Loading...
2015-29243 Reso RESOLUTION NO. 2015-29243 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER TO ENTER INTO FURTHER NEGOTIATIONS WITH LANZO CONSTRUCTION CO. FLORIDA (LANZO), FOR PHASE 2 CONSTRUCTION SERVICES UNDER THE SEPTEMBER 18, 2014 DESIGN-BUILD AGREEMENT (AGREEMENT) RELATING TO RIGHT-OF-WAY INFRASTRUCTURE IMPROVEMENTS FOR "NEIGHBORHOOD 13", ALSO KNOWN AS PALM AND HIBISCUS ISLANDS AND, UPON SUCCESSFUL NEGOTIATIONS, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE GUARANTEED MAXIMUM PRICE (GMP) AMENDMENT NO. 3 IN AN AMOUNT NOT-TO-EXCEED $35,000,000, PLUS A TEN PERCENT OWNER'S PROJECT CONTINGENCY, FOR A GRAND TOTAL OF $38,500,000; OR, IN THE ALTERNATIVE, SHOULD NEGOTIATIONS BE UNSUCCESSFUL, AUTHORIZING THE CITY MANAGER TO EXERCISE THE "OFF- RAMP" PROVISION OF THE AGREEMENT, ALLOWING THE CITY TO TERMINATE LANZO'S SERVICES AND SEEK ALTERNATE CONTRACTORS TO COMPLETE THE PHASE 2 CONSTRUCTION SERVICES. WHEREAS, on June 10th, 2013, the City issued Request for Qualifications No. 251- .2013TC, for Design-Build Services for neighborhood No. 13: Palm and Hibiscus Islands Right-of-Way Infrastructure Improvement Project (the RFQ); and WHEREAS, on July 17, 2013, the Mayor and City Commission adopted Resolution No. 2013-28251, authorized the selection of and negotiation with, Lanzo Construction Co. Florida (Lanzo) under the RFQ; and WHEREAS, on February 12, 2014, pursuant to the recommendations of the Mayor's Blue Ribbon Panel on Flooding and Sea Rise and the Flooding Mitigation Committee, the City Commission approved an amendment the City's Storm Water Management Master Plan, authorizing a modification to the design criteria for tailwater elevation, and adopted an elevation of 2.7 ft-NAVD (the North American Vertical Datum of 1988) for all tidal boundary conditions; and WHEREAS, on September 18, 2014, the City executed an agreement for Design and Pre-Construction Services with Lanzo pursuant to the RFQ, in the lump sum amount of $599,464 (the Agreement); and WHEREAS, on November 19, 2014, the Mayor and City Commission adopted Resolution No. 2014-28852, approving Amendment No.1 to the Agreement, which authorized additional design services associated with the City's adoption of the enhancements to the City's Storm Water Management Master Plan; which Amendment was for the amount of$251,016; and WHEREAS, on October 14, 2015, the Mayor and City Commission adopted Resolution 2015-29178, approving Amendment No. 2 to the Agreement, in the not-to-exceed amount of $73,240, incorporating additional design services required to meet the revised City's landscape ordinance; modifications to the scope of services based upon comments from homeowners association; Fire Department and Public Works Department (PWD) input into the design criteria relating to the placement of Florida Power and Light (FPL) transformers within the City's right-of-way(ROW), and other design criteria clarifications; and WHEREAS, pursuant to the Agreement, Lanzo has submitted draft design-build proposals at the 60% and 90% construction plan stages, for review by the City and the City's consultant, Stantec Consulting Services, Inc.; and WHEREAS, on November 9, 2015, Lanzo proposed a Guaranteed Maximum Price (GMP) of $43,719,011 to construct the Neighborhood 13: Palm and Hibiscus Islands Right- of-Way Infrastructure Improvements Project; and WHEREAS, following several negotiation meetings and in-depth reviews, 9 9 9 P Lanzo submitted its final GMP proposal to the City on November 20, 2015, in the • amount of $37,325,583, with a construction duration of 18 months to achieve substantial completion of construction; and WHEREAS, Stantec reviewed the final GMP Proposal and in Stantec's expert consulting opinion, and considering Stantec's extensive knowledge of the construction marketplace, the GMP should not exceed $34.5 million; and WHEREAS, the City also contracted U.S. Cost Inc., to perform an independent construction cost estimate and, in its opinion, the maximum GMP should be no more than $31,008,940, based on the 90% plans; and