2014-28713 Reso RESOLUTION NO. 2014-28713
A RESOLUTION APPROVING AND REAPPOINTING, PURSUANT TO
SECTION 102-356 OF THE CITY CODE, ENRIQUE ZAMORA, ESQ. (CHIEF
SPECIAL MASTER REAPPOINTED PURSUANT TO RESOLUTION NO.
2014-28712 ), AS THE CITY MANAGER'S "DESIGNEE" UNDER SECTION
102-356 OF THE CITY CODE; SAID DESIGNATION COMMENCING WITH MR.
ZAMORA'S TERM AS CHIEF SPECIAL MASTER ON OCTOBER 24, 20149
AND ENDING ON APRIL 23, 2015.
WHEREAS, pursuant to the Section 30-36 of the Code of the City of Miami Beach, upon
prior recommendation of the City Manager, the City Commission, by a majority vote, may
appoint a Chief Special Master, who shall be authorized to hold hearings and impose fines,
liens, and other non-criminal penalties against violations of City Ordinances; and
WHEREAS, at its meeting on September 10, 2014, the Mayor and City Commission
adopted Resolution No. 2014-28712 , reappointing Enrique Zamora, Esq., as Chief
Special Master, for a term commencing on October 24, 2014, and ending on April 23, 2015; and
WHEREAS, pursuant to Section 102-356, the City Manager may also approve a
"designee," who shall be authorized to hear appeals from citations for violations of City and
County Codes and Ordinances and to conduct hearings regarding denials, suspensions and
revocations of occupational licenses, certificates of use and permits, as provided by the City
Code, and who shall also be authorized to appoint such other Special Masters as may
reasonably be required to conduct such hearings pursuant to City Ordinances; and
WHEREAS, accordingly, the City Manager hereby recommends Mr. Zamora to serve as
the City Manager's "designee," for a six (6) month term commencing on October 24, 2014, and
ending on April 23, 2015; and
WHEREAS, the Chief Special Master (including, as in the instant Resolution, where the
Chief Special Master is acting in his capacity as the City Manager's "designee" under Section
102-356 of the City Code), shall be prohibited from engaging in practice where he/she
represents a client in a manner adverse to the interests of the City of Miami Beach, and shall
further be prohibited from lobbying the City during his/her service with the City.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and "City
Commission hereby approve and reappoint, pursuant to Section 102-356 of the City Code,
Enrique Zamora, Esq., (Chief Special Master appointed pursuant to Resolution No.
2014-28712 ), as the City Manager's "designee" under Section 102-356 of the City Code-,
said designation commencing with Mr. Zamora's term as Chief Special Master on October 24,
2014, and ending on April 23, 2015.
PASSED and ADOPTED this 10thday of September 2014.
ATTEST:
LIP LEVINE,
" ", Ii. OR S/
l APPROVED AS TO
FORM &LANGUAGE
RA AEL E. GRANA ��f''. �' - . &FOR EXECUTION
CITY CLERK ` `. ',•
T1AGENDA\2014\September\Chief Special Stir MQRA Chipe?iaJdofaqtqr Resolution Chapter 102.doc t� +� _`LA
City Attorney Date
RESOLUTION NO. 2014-28711
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 A SETTLEMENT
AGREEMENT AND MUTUAL RELEASE (SETTLEMENT AGREEMENT)
BETWEEN DAVID MANCINI & SONS, INC. (DMSI) AND THE CITY, IN
THE AMOUNT OF $4005000, TO SETTLE ALL PENDING AND FUTURE
CLAIMS FOR DAMAGES BY DMSI PERTAINING TO THE BAYSHORE
NEIGHBORHOOD 8E — SUNSET ISLANDS 1 & 2 RIGHT OF WAY
INFRASTRUCTURE IMPROVEMENT PROJECT; EXCLUDING FROM
SAID SETTLEMENT AGREEMENT CLAIMS RELATING TO LATENT
DEFECTS, WARRANTIES AND THIRD PARTY ACTIONS; AND
FURTHER AUTHORIZING PAYMENT OF THE SETTLEMENT FROM
PREVIOUSLY APPROPRIATED FUNDING.
