2012-27872 Reso RESOLUTION NO. 2012-27872
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA,AMENDING RESOLUTION NO.2011-27809,
WHICH AUTHORIZED THE CITY MANAGER TO TAKE CERTAIN ACTIONS
PERTAINING TO THE "BISCAYNE POINT RIGHT-OF-WAY
IMPROVEMENTS PROJECT" (THE PROJECT) INCLUDING: 1.) TO
PROCURE,VIA NEGOTIATION WITH THE FIRM OF DAVID MANCINI AND
SONS, INC. (DMSI), CERTAIN NECESSARY DESIGN AND
CONSTRUCTION SERVICES THROUGH A DESIGN-BUILD CONTRACT
WITH A GUARANTEED MAXIMUM PRICE (GMP) AND, IF SUCCESSFUL,
EXECUTE SUCH CONTRACT; AND 2.) CONCURRENT THEREWITH, TO
TERMINATE, FOR CONVENIENCE, THE CITY'S CURRENT CONTRACT
WITH DMSI FOR CONSTRUCTION (ONLY) OF THE PROJECT (THE
FORMER CONTRACT), PURSUANT TO INVITATION TO BID NO.07-10/11
(ITB), AND ENTER INTO AND EXECUTE A SETTLEMENT AGREEMENT
WITH DMSI FOR THE FORMER CONTRACT;ALL,IN THE APPROVED NOT
TO EXCEED AMOUNT(INCLUDING DESIGN-BUILD CONTRACT GMP AND
SETTLEMENT AGREEMENT AMOUNTS) OF $11,998,535; SAID
AMENDMENT HEREIN REQUESTING THE MAYOR AND CITY
COMMISSION AUTHORIZE AN INCREASE TO THE NOT TO EXCEED
AMOUNT APPROVED UNDER RESOLUTION NO. 2011-27809, FROM
$11,998,535, TO $17,102,487, WITH THE NEW TOTAL TO BE BROKEN
DOWN AS FOLLOWS: 1.) APPROVING A NEW GMP FOR THE DESIGN-
BUILD CONTRACT WITH DMSI, IN THE AMOUNT OF$11,151,240(WHICH
NEW AMOUNT WILL NOT ONLY INCLUDE THE REMAINING WATER,
STORMWATER, LANDSCAPE AND STREETSCAPE IMPROVEMENTS
UNDER THE FORMER CONTRACT,BUT ALSO NECESSARY ADDITIONAL
SCOPE OF WORK RECOMMENDED BY THE CITY'S PUBLIC WORKS
DEPARTMENT(PWD)AND BISCAYNE POINT RESIDENTS,AS WELL AS
FACTOR IN THE ASSUMED CONTRACTOR "RISK" TYPICALLY
ASSOCIATED WITH, AND BUILT INTO, DESIGN-BUILD CONTRACTS);
AND 2.) APPROVING A NEW AMOUNT FOR THE SETTLEMENT
AGREEMENT, OF $5,951,247, WHICH INCLUDES PAYMENT FOR ALL
WORK PERFORMED UNDER THE FORMER CONTRACT,THROUGH THE
FINAL COMPLETION DATE ESTABLISHED IN THE SETTLEMENT
AGREEMENT, AS WELL AS PAYMENT FOR APPROVED CHANGE
ORDERS AND CREDITS (EXECUTED AS OF THE EFFECTIVE DATE OF
THE SETTLEMENT AGREEMENT),AND AGREED UPON COMPENSATION
FOR DMSI'S ALLEGED DELAY AND OTHER CLAIMS;WITH PREVIOUSLY
APPROPRIATED FUNDING, IN THE AMOUNT OF $2,843,892;
APPROPRIATING $562,047 FROM WATER OPERATING FUND 425
CAPITAL RESERVES; RE-APPROPRIATING $855,599 FROM PROJECT
SAVINGS IN FUND 423 GULF BREEZE 2006, FROM THE COMPLETED
NAUTILUS NEIGHBORHOOD RIGHT-OF-WAY IMPROVEMENT PROJECT;
APPROPRIATING$575,869 FROM FUND 427 STORMWATER OPERATING
CAPITAL RESERVES; RE-APPROPRIATING$1,995,007 IN STORMWATER
SERIES 2011 BONDS FUNDS, PREVIOUSLY APPROPRIATED FOR
NORMANDY ISLE, NORMANDY SHORES, AND NAUTILUS
NEIGHBORHOODS RIGHT-OF-WAY IMPROVEMENT PROJECTS, FOR
THE BISCAYNE POINT NEIGHBORHOOD RIGHT-OF-WAY
Page 1 of 4
IMPROVEMENTS PROJECT; APPROPRIATING $468,433 IN CAPITAL
RESERVE FUNDS FOR INCREASED ESTIMATES FOR ABOVE GROUND
COSTS FROM ORIGINAL ESTIMATES; AND FURTHER RE-
APPROPRIATING$355,645 FROM CAPITAL RESERVE FUNDS TO PAY AS
YOU GO FUNDS FOR ADDITIONAL ABOVE-GROUND SCOPE FOR THE
BISCAYNE POINT NEIGHBORHOOD RIGHT-OF-WAY IMPROVEMENTS
PROJECT; ALL FOR A TOTAL AMOUNT OF $7,656,492.
