2001-24679 Reso
RESOLUTION
2001-24679
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, FINDING AND
DECLARING THAT AN EMERGENCY SITUATION EXISTS WITH
RESPECT TO THE SOUTH POINTE STREETSCAPE
IMPROVEMENTS - PHASE I CONSTRUCTION (PROJECT), AND
WAIVING, BY SnTHS VOTE, THE FORMAL COMPETITIVE
BIDDING REQUIREMENTS WITH RESPECT TO PROSECUTING
THE REMAINING WORK TO DILIGENTLY COMPLETE THE
PROJECT; FINDING SUCH WAIVER TO BE IN THE BEST
INTEREST OF THE CITY; RATIFYING THE ACTION OF THE MIAMI
BEACH REDEVELOPMENT AGENCY (RDA), AUTHORIZING THE
CITY MANAGER, ACTING AS THE EXECUTIVE DIRECTOR OF
THE RDA, TO SELECT, NEGOTIATE, AND AWARD ANY AND ALL
CONTRACTS, PURCHASE ORDERS AND CHANGE ORDERS, AS
NECESSARY, RELATIVE TO THE PURCHASE OF ALL
NECESSARY GOODS AND SERVICES NECESSARY FOR THE
COMPLETION OF THE REMAINING WORK ON THE PROJECT;
FURTHER RATIFYING THE ACTIONS OF THE CHAIRMAN AND
MEMBERS OF THE RDA AUTHORIZING THE CHAIRMAN AND
SECRETARY TO EXECUTE ALL CONTRACTS, PURCHASE
ORDERS, AND CHANGE ORDERS, AS NECESSARY,
PURSUANT TO THE RECOMMENDATION OF THE EXECUTIVE
DIRECTOR, RELATIVE TO THE PURCHASE OF ALL NECESSARY
GOODS AND SERVICES NECESSARY FOR THE PROSECUTION
OF THE REMAINING WORK ON THE PROJECT; PROVIDED THAT
SUCH CONTRACTS, PURCHASE ORDERS, CHANGE ORDERS,
AND ANY OTHER DOCUMENTS, SHALL BE SUBSTANTIALLY IN
ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE
CURRECT CONSTRUCTION CONTRACT WITH ACI
(CONTRACTOR) AND SHALL NOT EXCEED THE CURRENT
AMOUNT APPROPRIATED BY THE RDA FOR THE
AFORESTA TED PROJECT, WITHOUT FURTHER APPROVAL OF
THE CHAIRMAN AND MEMBERS OF THE RDA, AND
RATIFICATION BY THE MAYOR AND CITY COMMISSION.
WHEREAS, on June 28, 2000, the Chairman and Members of the Miami Beach
Redevelopment Agency (RDA) authorized the Chairman and Secretary to execute a
construction contract with Atlantic Civil, Inc. (ACI) (Contractor) for the construction of the
South Pointe Streetscape Improvements -- Phase I (the Project) pursuant to Invitation to
Bid No. 90-99/00, and said action was ratified by the Mayor and City Commission of the
City of Miami Beach; and
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WHEREAS, on September 5, 2000, ACI commenced the Project construction, which
consists of roadway, drainage, water, sanitary sewer, lighting and landscaping
improvements along Third Street from Michigan Avenue to Ocean Drive and along
Washington Avenue from South Pointe Park to Fifth Street; a roadway and associated
parking was also constructed to connect the South Pointe Park and the Park's existing
parking lot; and
WHEREAS, since the commencement of construction, several site development
issues related to coordination of unforeseen conditions, omissions and deletions have
arisen; and
WHEREAS, ACI has refused to proceed with disputed work without first receiving an
approved change order and has taken actions and/or positions to increase the difficulties of
the Project; and
WHEREAS, pursuant to its authority under its construction contract with ACI, on
September 26, 2001, the RDA omitted the work along Washington Avenue, from South
Pointe Drive to First Street, since the proposed work could not be completed by October 4,
2001, the date required by the RDA; and
WHEREAS, pursuant to its authority under its construction contract with ACI, on
September 7, 2001, the RDA omitted the work along Washington Avenue, from Fourth to
Fifth Streets, as ACI refused the reasonable and responsible requests of the RDA to
provide certain assurances that ACI would address the construction in this area in a
manner that minimizes potential impacts to the residents and businesses; and
WHEREAS, ACI has failed to complete the Project in accordance with the terms of
its construction contract with the RDA and, accordingly, has been certified in default by the
RDA, (in concurrence with the Program Manager on the Project, Hazen and Sawyer), for
failure to complete the Project in a timely manner; and.
