2014-28577 Reso RESOLUTION NO. 2014-28577
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE AMENDMENT NO. 3 TO THE
CONSTRUCTION CONTRACT BETWEEN THE CITY AND LANZO
CONSTRUCTION COMPANY OF FLORIDA, DATED APRIL 8, 2011, FOR
THE CONSTRUCTION OF THE CITY OF MIAMI BEACH RIGHT-OF-WAY
INFRASTRUCTURE IMPROVEMENT PROGRAM,NEIGHBORHOOD NO.8
CENTRAL BAYSHORE(PACKAGE A)AND LAKE PANCOAST(PACKAGE
C) PROJECT; SAID AMENDMENT TO INCLUDE: 1) THE CREDIT
AMOUNT OF$3,222,433 FOR THE EXTRACTION OF A PORTION OF THE
PROJECT REFERRED TO AS PHASE II CONSTRUCTION ACTIVITIES,TO
INCORPORATE A NEW DESIGN THAT WILL MEET THE NEW
STORMWATER CRITERIA; 2) ADDITIONAL FUNDS, IN THE NOT-TO-
EXCEED AMOUNT OF $884,100, PLUS A COMPENSABLE TIME
EXTENSION OF SIXTY-SEVEN (67) CALENDAR DAYS, REQUIRED TO
COMPLETE THE REMAINING SCOPE OF THE PROJECT, INCLUDING
THE RE-DESIGNED FLAMINGO DRIVE STORMWATER DRAINAGE;AND
3) AN INCREASE TO THE OWNER'S CONTINGENCY, IN THE AMOUNT
OF $363,000; AND PROVIDED FURTHER THAT THE RESULTING NET
CREDIT, IN THE AMOUNT OF $1,975,333, WILL BE DEDUCTED FROM
THE CONSTRUCTION CONTRACT PRICE.
WHEREAS, on January 19, 2011, the City Commission adopted Resolution No.
2011-27587, approving and authorizing the execution of a construction contract (the
Contract)with Lanzo Construction Company of Florida(Lanzo), pursuant to Invitation to Bid
18-09/10,for the Right-of-Way Infrastructure Improvement Program-Neighborhood No.8—
Central Bayshore (Package A)and Lake Pancoast(Package C) Project, in the amount of
$16,740,740, plus an owner's contingency, in the amount of$1,674,074; and
WHEREAS,on December 12, 2012, the City adopted Resolutions No. 2012-28103
and 2012-28104, approving Amendment No. 1 to the Contract, in the amount of$693,808,
plus an increase to the owner's contingency, in the amount of$27,836, for additional water
meter boxes and relocation of backyard water services,which were originally omitted by the
City's A&E Consultant in the bid documents; and
WHEREAS,Amendment No.1 also included complete milling and resurfacing of the
roadway(in lieu of asphalt overlay)for certain areas within Package A, north of 34th Street to
41 Street, between Alton Road and Meridian Avenue;and Package C,25th Street,26th Street
and Flamingo Drive, north of 25th Street; and
WHEREAS, on July 18, 2012, the City adopted Resolution No. 2012-27972,
authorizing the City's A&E consultant(and the engineer of record of the Project), to amend
the Basis of Design Report (BODR), and to revise construction plans to implement HOA
requested roadway width and landscape items, additional stormwater upgrades, and
complete milling and resurfacing of the roadway in lieu of an asphalt overlay; and
WHEREAS,on March 13,2013,the City Commission adopted Resolution No.2013-
28162, approving Amendment No. 2 to the Contract, in the amount of$3,385,441, plus an
increase to the owner's contingency, in the amount of$338,545, for the construction of the
additional scope of work approved under Resolution No. 2012-27972; and
WHEREAS, on February 12, 2014, the City Commission approved the
recommendation of the Flooding Mitigation Committee to amend the current Stormwater
Management Master Plan by modifying the design criteria for the tailwater elevation to 2.7 ft-
NAVD for all tidal boundary conditions; and
WHEREAS, on March 18, 2014, a portion of the Project scope was identified to be
removed from the Contract, in order to incorporate the necessary stormwater improvements
to be compliant with the City's newly enacted stormwater criteria, and to include additional
watermain improvements along Prairie Avenue to replace an existing aging facility; and
WHEREAS, the total credit negotiated with Lanzo for the removal of the portion of
scope identified above is $3,222,433; and
WHEREAS, on October 9, 2013, the City's A/E consultant issued revised plans for
construction,and significant franchise utility conflicts with TECO Gas and Florida Power and
Light were identified by Lanzo, requiring a re-design of the proposed stormwater system;and