WHEREAS, on November 30, 2010, Invitation to Bid No. 07-10/11 for the Biscayne
Point Neighborhood Right-of-Way Improvements Project(the Project)was issued, with an
opening date of January 27, 2011 (the ITB or the Bid); and
WHEREAS,on March 9, 2011, the Mayor and City Commission adopted Resolution
No. 2011-27621, approving and authorizing the Mayor and City Clerk to execute a
construction contract with David Mancini & Sons, Inc. (DMSI or Contractor), as the
successful bidder pursuant to the ITB, and also authorized the Administration to engage in
value engineering to further reduce the cost and time for completion of said Project (the
Construction Contract); and
WHEREAS, the Construction Contract was fully executed on April 4, 2011; and
WHEREAS, the first Notice-to-Proceed (NTP) was issued to Contractor on May 5,
2011; and
WHEREAS, on December 14, 2011, the Mayor and City Commission approved
Resolution No.2011-27809, attached and incorporated as Exhibit"A"hereto, approving the
findings of the Administration that a public emergency existed for purposes of waiving the
bidding requirements under the"Consultant's Competitive Negotiation Act"(or CCNA), and
authorized the City Manager to proceed with the following course of action relative to the
Project: 1)prepare a Design Criteria Package (DCP)which complies with the specifications
set forth under F.S. 287.055(2)(j), whether through the City's Public Works Department or
through retention of an outside Design Criteria Professional, as determined by the City
Manager; 2) upon completion of the DCP, negotiate and, if successful, execute a Design-
Build contract in a not-to-exceed amount [essentially, the equivalent of a Guaranteed
Maximum Price (GMP)] for the remaining water, stormwater, landscape and streetscape
improvements for the Project with DMSI; 3)terminate,for convenience,the remaining portion
of the current Construction Contract with DMSI, and enter into and execute a settlement
agreement and release of all claims against the City under such Contract, as a condition to
the City and DMSI's execution of the negotiated Design-Build contract; and 4)capping the
total sum of the combined negotiated Design-Build contract and the negotiated settlement of
the existing Construction Contract, at$11,998,535; and
WHEREAS, the Administration commenced with the preparation of the Settlement
Agreement, Design-Build contract (DB Contract), and the DCP (with PWD as the Design
Criteria Professional, on behalf of the City); and
WHEREAS, upon receipt of the aforementioned documents, the Administration
commenced negotiations with DMSI to finalize the DB Contract and Settlement Agreement
terms and conditions; define the scope of work to be completed to close-out the former
Construction Contract, and the scope for the new DB Contract; finalize evaluations and
estimates for the additional scope of work requested by PWD; and evaluate and address
infrastructure improvements suggested by DMSI, additional plan errors, and community
requests for incorporation into the DB Contract; and
Page 2 of 4
WHEREAS, DMSI's initial cost estimate for design-build of the Project was
approximately$22.9-Million; and
WHEREAS, at its regular meeting on February 24, 2012, the Administration
provided the City Commission with a status of the negotiations,and was directed to continue
negotiations and return, in March 21, 2012, with the final negotiated Settlement Agreement
and DB Contract; and
WHEREAS, the CIP Office partnered with PWD to clearly define the scope of work
elements that would be included in the negotiated DB Contract to effectively negotiate all
required added scope of work with DMSI; and
WHEREAS, negotiations have resulted in a total contract value of $17,700,000,
which includes the cost of previously approved JOC's, in the amount of $597,512; the
Design-Build GMP of$11,151,240; and the Settlement Agreement amount of$5,951,247;
and
WHEREAS,the DB Contract GMP includes the construction costs for the remaining
scope of work from the Construction Contract and negotiated additional scope of work, as
well as soft costs for architectural/engineering services,construction administration services,
and a consideration for risk; and
WHEREAS, the Settlement Agreement amount includes the cost to terminate the
Construction Contract; a shared savings (50/50)for the deletion of the two (2) stormwater
pump stations; other credits for deleted scope of work; and an amount of $1,500,000 for
settlement of alleged delay and other claims which might be asserted by DMSI against the
City; and
WHEREAS,the settlement of claims and delays was negotiated in the best interest
of the City, upon consideration of the City's overall potential exposure and in order to avoid
litigation with the Contractor and further delays to the Project; and
WHEREAS,the Administration is requesting an increase to the Project professional
services budget, in the amount of $1,067,000, necessary to supplement the Project
construction; and
WHEREAS, the total additional funding required for the Project is $7,656,492 (of
which $2,843,892 is currently available in the Project's capital budget); and
WHEREAS, the Administration recommends that the Mayor and City Commission
approve the requested amendment to Resolution No. 2011-27809, requesting that the
amount for the actions required under such Resolution be increased from the former
approved total of$11,998,535, to$17,102,487, as required and recommended herein, and
in order to 1.)terminate the Construction Contract for convenience(the Former Contract);2.)
execute the Settlement Agreement for the Former Contract; and 3.) concurrent therewith,
execute the new DB Contract.
Page 3 of 4
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,
amend Resolution No. 2011-27809, which authorized the City Manager to take certain
actions pertaining to the"Biscayne Point Right-of-Way Improvements Project"(the Project)
including: 1.) to procure, via negotiation with the firm of David Mancini and Sons, Inc.
(DMSI), certain necessary design and construction services through a Design-Build Contract
with a Guaranteed Maximum Price(GMP)and, if successful,execute such contract;and 2.)
concurrent therewith,to terminate,for convenience,the City's current contract with DMSI for
construction(only)of the Project(the Former Contract), pursuant to Invitation to Bid No. 07-
10/11 (ITB), and enter into and execute a Settlement Agreement with DMSI for the Former
Contract; all, in the approved not to exceed amount(including Design-Build Contract GMP
and Settlement Agreement amounts)of$11,998,535;said amendment herein requesting the
Mayor and City Commission authorize an increase to the not to exceed amount approved
under Resolution No. 2011-27809,from $11,998,535, to$17,102,487,with the new total to
be broken down as follows: 1.) approving a new GMP for the Design-Build Contract with
DMSI, in the amount of$11,151,240(which new amount will not only include the remaining
water, stormwater, landscape and streetscape improvements under the Former Contract,
but also necessary additional scope of work recommended by the City's Public Works
Department (PWD) and Biscayne Point residents, as well as factor in the assumed
contractor "risk" typically associated with, and built into, design-build contracts); and 2.)