WHEREAS, it is the recommendation of the RDA staff assigned to the Project and
the Program Manager that the RDA exercise its rights contained within its construction
contract with ACI by omitting the balance of the remaining work from the contract, and by
removing the prosecution of the work from ACI; and
WHEREAS, due to the potentially hazardous condition in portions of the South
Pointe area, as a result of the Project still being incomplete, the RDA staff finds that there
exists a potential emergency that might affect the health, safety and welfare of the City;
accordingly, it is recommended that the Mayor and City Commission herein waive formal
competitive bidding, which would allow the RDA Executive Director to take any and all
actions, and subject to the conditions prescribed by the RDA by separate resolution, and
set forth below, to take all necessary steps to diligently complete the prosecution of the
work on the Project.
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 find and declare that an emergency situation exists with respect to the South
Pointe Streetscape Improvements - Phase I Construction (Project), and waive, by Snths
vote, the formal competitive bidding requirements with respect to prosecuting the remaining
work to diligently complete the Project; finding such waiver to be in the best interest of the
City; ratifying the actions of the Miami Beach Redevelopment Agency (RDA), authorizing
the City Manager, acting as the Executive Director of the RDA, to select, negotiate, and
award any and all contracts, purchase orders and change orders, as necessary, relative to
the purchase of all necessary goods and services necessary for the completion of the
remaining work on the Project; further ratifying the actions ofthe Chairman and Members
of the RDA authorizing the Chairman and Secretary to execute all contracts, purchase
orders, change orders, as necessary, pursuant to the recommendation of the Executive
Director, relative to the purchase of all necessary goods and services necessary for the
prosecution of the remaining work on the Project; provided that such contracts, purchase
orders, change orders, and any other documents, shall be substantially in accordance with
the terms and conditions of the current construction contract with ACI and shall not exceed
the current amount appropriated by the RDA for the aforestated Project, without further
approval of the Chairman and Members of tile RDA, and ratification by the Mayor and City
Commission.
PASSED and ADOPTED this 28th day of Novemb
ATTEST:
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CITY CLERK
T:IAGENDA\200 llncw2801lRECULARlACl Waiver of Bid CMBResI.doc
APPROVED I>S 10
FORM & lANGUAGE
& FOREXECUnoN
II~d I
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miami-beach.f1.us
To:
From:
Subject:
COMMISSION MEMORANDUM
Mayor David Dermer and
Members of the City Commission
Jorge M. GonzalEll. .A-
City Manager ~r .)N.(;.. ~ ~
A RESOLUTION OF THE MAYOR AND CI OM MISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, FINDING ND DECLARING THAT AN
EMERGENCY SITUATION EXISTS WITH RESPECT TO THE SOUTH
POINTE STREETSCAPE IMPROVEMENTS - PHASE I CONSTRUCTION
(PROJECT), AND WAIVING, BY SnTHS VOTE, THE FORMAL
COMPETITIVE BIDDING REQUIREMENTS WITH RESPECT TO
PROSECUTING THE REMAINING WORK TO DILIGENTLY COMPLETE
THE PROJECT; FINDING SUCH WAIVER TO BE IN THE BEST INTEREST
OF THE CITY; RATIFYING THE ACTION OF THE MIAMI BEACH
REDEVELOPMENT AGENCY (RDA), AUTHORIZING THE CITY
MANAGER, ACTING AS THE EXECUTIVE DIRECTOR OF THE RDA, TO
SELECT, NEGOTIATE, AND AWARD ANY AND ALL CONTRACTS,
PURCHASE ORDERS AND CHANGE ORDERS, AS NECESSARY,
RELATIVE TO THE PURCHASE OF ALL NECESSARY GOODS AND
SERVICES NECESSARY FOR THE COMPLETION OF THE REMAINING
WORK ON THE PROJECT; FURTHER RATIFYING THE ACTIONS OF THE
CHAIRMAN AND MEMBERS OF THE RDA AUTHORIZING THE
CHAIRMAN AND SECRETARY TO EXECUTE ALL CONTRACTS,
PURCHASE ORDERS, AND CHANGE ORDERS, AS NECESSARY,
PURSUANT TO THE RECOMMENDATION OF THE EXECUTIVE
DIRECTOR, RELATIVE TO THE PURCHASE OF ALL NECESSARY
GOODS AND SERVICES NECESSARY FOR THE PROSECUTION OF THE
REMAINING WORK ON THE PROJECT; PROVIDED THAT SUCH
CONTRACTS, PURCHASE ORDERS, CHANGE ORDERS, AND ANY
OTHER DOCUMENTS, SHALL BE SUBSTANTIALLY IN ACCORDANCE
WITH THE TERMS AND CONDITIONS OF THE CURRENT
CONSTRUCTION CONTRACT WITH ACI (CONTRACTOR) AND SHALL
NOT EXCEED THE CURRENT AMOUNT APPROPRIATED BY THE RDA
FOR THE AFORESTATED PROJECT, WITHOUT FURTHER APPROVAL
OF THE CHAIRMAN AND MEMBERS OF THE RDA, AND RATIFICATION
BY THE MAYOR AND CITY COMMISSION.