WHEREAS, the consultant was tasked with developing modifications to the plans,
obtaining agency approval for this installation, and revising construction plans, which were
issued to Lanzo on December 26, 2013; and
WHEREAS, upon review of the plan modifications, Lanzo submitted a proposal to
complete the remainder of the Project that included extended General Conditions, material
cost escalation, and additional work caused by unforeseen conditions; and
WHEREAS, the extended General Conditions and the material cost escalation for
asphalt, concrete and fuel, was negotiated at$407,500; and
WHEREAS,completion of resident requested changes to stormwater pump stations,
and additional work caused by unforeseen conditions(utility conflicts,water leak repairs,and
temporary pavement/curbing)was negotiated at $476,600; and
WHEREAS, the total additional funds required to complete the remaining scope of
the Project is $884,100 (which is the sum of the $407,500 and $476,600 above); and
WHEREAS, an increase to the owner's contingency, in the amount of$363,000, is
also being requested to be used to address any future unforeseen conditions; and
WHEREAS, the proposed Amendment No.3 also includes a compensable time
extension of sixty-seven (67) additional calendar days to the overall Project schedule,
extending the substantial completion date from June 30, 2014, to September 5, 2014; and
WHEREAS,the resulting net credit, in the amount of$1,975,333,will be deducted
from the Contract.
NOW,THEREFORE, BE IT RESOLVED BY THE MAYOR AND THE CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA approving and authorizing the Mayor and City
Clerk to execute Amendment No. 3 to the construction contract between the City and Lanzo
Construction Company of Florida, dated April 8, 2011, for the construction of the City of
Miami Beach right-of-way infrastructure improvement program, Neighborhood No.8 Central
Bayshore(Package A)and Lake Pancoast(Package C)Project;said amendment to include:
1) the credit amount of$3,222,433 for the extraction of a portion of the project referred to
as Phase II construction activities, to incorporate a new design that will meet the new
Stormwater criteria; 2) additional funds, in the not-to-exceed amount of$884,100, plus a
compensable time extension of sixty-seven (67) calendar days, required to complete the
remaining scope of the project, including the re-designed Flamingo Drive stormwater
drainage; and 3)an increase to the Owner's Contingency, in the amount of$363,000; and
provide further that the resulting net credit, in the amount of$1,975,333, will be deducted
from the construction contract.
PASSED AND ADOPTED this 613 day of n , 2014.
ATTEST:
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RAFAEL GRANADO, CITY CLEF ``�:�: Pte`:�1GI ,YOR
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APPROVED AS TO
FORM &LANGUAGE
&FOR EXECUTION
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City Atto ey D to
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Of The Mayor And City Commission Of The City Of Miami Beach, Florida, Authorizing The Mayor And City Clerk To
Execute Amendment No. 3 To The Construction Contract Between The City Of Miami Beach, Florida,And Lanzo Construction Co.,
Florida, For The Construction Of The City Of Miami Beach Right-Of-Way Infrastructure Improvement Program, Neighborhood No. 8
Central Bayshore (Package A) And Lake Pancoast (Package C) (Project); The Amendment Includes: 1) The Credit Amount Of
$3,222,433 For The Extraction Of A Portion Of The Project Referred To As Phase Ii Construction Activities, 2)Additional Funds In
The Not-To-Exceed Amount Of$884,1.00 Plus A Compensable Time Extension Of Sixty-Seven (67) Calendar Days Required To
Complete The Remaining Scope Of The Project Including The Redesigned Flamingo Drive Stormwater Drainage;And 3)Increasing
The Owner's Contingency In The Amount Of$363,000; The Resulting Net Credit In The Amount Of$1,975,333 Will Be Deducted
From The Construction Contract.