WHEREAS, the U.S. Cost, Inc. estimate only includes the cost of the work and excludes design-builder's fee, design-builder's project management fees, professional services during construction, the additional cost associated to raising of the road, and other miscellaneous costs, which total approximately $3,898,298; bringing the total construction estimate to $34,907,238; and WHEREAS, the City Administration and Stantec disagree with Lanzo's final GMP proposal; and WHEREAS, the Administration's recommendation is to enter into further negotiations with Lanzo for a maximum GMP for the Phase 2 Construction Services, and to authorize the Mayor to execute A GMP Amendment in the not-to-exceed amount of $35,000,000, (plus a ten percent owner's project contingency) within 30-days and, if this negotiation fails, to exercise Section 4.3.5 of the underlying agreement, known as the "off-ramp" provision which provides the City the option to proceed with parties other than design builder once negotiations over the GMP fail. 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 approve and authorizing the Administration to enter into further negotiations with Lanzo Construction Co. Florida (Lanzo), for Phase 2 construction services under the September 18, 2014 Design-Build Agreement (Agreement) relating to Right-Of-Way Infrastructure Improvements for "Neighborhood 13", also known as Palm and Hibiscus Islands and, upon successful negotiations, authorizing the Mayor and City Clerk to execute guaranteed maximum price (GMP) Amendment No. 3 in an amount not-to-exceed $35,000,000, plus a ten percent owner's project contingency, for a grand total of $38,500,000; or, in the alternative, should negotiations be unsuccessful, authorizing the City Manager to exercise the "off-ramp" provision of the Agreement, allowing the City to terminate Lanzo's services and seek alternate contractors to complete the Phase 2 construction services. PASSED AND ADOPTED THIS 7 DAY OF DecCnJ.er 2015. ATTEST: .//- _:.•'fir__. ����� afael Granado pN Philip Le 7ne ,�' -' CITY CLERK = �� ..... ,�� ��� ��, ,�� MAYO 11-7 T E � C. 0 R P 0 RA t.1�� CH2 4. • APPROVED AS TO FORM &LANGUAGE- &FOR§XECUTION rI.L. (15 IILP City Attorney ()et,' T:\AGENDA\2015\December\CIP\Palm and Hibiscus\Palm and Hibiscus-Lanzo Amendment 3-RESO.docx COMMISSION ITEM SUMMARY Condensed Title: The Mayor And City Commission Of The City Of Miami Beach, Florida, Accepting The Recommendation Of The City Manager To Enter Into Further Negotiations With Lanzo Construction Co., Florida, For Phase 2 Construction Services, And Further Authorizing The Mayor and City Clerk to Execute A GMP Amendment No. 3 In The Not-To-Exceed Amount Of$35 Million, To The Design-Build Agreement With Lanzo For Neighborhood No. 13: Palm And Hibiscus Islands Right-Of-Way Infrastructure Improvements, Dated September 18, 2014, Upon Conclusion Of Successful Negotiations, Plus Ten Percent Owner's Contingency For A Grand Total of $38,500,000, With Previously Appropriated Funding And Additional Funding Request Subject To The 1st Amendment To The FY 15/16 Capital Budget. Key Intended Outcome Supported: Build and maintain priority infrastructure with full accountability. Supporting Data (Surveys, Environmental Scan, etc.): The 2014 Customer Satisfaction Survey indicated that over 77% of residents rated recently completed capital improvement projects as"excellent"or"good". Item Summary/Recommendation: On July 17,2013,the City Commission approved the negotiations with Lanzo Construction Co., Florida(Lanzo)pursuant to Request for Qualifications(RFQ) No. 251-2013TC, for Design-Build Services for Neighborhood No. 13: Palm and Hibiscus Islands Right-of-Way Infrastructure Improvement Project. On February 12, 2014, the City Commission approved the recommendation by the Mayor's Blue Ribbon Panel on Flooding and Sea Rise and the Flooding Mitigation Committee to amend the City's Stormwater Management Master Plan by modifying the design criteria for the tailwater elevation and adopted an elevation of 2.7 ft-NAVD