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2016-29497 Reso RESOLUTION NO., 2016-29497 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 DEVELOPMENT AGREEMENT BETWEEN THE CITY AND JAMECK DEVELOPMENT, INC. (DEVELOPER), DATED JULY 23, 2014, FOR THE DESIGN, DEVELOPMENT, AND CONSTRUCTION OF CERTAIN STREETSCAPE IMPROVEMENTS IN THE CITY'S RIGHT OF WAY, AT THE PORTION OF EUCLID AVENUE BETWEEN LINCOLN ROAD AND LINCOLN LANE SOUTH (THE PROJECT); WHICH AMENDMENT SHALL: (1) APPROVE A CITY AUTHORIZED CHANGE ORDER IN THE AMOUNT OF $41,203.75 (OF WHICH TOTAL AMOUNT THE CITY'S PROPORTIONATE COST UNDER THE DEVELOPMENT AGREEMENT SHALL BE $23,444.93), RELATING TO UNFORESEEN SITE CONDITIONS INCLUDING, BUT NOT LIMITED TO PROVIDING A NEW FP&L SERVICE POINT, PROVIDING A HANDHOLE AND RISER FOR THE PROJECT; AND (2) INCREASE THE GUARANTEED MAXIMUM PRICE (GMP) OF THE PROJECT FROM $819,838.88 TO $861,042.63 BASED UPON SAID CHANGE ORDER; AND (3) INCREASE THE CITY'S BUDGETED COSTS FOR THE PROJECT, FROM $466,500.86 TO $489,945.80. WHEREAS, Jameck Development, Inc. (Developer), approached the City to enter into a Development Agreement for the closure of a portion of Euclid Avenue, between Lincoln Road and Lincoln Lane South, to vehicular traffic, as part of an extension of the Lincoln Road pedestrian mall, and the construction of streetscape improvements (the Improvements) in the City's right-of-way (the Project); and WHEREAS, the Project provided the City the following proposed public benefits: (a) removing delivery vehicles at the end of Euclid Avenue just south of Lincoln Road and establishing a delivery vehicle loading zone at Lincoln Lane South that will permit such vehicles to travel east or west through Lincoln Lane South instead of having to back up and turn around to exit on Euclid Avenue; (b) providing residents and visitors with an entrance to Lincoln Road off Euclid Avenue; and (c) creating more space for performances at the Euclid Oval; and WHEREAS, on its July 23, 2014 meeting, the City Commission adopted Resolution No. 2014-28673, approving the Development Agreement on second and final reading/public hearing; and WHEREAS, on August 28, 2014, the City and Developer executed the Development Agreement for the Project, reflecting a guaranteed maximum price (GMP) of$485,821; and WHEREAS, On September 2, 2015, pursuant to Resolution No.: 2015-29127, the Mayor and City Commission approved Amendment No. 1 to the Development Agreement, increasing the Guaranteed Maximum Price (GMP) of the Project to $786,200, due to an increase in construction costs, with the Developer assuming the development costs exceeding the City's cost; and WHEREAS, On October 14, 2015, pursuant Resolution No. 2015-29158, the Mayor and City Commission approved amending Resolution No. 2015-29127, relating to Amendment No. 1 to the Development Agreement to: (1) correct the GMP of the Project from $786,200 to $806,340 (to include the cost of the bond insurance requirement); (2) correct the City's budgeted cost to reflect $485,820 (of which $27,000 budgeted for City's construction management costs, leaving $458,820 for City's contribution to the Project); (3) provide that the City would pay each approved draw in proportion to the City's contribution to the Project; and (4) provide that Developer would be responsible for the entire scope of the Project, including the underground utility work, and assuming the GMP costs exceeding the City's Contribution; and WHEREAS, On March 9, 2016, pursuant Resolution No. 2016-29330, the Mayor and City Commission approved Amendment No. 2 to the Development Agreement: (1) adding the additional work to the Development Agreement as an approved change order; (2) increasing the GMP of the Project to $819,838.88, thereby increasing the City's contribution to $466,500.86; and (3) clarifying that as part of Developer assuming the GMP costs above the City's Contribution, Developer shall pay the cost of any environmental studies or any required remediation relating to the Project; and WHEREAS, during the construction process, the following additional work, having a cost of $23,444.93, was required due to unforeseen circumstances: (1) during the excavation of drainage piping contractor encountered a FPL duct bank, which conflicted with the proposed scope of work, which required re-alignment of the work; (2) FPL requested that the Developer run a secondary wire from the new electrical room to the FPL hand-hole; (3) unanticipated costs due to the FPL work for the installation of the relocated hand-hole for the new service point connection, and 4) the contractor had to remove certain unsuitable materials and replace those materials with Limerock; and WHEREAS, the Developer also requested additional design changes to the project