WHEREAS, On July 13, 2011, the City Commission approved the award of a
construction contract to DMSI, in the amount of $5,611,041, for the construction of the
Neighborhood 8E-Bayshore, Sunset Islands 1 & 2 Right of Way Infrastructure
Improvement Project (the Agreement and the Project, respectively); and
WHEREAS, the contract is a Unit Price contract; and
WHEREAS, after clarifications and reductions took place prior to issuance of the
second Notice to Proceed (NTP 2), the final approved contract amount was reduced to
$5,293,041; and
WHEREAS, DMSI was issued the second Notice to Proceed, effective January
11, 2012, and was scheduled to perform the work within 365 calendar days, plus an
additional 64 calendar day time extension; and
WHEREAS, during the construction of the Project, a considerable amount of
additional scope of work was added to the Project, including replacement of pedestrian
lighting electrical system on Sunset Island 1, sanitary sewer lining, driveway
harmonization and miscellaneous unforeseen Items, which increased the overall
contract amount to a total of$6,198,949.69; and
WHEREAS, On August 7, 2013, during a Project Progress meeting, DMSI
submitted a claim for additional monies in the amount of$977,541.96; and
WHEREAS, at the request of the City, the consulting firm of Schwebke-Shiskin &
Associates, as the Resident Project Representative for the Project, performed an
analysis of the Project and disputed the need for such additional monies; and
WHEREAS, on October 23, 2013, the City directed DMSI to bring the project to
Final Completion by completing the remaining punch list items and to address the As-
Built comments for resubmission to the City; and
WHEREAS, In accordance with the dispute resolution clause of the contract, on
April 17, 2014, and July 11, 2014, respectively, the City and DMSI convened for
mediation; and
i
WHEREAS, Based on the City's consideration of additional information and data
submitted and the parties' desire to settle these claims without the need for litigation,
DMSI agreed to a full and final settlement of all of its pending and future claims for
damages against the City, excluding claims for latent defects, warranty claims or any
third party actions for property damage, bodily injury, personal injury or death pertaining
to the Project, in the total amount of$400,000.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA that the Mayor and City
Commission hereby authorized the Mayor and City Clerk to execute a Settlement
Agreement and Mutual Release (Settlement Agreement), attached hereto and
incorporated herein by reference, between David Mancini & Sons, Inc. (DMSI) and the
City, in the amount of $400,000, to settle all pending and future claims for damages by
DMSI pertaining to the Bayshore Neighborhood 8e — Sunset Islands 1 & 2 Right of Way
Infrastructure Improvement Project; excluding from said Settlement Agreement claims
relating to latent defects, warranties or third party actions; and further authorize payment
of the settlement from previously appropriated funding.
PASSED AND ADOPTED this da of �10��2014.
� Y
ATTEST:
RAF EL E. G "O'ClItt4tLE PHILIP L 1111AYOR
T:IAGENDA120141 prig - ant ands DMSI Settlement Agreement-RESO(1).docx
141
Jam.',•'!"�' ��.J�,�
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
City AttomQ ,77�" p�e
SETTLEMENT AGREEMENT AND MUTUAL RELEASE BETWEEN
DAVID MANCINI & SONS, INC. AND THE CITY OF MIAMI BEACH, FLORIDA
This Settlement Agreement and Mutual Release ("Agreement") is made and entered into
this f 7 day of S'P �qkv-, 2014, by and between DAVID MANCINI & SONS, INC., a
Florida corporation, ereinafter "DMSI") and the CITY OF MIAMI BEACH, FLORIDA, a
political sub-division of the State of Florida (hereinafter, the "City"). DMSI and the City may
also be referred to individually as a"Party," and collectively as the"Parties."
RECITALS
WHEREAS, DMSI and the City are parties to a construction contract, dated August 18,
2011 (the "Contract"), for Right-of-Way Infrastructure Improvement Program-Neighborhood
No. 8E-Sunset Islands I & Il, located in Miami Beach, Florida(hereinafter, the"Project");
WHEREAS, DMSI asserted claims for additional compensation and time against the
City pertaining to the Project (the"DMSI Claim");
WHEREAS, as required by the Contract, the Parties attended pre-suit mediation on April
175 2014, and July 10, 2014,respectively;
WHEREAS, the Parties desire to settle all claims, disputes, past, present, or future
regarding the Project, regardless of responsibility; and
WHEREAS, the Parties believe it would be in their best interests and the best interests of
the citizens of the City to agree to the provisions of this Agreement.