for all tidal boundary conditions. On November 19, 2014, the City Commission adopted Resolution No. 2015-28852 approving Amendment No.1 in the amount of $251,016, which included additional design services associated with the adopted enhanced storm water criteria,which brought the total contract amount to$850,480. On October 14, 2015, Amendment No.2 was adopted, per Resolution 2015-29178, in the amount of$73,240, incorporating additional design services required to meet the revised City Landscape Ordinance, comments from Home Owners Association, the Fire Department and the Public Works Department (PWD) change in criteria relating to the placement of Florida Power and Light(FPL)transformers within City's Right-of-Way. Lanzo has submitted draft of the GMP proposal at 60%and 90%plan stages for review by the City and Stantec with a GMP Proposal submitted on November 9, 2015. Following several negotiation meetings, Lanzo submitted their GMP Propsoal in the amount of$43,719,011. The final GMP Proposal has been reviewed by Stantec and in their opinion,the GMP for this project shall not exceed $34.5 million. In order to obtain further assurance that the best value for this project has been negotiated,the City also contracted US Cost Inc. to perform an independent construction cost estimate. US Cost's estimated construction cost plus design- builder's fee and the additional cost associated to raising the road and other miscellaneous fees is approximately $34,907,238. The Administration's recommendation is to enter into further negotiations with Lanzo for Phase 2 Construction Services in the not-to-exceed amount of $35 million within 30 days, and if this negotiation fails, to exercise the "off-ramp" contract provision. The Administration recommends approval of the resolution. Financial Amount Account Information: Funds: 1 9,381 384-2338(Above Ground) OD- 2 3,288,290 304-2338(Above Ground) „ / 3 937,329 350-2338 (Undergrounding) Encumbrance Line of Credit subject to r� reimbursement from MDC 4 2,322,132 420-2338(Water) 5 2,738,389 423-2338(Water) 6 131,470 424-2338(Water) 7 70,000 425-2338(Water) 8 3,963,009 419-2338(Water)Encumbrance Line of Credit 9 25,040,000 432-2338(Stormwater) OBPI Total $38,500,000 Financial Impact Summary: N/A City Clerk's Office Legislative Tracking: Sign-Offs: Department "rector Assistant City nager City Ma er DM jp� ETC JLM T:\AGENDA12015 actober\CIP\Palm and Hibiscus-Lanzo Amendment 2-SUMMARY.docx MIAMIBEACH AGENDA IT DATE 1 2 9 is- City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139,www.miamibeachfl.gov COM/ ISSION MEMORANDUM TO: Mayor Philip Levine and Members /If the City C;i mmission FROM: Jimmy L. Morales, City Manager j DATE: December 9, 2015 Subject: A RESOLUTION OF THE MA`yOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AC ilEPTING THE RECOMMENDATION OF THE CITY MANAGER TO ENTER IN ',•. FURTHER NEGOTIATIONS WITH LANZO CONSTRUCTION CO., FLORIDA, FOR PHASE 2 CONSTRUCTION SERVICES AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A GMP AMENDMENT NO. 3, IN THE NOT-TO-EXCEED AMOUNT OF $35 MILLION, TO THE DESIGN-BUILD AGREEMENT BETWEEN THE•CITY OF MIAMI BEACH AND LANZO CONSTRUCTION CO., FLORIDA, FOR DESIGN-BUILD SERVICES FOR NEIGHBORHOOD NO. 13: PALM AND HIBISCUS ISLANDS RIGHT-OF-WAY INFRASTRUCTURE IMPROVEMENTS (THE PROJECT), DATED SEPTEMBER 18, 2014 (THE CONTRACT), UPON CONCLUSION OF SUCCESSFUL NEGOTIATIONS, PLUS A TEN PERCENT OWNER'S PROJECT CONTINGENCY FOR A GRAND TOTAL OF $38,500,000, WITH PREVIOUSLY APPROPRIATED FUNDING AND ADDITIONAL FUNDING REQUEST SUBJECT TO THE 1sT AMENDMENT TO THE FY 15/16 CAPITAL BUDGET. ADMINISTRATION RECOMMENDATION The Administration recommends adopting the Resolution. KEY INTENDED OUTCOME Build and maintain priority infrastructure with full accountability. FUNDING Stormwater $25,040,000 Water and Sewer $ 9,225,000 Above Ground $ 4,235,000 Total $38,500,000 BACKGROUND On February 8, 2012, the Mayor and City Commission adopted Resolution No. 2012- 27832 approving an agreement with Stantec Consulting Services