which complies with the specifications set forth under Section 287.055(2)(j), Florida Statutes; 2)
upon completion of the DCP, authorizing the City Manager to negotiate and, if successful, execute a
design-build contract, with a Guaranteed Maximum Price (GMP) for the remaining water, stormwater,
landscape and streetscape improvements for the Project, with the firm of David Mancini & Sons, Inc.
(DMSI) who, as the City's Contractor currently working on the Project under that certain construction
contract authorized pursuant to Invitation to Bid No. 07-10/11 (the ITB), is the one appropriately licensed
contractor who is most qualified to assume the remaining work under the Project under the proposed
design-build contract because DMSI is currently under contract to perform(and is performing)work that
is affiliated with the Project; and 3)further authorizing the City Manager to terminate, for convenience,
the remaining portion of the current construction Contract with DMSI (entered into pursuant to the ITB)
and requiring that, as a condition to the City and DMSI's execution of the negotiated design-build
contract,the parties enter into and execute a settlement agreement and release of all claims against the
City under the former contract, where the combined sum of the negotiated design-build GMP and the
amount negotiated as part of the settlement of the existing contract shall not exceed$11,998,535,which
includes the $10,907,759 construction award value of the current DMSI construction contract and the
approved project contingency of$1,090,776.
JMG/DB/FV
Attachment No. 1:Letter from DMSI Inc.dated December 8,2011
F 1T_Drive'AGENDA12011\12-14-11\Biscayne Point\Biscayne Point-GMP Contract-MEMO doc
Page 8 of 8
Attachment No. 1
DA\ ID MAN ( IItiI
GENERAL CONTRACTOR
1247 Alton Road.Miami Beach,FL 33139 1939 NW 40a Ct.Pompano Beach,F1,33064
P11:(305)532-8827 FAX:(305)532-8835 P11.(954)977-3556 FAX:(954)944-2040
December 8,2011
Via Email and U.S.Mail
Mr. Raul J. Aguila
Chief Deputy City Attorney
Office of the City Attorney
City of Miami Beach
1700 Convention Center Drive,Fourth Floor
Miami Beach,Florida 33139
Re- City of Miami Beach Biscayne Point Neighborhood No. 1 Right of Way Infrastructure
Improvement Project,Project No.CIP 07-10/11
Dear Mr. Aguila:
This follows recent correspondence and discussions relating to David Mancini & Sons, Inc.'s ("DMSI")
contract on the above referenced Project.
As previously discussed with the City of Miami Beach("City"),DMSI agrees to close out and cancel the
existing Project contract under which DMSI is currently working, and simultaneously enter into a new contract
between DMSI and the City on a design-build basis, on the terms detailed below. DMSI's agreement to cancel the
existing Project contract is subject to the successful negotiation and execution of the new design-build contract.
DMSI agrees to close out the existing Project work,cancel the existing contract,and recommence to
prosecute the Project work under the new Project design build contract for a total price(inclusive of the old contract
work and the work under the new design build contract)of$11,998,535.00. The new design build contract will
meet the same level of service included in the original contract that is being cancelled,although DMSI will provide
an improved design under the new contract for that work.Any changes to DMSI work directed by the City beyond
the scope of the existing Project work and/or unforeseen conditions will be the basis of negotiated change order(s)
Also,the above price includes only costs and claims under the old contract existing as of today
In order to continue the work, DMSI must be awarded (and the parties must enter into)the new design-
build contract as soon as possible to avoid further impacts to both the City and DMSI under the present contract.
Please contact me if there is any questions or concerns.
Sincerely,
David Mancini
David Mancini&Sons,Inc