NOW THEREFORE, in consideration for the exchange of promises contained herein,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by the Parties, the Parties agree as follows:
1. Recitals: The above Recitals are true and correct and are incorporated herein.
2. Settlement Terms: In consideration for the releases executed herein, the Parties
agree as follows:
(a) The City agrees to pay DMSI the sum of Four Hundred Thousand Dollars
and No Cents ($400,000.00) (the "Final Payment").
(b) Subject to the City Commission's approval of this Agreement, the Final
Payment shall be made by the City within thirty (30) days following City
1
Commission approval, execution by the City of the associated Resolution
approving such settlement and full execution of the Agreement by each Party.
3. Releases: In further consideration of the execution of this Agreement, the Parties
for themselves and their respective parent companies, subsidiaries, divisions, affiliates, unit
owners, insurers, officers, directors, agents, employees, subcontractors, representatives,
successors and assigns (the "City Releasors" or "DMSI Releasors," as the case may be), hereby
execute, subject to the conditions and exclusions set forth in this Agreement, the following
Releases:
(a) DMSI Releasors' Release of City Releasors:
Upon payment of the Final Payment by the City and clearance of said funds, the DMSI
Releasors hereby remise, release, acquit, satisfy and forever discharge the City Releasors; which
throughout this Agreement includes, but is not limited to, its affiliates, Commissioners, insurers,
sureties, directors, officers, employees, agents and attorneys, together with its heirs, executors,
administrators, associates, representatives, successors and'assigns, of and from any and all
manner of past, present and future claims, action and actions, suits, debts, dues, sums of money,
accounts, reckonings, bonds; bills, specialties, covenants, contracts, controversies, agreements,
promises, variances, trespasses, obligations, damages, judgments, costs, expenses, cause and
causes of action, executions, claims, liabilities, and demands whatsoever, in law or in equity,
whether for compensatory, punitive, or other damages (collectively referred to in this Paragraph
as the "Claims"), which the _DMSI Releasors have held or now hold, ever had, now have, or
which the DMSI Releasors hereinafter can, shall or may have against the City Releasors, for any
and all Claims, whether known or unknown, arising from, pertaining to and/or in any way
relating to the Project.
(b) City Releasors' Release of DMSI Releasors:
Except as provided and expressly subject to the limitations set forth in this Paragraph 3(b)
and Paragraph 4 herein, which the Parties agree and acknowledge limits the scope of the City
Releasors' release of the DMSI Releasors to the DMSI Claim, the City Releasors hereby remise,
release, acquit, satisfy and forever discharge the DMSI Releasors, which throughout this
Agreement includes, but is not limited to, its affiliates,, insurers, sureties, directors, officers,
employees, agents and attorneys, together with its heirs, executors, administrators, associates,
representatives, successors and assigns, of and from any and all manner of past, present and
future claims, action and actions, suits, debts, dues, sums of money, accounts, reckonings, bonds,
bills, specialties, covenants, contracts, controversies, agreements, promises, variances,
trespasses, obligations, damages, judgments, costs, expenses, cause and causes of action,
executions, claims and liabilities, and demands whatsoever, in law or in equity, whether for
compensatory, punitive, or other damages (collectively referred to in this Paragraph as the
"Claims"), which the City Releasors have held or now hold, ever had, now have, or which the
2
City Releasors hereinafter can, shall or may have against the DMSI Releasors, for any and all
Claims, whether known or unknown, arising from, pertaining to and/or in any way relating to
only the DMSI Claim.
4. Latent Defects, Warranties and Third Party Actions:
(a) The Parties agree that, in addition to all other contractual obligations of DMSI
pertaining to the Project, specifically excluded from any release or waiver by the Parties under
this Agreement, are any demands, claims and causes of action arising from: (i) latent defects; (ii)
warranty claims; or (iii) any third party actions for property damage, bodily injury, personal
injury or death pertaining to the Project. The City shall not be precluded from bringing any
action at law or equity arising from or relating to such matters.
(b) DMSI agrees that it shall honor and be responsible to the City for all warranties
and guarantees as specified in the Contract and/or as otherwise provided by law or in equity.