approving a new amount for the Settlement Agreement, of $5,951,247, which includes
payment for all work performed under the Former Contract,through the final completion date
established in the Settlement Agreement, as well as payment for approved change orders
and credits (executed as of the Effective Date of the Settlement Agreement), and agreed
upon compensation for DMSI's alleged delay and other claims;with previously appropriated
funding, in the amount of$2,843,892; appropriating $562,047 from Water Operating Fund
425 capital reserves; re-appropriating $855,599 from project savings in Fund 423 Gulf
Breeze 2006, from the completed Nautilus Neighborhood Right-of-Way Improvement
Project;appropriating$575,869 from Fund 427 Stormwater Operating Capital Reserves;re-
appropriating$1,995,007 in Stormwater Series 2011 Bonds Funds, previously appropriated
for Normandy Isle, Normandy Shores, and Nautilus Neighborhoods Right-of-Way
Improvement Projects, for the Biscayne Point Neighborhood Right-of-Way Improvements
Project; appropriating$468,433 in Capital Reserve Funds for increased estimates for above
ground costs from original estimates; and further re-appropriating $355,645 from Capital
Reserve Funds to Pay As You Go Funds for additional above-ground scope for the Biscayne
Point Neighborhood Right-of-Way Improvements Project; all for a total amount of
$7,656,492.
PASSED and ADOPTED this ��S� day of M IBC 2012.
ATTEST: z
poutcLa-
ROBERT PARCHER, CITY CLERK �� g� TI HERIkERA BOWER, MAYOR
JMG/DB/FV \P. ........,,q�y
TAAGENDA\2012\3-21-12\Biscayne Point DB G i10pop P ontract-RESO.doc
APPROVED AS TO
FORM&LANGUAGE
9'4Cj.j'26'" &FOR EXECUTION
Page 4 of 4 ... -.--
City Attom0% Oats
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution of the Mayor and City Commission of the City of Miami Beach, Florida,amending Resolution No.2011-27809,
which authorized the City Manager to take certain actions pertaining to the "Biscayne Point Right-of-Way Improvements
Project"(the Project)including: 1.)to procure, via negotiation with the firm of David Mancini and Sons, Inc. (DMSI), certain
necessary design and construction services through a Design-Build Contract with a Guaranteed Maximum Price(GMP)and,if
successful,execute such contract;and 2.)concurrent therewith,to terminate,for convenience,the City's current contract with
DMSI for construction(only)of the Project(the Former Contract), pursuant to Invitation to Bid No.07-10/11 (ITB),and enter
into and execute a Settlement Agreement with DMSI for the Former Contract; all, in the approved not to exceed amount
(including Design-Build Contract GMP and Settlement Agreement amounts) of $11,998,535; said amendment herein
requesting the Mayor and City Commission authorize an increase to the not to exceed amount approved under Resolution No.
2011-27809,from$11,998,535,to$17,102,487,with the new total to be broken down as follows: 1.)approving a new GMP for
the Design-Build Contract with DMSI, in the amount of$11,151,240(which new amount will not only include the remaining
water,stormwater,landscape and streetscape improvements under the Former Contract,but also necessary additional scope
of work recommended by the City's Public Works Department(PWD)and Biscayne Point residents,as well as factor in the
assumed contractor"risk"typically associated with,and built into,design-build contracts);and 2.)approving a new amount for
the Settlement Agreement,of$5,951,247,which includes payment for all work performed under the Former Contract,through
the final completion date established in the Settlement Agreement,as well as payment for approved change orders and credits
(executed as of the Effective Date of the Settlement Agreement),and agreed upon compensation for DMSI's alleged delay and
other claims;with previously appropriated funding,in the amount of$2,843,892;appropriating$562,047 from Water Operating
Fund 425 capital reserves;re-appropriating$855,599 from project savings in Fund 423 Gulf Breeze 2006,from the completed
Nautilus Neighborhood Right-of-Way Improvement Project; appropriating $575,869 from Fund 427 Stormwater Operating
Capital Reserves;re-appropriating$1,995,007 in Stormwater Series 2011 Bonds Funds,previously appropriated for Normandy
Isle, Normandy Shores, and Nautilus Neighborhoods Right-of-Way Improvement Projects, for the Biscayne Point
Neighborhood Right-of-Way Improvements Project;appropriating$468,433 in Capital Reserve Funds for increased estimates
for above ground costs from original estimates;and further re-appropriating$355,645 from Capital Reserve Funds to Pay As
You Go Funds for additional above-ground scope for the Biscayne Point Neighborhood Right-of-Way Improvements Project;all
for a total amount of$7,656,492.
Key Intended Outcome Supported:
Ensure well designed quality capital projects.
Supporting Data (Surveys, Environmental Scan, etc.):
Completed Capital Improvement Projects are a key positive driver in resident perceptions on overall quality of life.The 2009
Customer Satisfaction Survey indicated that 51.8%and 85.0%of North-Beach residents rated storm drainage and landscape
maintenance in right-of-ways and public areas as excellent or good, respectively. Completing this Project will add to the
needed upgrades in this area and improve overall rating.
Issue:
Shall the Mayor and City Commission approve the Resolution?
Item Summa /Recommendation:
On December 14,2011,the Mayor and City Commission approved Resolution No.2011-27809 authorizing the City Manager
to prepare a Design Criteria Package(DCP);to negotiate and execute a Design-Build Contract with a Guaranteed Maximum
Price(GMP),for the remaining Biscayne Point Neighborhood Right-of-Way Improvements scope of work,with David Mancini
and Sons,Inc.(DMSI);to terminate,for convenience,the remaining portion of the current construction Contractwith DMSI and
enter into and execute a Settlement Agreement where the combined total of the negotiated Design-Build GMP and the
Settlement Agreement would not exceed $11,998,535. All these actions being necessary to rectify a deficient set of
construction documents,implement DMSI's two(2)pump station value engineering proposal,requested by PWD;and to keep
the Project moving forward while minimizing delays and impacts to the safety and welfare of the residents.The Administration
also advised the City Commission of additional scope of work elements,requested by PWD,that were under evaluation and
for which funding would need to be identified and procured either via JOC or as part of the proposed Design-Build Contract.
