2015-29158 Reso RESOLUTION NO. 2015-29158
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AMENDING RESOLUTION NO. 2015-29127
RELATING TO AMENDMENT NO. 1 TO THE DEVELOPMENT AGREEMENT
BETWEEN THE CITY AND JAMECK DEVELOPMENT, INC. (JAMECK OR
DEVELOPER), DATED JULY 23, 2014, FOR THE DESIGN, DEVELOPMENT,
AND CONSTRUCTION OF CERTAIN STREETSCAPE IMPROVEMENT IN THE
CITY'S RIGHT OF WAY, AT THE PORTION OF EUCLID AVENUE BETWEEN
LINCOLN ROAD AND LINCOLN LANE SOUTH (THE PROJECT); SAID
AMENDED RESOLUTION CORRECTING THE GUARANTEED MAXIMUM PRICE
(GMP) OF THE PROJECT FROM $786,200 TO $806,340, AND INCLUDING THE
FOLLOWING CLARIFICATIONS IN AMENDMENT NO. 1 TO THE
DEVELOPMENT AGREEMENT: (1) THAT THE CITY'S BUDGETED COST FOR
THE PROJECT IS $485,820 (INSTEAD OF $485,821), OF WHICH $27,000 IS
BUDGETED FOR CITY'S CONSTRUCTION MANAGEMENT COSTS, LEAVING A
BALANCE OF $458,820 TO BE APPLIED TOWARD THE PROJECT (CITY'S
CONTRIBUTION); (2) THAT THE CITY WILL BE PAYING EACH APPROVED
DRAW IN PROPORTION TO THE CITY'S CONTRIBUTION TO THE PROJECT;
AND (3) THAT THE DEVELOPER WILL BE RESPONSIBLE FOR THE ENTIRE
SCOPE OF THE PROJECT, INCLUDING ANY UNDERGROUND UTILITY WORK,
AND ASSUMING THE GMP COSTS EXCEEDING THE CITY'S CONTRIBUTION.
WHEREAS, Jameck Development, Inc. (Developer), approached the City to enter into a
Development Agreement for the closure of a portion of Euclid Avenue, between Lincoln Road
and Lincoln Lane South, to vehicular traffic, as part of an extension of the Lincoln Road
pedestrian mall, and the construction of streetscape improvements (the Improvements) in the
City's right-of-way (the Project); and
WHEREAS, the Project will benefit the public in the following ways: (a) by removing
delivery vehicles at the end of Euclid Avenue just south of Lincoln Road and establishing a
delivery vehicle loading zone at Lincoln Lane South that will permit such vehicles to travel east
or west through Lincoln Lane South instead of having to back up and turn around to exit on
Euclid Avenue; (b) by providing residents and visitors with an entrance to Lincoln Road off
Euclid Avenue; and (c) by creating more space for performances at the Euclid Oval; and
WHEREAS, on June 5, 2013, the Mayor and City Commission adopted Resolution No.
2013-28236, approving the Conceptual Plan and authorizing the City Manager to enter into
negotiations with the Development for a Developer Agreement to design and build the Project;
and
WHEREAS, on its June 11, 2014 meeting, the City Commission approved Resolution
No.2014-28628, approving the Development Agreement on first reading; and
WHEREAS, on its July 23, 2014 meeting, the City Commission approved Resolution No.
2014-28673, approving the Development Agreement on second and final reading; and
WHEREAS, after review and negotiations by the Developer, EDGE Construction, Inc.
(Contractor) was selected to construct the improvements; and
WHEREAS, the Developer submitted Contractor's proposal, in the amount of $786,200,
for review by the City's Public Works' staff, and staff found the proposal to be fair and
reasonable for the proposed work; and
WHEREAS, the Contractor's proposal exceeded the City's budgeted cost, in the amount
of $485,820 (City's cost), so the Developer agreed to pay for any Project costs exceeding the
City's cost; and
WHEREAS, On September 2, 2015, pursuant to Resolution Number 2015-29127, the
Mayor and City Commission approved Amendment No 1 to the Development Agreement,
increasing the guaranteed maximum price (GMP) of the Project to $786,200; and
WHEREAS, thereafter, the Contractor realized that the GMP amount did not include the
bond insurance cost required under the Development Agreement, which therefore increased the
GMP amount to $806,340 (inclusive of the bond insurance cost); and
WHEREAS, the Administration recommends including the following clarifications
(Additional Clarifications) in Amendment No. 1: (1) the approved budgeted GMP price for
the Project shall reflect $485,820, instead of $485,821; (2) $27,000 of the total budgeted
GMP for the Project is earmarked for the City's Construction Management Costs, leaving a
balance of $458,820, to be applied toward the Project (City's Contribution); (3) the payment
structure for the City's portion of each approved draw request under the Development
Agreement shall be based upon the City's proportionate contribution to the Project, i.e.