Inc. (Stantec) (formerly Corzo Castella Carballo Thompson Salman, PA) for Design Criteria Professional Services for Palm and Hibiscus Islands Neighborhood Improvement Project. On July 17, 2013, the City Commission approved the negotiations for design and pre- construction services (Phase 1) with Lanzo Construction Co., Florida (Lanzo) pursuant to Request for Qualifications (RFQ) No. 251-2013TC, for Design-Build Services for Commission Memorandum—Lanzo Construction Palm and Hibiscus—Guaranteed Maximum Price(GMP) Neighborhood 13 Project December 9, 2015 Page 2 Neighborhood No. 13: Palm and Hibiscus Islands Right-of-Way Infrastructure Improvement Project. On February 12, 2014, the City Commission approved the recommendation by the Mayor's Blue Ribbon Panel on Flooding and Sea Rise and the Flooding Mitigation Committee to amend the City's Stormwater Management Master Plan by modifying the design criteria for the tailwater elevation and adopted an elevation of 2.7 ft-NAVD for all tidal boundary conditions. The City's Public Works Department (PWD) has requested that staff implement the enhanced stormwater design criteria. The Design Criteria Package (DCP) that was originally included in the RFQ was revised to incorporate the new enhanced stormwater criteria, which required additional negotiations with the Design-Build Firm. On September 18, 2014, the City negotiated Design and Pre-Construction Services (Phase 1) with Lanzo Construction Co., in the lump sum amount of $599,464, based on the DCP included in the original solicitation. On November 19, 2014, the City Commission adopted Resolution No. 2015-28852 approving Amendment No.1 in the amount of $251,016, which included additional design services associated with the adopted enhanced storm water criteria, which brought the total contract amount to $850,480. On October 14, 2015, the City Commission adopted Resolution No. 2015-29178 approving Amendment No. 2 in the amount of $73,240, incorporating additional design services required to meet the revised City Landscape Ordinance, comments from the Home Owners' Association, the Fire Department and the Public Works Department (PWD) change in criteria relating to the placement of Florida Power and Light (FPL) transformers within City's Right-of-Way. ANALYSIS This project uses a Progressive Design-Build procurement model to ensure City's participation during design and the ability to control the final price. In addition, this contract contains an "off-ramp" provision which allows the City to terminate the Design- Builder's services at the end of the Phase 1 (Pre-Construction and Design Services) if the parties are unable to reach an agreement on Design-Builder's Guaranteed Maximum Price (GMP) for Phase 2 Services (Construction Services). The City may exercise other options to finalize the design and construction with parties other than the Design- Builder. Further, this agreement allows for the City to contract directly with the Design- Builder's lead design professional and/or any other design sub-consultants for design- related services on this Project, and Design-Builder shall promptly take such any and all steps as are reasonably necessary to enable City to implement such relationship(s). Once the Design-Builder has advanced the design to a sufficient level of detail to produce a reliable estimate with well-understood risks and contingencies, a cost of construction and other fees (GMP Proposal, as defined herein) is submitted by Design- Builder to the City for its approval The scope of work for the Project includes streetscape improvements, sanitary sewer lining, water main, storm water system upgrades and undergrounding of overhead utilities within Hibiscus Island. This project implements the enhanced stormwater criteria, which warrants a total of three pump stations in lieu of one, redundant pumping systems, Commission Memorandum—Lanzo Construction Palm and Hibiscus—Guaranteed Maximum Price(GMP) Neighborhood 13 Project December 9, 2015 Page 3 extensive stormwater pre-treatment and flow control, backflow