Key Intended Outcome Supported:
Build and Maintain Priority Infrastructure with Full Accountability
Supporting Data(Surveys, Environmental Scan,etc.):
The 2012 Customer Satisfaction Survey indicated that over 81%of residents rated recently completed capital improvement projects
as "excellent" or "good". Recently completed capital improvement projects (81%), storm drainage (37%), and condition of roads
(44%).
Issue:
Shall the City Commission adopt the resolution?
Item Summa /Recommendation:
On January 19, 2011, the City of Miami Beach (City) adopted Resolution No. 2011-27587, approving a contract with Lanzo
Construction Company of Florida (Lanzo), pursuant to Invitation to Bid 18-09/10, for the Right-of-Way Infrastructure Improvement
Program-Neighborhood No.8-Central Bayshore(Package A)and Lake Pancoast(Package C)in the amount of$16,740,740 plus
an owner's contingency in the amount of$1,674,074.
On December 12, 2012, the City adopted Resolutions No. 2012-28103 and 2012-28104, approving Amendment No. 1 to the
Contract,in the amount of$693,808 plus an increase to the owner's contingency in the amount of$27,836,for additional water meter
boxes and relocation of backyard water services, which were originally omitted by CH2MHill in the bid documents. It also included
complete milling and resurfacing of the roadway in lieu of asphalt overlay.
On March 13,2013,the City adopted Resolution No.2013-28162,approving Amendment No.2 to the construction contract between
the City and Lanzo, in the amount of$3,385,441 plus an increase to the owner's contingency in the amount of$338,545, for the
construction of the additional scope of work approved under Resolution No.2012-27972.
On February 12, 2014, the City Commission approved the recommendation of the Flooding Mitigation Committee to amend the
current Stormwater Management Master Plan by modifying the design criteria for the tailwater elevation.
On March 18,2014,a portion of the scope was identified to be extracted from the Right-of-Way Infrastructure Improvement Program,
Neighborhood No. 8 Central Bayshore- Package A project in order to incorporate the necessary stormwater improvements to be
compliant with the City's newly enacted stormwater criteria,and to include additional water main improvements along Prairie Avenue
to replace an existing aging facility.The total negotiated credit is$3,222,433.
Lanzo submitted a proposal to complete the remainder of the project that included extended General Conditions, material cost
escalation and additional work caused by unforeseen conditions. A compensable time extension of sixty-seven (67) days is being
requested to be added to the construction schedule. The extended General Conditions and the material cost escalation for asphalt,
concrete and fuel, was negotiated at $407,500. Completion of resident requested changes to stormwater pump stations, and
additional work caused by unforeseen conditions (utility conflicts, water leak repairs, and temporary pavement/curbing) was
negotiated at$476,600.The total negotiated amount for the additional funds required to complete the remaining scope of the project
is$884,100.
The substantial completion date for this project will be extended from June 30, 2014 to September 5, 2014. Upon failure of
Contractor to substantially complete the Contract by this date,Contractor shall pay the City the sum of$1,400 for each calendar day
until Substantial Completion is achieved. After Substantial Completion should Contractor fail to complete the remaining work within
30-days, Lanzo shall pay to City the sum of $650 for each calendar day after the time specified above. In addition to liquidated
damages, Lanzo shall be responsible for reimbursing the City for all costs incurred by Consultant in administering the construction of
the Project beyond the completion date.
The resulting net credit in the amount of$1,975,333 will be deducted from the construction contract.
The Administration recommends that the Mayor and City Commission approve the resolution.