The Administration commenced with the preparation of Settlement Agreement, Design-Build Contract, and the DCP, using
PWD as the Design Criteria Professional. Draft copies of the DCP, Design-Build Contract and Settlement Agreement were
issued to DMSI in early January 2012 where DMSI raised concerns with the contract language and additional scope of work
introduced by the DCP,that was not in the original Contract,and would increase the hard costs,soft costs,and assumed risk
for the Project. DMSI's initial cost estimate based on their initial review and interpretation of the Design-Build Contract
language, the DCP, and the added owner/resident requests was approximately$22.9-Million.
The Administration determined that negotiation of a Design-Build Contract was no longer feasible within the parameters
previously authorized by the Mayor and City Commission.As such,on February 8,2012,the Administration updated the City
Commission of the ongoing negotiations and was directed to continue negotiations and return in March 21,2012 with the final
negotiated Settlement Agreement and Design-Build Contract.To meet the directive, the CIP Office partnered with PWD to
clearly define the scope of work elements that would be included in the negotiated Design-Build Contract to effectively
negotiate all required added scope of work with DMSI. Further negotiations resulted in a total DMSI contractual value of
$17,700,000,which includes the cost of the previously approved JOCs in the amount of$597,512,the Design-Build GMP of
$11,151,240 and a Settlement Agreement amount of$5,951,247.
The Design-Build Contract GMP includes the construction costs for the remaining scope of work from the original Contract
and negotiated scope of work and soft costs for architectural/engineering services,construction administration services,and a
consideration for risk.The Settlement Agreement amount includes the cost to terminate the current construction contract;a
shared savings 50/50 for the deletion of the two 2 stormwater pump stations;other credits for deleted scope of work;and
MIAMIBEACH Page 1 of 2 AGENDA ITEh9 R7 E
DATE S-Zl-11,
an amount of$1,500,000 for settlement of alleged claims and delays primarily associated with the inability to commence with
the construction of the Project stormwater improvements; which was negotiated, in the best interest of the City, upon
consideration of the City's overall exposure and in order to avoid litigation with the Contractor and further delays to the Project.
In addition, the Administration is requesting an increase to the Project professional services budget, in the amount of
$1,067,000, necessary to supplement to the Project construction.
The total funding required for the Project to $7,656,492, of which $2,843,892 is currently available in the Project's capital
budget and requiring additional funding for a $4,812,600 shortfall. Funding the additional costs of this Project will reduce
funding available to be considered through the Capital Review process for FY 2012/2013.Notwithstanding,it has always been
the City's practice to first, fully fund any shortfalls identified in active projects prior to allocating to new or projects where
construction has not been awarded or begun.
The Administration recommends amending Resolution No.2011-27809,to authorize an increase to the not to exceed amount
approved under Resolution No. 2011-27809, from $11,998,535, to $17,102,487, with the new total to be broken down as
follows: 1.)approving a new GMP for the Design-Build Contract with DMSI,of$11,151,240(which new amount will not only
include the remaining water, stormwater, landscape and streetscape improvements under the Former Contract, but also
necessary additional scope of work recommended by the City's Public Works Department (PWD) and Biscayne Point
residents,as well as factoring in the assumed contractor"risk"typically associated with and built into design-build contracts);
and 2.)approving a new amount for the Settlement Agreement of$5,951,247,which includes payment for all work performed
under the Former Contract,through the final completion date established in the Settlement agreement,as well as payment for
approved change orders and credits (executed as of the Settlement Effective Date), and agreed upon compensation for
DMSI's alleged delay and other claims.
Advisory Board Recommendation:
Financial Information:
Source of Amount Account
Funds: { $184,657 Fund 376 - 99 GO Bonds Neighborhood Improvements, Account No. 376-2321-
069357—Construction
2 $491,587 Fund 384-2003 GO Bonds Neighborhood Improvements,Account No.384-2321-
069357—Construction
3 $60,000 Fund 302-Pay As You Go,Account No.302-2321-069357-Construction
.4 $339,893 Fund 302-Pay As You Go,Account No.302-2321-000356-Contingency
5 $53,976 Fund 420-W&S Gulf Breeze Loan Series 2010,Account No.420-2321-069357-
Construction
6 $288,076 Fund 420-W&S Gulf Breeze Loan Series 2010,Account No.420-2321-000356-
Contingency
7 $161,795 Fund 428 - Stormwater Bonds 2000S, Account No. 428-2321-069357 -
Construction
8 - $5,290 Fund 428-Stormwater Bonds 2000S,Account No.428-2321-061357-Design
9 $685,487 Fund 431 Stormwater Series 2011 Bonds, Account No. 431-2321-069357
Construction
r 10 $573,131 Fund 431 - Stormwater Series 2011 Bonds, Account No. 431-2321-000356 -
Conlin enc
1 1 11 $468,433 Fund 304-Capital Reserve
OBPI 12 $855,599 Fund 423-Gulf Breeze 2006,Account No.423-2282-000356—Contingency(Re-
aoorooriatina from Nautilus
13 $562,047 Fund 425-Water Operating Capital Reserves
14 $856,554 Fund 431-Stormwater Series 2011 Bonds,Account No. 431-2323-069357(Re-
- appropriated from Normandy Shores Project
15 $773,227 Fund 431 -Stormwater Series 2011 Bonds,Account No. 431-2323-000356(Re-
appropriat ed from Normandy Shores Project
16 $154,770 Fund 431 -Stormwater Series 2011 Bonds,Account No.431-2285-000356(Re-
appropriated from Normandy Isle Promect
17 $19,110 Fund 431 -Stormwater Series 2011 Bonds,Account No.431-2285-069355(Re-
appropriated from Normandy Isle Project
18 $24,126 Fund 431 -Stormwater Series 2011 Bonds,Account No.431-2285-069351 (Re-
appropriated from Normandy Isle Pro'ect
19 $167,220 Fund 431 -Stormwater Series 2011 Bonds,Account No.431-2282-069351 (Re-
appropriated Nautilus
19 $355,645 Fund 302-Pay As You Go
20 $575,869 Fund 427-Stormwater Operating Capital Reserve
Total $7,656,492
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Fernando Vazquez, P.E., Ext. 6135
Sign-Offs:
De art n irector Assistant City Manager City Mailager
F DB JMG
JMG/DB/FV
T!AGFNDA,201213-2 i-I ZSiscayne Point DB GIMFIBiscayne Pain[-DS G[v1P Cc [mcr-SUNIP,IARY.dcc
Page 2 of 2
® MIAMI BEACH
City of Miami Beath, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti H. Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: March 21, 2012
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, AMENDING RESOLUTION NO. 2011-27809, WHICH AUTHORIZED
THE CITY MANAGER TO TAKE CERTAIN ACTIONS PERTAINING TO THE "BISCAYNE
POINT RIGHT-OF-WAY IMPROVEMENTS PROJECT"(THE PROJECT)INCLUDING: 1.)TO
PROCURE, VIA NEGOTIATION WITH THE FIRM OF DAVID MANCINI AND SONS, INC.