Date: November 28, 2001
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
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AGENDA ITEM R7C-
DATE 1/...J.K,o}
Analysis
On September 5, 2000, Atlantic Civil, Inc. (ACI) commenced the South Pointe Streetscape
Phase I construction (the "Project"), which consists of roadway, drainage, water, sanitary
sewer, lighting and landscaping improvements along Third Street from Michigan Avenue to
Ocean Drive and along Washington Avenue from South Pointe Park to Fifth Street; a
roadway and associated parking was also constructed to connect the South Pointe Park
and the Park's existing parking lot.
Since the commencement of construction, several site development issues related to
coordination of unforeseen conditions, omissions and deletions have arisen. On January
31 , 2001 , as a result of staff concerns, a status report was provided to the Redevelopment
Agency advising that these conditions had contributed to time delays and additional costs.
On May 16, 2001, staff reported to the Redevelopment Agency that the Contractor (ACI)
submitted a Request for Equitable Adjustment (REA) in excess of $1.3 million, representing
the increased costs the Contractor attributed to delays associated with the issues
referenced above. Repeated City requests to the Contractor to submit specific
documentation to support the Contractor's REA have been denied by the Contractor unless
the City agrees to binding arbitration. Without this information, the City cannot evaluate the
Contractor's REA and therefore, on August 10, 2001, the City advised the Contractor that
the REA is rejected until such time that the Contractor forwards the requested information.
The City's Project team has been actively addressing design and unforeseen site condition
issues to expeditiously resolve conflicts, and allow ACI to proceed with construction without
further delays. However, ACI has continued to claim that design and unforeseen site
condition issues contribute to delays.
Additionally, ACI has acted in a manner that has contributed to the issues on the project
and has failed to complete the project within the allotted time. As such the City/RDA have
proceeded with omission of work to assure a better resolution to outstanding issues in the
area.
On September 7,2001, the City/RDA omitted the work along Washington Avenue from
Fourth to Fifth Streets. On October 17, 2001 the RDA ratified the omitted work actions.
On September 26, 2001, the City/RDA omitted the work along Washington Avenue from
South Pointe Drive to First Street pursuant to Section 9.5 - Omitted Items of the Contract
since the proposed work could not be completed by October 4, 2001.
On November 28, 2001, the RDA Board was asked to omit the balance of the work for the
Contract pursuant to Section 9.5 - Omitted Items; and, pursuantto Section 8.8 of the same
Contract was asked to take the prosecution of the work out of the hands of the Contractor.
The RDA has also been requested to authorize the appropriate City officials to take any
necessary actions to complete the balance of the unfinished work.
Several alternatives have been examined to proceed with the completion of the omitted
work for the project, which is estimated to require approximately 6 (six) months. Due to the
unfinished condition of the project's work area, it is important to act in a quick and flexible
manner to complete the unfinished work. The requirement to follow the formal bidding
process is estimated to take 90 to 120 days, during which no work would be able to
proceed in the project area. As a result of these unusual circumstances, the normal formal
bidding process would result in undue delays to complete the unfinished work which would
result in a hardship situation for the residents and businesses within the work area.
Therefore, the Administration recommends that the Mayor and City Commission of the City
of Miami Beach, Florida, waive, by Snths vote, the competitive bidding requirements,
finding such waiver to be in the best interest of the City for the completion of the South
Pointe Streets ape Improvements - Phase I construction.
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T:IAGENDA\2001\nov 801\REGULARlACI Waiver of BID Mem.doc