56.90%; and (4) the Developer will be responsible for the entire scope of the Project,
including any underground utility work, which originally was going to be performed by the
City and paid from the City's Contribution; and
WHEREAS, the Administration recommends amending Resolution Number 2015-
29127 to correct the Project cost from the GMP sum of $786,200 to $806,340, with the
Developer assuming the GMP costs above the City's Contribution, and to reflect the
inclusion of the Additional Clarifications in Amendment No. 1.
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. 2015-29127 relating to Amendment No. 1 to the
Development Agreement between the City and Jameck Development, Inc. (Developer),
dated July 23, 2014, for the design, development, and construction of certain streetscape
improvement in the City's right of way, at the portion of Euclid Avenue between Lincoln
Road and Lincoln Lane South (the Project); said amended Resolution correcting the
guaranteed maximum price (GMP) of the Project from $786,200 to $806,340, and including
the following clarifications: (1) that the City's budgeted cost for the Project is $485,820
(instead of $485,821), of which $27,000 is budgeted for City's construction management
costs, leaving a balance of $458,820 to be applied toward the Project (City's Contribution);
(2) that the City will be paying each approved draw in proportion to the City's Contribution
to the Project; and (3) that the Developer will be responsible for the entire scope of the
Project, including any underground utility work, assuming the GMP costs exceeding the
City's Contribution.
PASSED AND ADOPTED this 14th day of October, 2015.
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APPROVED AS TO
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Condensed Title:
A Resolution Of The Mayor And City Commission Of The City Of Miami Beach, Florida, Amending Resolution No. 2015-
29127 Relating To Amendment No. 1 To The Development Agreement Between The City And Jameck Development, Inc.
(Developer), Dated July 23, 2014, For The Design, Development, And Construction Of Certain Streetscape Improvement In
The City's Right Of Way, At The Portion Of Euclid Avenue Between Lincoln Road And Lincoln Lane South (The Project),
Correcting The Guaranteed Maximum Price (GMP) Of The Project From $786,200 To$806,340.
Key Intended Outcome Supported:
Ensure well designed quality capital projects--Increase Community Satisfaction with City Services
Supporting Data (Surveys, Environmental Scan, etc.): Based on the 2014 community survey, recently completed capital projects were
highly rated by both residents and businesses.
Item Summary/Recommendation:
Jameck Development, Inc. (Developer) approached the City to enter into a development agreement for the closure of a'
portion of Euclid Avenue, between Lincoln Road and Lincoln Lane South, to vehicular traffic, as part of an extension of the
Lincoln Road pedestrian mall, and the construction of streetscape improvements in the City's right-of-way (the Project).
This Project will benefit the public in the following ways: (a) by removing delivery vehicles at the end of Euclid Avenue just
south of Lincoln Road and establishing a delivery vehicle loading zone at Lincoln Lane South that will permit such vehicles
to travel east or west through Lincoln Lane South instead of having to back up and turn around to exit on Euclid Avenue; (b)
by providing the Flamingo Park residents with an entrance to Lincoln Road off Euclid Avenue; and (c) by creating more
space for performances at the Euclid Oval.
Developer bid out the Project and three firms requested bid documents. Two proposals were received by the Developer: the
first one from JCM Development Group, in the amount of $767,164, and the second one from EDGE Construction, Inc. in
the amount of$786,200. A third bidder, A. Galvez Construction and Consulting, was disqualified as the cost proposal was
not presented by the due date. After review and negotiations by the Developer, EDGE Construction, Inc. was selected to
construct the improvements.
After review and negotiations by the Developer, EDGE Construction, Inc. (Contractor) was selected to construct the
improvements. The Developer submitted the Contractor's proposed schedule of values to Public Works' staff, which
proposal was considered fair and reasonable for the proposed work. The Contractor's proposal, in the amount of$786,200,
exceeded the City's budgeted cost, in the amount of$485,820 (City's cost), so the Developer agreed to pay for any Project
costs exceeding the City's cost.
On September 2, 2015, pursuant to Resolution Number 2015-29127, the Mayor and City Commission approved
Amendment No 1 to the Development Agreement, increasing the guaranteed maximum price (GMP) of the Project to
$78.6,200. Thereafter, the Contractor realized that the GMP amount did not include the bond insurance cost required under
the Development Agreement, which therefore increased the GMP amount to $806,340 (inclusive of the bond insurance
cost).
The Administration recommends amending Resolution Number 2015-29127 to correct the Project cost from a GMP of
$786,200 to a GMP amount not to exceed $806,340, with any Project costs exceeding the City's cost to be paid by the
Developer.
Advisory Board Recommendation:
See above summary.
Financial Information:
Source of Fu ds: Amount Account
1_ $416,820 365-2767-0035
2 $27,000 365-2767-069351 ..