prevention devices and manatee grates. Also, in, light of the recent King Tide flooding events on October 12, 2015, the City Engineer re-evaluated the proposed roadway elevation and directed further adjustments of roadway elevation to be at least 2.7' NAVD, which will require significant raising of the road and related harmonization. This directive required redesign of North and South Coconut Lane, and the western portions of Palm Ave and Hibiscus Drive. Lanzo has submitted draft proposals at the 60% and 90% plan stages for review by the City and Stantec with a GMP submitted on November 9, 2015 in the amount of $43,719,011. Following several negotiation meetings and in-depth reviews, Lanzo submitted their final GMP Proposal on November 20, 2015 in the amount of $37,325,583 with a construction duration of 18 months to substantial completion (Exhibit A). The final GMP Proposal submitted by Lanzo has been reviewed by Stantec and documented in the attached letter dated November 25, 2015 (Exhibit B). In Stantec's opinion and considering the construction marketplace, the GMP for this project shall not exceed $34.5 million. In order to obtain further assurance that the best value for this project has been negotiated, the City also contracted US Cost Inc., a nationally recognized firm providing professional construction cost estimating for over 30-years, to perform an independent construction cost estimate. US Cost's opinion of construction cost indicates an estimated cost of $31,008,940 (Exhibit C) based on the 90% Design Plans. This estimate only includes the cost of the work and excludes design-builder's fee, design-builder's project management fees, professional services during construction and the additional cost associated to raising of the road and other miscellaneous fees (Exhibit D). The estimated cost for these additional activities is approximately $3,898,298, bringing the total construction estimate to $34,907,238. Staff and Stantec do not agree with the final GMP Proposal presented by Lanzo. Some of the reasons include pricing that appears higher than local industry standards, discrepancies with respect to calculations of overhead and application of design builder's fee as prescribed by the agreement. In light of Stantec's, US Cost's, and City's staff reviews of the final submitted GMP, the administration cannot support at this time a GMP greater than $35 million. It is therefore, the administration's recommendation to enter into further negotiations with Lanzo for Phase 2 Construction Services and further authorizing the Mayor and City Clerk to execute GMP Amendment No. 3 to Lanzo upon successful negotiations of a GMP in the not-to-exceed amount of $35 million plus a ten percent owner's project contingency, within 30-days, and if this negotiation fails, to exercise the "off-ramp" contract provision. CONCLUSION: The Administration recommends approval of the Resolution. ATTACHMENTS: Exhibit A - Lanzo Construction Co., Florida Proposal Exhibit B — Stantec Letter Referencing GMP Proposal Review Exhibit C— US Cost 90% Construction Cost Estimate - Executive Cost Summary Exhibit D - US Cost Letter- Clarification of 90% Cost Estimate JLM\ \DM T:\AGE".A12015\December\CIP\Palm and Hibiscus\Pala and Hibiscus-Lanzo Amendment 3-MEMO.docx Exhibit A flLANZD CONSTRUCTION COMPANY Delivering sustainable infrastructure solutions for tomorrow's communities November 20,2015 City of Miami Beach,Office of Capital Improvement 1700 Convention Center Drive Miami Beach,Florida 33139 Attn: Mark E.Tomczyk,P.E. Senior Capital Projects Coordinator Ref: Neighborhood No. 13,Palm and Hibiscus Islands F-430,Final Guaranteed Maximum Price Proposal Task 2.4.1,90%Completion Stage—Final GMP Revised to reflect our meeting of November 19,Revised The attached provides Lanzo's Final Guaranteed Maximum Price (GMP) Proposal as defined by Contract Task 2.4.1. This Lump Sum GMP proposal consists of; 1. Article 4 Compensation for Design-Builder's Services and Work. a. Confirmation of Compliance. b. Discussion of Supporting