2015-28998 Reso RESOLUTION NO. 2015-28998
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE
RECOMMENDATION OF THE CITY MANAGER, PURSUANT TO
REQUEST FOR PROPOSALS (RFP) NO. 2015-129-ME, FOR
CONSTRUCTION MANAGER AT RISK SERVICES FOR THE MIAMI
BEACH CONVENTION CENTER RENOVATION AND EXPANSION
PROJECT ("PROJECT"); AUTHORIZING THE ADMINISTRATION TO
NEGOTIATE AN AGREEMENT WITH CLARK CONSTRUCTION
GROUP, WITH SAID AGREEMENT SUBJECT TO PRIOR APPROVAL
BY THE MAYOR AND CITY COMMISSION BEFORE FINAL
EXECUTION THEREOF.
WHEREAS, Request for Proposals No. 2015-129-me (the RFP)was issued on March 2,
2015, with an opening date of April 9, 2015; and
WHEREAS, a voluntary pre-proposal meeting was held on March 19, 2015; and
WHEREAS, the City received one (1) proposal from Clark Construction Group; and
WHEREAS, on April 15, 2015, the City Commission authorized the Administration to
eliminate the RFP Evaluation Committee and open the sealed fee proposal and estimated
General Conditions costs submitted by the sole proposer, to permit the City Manager to proceed
with the due diligence process and make a recommendation to the City Commission concerning
award; and
WHEREAS, after reviewing the Proposer's qualifications and submission, the City
Manager exercised his due diligence and is recommending that the Mayor and City Commission
authorize the Administration to enter into negotiations with Clark Construction Group.
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 hereby accept the recommendation of the City Manager pertaining to Request for
Proposals (RFP) No. 2015-129-ME, for Construction Manager at Risk Services for the Miami
Beach Convention Center Renovation and Expansion Project; and authorizes the Administration
to negotiate an agreement with Clark Construction Group, the sole proposer to the RFP, with
said agreement subject to prior approval by the Mayor and City Commission before final
execution thereof.
PASSED AND ADOPTED this 9 day of T Ki 2015.
ATTEST:
Rafael E. Granath e., '• */,'hilip Levi. e,
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MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Philip Levine and Members • the City Co I ission
FROM: Jimmy L. Morales, City Manager
DATE: April 29, 2015
SUBJECT: A RESOLUTION OF THE MAYO' AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE
RECOMMENDATION OF THE CITY MANAGER, PURSUANT TO
REQUEST FOR PROPOSALS (RFP) NO. 2015-129-ME, FOR
CONSTRUCTION MANAGER AT RISK SERVICES FOR THE MIAMI
BEACH CONVENTION CENTER RENOVATION AND EXPANSION
PROJECT ("PROJECT"); AUTHORIZING THE ADMINISTRATION TO
NEGOTIATE AN AGREEMENT WITH CLARK CONSTRUCTION
GROUP, WITH SAID AGREEMENT SUBJECT TO PRIOR APPROVAL
BY THE MAYOR AND CITY COMMISSION BEFORE FINAL
EXECUTION THEREOF.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
KEY INTENDED OUTCOME
Improve alliance with key business sectors, namely hospitality, arts & international business with
a focus on enhanced culture, entertainment & tourism.
BACKGROUND
On February 11, 2015, the City Commission elected to re-bid the Project under a Construction
Manager-at-Risk (CMR) project delivery method, an approach that allows for the continued
development of the design for the Project with the benefit of input from the Construction Manager
prior to establishment of the Guaranteed Maximum Price (GMP) for the Project, currently
anticipated to occur on or about October, 2015.
A request for proposal was issued on March 2, 2015, advertised and emailed to national and local
construction management firms. Proposals were due on April 9,2015. Only one proposal was
received from Clark Construction ("Clark"). On April 15, 2015, the City Commission authorized
the Administration to eliminate the RFP Evaluation Committee and open the sealed fee proposal
and estimated General Conditions costs submitted by the sole proposer, to permit the City
Manager to proceed with the due diligence process and make a recommendation to the City
Commission concerning award.
ANALYSIS
Firm Experience:
The Clark proposal meets all of the requirements of the RFP. Clark has extensive public assembly
experience that includes 15 major convention center projects (shown below). Clark reports to have
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Agenda Item R7t
Date 4-29-is
Request for Proposals (RFP) No. 2015-129-ME for Construction Manager at Risk Services
April 24, 2015
Page 2 of 4
built convention center projects.totaling $4.7 billion with over 20 million square feet as well as other
public assembly venues with convention and meeting space.