DMSI further acknowledges and agrees that nothing contained in this Agreement shall constitute
a waiver of any right by the City to seek enforcement of those warranties and guarantees against
DMSI, its sureties, insurers, subcontractors and suppliers.
5. No Admission of Liability: It is understood and agreed that the claims which are
the.subject of this Agreement are disputed claims and that the execution of this Agreement by the
Parties, and the exclusions set forth in this Agreement, are not intended to, and shall not in any
way, constitute or be deemed an express or implied admission or acceptance of any negligence,
misconduct, responsibility or liability by the Parties or an admission against interest by the
Parties, and that the Parties expressly and specifically deny all such claims. Such consideration
is being given to reduce the expense, uncertainties and hazards of litigation and to mitigate
damages to each of the Parties. There shall not be any implication by any trier of fact or law of
any admission or acceptance of liability or admission against interest by the Parties and it shall
not be used against the City Releasors or the DMSI Releasors in any attempt to prove any future
liability claims.
6. Binding Effect: Subject to City Commission approval and execution by the
Parties, this Agreement shall be binding upon the Parties and their respective successors and
assigns. However, execution and notarization by all Parties shall be a condition precedent to the
effectiveness of this Agreement as binding against any Party. If the City Commission does not
issue the approval, the Agreement shall be null and void and of no force and effect.
7. Attorney's Fees: If any legal action, proceeding, or hearing is brought by the City
Releasors or the DMSI Releasors to resolve a dispute regarding enforcement of the terms of this
Agreement, then the prevailing party as between the City Releasors and the DMSI Releasors
3
shall be entitled to recover reasonable attorney's fees and court costs incurred. The Parties shall
bear their own fees and costs relating to the negotiation and execution of this Agreement to date.
8. Miscellaneous: The Parties further agree as follows:
(a) The Parties acknowledge and agree that this Agreement is fully and
adequately supported by consideration and is fair and reasonable. The Parties
further acknowledge and agree that: (i) each Party has had the opportunity to
consult with, and has in fact consulted with, such professionals, experts and legal
counsel of its choice as such Party may have desired with respect to all matters
settled and resolved herein; (ii) each Party has participated fully in the negotiation
and preparation of this Agreement; (iii) each Party has carefully reviewed this
Agreement and is entering into same freely; and (iv) this Agreement is entered
into in good faith and was not obtained by fraud, misrepresentation, or deceit.
Accordingly, this Agreement shall not be more strictly construed against any
Party.
(b) The Parties hereto understand and agree that this Agreement will not be
binding on the Parties to this Agreement until such time as the City Commission
of the City of Miami Beach 'has approved same, and the Agreement is fully
executed by the Parties to the Agreement. City Commission approval is a
material condition precedent to the execution and enforceability of this
Agreement, without which the City does not agree to, and is not subject to, the
terms and conditions contained herein.
(c) Each of the signatories hereto represents that he or she has authority to
execute this Agreement and to bind the Party on whose behalf he or she has
signed.
(d) This Agreement is being consummated in the State of Florida, and the
performance by the Parties hereto is in the State of Florida. This Agreement shall
be construed and governed in accordance with the laws of the State of Florida and
the sole and exclusive venue for any lawsuit relating to this Agreement is Miami-
Dade County, Florida. The Parties expressly agree to waive trial by jury in any
action to enforce this Agreement.
(e) In construing this Agreement, the singular shall be held to include the
plural, the plural shall be held to include the singular, the use of any gender shall
be held to include every other and all genders, and captions and paragraph
headings shall be disregarded.
4
(f) Time is of the essence in the performance of this Agreement:
9. Entire Agreement: This Agreement, together with any documents referenced
herein, constitutes the full and entire agreement and understanding between the Parties as related
to the Project, and there are no agreements, representations or warranties except as specifically
set forth herein. This Agreement replaces any prior or contemporaneous written or oral
representation or understanding about the terms of this Agreement. All prior discussions,
negotiations, letters, demands and writings of any kind are fully merged into this Agreement and
are to be construed to be of no further force or effect, it being the intention of the Parties that this
Agreement shall serve as the sole and entire expression of their agreement and understanding.
This Agreement shall be binding on, and shall inure to the benefit of, the respective successors
and assigns, if any, of each Party.