Documents. c. Attachment"A" i. Detailed in accordance with Article 4 1. Utilizes Item Numbers with cost elaboration within the Direct Cost Report(attached). a. Subcontractors in Direct Contract with Lanzo without handling costs. b. Materials purchased directly by Lanzo without handling costs. c. Lanzo Labor & Equipment to perform work includes 20% margin on Labor & Equipment to equate self-performance with that of a Subcontractor. d. Attachment"B". i. Provides list of Assumptions,Exceptions,and Clarifications 125 SE 5TH Court Deerfield Beach FL 33441-4749 Phone(954)979-0802 Fax(954)979-9897 www.lanzo.net November 20, 2015, Lanzo/CIPP, Page 2 @ 2 This submittal revises Lanzo's submittal of November 18th as follows: 1. Article 4 Presentation has been added to reorganize GMP Presentation • a. Complimented by Attachment"A". 2. Equipment Costs have been reduced to 8 hours daily(80%of 10 hour rate). a. Pick-up FOG reduced to 5 hours daily(50%of 10 hour rate). b. Support Equipment FOG reduced to 5 hours daily(50%of 10 hour rate). c. Excavators&Loaders FOG maintained at 10 hours daily. 3. Supervisory Labor(Project Manager,Engineer,&Superintendent)reduced to 8 hour days. 4. Item 1012, 92050 (Full Time Site Safety Officer) deleted. Work definition has been reallocated to Site Superintendent. 5. Petty cash cut 50%. We look forward to successful price negotiations and the start of construction in early 2016. Sincerely, Bob Beaty,PE,Project Manager Lanzo Construction Co.,FL. Cc: Olga Sanchez,Capital Project Coordinator Daniel Garcia,PE—WadeTrim 125 SE 5TH Court Deerfield Beach FL 33441-4749 Phone(954)979-0802 Fax(954)979-9897 www.lanzo.net Article 4 COMPENSATION FOR DESIGN-BUILDER'S SERVICES AND WORK The City will pay Design-Builder a Fee on the Cost of the Work of 7.5%, inclusive of all profit and overhead,to be 4.1 applied to the Cost of the Work,as stated in the GMP Proposal. • GMP Proposal. Design-Builder shall submit a GMP Proposal to the City, which shall, at a minimum, include 4.3.1 the following to establish the GMP g $ 37,325,582.44 4.3.1.1 IA proposed GMP,which shall be the sum of: 1 Design Builder's Fee $ 2,482,235.83 2 The estimated Cost of the Work,inclusive of any General Allowance,if applicable; $ 33,096,477.74 3 Specific Allowances,if any; $4 General Conditions Lump Sum Cost: $ 1,746,868.87 A list of the drawings and specifications (including all addendums) used as the basis for the GMP 4.3.1.2 Proposal; 1 90%Drawings as submitted on October 26,2015. 2 This submittal is"Final" with the understanding that Lanzo's 100% submittal will include confirmation of Lanzo's Final GMP 3 Volumes 1 —3 of the Design Criteria Package dated November 4, 2014, including Hibiscus undergrounding plans for ABB,ATT,&FPL. City Directive of October 12, 2015 (2.7'NAVD-Minimum) including work definition 4 referenced in RFI-034 (Private Property Harmonization) & RFI-035 (Private Drainage Accommodation). A list of the assumptions,exceptions,and clarifications made by DesignBuilder in the preparation of 4.3.1.3 the GMP Proposal,which list is intended to supplement the information contained in the drawings and specifications; 1 !Assumption,Exception,Clarification List attached(attachment B) A detailed Primavera(latest version)CPM Project Schedule,in a format as specified by the Contract 4.3.1.4 Administrator, showing the scheduled Substantial Completion and Final Completion dates upon which the proposed GMP is based; 1 Schedule attached details a 24 month Construction Duration 2 Negotiations resulted in additional Work Zones (Assumption # 20) and reduction of Construction Duration to 19 Month. 4.3.1.5 I If applicable,a list of allowance items,allowance values,and a statement of their basis; 1 'Not Applicable 4.3.1.6 I If applicable,a schedule of alternate prices; 1 'Not Applicable 4.3.1.7 I If applicable,a schedule of unit prices; 1 GMP Proposal is Lump Sum. Unit Price Cost presentation has been utilized to facilitate review. 