Project Name/Completion Date Role Total Sq Ft
Music City Center, Nashville (2013) CM at Risk 2,100,000
Lead JV Partner
Knoxville Convention Center(2002) CM at Risk 480,000
Lead JV Partner
Boston Convention & Exhibition Center(2004) CM at Risk 1,700,000
Lead JV Partner
Orange County Convention Center Phase V Expansion, Orlando (2003) CM at Risk 2,800,000
Walter E. Washington Convention Center, D.C. (2003) CM at Risk 2,300,000
McCormick Place South Building, Chicago(1996) Design/Build 2,900,000
Lead JV Partner
McCormick Place West Expansion, Chicago(2007) Design/Build 2,600,000
Lead JV Partner
Wisconsin Center, Milwaukee(1999) Design/Build 680,000
Palm Beach County Convention Center, West Palm Beach (2003) General 346,000
Contractor
Los Angeles Convention Center Expansion (1993) Design/Build 2,700,000
Miami Beach Convention Center Expansion (1991) General 1,100,000
Contractor
Pasadena Convention Center Expansion (2009) General 302,500
Contractor
Henry B. Gonzalez Convention Center Expansion, General 865,000
Phase I, San Antonio(2001) Contractor
Memphis Cook Convention Center Expansion (2003) CM at Risk 335,000
San Diego Convention Center Expansion (2016) CM at Risk 1,000,000
Lead JV Partner
Project Manager Experience:
Mark Eames is the proposed Lead Project Manager for the Project. Mr. Eames has over 25 years
experience in the construction industry including experience with large, complex convention center
projects. Mr. Eames has been involved in three convention center projects and a large convention
center hotel expansion project, including:
• Music City Center, Nashville (2013)
• McCormick Place West Expansion, Chicago (2007)
• Boston Convention & Exhibition Center(2004)
• Hyatt Regency McCormick Place Expansion (2013)
Request for Proposals(RFP) No. 2015-129-ME for Construction Manager at Risk Services
April 24, 2015
Page 3 of 4
Mr. Eames was the Project Manger for the Boston Convention & Exhibition Center project. Clark
reports the three convention center projects that Mr. Eames was heavily involved were under
budget with considerable cost savings.
Other Team Members:
In addition to the Lead Project Manager, Clark has assembled a project team of key individuals
that includes a Project Superintendent, Assistant Project Manager, Preconstruction Manager,
Quality Control Manager, Safety Manager, and a Director of Sustainable Solutions.
Clark has teamed with local construction contractor Facchina Construction. Some of Facchina's
recent local projects include the New World Center, Pennsylvania Avenue Parking Garage, Grove
at Grand Bay, American Airlines Arena, Espirito Santo office tower and Florida International
University's Parking Garage.
Financial Strength:
Clark provided financial statements indicating total assets of $1.6 billion and gross revenues $3.6
billion in 2014. Clark provided letters of surety bonding capacity adequate for the Project from
Travelers, Chubb Group, and Zurich.
CMR Fee Proposal:
Clark has proposed a CMR fee equating to 3.95% of the work they manage. This equates to a
fee of approximately $19 million based on the current budget. Preliminary research indicated
market fees for these services typically range from 2.75% to 3.0%. Heretofore, the City has
budgeted a 3% CMR fee, which equates to $14.6 million based on the current budget. It is
hoped that Clark is willing to negotiate a fee that is more consistent with the City's budget.
Pre-Guaranteed Maximum Price ("GMP") Services Proposal:
The CMR Contract incorporates three key contractual phases:
1. The contract that the City Commission will act upon in May of 2015 will focus on; i) the
CMR Fee, ii) a fixed price to not exceed for pre-GMP services (May 2015 through
October 2015), and iii) the general contractual terms and conditions.
2. In October of 2015, the City Commission will consider a "GMP Amendment" that will be
the result of the pre-GMP services, a six-month process to agree upon a GMP, including
Clark's long-term staffing costs to manage the construction.
3. The project will then be competitively bid over the next several months. Any savings as
a result of the competitive bidding, below the GMP, is contemplated to be spilt 75% to
the City and 25% to Clark. This is a major advantage over the prior design-build process
in that now the $400+ million worth of construction trade subcontracts will be
competitively bid pursuant to an "open book" contracting process, and not merely part of
one design-build lump sum. In addition, the bidding to the trades following the GMP
Amendment in October, 2015 will be based on much further-completed design
packages, thereby bringing greater certainty to the bid process and pricing that better
reflects the costs actually required to complete the Project.
Clark has proposed a Pre-GMP Services Fee of $3,669,799. This includes $2,424,269 for
staffing, $530,530 for expenses, and $715,000 for"profit and overhead". The City has budgeted
$2,500,000 for pre-GMP Services based on discussions with leadership of other similar
projects.
Request for Proposals (RFP) No. 2015-129-ME for Construction Manager at Risk Services
April 24, 2015
Page 4 of 4
• Staffing - The $2,424,269 in staffing cost provides for roughly 19 full-time equivalents for
six months. This equates an average annual cost of$255,186 per person.
• Expenses — The $530,530 relates to office/trailers and related expenses. These are
budget amounts and actual City cost will be based on actual expenses incurred.
• Profit & Overhead — The profit and overhead of $715,000 is a 24% mark up on the
staffing and expenses. This is very high and inconsistent with the proposed CMR fee of
3.95%.
It is hoped that Clark is willing to negotiate a Pre-GMP Fee that is more consistent with the
City's budget and prevailing industry rates.
CONCLUSION / RECOMMENDATION
The Administration recommends that the Mayor and City Commission direct the Administration
enter into negotiations with Clark Construction related to Request for Proposals (RFP) No. 2015-
129-ME for Construction Manager at Risk Services for the Miami Beach Convention Center
Renovation and Expansion Project.
JLM/JS/MH
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