which include: (1) the installation of two additional removable non-luminous bollards and two non-removable non-luminous bollards, and (2) the modification of the proposed concrete color type to better match existing conditions, which design modifications are proposed to cost $16,717.27, and which Developer has agreed to fully absorb; and WHEREAS, the City's proportionate contribution (56.90%) of the additional work under the Change Order is $13,352.30, which amount will be memorialized, in writing, as an agreed upon change order; and WHEREAS, this Change Order increases the GMP from $819,838.88 to $843,305.13, thereby increasing the City's contribution to the Project to $489,945.80; and WHEREAS, the Administration recommends approving Amendment No. 3 to the Development Agreement in order to: (1) approve a City authorized Change Order in the amount of $41,203.75 (of which total amount the City's proportionate cost under the Development Agreement shall be $23,444.93), relating to unforeseen site conditions including, but not limited to providing a new FP&L service point, providing a handhole and riser for the project; (2) increase the Guaranteed Maximum Price (GMP) of the project from $819,838.88 to $861,042.63, based upon said Change Order; and (3) increase the City's budgeted costs for the project from $466,500.86 to $489,945.80. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve and authorize the Mayor and City Clerk to execute Amendment No. 3 to the Development Agreement between the City and Jameck Development, Inc. (Developer), dated July 23, 2014, for the design, development, and construction of certain streetscape improvements in the City's right of way, at the portion of Euclid Avenue between Lincoln Road and Lincoln Lane South (the project); which Amendment shall: (1) approve a City authorized Change Order in the amount of $41,203.75 (of which total amount the City's proportionate cost under the Development Agreement shall be $23,444.93), relating to unforeseen site conditions including, but not limited to providing a new FP&L service point, providing a handhole and riser for the project; and (2) increase the Guaranteed Maximum Price (GMP) of the project from $819,838.88 to $861,042.63 based upon said Change Order; and (3) increase the City's budgeted costs for the project, from $466,500.86 to $489,945.80. PASSED AND ADOPTED this (3 day of July, 2016, j . f PHIL ° . ' , MAYOR ATTEST: gAii/ (4, RA AEL . GRANADO, CITY CLERK %%lannaviviii T:IAGENDA120161JulylP�jr \icslE1li tre- -,•d GMP Amedment 2 RESO.docx 4 _ .7l ti AF: '-.* =.INCORP\ rRATED....:(0 APPROVED AS TO pi; FORM & LANGUAGE -dam�• �,i;�1 ' '`��--. . 0), & FO XE UTION • '7 ? eL 8(3 (6 City Attorney - , i Dote COMMISSION ITEM SUMMARY Condensed Title: A Resolution of the Mayor and City Commission of the City of Miami Beach, Florida, approving and authorizing Mayor and City Clerk to execute Amendment No. 3 to the Development Agreement between the City and Jameck Development, Inc. (Jameck or developer), dated July 23, 2014, for the Design, Development, and Construction of certain streetscape improvements in the City's right of way, at the portion of Euclid Avenue between Lincoln Road and Lincoln Lane south (the Project); said amendment approving a City requested change order, in the amount of$41,203.75, relating to unforeseen site conditions, new FP&L service point, hand-hole and riser, and construction of planter ellipse to protect existing Copper Pod trees; and increasing the Guaranteed Maximum Price (GMP) of the project from $819,838.88 to $861,042.63 in connection with said change order; and increasing the City's budgeted costs for the project, from $466,500.86 to$489,945.80. Key Intended Outcome Supported: Ensure well designed quality capital projects--Increase Community Satisfaction with City Services Supporting Data(Surveys, Environmental Scan, etc.): Based on the 2014 community survey, recently completed capital projects were highly rated by both residents and businesses. Item Summary/Recommendation: On August 28, 2014, the City and Developer executed the Development Agreement for the Project, reflecting a guaranteed maximum price (GMP) of $485,821,in connection with the Project. On September 2, 2015, pursuant to Resolution Number 2015-29127, the Mayor and City Commission approved Amendment No 1 to the Development Agreement, increasing the guaranteed maximum price (GMP) of the Project to $786,200, due to an increase in construction costs, with the Developer assuming the development costs exceeding the City's cost On October 14, 2015, pursuant Resolution 2015-29158, the Mayor and City Commission approved amending Resolution Number 2015-29127 relating to Amendment No. 1 to the Development Agreement to: (1)correct the guaranteed