Advisory Board Recommendation:
N/A
Financial Information:
Source of Amount Account
Funds: 1 ($1,592,309) 429-2205-069357 Storm Water LOC
OBPI 2 ($ 354,243) 384-2205-069357 2003 GO Bonds-Neighborhood Improvement
' 3 28.781) 424-2205-069357 Water&Sewer Bond 2000S
Total: ($1,975,333)
Cit Cler ffice Legislative Tracking:
David Martinez,ext. W72
Sign-Offs:
De art n o i e or Asst At r City Manage
DM M JL
T:WGENDA 014\ p I\Central Bayshore-Lanzo Amend, en 'Central Bayshore-Lanzo Amendment No 3- doc
AGENDA ITEM R9M
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MIAMIBEACH 443-
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MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Philip Levine and Members of th City Commission
FROM: Jimmy L. Morales, City Manager
DATE: April 23, 2014
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE AMENDMENT NO. 3 TO THE CONSTRUCTION
CONTRACT BETWEEN THE CITY OF MIAMI BEACH, FLORIDA, AND
LANZO CONSTRUCTION CO., FLORIDA, FOR THE CONSTRUCTION OF
THE CITY OF MIAMI BEACH RIGHT-OF-WAY INFRASTRUCTURE
IMPROVEMENT PROGRAM, NEIGHBORHOOD. NO. 8 CENTRAL
BAYSHORE (PACKAGE A) AND LAKE PANCOAST (PACKAGE C)
(PROJECT), DATED APRIL 8, 2011 (THE CONTRACT); THE AMENDMENT
INCLUDES: 1) THE CREDIT AMOUNT OF $3,222,433 FOR THE
EXTRACTION OF A PORTION OF THE PROJECT REFERRED TO AS
PHASE II CONSTRUCTION ACTIVITIES, TO INCORPORATE A NEW
DESIGN THAT WILL MEET THE NEW STORMWATER CRITERIA; 2)
ADDITIONAL FUNDS IN THE NOT-TO-EXCEED AMOUNT OF $884,100
PLUS A COMPENSABLE TIME EXTENSION OF SIXTY-SEVEN (67)
CALENDAR DAYS REQUIRED TO COMPLETE THE REMAINING SCOPE
OF THE PROJECT INCLUDING THE REDESIGNED FLAMINGO DRIVE
STORMWATER DRAINAGE; AND 3) INCREASING THE OWNER'S
CONTINGENCY IN THE AMOUNT OF $363,000; THE RESULTING NET
CREDIT IN THE AMOUNT OF $1,375,333 WILL BE DEDUCTED FROM THE .
CONSTRUCTION CONTRACT.
ADMINISTRATION RECOMMENDATION
Authorize the issuance of Amendment 3.
FUNDING
Accounts to be credited:
($1,592,309) - Account No. 429-2205-069357
($ 354,243) - Account No. 384-2205-069357
($ 28,781) - Account No. 424-2205-069357
($1,975,333)
i
City Commission Memorandum—Central Bayshore -Lanzo Amendment No. 3
April 23, 2014
Page 2 of 5
BACKGROUND
On January 19, 2011, the City of Miami Beach (City) adopted Resolution No. 2011-27587,
approving and authorizing the Mayor and City Clerk to execute a contract with Lanzo
Construction Company of Florida (Lanzo), pursuant to Invitation to Bid 18-09/10, for the Right-
of-Way Infrastructure Improvement Program — Neighborhood No. 8 — Central Bayshore
(Package A) and Lake Pancoast (Package C) in the amount of $16,740,740 plus an owner's
contingency in the amount of $1,674,074. The original project scope of work included new
water mains, drainage installation, road paving and restoration, concrete sidewalk repairs, minor
valley gutter installation and landscape.
On December 12, 2012, the City adopted Resolutions No. 2012-28103 and 2012-28104,
approving Amendment No. 1 to the Contract, in the amount of $693,808 plus an increase to the
owner's contingency in the amount of $27,836, for additional water meter boxes and relocation
of backyard water services, which were originally omitted by CH2MHill in the bid documents.
Additionally, the amendment included complete milling and resurfacing of the roadway(in lieu of
asphalt overlay) for certain areas within Package A, north of 34th Street to 41St Street, between
Alton Road and Meridian Avenue; and Package C, 25th Street, 26th Street and Flamingo Drive,
north of 25th Street.
