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128-1999 LTC CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\ci.miami-beach.f1.us L.T.C. No. 128-1999 LETTER TO COMMISSION June 3, 1999 TO: Mayor Neisen O. Kasdin and Members of the City Commission FROM: Sergio Rodriguez City Manager SUBJECT: COMPLETION OF THE BOARDWALK PROJECT This Letter to Commission is to provide the status and information relative to the completion of the Boardwalk resurfacing project. Since the abandonment of the project by the contractor (Miami Hardwoods, Inc.), the City Administration and the Legal Department have made numerous attempts to take whatever legal actions possible in an attempt to have the contractor honor their existing contract with the City and to complete the Boardwalk resurfacing project. Despite numerous meetings with the contractor and their attorneys, including a Replevin Hearing to protect the materials purchased by the City that Miami Hardwoods, Inc. had in their possession, and a mediation hearing by an independent Certified Mediator, Miami Hardwoods, Inc. has elected to close their doors and go out of business rather than honor their contract with the City. Because further delays in the completion of the project are unacceptable, I have directed Property Management to take all necessary actions to complete the project as soon as possible. The Legal Department is also proceeding with settlement negotiations with the bonding company, to secure all funding necessary, to offset any potential loss by the City in materials and labor deficiencies created as a result of Miami Hardwoods' failure to complete their contract with the City. The following is a summary of the project's current status and the required actions necessary to complete the project. Remainin~ Scope of Work The remaining sections of the Boardwalk project yet to be completed, consist of the surface decking between 43rd and 47th Street and the associated handicap ramps, stair landings, and stairs that were to be resurfaced as part of the original contract. Property Management performed a complete site inspection and has determined that a total of28,758 sq. ft. of the original 130,000 sq. ft. project, remains to be completed. The breakdown of the remaining areas are as follows: . . . Boardwalk Surface Decking Handicap Ramps Stair Landings and Steps Total 18,822 sq. ft. 4,320 sq. ft. 5,616 sq. ft. 28,758 sq. ft. Property Management has also determined that a total of 65,000 lineal feet of hardwood materials and associated fasteners will be required to complete the remaining unfinished portion of the project. Available Fundin~ Funding to complete the project consists of a combined total ofthe retainage held back for the completed portions of the Boardwalk, and the balance of the contract that was not paid to the contractor. The combined total of this portion of funding is $79,281.91. Additionally, the Legal Department has received a settlement offer of$33,000.00 to date, from the bonding company that bonded the project for Miami Hardwoods, Inc. This provides for the total funding currently available to complete the project at $l12,281.91. Project Costs Materials As mentioned previously, Property Management has completed a hard estimate of the unfinished portion of the Boardwalk and has determined the total amount of hardwood needed to complete the project is 65,000 lineal feet. Additionally, the 2-1/2" x 9 gauge (marine environmental grade) screw fasteners needed to complete the project, based on the use of 5 screws per sq. ft. as used in the previously installed portions, are 145,000 pieces. Although these items will need to be formally bid, Property Management has already received firm quotes from vendors as to the exact match, availability, and costs of the materials needed to complete the project. The hardwood quotes are from Timber Holding Limited, the largest importer in the United States of tropical hardwoods, and the supplier of hardwoods to the Disney Beach and Yacht Club Boardwalk in Orlando, Universal Studios, Sunken Meadows Boardwalk in New York State Park, and the Indian Lakes Wetland Exhibit at the Brookfield Zoo in Chicago. The following is a breakdown of the estimated costs: . Hardwood (quote date 6/2/99) 65,000 1.f. of " Ipe" tropical hardwood, edge 4 edge (E4E), surfaced 4 sides (S4S), first export quality (FEQ), first one face (F1F) grade, at 5/8" thickness x 5" width x 8-16' random defined lengths in various 2' increments, delivered to the City of Miami Beach Property Management yard. 65,000 1.f. @ .75 per lineal foot = $ 48,750.00 Page 2 . Fasteners (quote date 6/2/99) Dumar International Inc, the Miami-Dade county vendor for fasteners has provided a quote for the required 150,000 pieces of 2-1/2" x 9 gauge, "Dacrotized" (marine environment grade) "Woodex" decking screws, square head boxed, drill tip point, @ .035 per piece. This = $ 5,325.00. Total Material Cost = $ 54,075.00 Labor The Labor unit price for the completed existing application of the hardwood costs $1.04 per square foot of resurfaced area. This unit price includes the end beveling of the boards to prevent any tripping hazards on the walking surface. As the economy of scale of purchasing power has been greatly reduced from the original 130,000 sq. ft. to the remaining 28,758 sq. ft., Property Management estimates the labor cost of the remaining portion of the hardwoods will cost approximately $1.50 per square foot to complete. The following is the estimated cost for the installation. 28,758 sq. ft. @ $ 1.50 per square foot = $ 43,137.00 In addition to the hardwood needed to complete the project, Property Management is adding an extra 3,000 lineal feet of hardwood material to the order to provide for an in-house stock of material for maintenance needs and requirements. The cost of the stock material will add $ 2,250 to the project cost. Total Project Cost = $ 99,462.00 Commission Actions Required At my direction, Property Management has already developed the necessary specifications and purchase requisitions required and has submitted the bid package for the hardwood materials to the Procurement Division for the required formal bid process. Procurement has issued the bid and has the bid opening date set for June 15, 1999. The request for the award of the contract will be placed on the June 23,1999 consent agenda for the Commission's approvaL Specifications for the "labor" or installation portion of the project are also currently being developed for the formal bid process and will also be bid in late June, and we will try to place the request for the award of the contract on the July 7, 1999 consent agenda for the Commission's approvaL This will avoid any time delays with the August Commission break and will allow for the awarded contractor to start work immediately upon delivery of the hardwood materials. Project Duration The hardwood material supplier has estimated the delivery of the materials will require between 60-90 days after they receive the order due to the special size of the materials, packaging, and the shipping requirements from BraziL Installation of the product is Page 3 estimated to take between 6-8 weeks. With the delivery and installation times combined, the project should be completed during the first week of December 1999. Based on the information received, there should be sufficient funding in place to complete the project without the need for additional funding, and within the original contract amount of $572,000.00, by utilizing the balance of the contract and the recovery from the Bonding Company for inadequate contract compliance by Miami Hardwoods, Inc. The balance of funds remaining after the contract awards are made, should be utilized for the installation of Boardwalk "benches" to replace the built-in seating that was required to be removed as part of the resurfacing project. To assure these schedules stay on track, I have assigned Matthew D. Schwartz, Assistant City Manager, to oversee the project until it is completed. Additionally, Brad A. Judd, Property Management Director, will serve as construction manager on the project, to oversee the day-to-day activities of the contractor until the project is complete. I believe these actions will expedite the completion ofthe project to its fastest possible conclusion. If you require any additional information, please do not hesitate to contact me. l1)i)S SRlMDSIBAJ c: Matthew D. Schwartz, Assistant City Manager Brad A. Judd, Property Management Director F:ICMGRISALL IL rc.99IBOARDW AL WPD Page 4