maximum price(GMP)of the Project from$786,200 to$806,340(to include the cost of the bond insurance requirement); (2) correct the City's budgeted cost to reflect $485,820 (of which $27,000 budgeted for City's construction management costs, leaving $458,820 for City's contribution to the Project); (3) provide that the City would pay each approved draw in proportion to the City's contribution to the Project;and (4)provide that Developer would be responsible for the entire scope of the Project, including the underground utility work,and assuming the GMP costs exceeding the City's Contribution;and On March 9,2016, pursuant Resolution 2016-29330, the Mayor and City Commission approved Amendment No. 2 to the Development Agreement: (1) . adding the additional work to the Development Agreement as an approved change order;(2)increasing the GMP of the Project to$819,838.88,thereby increasing the City's contribution to $466,500.86; and (3)clarifying that as part of Developer assuming the GMP costs above the City's Contribution, Developer shall pay the cost of any environmental studies or any required remediation relating to the Project;and During the construction process, the following additional work, having a cost of $41,203.75, was required: 1) during the excavation contractor encountered FPL duct bank in conflict with the work; 2)FPL requested to run a secondary wire run from new electrical room to FPL hand-hole; 3)FPL work requiring relocation of hand-hole for the new service point connection was required, 4) removal of unsuitable material and replacement with limerock was required,and 5)the construction of a planter ellipse to protect existing Copper Pod trees. The developer also requested additional design related changes to the project,in the total sum of$40,751.61,at developer's sole cost. The City's proportionate contribution(56.90%)of the additional work is $23,444.93, which change will be memorialized in a change order. This change order increases the GMP total amount from $819,838.88 to $861,042.63,thereby increasing the City's contribution to the Project to$479,853.16. The Administration recommends approving Amendment No. 3 to..the Development Agreement,incorporating the additional work,thereby increasing the GMP of the Project to$843,305.13 and the City's contribution to$489,945.80. Advisory Board Recommendation: See above summary. Financial Information: Source of Funds: Amount -- Account G 1 $19,245 365-2767-069351 2 $4,200 168-1985-000312 3 Total $23,445 Financial Impact Summary: Funds for this project were approved by the City Commission as part of the City Center Redevelopment District Funds(City Center RDA)in the FY 2012/13 and FY 2013/14 Capital Budget. City Clerk's Office Legislative Tracking: Bruce Mowry, Ph.D., P.E., Ext. 6565 Sign-Offs: Ast. Departme ctor Assistant t Manager/DPW City M ager JJ , ETC JLM T:\AGENDA12016\ uly\PUBLIC WORKS\Euclid Street End GMP Amedment summary M1AMIBEACH AGENDA ITEM r, I N DATE 7(3 MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COM ISSIO MEMORANDUM TO: Mayor Philip Levine and Members • the City lo/ mmission �_ FROM: Jimmy L. Morales, City Manager DATE: July 13, 2016 SUBJECT: A RESOLUTION OF THE YOR AND CITY COMMISSION OF THE CITY OF MIAMI BE • CH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AMENDMENT NO. 3 TO THE DEVELOPMENT AGREEMENT BETWEEN THE CITY AND JAMECK DEVELOPMENT, INC. (JAMECK OR DEVELOPER), DATED JULY 23, 2014, FOR THE DESIGN, DEVELOPMENT, AND CONSTRUCTION OF CERTAIN • STREETSCAPE IMPROVEMENTS IN THE CITY'S RIGHT OF WAY, AT THE PORTION OF EUCLID AVENUE BETWEEN LINCOLN ROAD AND LINCOLN LANE SOUTH (THE PROJECT); SAID AMENDMENT: (1) APPROVING A CITY REQUESTED CHANGE ORDER, IN THE AMOUNT OF $41,203.75, RELATING TO UNFORESEEN SITE CONDITIONS, NEW FP&L SERVICE POINT, HANDHOLE AND RISER, AND CONSTRUCTION OF PLANTER ELLIPSE TO PROTECT EXISTING COPPER POD TREES; (2) INCREASING THE GUARANTEED MAXIMUM PRICE (GMP) OF THE PROJECT FROM $819,838.88 TO $861,042.63 IN CONNECTION WITH SAID CHANGE ORDER; AND (3) INCREASING THE CITY'S BUDGETED COSTS FOR THE PROJECT, FROM $466,500.86 TO $489,945.80 TO INCLUDE THE CITY'S PROPORTIONATE SHARE OF THE CHANGE ORDER, IN THE AMOUNT OF $23,444.93. KEY INTENDED OUTCOME SUPPORTED Ensure well designed quality capital projects Increase Community Satisfaction with City Services FUNDING $ 19,245 365-2767-069358 $ 4,200 168-1985-000312 $ 23,445 City Commission Memorandum Amendment No. 3 to Development Agreement with Jameck Development, Inc.