2010-27466 Reso2010-27466
RESOLUTION NOL ___
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING ADDITIONAL FUNDING, IN THE
AMOUNT OF $335,000, FOR CONSTRUCTION CONTINGENCY FOR
SANITARY SEWER MAINS IMPROVEMENTS ALONG INDIAN CREEK DRIVE
BETWEEN 26T" AND 41ST STREET CONSTRUCTION PROJECT; FUNDING
FOR THIS HAS BEEN PREVIOUSLY APPROPRIATED FROM THE WATER
AND SEWER GULF BREEZE FUND 423.
WHEREAS, on October 31, 2007, the City. entered into a Joint Partnership Agreement (JPA)
with the Florida Department of Transportation (FDOT) for the construction of roadway
improvements along Indian Creek Drive between 26th and 41St Streets; and
WHEREAS, FDOT is providing $1,501,000 towards project costs; and
WHEREAS, on March 18, 2009, the City Commission awarded a construction contract to
Horizon Contractors, Inc, pursuant to Invitation to Bid No. 28-07/09, for construction services for
water mains, sanitary sewer mains, milling, and resurfacing improvements, in the amount of
$4, 289, 725.40; and
WHEREAS, ten percent (10%) of the contract value or ($428,972) was allocated as a
contingency to address any equitable adjustments in the contract resulting from any unforeseen
field changes or additional warranted work incurred to successfully complete the contract; and
WHEREAS, .the total budget amount, including the 10% contingency, approved by City
Commission on March 18, 2009, was $4,718,698.00; and
WHEREAS, -the project contingency will not be sufficient to cover the errors and omissions
encountered on this project; and
WHEREAS, additional funding, in the amount of $335,000, is available, since the project
cost is significantly under budget.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission of the City of
Miami Beach, Florida, authorizing additional funding in the amount of $335,000 for construction
contingency for sanitary sewer mains improvements along Indian Creek Drive between 26th and
41St street construction project; funding for this has been previously appropriated from the water
and sewer gulf breeze fund 23.
PASSED AND ADOPTED this_ day of SQ ~• 2010.
ATTEST:
~~~ ~~~~
CITY CLERK AYOR
T:\AGENDA\2010\September 15\Consent\Indian Creek Drive Improvements - RESOrev.doc
APPROVED AS TO
FORM & LANGUAGE
& FnN EXECUTION
1 ((»
City Atto y ~~atel --'
l
COMMISSION ITEM SUMMARY
(_nnr~pncpd Title
A resolution of the Mayor and City Commission of the; City of Miami. Beach, Florida, authorizing additional
funding in the amount of $335,000 for Construction Contingency for Sanitary Sewer Main Improvements
alon Indian Creek Drive between 26th and 41St Street Construction Pro'ect.
Ke. Intended Outcome Su orted:
Ensure well-maintained infrastructure and ensure well-desi ned uali ca ital ro'ects
Supporting Data (Surveys, Environmental Scan, etc.):
According to the City's 2007 Community Satisfaction Survey, 48% and 37% of City residents and
businesses respectively believe that the City's road conditions are is either "good" or "excellent."
Issue•
Shall the Ci Commission a rove the Resolution?
Item Summa /Recommendation:
On October 31, 2007, the City entered into a joint partnership agreement with the Florida Department of
Transportation (FDOT) for the construction of roadway improvements along Indian Creek Drive between
26th and 41St Streets. The work consists of the construction of a new sanitary sewer system, construction of
anew watermain, and rehabilitation of the pavement along Indian Creek Drive between 26th and 41St
Streets. FDOT provided construction plans prepared by the Corradino Group to the City as well as agreed
to contribute total project funding in the amount of $1,501,000. Exhibit "B" entitled Financial Summary of
the October 31.2007 JPA identifies the following:
Pro'ect Construction $1,365,000
Pro'ect Construction En ineerin and Ins ection Services $ 136,000
Total ro'ect estimate $1,501,000
Below are the three capital budgets and funding sources for this project:
Capital Construction Budgets Funding sources
Upsizing Water Lines (WO# 2580) $2,159,994. PW 423-2580-065357 $1,822,732.93
Upsizing wastewater (WO# 2580) $2,112,612 PW 303-2521-069357 $1,501,000.00
JPA F DOT 28-41 $1, 864,411 PW 423-2941-069357 $ 895, 554.06
PW 424-2521-069357 $ 499,411.00
On March 18, 2009, the CityJCommission awarded the contract to Horizons Contractors, Inc, pursuant to
Invitation to Bid 28-07/09, for Construction Services for water mains, sanitary sewer mains, milling, and
resurfacing improvements in the amount of $4,289,725.40. Ten percent (10%) of the contract value was
allocated as a contingency to address any equitable adjustments in the contract resulting from any
unforeseen field changes or additional warranted work incurred to successfully complete the contract. The
total budget amount including the 10% contingency approved by City Commission was $4,718,698.00.