10. Modification; No Waiver: This Agreement may only be modified in writing
signed by both Parties. No waiver or modification of the Agreement or of any covenant,
condition or limitation contained herein, shall be valid unless in writing and signed by all Parties
to the Agreement, or their authorized counsel. If the City or DMSI excuses or condones any
breach or default by the other Party of any obligation under this Agreement, this shall not be a
waiver of such obligation with respect to any continuing obligation or subsequent breach or
default and no such waiver shall be implied.
11. Counterparts: This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original, but all of which together represent one instrument
binding on the Parties, notwithstanding that all of the Parties are not signatories to the same
counterpart. Each Party shall execute four(4) original copies of the Agreement.
12. Severability: If any provision of this Agreement is .held or rendered illegal or
unenforceable, it shall be considered separate and severable from this Agreement and the
remaining provisions of this Agreement shall remain in full force and effect and bind the Parties
as though the illegal or unenforceable provision had never been included in the Agreement.
13. Captions; References: The captions of this Agreement are for the purpose of
convenience of reference only and in*no way define, limit or describe the scope or intent of the
Agreement or in any way affect the terms and conditions of this Agreement. All references in
the Agreement to the terms "herein," "hereunder," "hereof' and words of similar import shall
refer to this Agreement, as distinguished from the Paragraph, Section and/or Subsection within
which such term is located.
5
14. Third Parties: Nothing express or implied in this Agreement is intended or should
be construed to confer upon or give any person or entity, other than the City and DMSI, any
rights or remedies under, or by reason of, this Agreement.
IN WITNESS WHEREOF, the Parties have set their hands and seals on the day and date
first written above:
[Remainder of page intentionally left blank.]
6
DAVID MA NI & SONS, INC.
Attest:
David Mancini, President
et
Print Name
STATE OF FLORIDA
COUNTY OF MIAMI-DADE
The foregoing instrument was acknowledged before me this day of
20149 by David Mancini as President of David Mancini & Sons, Inc., who is personally kn wn to
me or who has produced (type of identification).
Name:
•,,,Y,p , LEMIS COLOMINA POWER (Pant ame) .
MY COMMISSION#EE 215605
EXPIRES:July 10,2016
Bonded 7hruNotaN Public Underwriters Notary Public— State of F ri a
My Commission Expires:
7
THE CITY OF MIAMI BEACH, FLORIDA,
a Municipal Corporation of the of Florida
By:
Print Name: Aa/b
2
I`1a
Title. 0� ,
ATTEST-.
le-14
-City C erk
INCOPP RATED:
SEAL
;, � ••' C
APPROVED AS TO FORM AND
CORRECTNESS:
�) 0
City Attorney
8
COMMISSION ITEM SUMMARY
Condensed Title:
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 A Settlement Agreement And Mutual Release Between The City Of Miami
Beach (City)And David Mancini&Sons, Inc. (DMSI), In The Amount Of$400,000, To Settle All Pending And Future
Claims For Damages By DMSI Pertaining To The Bayshore Neighborhood 8e—Sunset Islands 1 &2 Right Of Way
Infrastructure Improvement Project;With Previously Appropriated Fundin .
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
87% and 83% of City residents and businesses respectively, rated the appearance and maintenance of public
buildings as excellent or good; and over 81% of residents rated recently completed capital improvement projects as
excellent or good.
Item Summa /Recommendation:
On July 13, 2011, the City Commission approved the award of a construction contract to DMSI, in the amount of
$5,611,041, for the construction of the Neighborhood 8E-Bayshore, Sunset Islands 1 &2 Right of Way Infrastructure
Improvement Project (Project). The contract was a unit price contract. After clarifications and scope adjustments
took place prior to issuance of the second Notice-to-Proceed, the final approved contract amount was reduced to
$5,293,041.
During the construction of the Project, a considerable amount of additional scope of work was added to the Project,
such as replacement of pedestrian lighting electrical system on Sunset Island 1, sanitary sewer lining, driveway
harmonization and miscellaneous unforeseen Items, which increased the overall contract amount to a total of
$6,198,949.69.
On August 7, 2013, during a Project Progress meeting, DMSI submitted a claim for additional monies in the amount
of$977,541.96.
