LTC 285-2013 Lower North Bay Road '--� MIAMIBEA _
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OFFICE OF THE CITY MANAGER LETTER TO COMVIISS N
NO. LTC # 285 -RO.l3 2013 AUG 16
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Ei` S OFF 1CF
TO: Mayor Matti Herrera and Members the City mmission
FROM: Jimmy L. Morales, City Manager
DATE: August 15, 2013
SUBJECT: Lower North Bay Road Neighborh d Improvement - Reason for Proceeding by way of
Design Build
The purpose of this Letter to Commission (LTC) is - to provide the reasoning behind the City
Administration's decision to move forward via design -build method of procurement for the Lower North
Bay Road Right of Way Project.
The Lower North Bay Road project was previously awarded to Trans Florida Development Corporation
(TFDC) as a design- bid -build contract. Not long after the issuance of NTP #2 to TFDC, a Letter to
Commission (LTC) provided the City Commission with information regarding the recent arrest of the
City's Former Procurement Director and the Affidavit in Support of his Arrest Warrant (Affidavit).
Subsequently, City Administration decided to review the City's existing contracts with those vendors
and /or contractors named in the Affidavit. As a result of TFDC being named in the Affidavit, City
Administration decided to terminate their contract for the Lower North Bay Road Project for
convenience.
Because the original design for Lower North Bay Road was completed several years ago, city staff
determined it would be prudent to re- evaluate and update this design using the recently completed
Storm Water Management Master Plan, along with the criteria established with the updated `Storm
Water Design Guidelines', as provided by the Public Works Department. In addition, the latest design
criteria proposed by the Public Works Department provides for an adaptable stormwater drainage
system that could be expanded to address future needs. Staff has also evaluated the condition of the 23
Street seawall and believes it needs to be added to the scope of work.
Due to its inherent flexibility, design -build lends itself well to incorporating the seawall and addressing all
of the necessary updates to the Lower North Bay Road project, without significantly impacting the
projected schedule for commencement of this project. Design -build can offer numerous advantages
over other methods of project delivery. These include:
• Schedule - Construction can begin before the design is complete, in contrast to design -bid-
build, in which the Owner must wait for 100% design and then wait further while advertising,
receiving, and evaluating bids.
• Cost — Full cost of the project is established prior to award of any work including the design.
• Single -point responsibility - In case of an issue, the Owner does_ not have to mediate
between the contractor and the Design Firm; the Design - Builder has full responsibility.
• Collaboration - Design -build involves an integrated team working collaboratively with a
common interest towards meeting the project goals.
• Transference of Risk — Owner transfers risk for design errors and omissions to design -build
entity.
• Faster project completion — Design -build projects can be completed in a shorter amount of
time because bid time is reduced; construction of certain aspects of the project can begin before
design is finalized, potential construction problems are uncovered early; and enhanced
communication limits delays.
Quality Control — The design build method helps to remove ambiguity that may arise in plans
and construction specifications, since the designer /engineer and builder are on the same team.
A major factor in selection of the design -build delivery method is knowing that the City will be able to
deliver the best possible end product to the residents of. Lower North Bay Road without sacrificing the
timely commencement of construction for a project that has already experienced delays due to
unfortunate circumstances surrounding a prior contractor. The City's intention is to deliver a sustainable
project that will benefit this neighborhood.
T/ /E
We are committed to providing excellent public service and safety to all who five, work, and play in our vibrant, tropical, historic community.