To date, the City has reviewed and recommended the approval of approximately fourteen (14) change
orders totaling approximately $621,126. The available construction contingency is exceeded by
approximately $335,000. This contingency will not be sufficient to cover the number oferrors /omissions
and unforeseen required change orders which resulted in a shortfall of $335,000 to the project.
Therefore, staff proposes to provide additional funding in the amount ~of $335,000 to fund the work
required, where, even with the contingency and additional funding, the cost of the project is still less than
originally anticipated.
Adviso Board Recommendation:
Financial Information:
Source of Amount Account
1 $295,622 423-2580-065357 for Construction
Funds: 2 $39,378 423-2580-000356 for Contingency
OBPI I Total I $335,000
Ci Clerk's Office Le islative Trackin
Aurelio Carmenates ext. 6343
Sign-Offs•
De artment Direc Assistant Ci Mana r Ci Mana e
COC FHB JGG EM JM
T:\AGENDA\2010\SeptLmb~r '1~5\Consent\Indian Creek Drive Im~ove~ents - SUMMARYrev.doc
Q AGENDA ITEM G ~_~
~ DATA ~ ~(~
m MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera .Bower and Members of th ity Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: September 15, 2010
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, AUTHORIZING ADDITIONAL FUNDING IN THE AMOUNT OF
$335,000 FOR CONSTRUCTION CONTINGENCY FOR SANITARY SEWER MAINS
IMPROVEMENTS ALONG INDIAN CREEK DRIVE BETWEEN 26T" AND 41st
STREETS CONSTRUCTION PROJECT; FUNDING FOR THIS HAS BEEN
PREVIOUSLY APPROPRIATED FROM THE WATER AND SEWER GULF BREEZE
FUND 423.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
FUNDING
Funding for this additional work, is available and has been previously appropriated in the Capital
project no. 2580 -Upsizing Wastewater Lines Indian Creek Project. The accounts are as follows:
$295,622 423-2580-065357 for Construction
$39,378 423-2580-000356 for Contingency
$335,000 Total
BACKGROUND
The State of Florida Department of Transportation (FDOT) identified the need to perform
roadway milling and resurfacing along Indian Creek Drive from 26th to 41st Street as part of its five
(5) year transportation plan. The proposed FDOT work consists of roadway milling and
resurfacing, guardrail replacements, sidewalk replacement and bump-out construction at certain
intersections. The City had two (2) capital project elements which consist of the installation of a
new 12-inch diameter water transmission main from 26th to 41St Street along Indian Creek Drive.
Also, the City had previously identified the need to replace the existing 15-inch diameter
wastewater interceptor along Indian Creek Drive between 28th and 4.1 St Street. Three separate
capital projects were developed and included in the Capital Improvement -Plan as follows:
TABLE 1 -Indian Creek Water/Wastewater Capital Project
Capital Project No. Title Total Construction Funding
WO# 2580 Upsizing Water Lines Indian Creek $2,159,994
WO# 2580. Upsizing Wastewater Lines Indian Creek $2,112,612
WO# 2521 Indian Creek 28-41 ~ $1,864,411
Total Construction Funding $6,137,017
These projects were originally introduced into the Capital Improvement Plan during FY08/09
Commission Memorandum -Indian Creek Drive Improvements
September 15, 2010
Page 2 of 5
On October 31, 2007, the City entered -into a Joint Partnership Agreement (JPA) with the Florida
Department of Transportation (FDOT) forthe construction of roadway improvements along Indian
Creek Drive between 26t" and 41St Street. FDOT provided construction plans prepared by the
Corradino Group to the City as well as agreed to contribute total project funding in the amount of
$1,501,000. Exhibit "B" entitled Financial Summary of the October 31, 2007 JPA identifies the
following:
^ Project Construction $1,365,000
^ Project Construction Engineering and Inspection (CEI) Services $136,000
^ Total Project Estimate $1,501.,000
During the preparation of the project schedule of values, FDOT requested ten (10%) percent of
the project construction be allocated for FDOT construction related contingency. The amount of
$136,500 was allocated to FDOT construction contingency, thereby leaving a balance of
$1,228,500 for the FDOT roadway and hardscape construction.
The City of Miami Beach Public Works Department prepared construction documents for the
water transmission main installation, wastewater interceptor replacement; while the FDOT's
Consultant Corradino, prepared the plans and specifications for the roadway reconstruction and
sidewalk /hardscape work. This approach allowed the City to incorporate all of the capital
project elements into one capital construction project to be managed by the City.