4.3.1.8 (If applicable,a statement of Additional Services; 1 Not Applicable \\FL-SERVER3\ActiveJobs\Engineering\F430 Miami Bch Palm&Hibiscus Design Build\GMP Estimate\Proposal Files\Final 90%Presentation,4- Nov\20-Nov Presentation\Attachment A,90-%-GMP-2015,Nov-20.xlsx Page 1 @ 3 Article 4 COMPENSATION FOR DESIGN-BUILDER'S SERVICES AND WORK Submission of a detailed construction estimate providing sufficient detail to assess labor rates, equipment rental,and subcontracts as provided under the definition of Cost of Work. Back-up shall 4.3.1.9 be provided to verify that competitive market quotes were received for all equipment and subcontracted work Material & Subcontractor quotations were included in Lanzo's November 4th Submittal. 1 Updates associated with specific discussions (Task 4, Construction Management Services) were included in GMP Revisions. 2 Lanzo's November 4th submittal included typical Labor rates (Miami Dade 2015) and Equipment Rates(Blue Book). The time limit for acceptance of the GMP Proposal; provided, however,that in no event shall such 4.3.1.10 time limit be less than 180 days from DesignBuilder's submission ofthe GMP Proposal to the City. 1 IThe time limit for acceptance of the GMP Proposal is 180 days from date of submittal. The Cost of the Work shall mean costs reasonably and actually incurred by Design-Builder in the proper 4.4 performance of the Work and Services.The Cost of the Work shall include only the following: Payments properly made by Design-Builder to subcontractors,suppliers,and design consultants for 4.4.1 performance of portions of the Work and Services, including any insurance and bond premiums incurred by subcontractors,suppliers,and design consultants. 1 I"Attachment A"&the associated Direct Cost Report includes this cost detail. Costs, including transportation, inspection, testing, storage and handling of materials, equipment 4.4.2 and supplies incorporated or reasonably used in completing the Work. 1 I"Attachment A"&the associated Direct Cost Report includes this cost detail. Costs (less salvage value) of materials, supplies, temporary facilities, machinery, equipment and hand tools not customarily owned by the workers that are not fully consumed in the performance 4.4.3 of the Work and which remain the property of Design-Builder, including the costs of transporting, inspecting,testing,handling,installing,maintaining,dismantling,and removing such items. 1 I"Attachment A"&the associated Direct Cost Report includes this cost detail. 4.4.4 'Costs of removal of debris and waste from the Site. 1 I"Attachment A"&the associated Direct Cost Report includes this cost detail. Rental charges and the costs of transportation, installation, minor repairs and replacements, dismantling and removal of temporary facilities, machinery, equipment and hand tools not customarily owned by the workers, which are provided by Design-Builder at the Site, whether 4.4.5 rented from Design- Builder or others, and incurred in the performance of the Work. A list of all equipment to be used must be approved by the Contract Administrator, in writing , prior to commencement of a Work Order or Change Order. 1 I"Attachment A"&the associated Direct Cost Report includes this cost detail. Premiums for insurance and bonds required by this Agreement or the performance of the Work.No 4.4.6 fee mark-up shall be allowed on bonds or insurance. 1 I"Attachment A"&the associated Direct Cost Report includes this cost detail. \\FL-SERVER3\ActiveJobs\Engineering\F430 Miami Bch Palm&Hibiscus Design Build\GMP Estimate\Proposal Files\Final 90%Presentation,4- Nov\20-Nov Presentation\Attachment A,90%-GMP-2015,Nov-20.xlsx Page 2 @ 3 Article 4 COMPENSATION FOR DESIGN-BUILDER'S SERVICES AND WORK 4.4.7 IAll fuel and utility costs incurred in the performance of the Work. 1 I"Attachment A"&the associated Direct Cost Report includes this cost detail. 4.4.8 (Sales,use or similar taxes,tariffs or duties incurred in the performance of the Work. 1 I"Attachment A"&the associated Direct Cost Report includes this cost detail. Costs for permits, royalties, licenses, tests and inspections incurred by DesignBuilder as a 4.4.9 requirement of the Contract Documents.Costs for permits may be included as a Specific Allowance. 