-Euclid Street End Project July 13, 2016 Page 2 of 3 BACKGROUND Jameck Development, Inc. (Developer) approached the City to enter into a development agreement for the closure of a portion of Euclid Avenue, between Lincoln Road and Lincoln Lane South, to vehicular traffic, as part of an extension of the Lincoln Road pedestrian mall, and the construction of streetscape improvements in the City's right-of-way (the Project). This Project will benefit the public in the following ways: (a) by removing delivery vehicles at the end of Euclid Avenue just south of Lincoln Road and establishing a delivery vehicle loading zone at Lincoln Lane South that will permit such vehicles to travel east or west through Lincoln Lane South instead of having to back up and turn around to exit on Euclid Avenue; (b) by providing the Flamingo Park residents with an entrance to Lincoln Road off Euclid Avenue; and (c) by creating more space for performances at the Euclid Oval. On June 5, 2013, the Mayor and City Commission adopted Resolution No. 2013-28236, approving the Conceptual Plan and authorizing the City Manager to enter into negotiations with the Developer to design and build the Project. At its June 11, 2014 meeting, the City Commission approved Resolution No. 2014-28628, approving the Development Agreement between Jameck and the City on first reading. At its July 23, 2014 meeting, the Mayor and City Commission approved Resolution No. 2014- 28673 approving the Development Agreement on second and final reading. The Project had a total budgeted cost to the City of $485,820 (City's cost), with any additional funds for the Project to be covered by the Developer. Such City funds were to be appropriated from Miami Beach Redevelopment Agency (Historic Convention Village/City Center RDA) Funds. ANALYSIS On September 2, 2015, pursuant to Resolution Number 2015-29127, the Mayor and City Commission approved Amendment No.1 to the Development Agreement, increasing the guaranteed maximum price (GMP) of the Project to $786,200 due to increases in construction costs; with the Developer paying for any Project costs in excess of the City's cost. On October 14, 2015, pursuant Resolution 2015-29158, the Mayor and City Commission approved amending Resolution Number 2015-29127, relating to Amendment No. 1 to the Development Agreement, increasing the guaranteed maximum price (GMP) of the Project to $806,340, due to bond insurance requirements, with the Developer paying for any Project costs in excess of the City's cost. On March 9, 2016, pursuant Resolution 2016-29330, the Mayor and City Commission approved Amendment No.2 to the Development Agreement, increasing the guaranteed maximum price (GMP) of the Project to $819,838.88; due to additional landscape work to comply with City's request to keep existing Copper Pod trees at the current location with the Developer paying for any Project costs in excess of the City's cost. Thereafter, during the construction process the following additional work was required: 1) during the excavation of drainage piping the contractor encountered FPL duct bank in City Commission Memorandum Amendment No. 3 to Development Agreement with Jameck Development, Inc.-Euclid Street End Project July 13, 2016 Page 3 of 3 conflict with the work that required adjustments, 2) FPL requested to run a secondary wire run from new electrical room to the FPL hand-hole, 3) FPL work for the installation of the relocated hand-hole for the new service point connection, 4) removal of unsuitable material and replacement with limerock, and 5) the construction of a planter ellipse to protect existing Copper Pod trees on the north side that was not part of the original design. The total cost of the additional work is in the amount of $41,203.75, and the City's proportionate contribution (56.90%) of this cost is $23,444.93. This change increases the GMP total amount from $819,838.88 to $861,042.63. The Developer has also requested additional changes to the project related to 1) Installation of two additional removable non-luminous bollards and two non-removable non- luminous bollards, 2) modification of concrete color type to better match existing conditions, 3) supply and install Euclid Tamoseal waterproof system sealer to planter/ellipse, 4) Apply stucco outside planter/ellipse, and 5) apply concrete sealer to planter/ellipse. The Cost for this work is in the amount of$40,751.61 and will be 100% covered by the developer. Public Work Department staff has reviewed the cost proposals and deemed the cost acceptable based on the expressed scope, site conditions, and the risk associated with performing such work. CONCLUSION The Administration recommends approving Amendment No. 3 to the Development Agreement, increasing the GMP Project cost to reflect $861,042.63, with the Developer assuming the GMP costs above the City's Contribution, and reflecting the inclusion of the Additional work in Amendment No. 3 to the Development Agreement. JLM/:' 1BAM/WRB/JMR T:\AGENDA\2016UuIy\Public Works\Euclid Street End GMP Amendment 3memo.docx