The City subsequently tasked the consulting firm of Schwebke-Shiskin & Associates (SS&A), the City's Consultant
whom was acting in the capacity of the Resident Project Representative during the course of the Project, to perform
a professional analysis and determine the validity of the items set forth in DMSI's claim. SS&A's analysis disputed
DMSI's claimed entitlement to certain items set forth in DMSI's claim.
On October 23, 2013, the City directed DMSI to bring the Project to Final Completion by completing the remaining
punch list items and to address the As-Built comments for resubmission to the City.
In accordance with the dispute resolution clause of the contract, on April 17, 2014, and July 11, 2014, respectively,
the City and DMSI convened for mediation.
Based on the City's consideration of additional information and data submitted and the parties' desire to settle these
claims without the need for litigation, DMSI agreed to a full and final settlement of all of its pending and future claims
for damages against the City pertaining to the Project, in the total amount of$400,000.
The Administration recommends that the Mayor and City Commission approve the resolution.
Advisory Board Recommendation:
Financial Information:
Source of Amount Account
Funds: 1 $160,588.97 423-2665-069357
2 $140,020.03 427-2665-069357
3 $ 99,391.00 . 431-2665-069357
OB Total $400,000.00
City Clerk's Office Legislative Tracking:
David Martinez, P.E Ext.6972
Sign-Offs:
Departyph ector Assistan ger City M er
DM M JLM
T:\AGENDA\2014\Sepfdrnber\I P\Bayshore E-Sunset Islands DMSI Settl reement-SUMM.docx (J
MIAMIBEACH AGENDA ITEM C
� DATE 9 N
I
MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Phillip Levine and Members o the City C mmission
FROM: Jimmy L. Morales, City Manager
DATE: September 10, 2014
SUBJECT: A RESOLUTION OF THE MAYOR IND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE A SETTLEMENT AGREEMENT
AND MUTUAL RELEASE BETWEEN THE CITY OF MIAMI BEACH (CITY)
AND DAVID MANCINI & SONS, INC. (DMSI), IN THE AMOUNT OF
$400,000, TO SETTLE ALL PENDING AND FUTURE CLAIMS FOR
DAMAGES BY DMSI PERTAINING TO THE BAYSHORE NEIGHBORHOOD
8E — SUNSET ISLANDS 1 & 2 RIGHT OF WAY INFRASTRUCTURE
IMPROVEMENT PROJECT; WITH PREVIOUSLY APPROPRIATED
FUNDING.
ADMINISTRATION RECOMMENDATION
The Administration recommends adopting the Resolution.
KEY INTENDED OUTCOME SUPPORTED
Build and maintain priority infrastructure with full accountability.
FUNDING
Account Number Amount Amount
423-2665-069357 $160,588.97
427-2665-069357 $140,020.03
431-2665-069357 $ 99,391.00
Total: $400,000.00
BACKGROUND
On July 13, 2011, the City Commission approved the award of a construction contract to DMSI,
in the amount of $5,611,041, for the construction of the Neighborhood 8E-Bayshore, Sunset
Islands 1 & 2 Right of Way Infrastructure Improvement Project (Project). The contract was a
unit price contract. After clarifications and scope adjustments took place prior to issuance of the
second Notice-to-Proceed, the final approved contract amount was reduced to $5,293,041.
I
Commission Memorandum—David Mancini&Sons Inc. Construction Settlement Agreement
September 10, 2014
Page 2 of 3
The Project limits include both Sunset Islands 1 & 2, accessed by a single bridge at the entry of
Sunset Island 1 from 29th Street and a second bridge from Sunset Island 1 to Sunset Island 2.
The Project's scope of work included the replacement of existing water lines; the installation of
new storm water infrastructure throughout the Project area; streetscape improvements,
including pavement and hardscape; valley gutter upgrades; and outfall reconstruction.
During the construction of the Project, a considerable amount of additional scope of work was
added to the Project, such as replacement of pedestrian lighting electrical system on Sunset
Island 1, sanitary sewer lining, driveway harmonization and miscellaneous unforeseen Items,
which increased the overall contract amount to a total of$6,198,949.69.
ANALYSIS
DMSI was issued the second Notice-to-Proceed, effective January 11, 2012, and was
scheduled to perform the work within 365 calendar days, plus an additional 64 calendar day
time extension for additional work.