(DMSI),CERTAIN NECESSARY DESIGN AND CONSTRUCTION SERVICES THROUGH A
DESIGN-BUILD CONTRACT WITH A GUARANTEED MAXIMUM PRICE (GMP) AND, IF
SUCCESSFUL, EXECUTE SUCH CONTRACT; AND 2.)CONCURRENT THEREWITH,TO
TERMINATE, FOR CONVENIENCE,THE CITY'S CURRENT CONTRACT WITH DMSI FOR
CONSTRUCTION(ONLY)OF THE PROJECT(THE FORMER CONTRACT),PURSUANT TO
INVITATION TO BID NO. 07-10/11 (ITB), AND ENTER INTO AND EXECUTE A
SETTLEMENT AGREEMENT WITH DMSI FOR THE FORMER CONTRACT; ALL, IN THE
APPROVED NOT TO EXCEED AMOUNT(INCLUDING DESIGN-BUILD CONTRACT GMP
AND SETTLEMENT AGREEMENT AMOUNTS) OF $11,998,535; SAID AMENDMENT
HEREIN REQUESTING THE MAYOR AND CITY COMMISSION AUTHORIZE AN INCREASE
TO THE NOT TO EXCEED AMOUNT APPROVED UNDER RESOLUTION NO.2011-27809,
FROM$11,998,535,TO$17,102,487,WITH THE NEW TOTAL TO BE BROKEN DOWN AS
FOLLOWS: 1.) APPROVING A NEW GMP FOR THE DESIGN-BUILD CONTRACT WITH
DMSI, IN THE AMOUNT OF $11,151,240 (WHICH NEW AMOUNT WILL NOT ONLY
INCLUDE THE REMAINING WATER,STORMWATER, LANDSCAPE AND STREETSCAPE
IMPROVEMENTS UNDER THE FORMER CONTRACT, BUT ALSO NECESSARY
ADDITIONAL SCOPE OF WORK RECOMMENDED BY THE CITY'S PUBLIC WORKS
DEPARTMENT (PWD) AND BISCAYNE POINT RESIDENTS, AS WELL AS FACTOR IN
THE ASSUMED CONTRACTOR "RISK" TYPICALLY ASSOCIATED WITH, AND BUILT
INTO, DESIGN-BUILD CONTRACTS); AND 2.) APPROVING A NEW AMOUNT FOR THE
SETTLEMENT AGREEMENT, OF $5,951,247, WHICH INCLUDES PAYMENT FOR ALL
WORK PERFORMED UNDER THE FORMER CONTRACT, THROUGH THE FINAL
COMPLETION DATE ESTABLISHED IN THE SETTLEMENT AGREEMENT,AS WELL AS
PAYMENT FOR APPROVED CHANGE ORDERS AND CREDITS(EXECUTED AS OF THE
EFFECTIVE DATE OF THE SETTLEMENT AGREEMENT), AND AGREED UPON
COMPENSATION FOR DMSI'S ALLEGED DELAY AND OTHER CLAIMS; WITH
PREVIOUSLY APPROPRIATED FUNDING, IN THE AMOUNT OF $2,843,892;
APPROPRIATING$562,047 FROM WATER OPERATING FUND 425 CAPITAL RESERVES;
RE-APPROPRIATING$855,599 FROM PROJECT SAVINGS IN FUND 423 GULF BREEZE
2006, FROM THE COMPLETED NAUTILUS NEIGHBORHOOD RIGHT-OF-WAY
IMPROVEMENT PROJECT;APPROPRIATING$575,869 FROM FUND 427 STORMWATER
OPERATING CAPITAL RESERVES; RE-APPROPRIATING$1,995,007 IN STORMWATER
SERIES 2011 BONDS FUNDS, PREVIOUSLY APPROPRIATED FOR NORMANDY ISLE,
NORMANDY SHORES, AND NAUTILUS NEIGHBORHOODS RIGHT-OF-WAY
IMPROVEMENT PROJECTS, FOR THE BISCAYNE POINT NEIGHBORHOOD RIGHT-OF-
Page 1 of 6
Commission Memorandum-Biscayne Point GMP Contract
March 21, 2012
WAY IMPROVEMENTS PROJECT; APPROPRIATING $468,433 IN CAPITAL RESERVE
FUNDS FOR INCREASED ESTIMATES FOR ABOVE GROUND COSTS FROM ORIGINAL
ESTIMATES;AND FURTHER RE-APPROPRIATING$355,645 FROM CAPITAL RESERVE
FUNDS TO PAY AS YOU GO FUNDS FOR ADDITIONAL ABOVE-GROUND SCOPE FOR
THE BISCAYNE POINT NEIGHBORHOOD RIGHT-OF-WAY IMPROVEMENTS PROJECT;
ALL FOR A TOTAL AMOUNT OF $7,656,492.
