2003-25115 Reso
RESOLUTION NO. 2003-25115
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE CHANGE ORDER (NO.1), IN THE AMOUNT
OF $158,668.02, TO AMERICAN WATER SERVICES UNDERGROUND
INFRASTRUCTURE, INC., AS SUCCESOR IN INTEREST TO AZURlX
NORTH AMERICA UNDERGROUND INFRASTRUCTURE, INC., FOR THE
REHABILITATION OF SANITARY SEWERS, AND APPROPRIATING
SUCH FUNDS FROM THE SERIES 2000 WATER AND SEWER BOND
FUND NO. 424
WHEREAS, on December 19, 2001, the City awarded Bid No. 36-00/01 to Azurix North
America Underground Infrastructure, Inc., in the amount of $5,288,934, for the Rehabilitation of
Sanitary Sewers (project); and
WHEREAS, subsequently, the City's design consultant for the Project, Kimley-Hom and
Associates, who was also tasked with the construction administration of the Project, was removed
from the Project; and
WHEREAS, on December 11, 2002, the City authorized a Professional Services Agreement
with the firm of Camp Dresser and McKee, Inc., pursuant to Request for Qualifications (RFQ) No.
35-00/01, for Citywide Sanitary Sewers Improvements Project; and
WHEREAS, due to the urgent nature of proceeding with the Infiltration and Inflow
Reduction Improvements, Service Order No.1 was negotiated immediately, and funds were
appropriated, for the construction management portion ofthe Project; and
WHEREAS, the City has since received a notification of a corporate name change from
Azurix North America Underground Infrastructure, Inc., to American Water Services Underground
Infrastructure, Inc., (American Water Services), concurrent with the request for a Change Order
herein, to increase the Project construction contract amount by 4%; and
WHEREAS, the City's Procurement Department verified the above corporate name change,
and negotiated an increase, in the amount of$158,668.02 (3% of the contract amount), to cover price
increases that American Water Services has experienced over the past year; and
WHEREAS, the Public Works Department, the Procurement Department, and the Risk
Management Office reviewed insurance docwnents and local and national construction price indexes
and determined that a 3% increase, or $158,668.02, was a fair and reasonable contract adjustment
to cover unforeseen contractor price increases; and
Page 1 of2
WHEREAS, the City Manager has reviewed the Administration's recommendation for
award of Change Order No.1 to American Water Services Inc., as successor in interest to Azurix
North America Underground Infrastructure, Inc., for the 3% increase bringing, the total contract
price to $5,447,602.02, (which is still lower than the second lowest bid of $5,448,673.00), and
concurs with this recommendation.
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 herein authorize the Mayor and City Clerk to execute Change Order No.1, in the
amount of $158,668.02, to the contract, dated February 1,2002, with American Water Services
Underground Infrastructure, Inc., as successor in interest to Azurix North America Underground
Infrastructure, Inc., for the Rehabilitation of Sanitary Sewers, and appropriating such funds from the
Series 2000 Water and Sewer Bond Fund 424.
Passed and Adopted this 5th day of February, 200 .
ATTEST:
CITY CLERK
/IWROIfDMlO
FORMaLANGUAGI
& fOR EXECUTION
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Page 2 of2
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
~
Condensed Title:
Award a Change Order (No, 1) to American Water Services Underground Infrastructure, Inc" as successors of Azurix
North America Underground Intrastructure, Inc., to cover price increases experienced due to unforeseen project start
delays caused by the City,
Issue:
Shall the City award Change Order No, 1 to American Water Services Underground Infrastructure, Inc,?
Item Summary/Recommendation:
On December 19, 2001, the City of Miami Beach awarded Bid No, 36-00101 to Azurix North America Underground
Infrastructure, Inc" in the amount of $5,288,934, for the Rehabilitation of Sanitary Sewers. Subsequently, the City's
design consultant for the project, Kimley-Horn and Associates, who was also tasked with the construction
administration of the project, was terminated for convenience,
On December 11, 2002 the City of Miami Beach authorized a Professional Services Agreement with the firm of Camp
Dresser and McKee, Inc. that will now provide the construction administration for the Rehabilitation of Sanitary
Sewers Contract with Azurix,
The City received a notification of a corporate name change from Azurix North America Underground Infrastructure,
Inc" to American Water Services Underground Infrastructure,lnc" and a requestfor a Change Order to increase the
contract amount by 4%.
The Public Works Department, the Procurement Department, and the Risk Management Office reviewed insurance
documents and local and national construction price indexes and determined that a 3% increase or $158,668,02 was
a fair and reasonable contract adjustment to cover unforeseen contractor price increases, This 3% increase will bring
the total contract price to $5,447,602,02, which is still lower than the second lowest bid of $5,448,673,00.
The Administration recommends approval of the Resolution.
Advisory Board Recommendation:
I
Financial Information:
Source of
Funds:
lifJ
City Clerk's Office Legislative Tracking:
I Gus Lopez
AGENDA ITEM
DATE
C.7G-
2-5"-<)3
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miami-beach.fl.us
COMMISSION MEMORANDUM
Subject:
Mayor David Dermer and
Members of the City Commission
Jorge M. Gonzalez ~ ,L~
City Manager oP"'(J
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE CHANGE ORDER (NO.1), IN THE
AMOUNT OF $158,668.02, TO AMERICAN WATER SERVICES
UNDERGROUND INFRASTRUCTURE, INC., AS SUCCESOR IN
INTEREST FOR AZURIX NORTH AMERICA UNDERGROUND
INFRASTRUCTURE, INC., FOR THE REHABILITATION OF SANITARY
SEWERS, AND APPROPRIATING SUCH FUNDS FROM THE SERIES
2000 WATER AND SEWER BOND FUND NO. 424.
Date: February 5, 2003
To:
From:
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
FUNDING
$158,668.02 Funding is available from the Series 2000 Water and Sewer Bond No. 424.
BACKGROUND
On December 19, 2001 , the City of Miami Beach awarded Bid No. 36-00101 to Azurix North
America Underground Infrastructure, Inc., in the amount of $5,288,934, for the
Rehabilitation of Sanitary Sewers. Subsequently, the City's design consultant for the
project, Kimley-Horn and Associates, who was also tasked with the Construction
Administration ofthe Project, was terminated for convenience and, therefore, the City could
not proceed with subject project until a new architect engineer firm was selected.
On December 11, 2002 the City of Miami Beach authorized a Professional Services
Agreement with the firm of Camp Dresser and McKee, Inc., pursuant to Request for
Qualifications (RFQ) No. 35-00102, for Citywide Sanitary Sewers Improvements Project.
Due to the urgent nature of proceeding with the Infiltration and Inflow Reduction
Improvements, Service Order No. 1 was negotiated immediately, and funds were
appropriated, for the Construction Management of the Rehabilitation of Sanitary Sewers
Contract with Azurix, now American Water Services Underground Infrastructure, Inc.
(American Water Services).
February 5, 2002
Page Two
BACKGROUND (Continued)
The City received a request from Azurix for a 4% increase in their contract price to cover
price increases that they have experienced over the past year. The Public Works
Department, the Procurement Department, and the Risk Management Office reviewed
insurance documents and local and national construction prices indexes to determine what
the impact of a one-year delay would represent to the contract price. After this review, it
was determined that a 3% increase in the original contract amount or $158,668.02 was a
fair and reasonable contract adjustment. This 3% increase will bring the total contract price
to $5,447,602.02, which is still lower than the second lowest bid of $5,448,673.00.
The Administration recommends approval of the change order in the amount of
$158,668.02 to American Water Services to compensate them for the City imposed one-
year delay.
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