On August 7, 2013, during a Project Progress meeting, DMSI submitted a claim for additional
monies in the amount of$977,541.96 (Exhibit A).
The City subsequently tasked the consulting firm of Schwebke-Shiskin & Associates (SS&A),
the City's Consultant whom was acting in the capacity of the Resident Project Representative
during the course of the Project, to perform a professional analysis and determine the validity of
the items set forth in DMSI's claim. SS&A's analysis disputed DMSI's claimed entitlement to
certain items set forth in DMSI's claim.
On October 23, 2013, the City directed DMSI to bring the Project to Final Completion by
completing the remaining punch list items and to address the As-Built comments for
resubmission to the City.
On March 18, 2014; DMSI obtained Final Completion, as certified by SS&A.
The dispute resolution clause of the contract states "within sixty(60) days after Final Completion
of the Work, the parties shall participate in mediation to address all objections to any
determinations hereunder and to attempt to prevent litigation."
In accordance with the dispute resolution clause of the contract, on April 17, 2014, and July 11,
2014, respectively, the City and DMSI convened for mediation.
Based on the City's consideration of additional information and data submitted and the parties'
desire to settle these claims without the need for litigation, DMSI agreed to a full and final
settlement of all of its pending and future claims for damages against the City pertaining to the
Project, in the total amount of$400,000.
Commission Memorandum—David Mancini&Sons Inc. Construction Settlement Agreement
September 10, 2014
Page 3 of 3
CONCLUSION:
The Administration recommends that the Mayor and Commission adopt the Resolution
Approving and Authorizing the Mayor and City Clerk to execute the Settlement Agreement and
Mutual Release between the City and DMSI, in the amount of $400,000, to settle all pending
and future claims by DMSI pertaining to the Project(Exhibit B).
ATTACHMENTS:
Exhibit A- DMSI's Claim Spreadsheet
Exhibit B - Final Settlement Agreement and Mutual Release
JLM/MT/DM
T:\AGENDA\2014\September\CIP\DMSI Settlement Agreement-SI 1 2 Memo Final MC.docx
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Estimated Cost Breakdown - Overall Utility Relocation Impact to
Project (+ 60 working days added)
PROJECT: Neighborhood #8E/Sunset Islands 1 &2, City of Miami Beach
CONTRACTOR: David Mancini &Sons, Inc. (DMSI)
SUMMARY OF DELAY DAYS
BASELINE ACTUAL
SW Start Date- 511812012 812012012
SW Finish Date- 713012012 211312013
Total Duration(Calendar Days) 73.00 177.00
SUBTOTAL-ADDITIONAL DAYS DUE TO DELAYS 104.00
Days DMSI was offsite on other jobs -10
Rain Days -10
GRAND TOTAL-CALENDAR DAYS 84.00
GRAND TOTAL-WORKING DAYS 60.00
SUMMARY OF DIRECT COSTS
TOTAL LABOR $ 4,804.46
TOTAL EQUIPMENT $ 2,979.91
TOTAL MATERIAL $ -
SUBTOTAL $ 7,784.37
CONTRACTOR'S FEE(10%)As per Art. 38.4.2.1 $ 778.44
TOTAL COST PER DAY $ 8,562.81 per day
WORKING DAYS DELAYED 60 days
TOTAL SUMMARY OF CHANGE ORDER/CLAIM
TOTAL DIRECT COSTS $ 513,768.59
TOTAL INDIRECT COSTS($1,400 per day as per
Article 41.1(a)of Contract) $ 84,000.00
TOTAL AMOUNT OF CLAIM $ 597,768.59
DEDUCT CLAIMS PAID BY CITY
CO# DESCRIPTION AMOUNT
6 lConflict between FPL and S-76 on Bay Ave $ 2,475.35
7 Drainage Conflict FPL at S-59 $ 1,585.48
8 FPL Conflcit with Drainage Installation S-188 $ 5,974.15
7 AT&T Conflict with Drainaeg Instalaltion S-107 $ 6,895.60
7 1FPL Conflict with Drainage Installation S-3 $ 3,720.62
TOTAL CLAIMS PAID BY CITY TO DATE $ 20,651.20
BALANCE DUE TO DMSI $ 577,117.39
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