ADMINISTRATION RECOMMENDATION
Approve the Resolution.
KEY INTENDED OUTCOME
Ensure value and the timely delivery of a quality capital project.
FUNDING
Total funding required is in the amount of $7,656,492. Funding will be provided from previously
appropriated funds in the amount of $2,843,892, as well as additional appropriations totaling
$4,812,600. The funding includes the re-appropriation of $855,599 in project savings from the
completed Nautilus Neighborhood Right-of-Way Improvement project, and an appropriation of
$562,047 from Water Operating Fund 425 Capital Reserves for water related improvements. An
appropriation of$575,869 from Fund 427 Stormwater Operating Capital Reserves, as well as the re-
appropriation of$1,995,007 in Stormwater Series 2011 Bonds funds, previously appropriated for the
Normandy Isle, Normandy Shores, and Nautilus Neighborhoods Right-of-Way Improvement projects,
will be applied toward stormwater related improvements. An appropriation of $468,433 in Capital
Reserve funds will fund increased above-ground costs from original estimates. An additional re-
programming of$355,645 in Capital Reserve funds as Pay As You Go funds will be used for additional
above-ground scope. It should be noted that the additional funding appropriations for the Project may
reduce funding available to be considered though the Capital Review process for the FY 2012/2013.
Funding shall be as follows:
Previously Appropriated:
$184,657 Fund 376-99 GO Bonds Neighborhood Improvements,Account#376-2321-069357
$491,587 Fund 384 - 2003 GO Bonds Neighborhood Improvements, Account #384-2321-
069357
$60,000 Fund 302- Pay As You Go, Account#302-2321-069357
$339,893 Fund 302- Pay As You Go, Account#302-2321-000356
$53,976 Fund 420-W&S Gulf Breeze Loan Series 2010, Account#420-2321-069357
$288,076 Fund 420-W&S Gulf Breeze Loan Series 2010, Account#420-2321-000356
$161,795 Fund 428-Stormwater Bonds 2000S, Account#428-2321-069357
$5,290 Fund 428- Stormwater Bonds 2000S, Account#428-2321-061357
$685,487 Fund 431 -Stormwater Series 2011 Bonds, Account#431-2321-069357
$573,131 Fund 431 -Stormwater Series 2011 Bonds, Account#431-2321-000356
$468,433 Fund 304-Capital Reserve
$2,843,892 Subtotal
New Appropriations:
$855,599 Fund 423-Gulf Breeze 2006, Account#423-2282-000356 (Nautilus)
$562,047 Fund 425-Water Operating Capital Reserves
$856,554 Fund 431 -Stormwater Series 2011 Bonds,Account#431-2323-069357 (N. Shores)
$773,227 Fund 431 -Stormwater Series 2011 Bonds,Account#431-2323-000356 (N. Shores)
$154,770 Fund 431 -Stormwater Series 2011 Bonds, Account#431-2285-000356 (N. Isle)
$19,110 Fund 431 -Stormwater Series 2011 Bonds, Account#431-2285-069355 (N. Isle)
$24,126 Fund 431 -Stormwater Series 2011 Bonds, Account#431-2285-069351 (N. Isle)
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Commission Memorandum-Biscayne Point GMP Contract
March 21, 2012
$167,220 Fund 431 —Stormwater Series 2011 Bonds, Account#431-2282-069351 (Nautilus)
$355,645 Fund 302— Pay As You Go
$575,869 Fund 427 —Stormwater Operating Capital Reserve
$4,812,600 Subtotal
$7,656,492 TOTAL
BACKGROUND
On December 14, 2011, the Mayor and City Commission approved Resolution No. 2011-27809
establishing a public emergency;'waiving the bidding requirements under the Consultants Competitive
Negotiation Act (CCNA); and requesting that the City Manager and the Administration execute the
following course of action: 1) to prepare a Design Criteria Package (DCP), whether through the City's
Public Works Department (PWD) or through retention of an outside Design Criteria Professional, as
determined by the City Manager; 2) upon completion of the DCP, to negotiate and execute a Design-
Build Contract with a Guaranteed Maximum Price(GMP)forthe remaining water,stormwater, landscape
and streetscape improvements for the Project with David Mancini and Sons, Inc. (DMSI); 3)to terminate,
for convenience,the remaining portion of the current construction Contract with DMSI and enter into and
execute a Settlement Agreement and release of all claims against the City under the Former Contract,
as a condition to the City and DMSI's execution of the negotiated Design-Build Contract;and 4)capping
the total sum of the combined negotiated Design-Build GMP and the negotiated settlement of the
existing contract at$11,998,535,which included the$10,907,759 construction award value of the current
DMSI construction contract (approved via Resolution No. 2011-27621) and the approved project
contingency amount of $1,090,776. All these actions being necessary to rectify a deficient set of
construction documents, implement DMSI's two(2)pump station value engineering proposal, requested
by PWD; and to keep the Project moving forward while minimizing delays and impacts to the safety and
welfare of the residents.