On March 13, 2013, the City adopted Resolution No. 2013-28162, approving Amendment No. 2
to the construction contract between the City and Lanzo, in the amount of $3,385,441 plus an
increase to the owner's contingency in the amount of $338,545, for the construction of the
additional scope of work approved under Resolution No. 2012-27972 which included A)
implementation of HOA requested roadway width and landscape items (11 Points); B) providing
additional stormwater upgrades to the area known as Zone 4; and C) providing complete milling
and resurfacing of the roadway in lieu of asphalt overlay.
The overall contract and contingency to date is summarized as follows:
Contract Owners Contingency
Original Contract $16,740,740 $1,674,074
Amendment# 1 $ 693,808 $ 27,836
Amendment#2 $ 3,385,441 $ 338,545
$20,819,989 $2,040,455
EXTRACTED SCOPE
On February 12, 2014, the City Commission approved the recommendation of the Flooding
Mitigation Committee to amend the current Stormwater Management Master Plan by modifying
the design criteria for the tailwater elevation to 2.7 ft-NAVD for all tidal boundary conditions.
On March 18, 2014, a portion of the scope was identified to be extracted from the Right-of-Way
Infrastructure Improvement Program, Neighborhood No. 8 Central Bayshore — Package A
project in order to incorporate the necessary stormwater improvements to be compliant with the
City's newly enacted stormwater criteria, and to include additional water main improvements
along Prairie Avenue to replace an existing aging facility.
City Commission Memorandum—Central Bayshore -Lanzo Amendment No. 3
April 23, 2014
Page 3 of 5
The area extracted is described to include work within the boundaries defined by W. 28th Street
to the south, Prairie Avenue to the west, Sheridan Avenue to the east and W. 34th Street to the
north, as well as North Meridian Avenue between W. 28th Street and Dade Boulevard. This
work will be completed by a new Design-Build Firm. A Request for Proposal will be issued
following authorization from Commission to procure these services.
The total credit negotiated with the contractor for the removal of the portion of scope identified
above is $3,222,433.
ADDITIONAL TIME AND COST TO COMPLETE THE REMAINING SCOPE OF THE
PROJECT
On July 18, 2012, the City of Miami Beach (City) adopted Amendment 23 approved under
Resolution No. 2012-27972, authorizing the Engineer of Record, CH2MHill, to amend the basis
of design report (BODR) and to ultimately revise construction plans for the Project. Said BODR
amendment and revised plans incorporated A) implementation of HOA requested roadway width
and landscape items; B) additional stormwater upgrades; and C) complete milling and
resurfacing of the roadway in lieu of an asphalt overlay.
On February 6, 2013, Lanzo had completed all available mainline pipe installation and
demobilized pipeline crews until the time of issuance of revised construction plans.
On February 13, 2013, CH2MHill finalized their 100% revised design plans identified and
approved under Resolution No. 2012-27972. At this point the plans were issued to Lanzo for
pricing.
On March 13, 2013, the City adopted Resolution No. 2013-28162, approving and authorizing
the Mayor and City Clerk to execute Amendment No. 2 to the construction contract between the
City and Lanzo for the construction of the additional scope of work approved under Resolution
No. 2012-27972 as previously stated.
On October 9, 2013, CH2MHill issued revised "Plans for Construction". In preparation prior to
mobilization on Flamingo Drive, Lanzo identified significant utility conflicts with TECO Gas and
Florida Power and Light. It was determined that the design of the proposed stormwater system
would need to be further modified to accommodate the existing utilities. CH2MHill was tasked
with developing modifications to the plans, and obtaining agency approval for this installation.
The revised construction plans were issued by CH2MHill to Lanzo on December 26, 2013.
Upon review of the plan modifications, Lanzo submitted a proposal to complete the remainder of
the project that included extended General Conditions, material cost escalation and additional
work caused by unforeseen conditions. A compensable time extension of sixty-seven (67) days
is being requested to be added to the construction schedule. The extended General Conditions
and the material cost escalation for asphalt, concrete and fuel, was negotiated at $407, 500.