On February 25, 2010, the City and FDOT amended its JPA via Amendment Nos. 1 and 2.
Amendment No. 1 identified a change in the Project scope to include a high friction surface
treatment to the curve at Indian Creek and 26t" Street and Amendment No. 2 extended the JPA
Agreement date from June 30, 2010 to April 28, 2011. Costs associated with Amendment No. 1
are to be borne by FDOT. The City is in receipt of Change Order No. 290-18 for the application
of high friction surface treatment to the curve at Indian Creek and 26t" Street in the appropriate
amount of $55,000. This cost will be funded by FDOT from the FDOT construction contingency
amount of $136,500. Additionally, the City is in the process of negotiating other Request for
Change Order (RCO) for FDOT requested changes.
Scope of Proposed Work
The work .under this Project includes, but is not limited to the following:
Water Transmission Main
Installation of approximately 246 linear feet of 16-inch diameter 4,558 linear feet of 12-inch
diameter, 1,600 linear feet of 8-inch diameter, 208 linear feet of 6-inch, and 80 linear feet of fl-
inch ductile iron water main pipe and fittings.
Sanitary Sewer Interceptor
Removal and replacement of the existing wastewater interceptor with approximately 3,160 linear
feet of 30-inch diameter and 260 linear feet of 24-inch .diameter gravity sewer PVC pipe and
fittings and the installation of pre-cast concrete manholes with frames and covers.
Roadway and Hardscape
Milling and resurfacing of Indian Creek Drive from 26t" to 41St Street including approximately
Commission Memorandum -Indian Creek Drive Improvements
September 15, 2010
Page 3 of 5
20,494 square yards ofasphalt,-1,213 square yards of sidewalk replacement, 412.5 linearfeet of
guardrail; introduction of bulbs-outs and trench drains to facilitate the construction of pedestrian
ramps which comply with ADA standards; upgrade existing pedestrian features at the signalized
intersections with count-down pedestrian signal heads; and upgrade the existing signage and
pavement markings.
On March 18, 2009, the City Commission awarded a construction contract to Horizon
Contractors, Inc, pursuant to Invitation to Bid 28-07/09, for Construction Services for water mains,
sanitary sewer mains, milling, and resurfacing improvements in the amount of $4,289,725.40. An
additional ten percent (10%) of the contract value was allocated as a contingency to address any
equitable adjustments in the contract resulting from any unforeseen field changes or warranted
additional work incurred to successfully complete the project. The total budget amount including
the 10% contingency approved by the City Commission was $4,718,698.00.
ANALYSIS
The JPA requires the City to retain an engineering firm to provide CEI services. The City
originally selected Parsons Engineering and the City had to discontinue negotiations since it
could not reach terms -with Parsons Engineering. In particular, the City's mandate to cap its
expenses at $136,000 as it relates to construction engineering and inspection services was a
point of contention that the consultant was not willing to assume unless the City agreed to reduce
its scope of services. Therefore, the City proceeded with negotiations with the second ranked
firm of Bermello Ajamil and they agreed to provide services limited only to the roadway and
hardscape scope of work. At the time of construction contract award, a clerical error
inadvertently included the full FDOT contribution of $1,501,000 for construction funding which
included also the funding which was required to, be set aside for the FDOT CEI services. This
resulted in a shortfall which was compensated with available project funds and did not account
for the value of the FDOT required CEI services during construction. Therefore, staff reimbursed
the required FDOT CEI services from the construction contingency thereby leaving an available
project construction contingency of $292,973. Project implementation was pursued with the
smaller project construction contingency than typically allocated.
A summary is as follows:
.Construction Contract Value
$4, 289, 725
Typical Construction Contingency (10%) $428,973
FDOT Required CEI Services 136 000
Available Project Construction Contingency (6.8%) $292,973
To date, the City has reviewed and recommended the approval of approximately fourteen (14)
change orders totaling approximately $621,126 (does not include FDOT RCOs). The available
construction contingency is exceeded by approximately $335,000. The following is a summary of
the change orders that have exceeded the available construction contingency.