In addition, the Administration advised the City Commission of additional scope of work elements,
requested by PWD,that were under evaluation and for which funding would need to be identified. Upon
determination of whether the improvements were warranted and identification of appropriate funding,the
Administration would proceed with the additional scope of work via a Job Order Contract(JOC)or as an
amendment to the proposed Design-Build Contract;the request for additional scope would be presented
to the City Commission for approval at a future date. This additional scope includes the following:
1. Upsizing the existing 6-inch water main along 84th Street, within Biscayne Beach, with an 8-inch
water main;
2. Replacing existing water services along 85th Street, within Biscayne Beach;
3. Replacement of direct buried electrical street lighting cable within the Biscayne Beach sub-
neighborhood;
4. Design and construction of drainage improvements at three (3) locations ("hot spots") within
Biscayne Point Island:
• Intersection of Noremac Avenue/S. Biscayne Point Road;
• In front of 7955 Biscayne Point Circle; and
• In front of 1825 Daytonia Road;
5. A retrofit of the new water distribution system(already constructed as part of the current Construction
contract) to connect the future 8-inch water main connection between Biscayne Point Island and
Normandy Isle; and
6. Traffic signal modifications at the intersections of Hawthorne Avenue/ 77th Street and Hawthorne
Avenue/Crespi Boulevard.
Page 3 of 6
Commission Memorandum-Biscayne Point GMP Contract
March 21, 2012
ANALYSIS
As approved by the Mayor and City Commission via Resolution No. 2011-27809, the CIP Office
immediately commenced coordination with the PWD and the City Attorney's Office for the preparation of
the DCP, Settlement Agreement and Design-Build Contract. PWD took on the role of the Design Criteria
Professional, on behalf of the City, and prepared the DCP,while the City Attorney's office prepared the
Settlement Agreement for the current construction contract.With support from the City Attorney's Office,
a Design-Build Contract was developed which became the basis of the negotiations for the additional
scope of work approved by the City Commission. Upon receipt of the aforementioned documentation,
the Administration commenced negotiations with DMSI. Negotiation efforts focused on finalizing the
terms, conditions, and defining the scope of work to be completed to close-out the original contract and
enter into a Settlement Agreement;finalizing the terms and conditions of the Design-Build Contract; and
finalizing evaluations and estimates for the additional scope of work requested by PWD.The intent was
to procure the latter either via JOC or to be incorporated within the proposed Design-Build Contract.The
negotiation discussions would also include various infrastructure improvements, suggested by DMSI,
which the contractor believed to be warranted based on field findings; additional plan errors that needed
to be rectified; and additional community requests. These items had to be evaluated by the City prior to
inclusion.
Draft copies of the DCP, Design-Build Contract and Settlement Agreement were issued to DMSI in early
January 2012.
During initial negotiations, concerns were raised by DMSI regarding the contract language and additional
scope of work introduced by the DCP requirements. This additional scope of work had not been
previously identified and was not included as part of the scope of work in the original Contract. DMSI
expressed concerns attributed to the increased hard costs, soft costs (associated with professional
Architectural/Engineering services), and assumed risk introduced by the nature of Design-Build contracts
for the additional scope of work.
The cost derived by DMSI following their initial review and interpretation of the Design-Build Contract
language,the DCP, and the added owner/resident requests were approximately$22.9-Million.This cost
included approximately$1.1-Million in design fees, $1.6-Million in added Project risk, and$3.4-Million in
Project claims and delays. Upon the City's review of all the added scope elements and proposed cost
estimates provided by DMSI,the Administration determined that negotiation of a Design-Build Contract
was no longer feasible within the parameters previously authorized by the Mayor and City Commission.
Subsequently, at the February 8, 2012 Commission Meeting, the Administration updated the City
Commission of the ongoing negotiations and was directed to continue negotiations and return in March
2012 with the final negotiated Settlement Agreement and Design-Build Contract GMP.
In an effort to finalize negotiations and meet the directive from the City Commission, the CIP Office
partnered with PWD to clearly define the scope of work elements that would be included in the Design-
Build Contract and to effectively negotiate all required added scope of work with DMSI.
The City's initial proposal for the hard and soft costs of the entire Project was $14,783,910. After
negotiating the addition/deletion of scope of work and their associated value,the City and DMSI agreed
on a total Project construction cost of $15,606,175, which included an amount of $4,698,416 for the
additional owner requested scope of work and professional services fees of the Design-Build Contract.
The increased cost was primarily attributed to the inclusion of an allowance to repair damaged
sidewalks, curbs and gutter and a change in the milling and resurfacing methodology. These two scope
of work items were not clearly defined until after discussions with PWD and negotiations with DMSI.An
agreement for the settlement, risk, and alleged claims and delays was also reached, bringing the total
Project construction cost to$17,102,487. Not included in this amount is the work performed through JOC
which totals an additional $597,512, which is further delineated below, for a total of$17,700,000.