Completion of resident requested changes to stormwater pump stations, and additional work
caused by unforeseen conditions (utility conflicts, water leak repairs, and temporary
pavement/curbing) was negotiated at $476,600. The total negotiated amount for the additional
funds required to complete the remaining scope of the project is $884,100 ($407,500 +
$476,600).
The total approved Owner's Contingency in this contract is $2,040,455. The total contingency
City Commission Memorandum—Central Bayshore -Lanzo Amendment No. 3
April 23, 2014
Page 4 of 5
utilized to date is $1,871,932. Most of the contingency utilization has been attributed to
unforeseen conditions due to utility conflicts and field conditions not identified or addressed in
the construction plans. The contingency was also utilized for Owner requested changes to
accommodate residents' requests and designer's omissions. An increase to the Owner's
contingency in the amount of$363,000 is also being requested to be used to address any future
unforeseen conditions.
City staff negotiated the additional time and cost required to complete the remaining scope of
the project and find it to be fair and reasonable.
TIME EXTENSION
The original contractual project Substantial Completion date was identified as October 28, 2013.
Additional time extensions were approved, adding 244 days, extending the completion date to
June 30, 2014. This amendment includes a compensable time extension of sixty-seven (67)
additional calendar days to the overall project schedule for the completion of the remaining
scope under this contract. The substantial completion date for this project will be extended from
June 30, 2014 to September 5, 2014.
LIQUIDATED DAMAGES
The date of Substantial Completion, as defined in the Project documents will be modified by this
amendment to September 5, 2014. Lanzo's contract, Section 2.3 stipulates: upon failure of
Contractor to substantially complete the Contract by this date, Contractor shall pay the City the
sum of One Thousand Four Hundred Dollars ($1,400) for each calendar until Substantial
Completion is achieved. After Substantial Completion should Contractor fail to complete the
remaining work within the time specified in Section 2.2 of the Project Documents (30-days), plus
approved time extensions thereof, for completion and readiness for final payment, Contractor
shall pay to City the sum of six hundred fifty ($650) for each calendar day after the time
specified above, plus any approved extensions, for completion and readiness for final payment.
These amounts are not penalties but are liquidated damages to City for its inability to obtain full
beneficial occupancy and/or use of the Project.
City is authorized to deduct liquidated damages from monies due to Contractor for the Work
under this Contract or as much thereof as City may, in its sole discretion, deem just and
reasonable.
Contractor shall be responsible for reimbursing City, in addition to liquidated damages, for all
costs incurred by Consultant in administering the construction of the Project beyond the
completion date specified above, plus approved time extensions. Consultant construction
administration costs shall be pursuant to the contract between City and Consultant, a copy of
which is available upon request of the Contract Administrator. All such costs shall be deducted
from the monies due Contractor for performance of Work under this Contract by means of
unilateral credit change orders issued by City as costs are incurred by Consultant and agreed to
by City.
CONCLUSION
A resolution of the Mayor and City Commission of the City of Miami Beach, Florida, authorizing
the Mayor and City Clerk to execute Amendment No. 3 to the construction contract between the
City Commission Memorandum—Central Bayshore -Lanzo Amendment No. 3
April 23, 2014
Page 5 of 5
City of Miami Beach, Florida, and Lanzo Construction Co., Florida, for the construction of the
City of Miami Beach Right-of-Way Infrastructure Improvement Program, Neighborhood No. 8
Central Bayshore (Package A) and Lake Pancoast (Package C) (Project), dated April 8, 2011
(the Contract); the amendment includes: 1) the credit amount of$3,222,433 for the extraction of
a portion of the project referred to as Phase II construction activities, to incorporate a new
design that will meet the new Stormwater criteria; 2) additional funds in the not-to-exceed
amount of $884,100 plus a compensable time extension of sixty-seven (67) calendar days
required to complete the remaining scope of the project including the re-designed Flamingo
Drive stormwater drainage; and 3) increasing the owner's contingency in the amount of
$363,000; the resulting net credit in the amount of $1,975,333 will be deducted from the
construction contract.
(a/0 OD M
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