3 $42,000 365-2767-069358
- Total $485,820
Financial Impact Summary: Funds for this project were approved by the City Commission as part of the City Center Redevelopment
District Funds(City Center RDA) in the FY 2012/13 and FY 2013/14 Capital Budget.
City Clerk's Office Legislative Tracking:
Bruce Mowry, Ext.6565
Sign-Offs: 1
Department or Assis ai w 3,. ;,
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MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139,
www.miamibeachfl.gov
COMMISSION,MEMORANDUM ,
TO: Mayor Philip Levine and Members of■he City Co ( ission
■
FROM: Jimmy L. Morales, City Manager
DATE: October 14, 2015
SUBJECT: A RESOLUTION OF THE MAYOR ND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AME DING RESOLUTION NO. 2015-29127
RELATING TO AMENDMENT . NO. 1 TO THE DEVELOPMENT
AGREEMENT BETWEEN THE CITY AND JAMECK DEVELOPMENT, INC.
(JAMECK OR DEVELOPER), DATED JULY 23, 2014, FOR THE DESIGN,
DEVELOPMENT, AND CONSTRUCTION OF CERTAIN STREETSCAPE
IMPROVEMENT IN THE CITY'S RIGHT OF WAY, AT THE PORTION OF
EUCLID AVENUE BETWEEN LINCOLN ROAD AND LINCOLN LANE
SOUTH (THE PROJECT), CORRECTING THE GUARANTEED MAXIMUM
PRICE (GMP) OF THE PROJECT FROM $786,200 TO $806,340.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
KEY INTENDED-OUTCOME SUPPORTED
Ensure well designed quality capital projects
Increase Community Satisfaction with City Services
FUNDING
, $416,820 365-2767-069357
$ 27,000 365-2767-069351
$ 42,000 365-2767-069358
$485,820 Total
BACKGROUND
Jameck Development, Inc. (Developer) approached the City to enter into a development
agreement for the closure of a portion of Euclid Avenue, between Lincoln Road and Lincoln
Lane South, to vehicular traffic, as part of an extension of the Lincoln Road pedestrian mall, and
the construction of streetscape improvements in the City's right-of-way (the Project).
This Project will benefit the public in the following ways: (a) by removing delivery vehicles at the
end of Euclid Avenue just south of Lincoln Road and establishing a delivery vehicle loading
zone at Lincoln Lane South that will permit such vehicles to travel east or west through Lincoln
Lane South instead of having to back up and turn around to exit on Euclid Avenue; (b) by
providing the Flamingo Park residents with an entrance to Lincoln Road off Euclid Avenue; and
City Commission Memorandum
Amendment No. 1 to Development Agreement with Jameck Development, Inc.-Euclid Street End Project
October 14, 2015
Page 2 of 2
(c) by creating more space for performances at the Euclid Oval.
On June 5, 2013, the Mayor and City Commission adopted Resolution No. 2013-28236,
approving the Conceptual Plan and authorizing the City Manager to enter into negotiations with
the Developer to design and build the Project.
At its June 11, 2014 meeting, the City Commission approved Resolution No. 2014-28628,
approving the Development Agreement between Jameck and the City on first reading.
At its July 23, 2014 meeting, the Mayor and City Commission approved Resolution No. 2014-
28673 approving the Development Agreement on second and final reading.
The Project had a total budgeted cost to the City of $485,820 (City's cost), with any additional
funds for the Project to be covered by the Developer. Such City funds were to be appropriated
from Miami Beach Redevelopment Agency (Historic Convention Village/City Center RDA)
Funds.
ANALYSIS
Developer bid out the Project and three firms requested bid documents. Two proposals were
received by the Developer: the first one from JCM Development Group, in the amount of
$767,164, and the second one from EDGE Construction, Inc. in the amount of$786,200. A third
bidder, A. Galvez Construction and Consulting, was disqualified as the cost proposal was not
presented by the due date.
After review and negotiations by the Developer, EDGE Construction, Inc. (Contractor) was
selected to construct the improvements (See attached schedule of values). The Developer
submitted the selected contractor schedule of values to Public Works staff, which has reviewed
and considered fair and reasonable for the proposed work. The Developer has agreed to pay
for costs in excess of the City's cost ($485,820). Staff further reviewed the increased project
construction cost and concluded that future maintenance costs to be incurred by the City after
completion of the Project are not likely to increase.
On September 2, 2015, pursuant to Resolution Number 2015-29127, the Mayor and City
Commission approved Amendment No 1 to the Development Agreement, increasing the
guaranteed maximum price (GMP) of the Project to $786,200, with the Developer paying for any
Project costs in excess of the City's cost.
Thereafter, the Contractor realized that the GMP amount did not include the bond insurance
cost required under the Development Agreement, which therefore increased the GMP amount
to $806,340 (inclusive of the bond insurance cost).
CONCLUSION
The Administration recommends amending Resolution Number 2015-29127 to correct the GMP
Project cost from $786,200 to $806,340.
1
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