As a result of the negotiations, the additional scope of work to be included in the Design-Build Contract
consists of the following:
Page 4 of 6
Commission Memorandum—Biscayne Point GMP Contract
March 21, 2012
1. Replacement of direct buried electrical street lighting cable within the Biscayne Beach sub-
neighborhood (Owner Request);
2. Adjustment of fourteen (14) light poles within Biscayne Point Island (HOA Request);
3. Design and construction of drainage improvements at three (3) locations ("hot spots") within
Biscayne Point Island (HOA Request):
• Intersection of Normac Avenue/S. Biscayne Point Road;
• In front of 7955 Biscayne Point Circle; and
• In front of 1825 Daytonia Road;
4. Design and construction of approximately 1,600-LF of 8-inch water main along Cleveland Road,
between N. Biscayne Point Road and Noremac Avenue, and along Noremac Avenue, between
Cleveland Road and N. Biscayne Point Road (Owner Request);
5. Design and construction of approximately 500-LF of 12-inch water main along Henedon Road,with
the associated bridge crossing (Owner Request);
6. Substituting the proposed 121 Mahoganies within Biscayne Point Island with Oaks(HOA Request);
7. Providing pavers at the 77th Street entrance to Biscayne Point Island (HOA Request);
8. Providing pavered speed tables, in lieu of stamped asphalt speed tables (HOA Request);
9. Providing water main isolation valves for the water distribution system (Owner Request);
10. Repair of sidewalks, curbs, and gutters within Biscayne Beach and Biscayne Point Island
(Allowance, HOA/Owner Request);
11. Milling and resurfacing of pavement, as required, to meet the minimum 2-inch asphalt DCP
requirement(Owner Request);
12. Updating the existing topographical survey, as required, to meet DCP requirements (Owner
Request);
13. Providing the necessary design and construction administration services to assume responsibility,as
the Engineer-of-Record (Owner Request);
In addition, in an effort to keep the project moving forward through the extended negotiations and keep
DMSI mobilized onsite, the Administration approved some of the owner requested additional scope of
work via Job Order Contracts (JOCs) in the amount of $597,512, which brings the total Project
construction cost to $17,700,000. These items included:
1. Design and construction of an 8-inch water main along 84th Street,within Biscayne Beach, replacing
the existing 6-inch water main;
2. Design and construction of new water services along 85th Street, within Biscayne Beach;
3. Redesign and construction of 1,000-LF of water main along Stillwater Drive;
After careful consideration and coordination with the PWD, it was determined that some additional scope
of work items were not necessary at this time and as such were not included in the Design-Build
Contract. The excluded scope of work follows:
1. Future subaqueous 8-inch water main connection between Biscayne Point Island and Normandy
Isle; and
2. Traffic signal modifications at the intersections of Hawthorne Avenue/ 77th Street and Hawthorne
Avenue/Crespi Boulevard.
The overall negotiations resulted in a total DMSI contractual value of$17,700,000,which consists of the
cost of the previously approved JOCs in the amount of$597,512,the Design-Build GMP of$11,151,240
and a Settlement Agreement amount of$5,951,247.
The Design-Build Contract GMP includes the hard costs(ie. construction costs)for the remaining scope
of work from the original Contract and the above referenced scope of work, as agreed upon by DMSI
and the City, and soft costs associated with architectural/engineering design services, construction
administration services, construction management services, and a consideration for risk.
Page 5 of 6
Commission Memorandum-Biscayne Point GMP Contract
March 21, 2012
The Settlement Agreement amount includes associated scope of work completed as of the stipulated
termination date; a shared savings (50/50) for the deletion of the two (2) stormwater pump stations;
other credits for deleted scope of work to offset the cost of the stormwater system redesign effort; and
an amount of $1,500,000 for settlement of alleged claims and delays primarily associated with the
inability to commence with the construction of the Project stormwater improvements.This settlement of
claims and delays was negotiated, in the best interest of the City, upon consideration of the Contractor's
claims against the City, at approximately$4,000,000, and in order to avoid litigation with the Contractor
and further delays to the Project.
During the negotiation efforts, the City requested support from A/E Consultants to provide professional
services including cost estimating services, constructability reviews, and design concept evaluations.
There is currently no funding to cover the entirety of these requested professional services. Upon
execution of the Design-Build Contract,the City will need to secure other professional services such as
geotechnical testing services and Resident Project Representative services that will require additional
funding appropriations. The Administration has estimated that an increase to the Project professional
services budget in the amount of$1,067,000 is necessary to supplement the Project construction. The
increased additional costs to the Project are currently under-funded and require the appropriation of
additional funds.
In summary, the total funding required for the Project is $7,656,492, of which $2,843,892 is currently
available in the Project's capital budget. After evaluation of available funding, the Administration has
identified other funding sources to offset the$4,812,600 shortfall. However,funding the additional costs
of this Project may reduce funding available to be considered though the Capital Review process for the
FY 2012/2013.
CONCLUSION
The Administration recommends the Mayor and City Commission approve this Amendment to
Resolution No. 2011-27809 requesting authorization to increase the not to exceed amount approved
under the same resolution, from $11,998,535, to$17,102,487, with the new total to be broken down as
follows: 1.) approving a new GMP for the Design-Build Contract with DMSI, in the amount of
$11,151,240 (which new amount will not only include the remaining water, stormwater, landscape and
streetscape improvements under the Former Contract, but also necessary additional scope of work
recommended by the City's Public Works Department(PWD) and Biscayne Point residents, as well as
factor in the assumed contractor"risk"typically associated with, and built into, design-build contracts);
and 2.)approving a new amount for the Settlement Agreement, of$5,951,247,which includes payment
for all work performed under the Former Contract, through the final completion date established in the
Settlement Agreement, as well as payment for approved change orders and credits(executed as of the
Effective Date of the Settlement Agreement), and agreed upon compensation for DMSI's alleged delay
and other claims; with previously appropriated funding, in the amount of $2,843,892; appropriating
$562,047 from Water Operating Fund 425 capital reserves; re-appropriating $855,599 from project
savings in Fund 423 Gulf Breeze 2006, from the completed Nautilus Neighborhood Right-of-Way
Improvement Project; appropriating $575,869 from Fund 427 Stormwater Operating Capital Reserves;
re-appropriating $1,995,007 in Stormwater Series 2011 Bonds Funds, previously appropriated for
Normandy Isle, Normandy Shores, and Nautilus Neighborhoods Right-of-Way Improvement Projects,for
the Biscayne Point Neighborhood Right-of-Way Improvements Project;appropriating$468,433 in Capital
Reserve Funds for increased estimates for above ground costs from original estimates; and further re-
appropriating $355,645 from Capital Reserve Funds to Pay As You Go Funds for additional above-
ground scope for the Biscayne Point Neighborhood Right-of-Way Improvements Project; all for a total
amount of$7,656,492.
JMG/DB/FV/DM
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