TABLE 2 -Change Order Exceeding Conting ency
No. Description Amount Classification
2 Incorporation of Sanitary Sewer Connections $191,422 Errors /Omissions
5 Installation of a new Sanitary Sewer Lateral $10,203 Errors /Omissions
8 Storm Sewer Manhole Conflict Structure $20,615 Unforeseen
10 Sanitary Sewer Concrete Encasement $111,700 Unforeseen
Cost Overrun $333,940
Commission Memorandum -Indian Creek Drive Improvements
September 15, 2010
Page 4 of 5
A more detailed description of the change orders is provided below:
Change Order No. 2 -The construction documents identified the replacement of an existing 15-
inch diameter sanitary sewer line which had 21 sanitary sewer services. The construction
documents did not specifically identify the replacement these 21 sanitary sewer services,
although the intent of the plans was to identify complete in-situ connections by showing the
installation of new wye fittings at all 21 locations. Therefore, a change order was submitted to
provide the installation of 21 new sanitary sewer laterals including a new clean out box to the
property line and service reinstatement. This change order proposal was reviewed and approved
by the Engineer of Record, Special Assistant to the City Manager and the Office of Capital
Improvement Projects and the cost was found to be fair and reasonable.
Change Order No. 5 -The construction document did not identity a 12-inch diameter sanitary
pipe lateral. Therefore, the change order is for the installation of a new sanitary sewer lateral
including a new clean out box to the property line. This differs from change order number two
due to the size of the lateral (12"diameter) and material costs were different. The installation of
the 12" lateral ties into a Sanitary Sewer manhole. This change order proposal was reviewed
and approved by the Engineer of Record, Special Assistant to the City Manager and the Office of
Capital Improvement Projects and the cost was found to be fair and reasonable.
Change Order No. 8 -The construction documents did not identify an 18-inch diameter storm
sewer pipe at 29~' Street and Indian Creek Drive. This existing storm sewer pipe was in direct
conflict with the proposed sanitary sewer interceptor replacement and required that a storm
sewer manhole conflict structure be incorporated in order to maintain the proposed design
alignment. Therefore, this change order is for the furnishing and installation of 2 additional storm
sewer manholes and associated piping and concrete collars in order to resolve a conflict
encountered in the intersection of 29~' Street and Indian Creek Drive. The proposed solution was
2 offset manho{es in order to resolve the conflict. This change order proposal was reviewed and
approved by the Engineer of Record, Special Assistant to the City Manager and the Office of
Capital Improvement Projects and the cost was found to be fair and reasonable.
Change Order No.10 - An unforeseen field condition revealed, during excavation the presence
of concrete encased sewer pipe. This change order is for the removal and disposal of the
concrete encasement material and the furnishing and installation of additional suitable fill
material. Additional suitable fill material was also required due to the volume displaced by the
existing concrete encasement. This change order proposal is currently under review by the
Engineer of Record and SpeciaB Assistant to the City Manager. Therefore, staff proposes to
provide additional funding in the amount of $335,000 to fund the additional work identified in the
change orders presented herein.
Future Issues:
FDOT Change Orders
The, FDOT has approached the City with additional scope requests such as additional sidewalk
removal and replacement at 39~" Street, relocation of a pedestrian signal pole, additional curb
and gutter replacement throughout the project. Additional change order requests for this
additional work will be requested from the Contractor and presented to the FDOT for review /
approval and funding contribution.
Commission Memorandum -Indian Creek Drive.. Improvements
September 15, 2010
Page 5 of 5
FPL Conflict
The Contractor encountered a 36 inch wide concrete duct bank at 41St Street and Indian Creek
Drive on May 12, 2010. The City has taken the position that this conflict is not the responsibility
of the City and is the responsibility of FPL. The Contractor is working with FPL to resolve this
issue but FPL has been slow to react to the situation. The City is assisting the Contractor in
stressing the urgency of the work and how it is delaying the final completion to the project.
Water Service Replacement;
The City and Contractor have had ongoing discussions with regard to an existing water
distribution main. At this time, the Contractor is proceeding with the transfer of water services
from the existing water distribution main to the newly installed. water transmission main.
Timin
The original project final completion date was August 23,2010. Contractually the Contractor is
due another one hundred and fifty (150) day extension to the initial project final completion date.
Additionally, the water service transfer and service connections will extend the final completion
and then asphalt can be placed. The water services need to be reinstated prior to the second lift
of asphalt placement. It is estimated that the asphalt shall be placed by February 2011, although
the City is pursuing other alternatives to get the second lift of asphalt placed from 26th to 39th
Streets and return at a later date to address the 41 St Street and Indian Creek Drive intersection.
CONCLUSION
It is important to note that the City contemplated an expenditure of approximately $6.1 million in
its Capital Improvement Plan. Current project costs are estimated to approach $5.7 million,
thereby, leaving a capital construction budget balance of approximately $400,000. The
Administration recommends approval of the attached Resolution, authorizing the Mayor and City
Clerk to appropriate additional funding in the amount. of $335,000 to the project. Even with the
contingency and additional funding, the cost of the project is still less than originally anticipated.
JMG/JGG/COC/MER/AJC
T:\AGENDA\2010\September 15\Consent\Indian Creek Drive Improvements - MEMOrevCOC.doc