1 "Attachment A"&the associated Direct Cost Report includes this cost detail. 2 Testing&Permit Costs defined by Contract as Owner costs are not included. Other costs reasonably and properly incurred in the performance of the Work to the extent approved in writing by the Contract Administrator, except General Condition labor costs and 4.4.10 reoccurring consumables and operating costs, which shall be included in the General Conditions Lump Sum Cost. 1 "Attachment A"&the associated Direct Cost Report includes this cost detail. 20 Percent Cost on Labor&Equipment has been included in the Cost of Work. This cost is 2 consistent with the attached Independent Auditors' Report of March 23, 2015 (Benitez & Company, CPA) and CIP's E-Mail ('Percentage of work completed as depicted on the negotiated GMP')of September 3,2014(attached). General Conditions shall include the necessary management labor and site based construction supervision labor, site services, and office materials/consumables to manage and control all construction work for the period of time 4.6 from execution of the GMP Amendment (if accepted and approved by the City Commission), through Final Completion and demobilization. This lump sum amount shall be included as a line item under the GMP Proposal. The General Conditions Lump Sum Cost is inclusive of all fees and no fee shall be earned on the lump sum price. 1 I"Attachment A"&the associated Direct Cost Report includes this cost detail. \\FL-SERVER3\ActiveJobs\Engineering\F430 Miami Bch Palm&Hibiscus Design Build\GMP Estimate\Proposal Files\Final 90%Presentation,4- Nov\20-Nov Presentation\Attachment A,90-%-GMP-2015,Nov-20.xlsx Page 3 @ 3 "Attachment A"City of Miami Beach Palm and Hibiscus Islands Final Guaranteed Maximum Price(GMP)(Phase 2 Services) PROJECT: Neighborhood 13,Palm Island&Hibiscus Island COMPANY NAME: Lanzo Construction Co.Inc.,Florida Summary - , General Conditions(Art.4.6)&Bond Costs $1,746,868.87 Cost of Work(Art.4.1) Construction Management Services,(Art.4.4.1) $875,000.00 Burden Reduction on Overtime Labor -$46,402.74 Division 2-Sitework $27,409,361.95 Stormwater $16,028,293.82 Water&Sewer $6,159,621.82 Streetscape $5,221,446.31 Division 3-Landscaping $889,579.84 Division 16-Lighting/Electrical $3,880,318.69 Division-Maintenance of Traffic $88,620.00 Total Cost of Work(Art.4.4) $33,096,477.74 7.5%Design-Builders Fee on Cost of Work(Art 4.1) $2,482,235.83 Total Guaranteed Maximum Price $37,325,582.44 I Item No. I Description QUANTITY UNIT UNIT PRICE I Extension SUBTOTAL Division 1-General Conditions&Bond Costs 1000 GENERAL CONDITIONS 1 LS 1,537,982.63 1010 MOBILIZATION 1 LS 10,530.61 10,530.61 1011 SITE SERVICES 1 LS 59,111.55 59,111.55 1012 CONSTRUCTION ADMINISTRATION 1 LS 1,363,208.72 1,363,208.72 1013 CPM SCHEDULING 1 LS - - 1014 CONSTRUCTION QUALITY CONTROL 1 LS - - 1015 FIELD OFFICE 1 LS 105,106.75 105,106.75 1016 INDEMNIFICATION 1 LS 25.00 25.00 1017 BONDS&INSURANCE 1 LS 208,886.24 208,886.24 208,886.24 Division 1-General Conditions Total: 1,746,868.87 Construction Management Services 1008 'Construction Management Services 1 I LS 875,000.00 875,000.00 875,000.00 Palm s1 Division 2-Sitework Stormwater 1026 P.I./ST/TEMPORARY ASP,1"S-III 11,062 SY 10.54 116,588.21 1030 P.I./ST/TYPE B STABILIZATION(LBR40:12"THICK) 22,123 SY 4.75 105,084.25 1040 P.I./ST/LIMEROCK BASE(8-IN COURSE PRIMED) 22,123 SY 13.37 295,784.51 1050 P.I./ST/R&D UNSUITABLE MATERIAL 21,453 CY 11.12 238,557.36 1060 P.I./ST/F&I SUITABLE BACKFILL MATERIAL 21,453 CY 10.40 223,111.20 1070 P.I./ST/DEWATERING - 1 LS 483,074.68 483,074.68 Existing Utilities , 1090 REMOVE EXISTING DRAINAGE STRUCTURE 59 EA 652.10 38,473.90 1100 REMOVE EXISTING DRAINAGE PIPE 7,824 LF 15.99 125,105.76 1110 GROUT IN PLACE,EXISTING DRAINAGE PIPE 500 LF 19.56 9,780.00 Cost Proposal Detail Printed 11/20/2015 Item No. Description QUANTITY UNIT UNIT PRICE. Extension SUBTOTAL Drainage Structures 1130 P.I./ST/INLET(TYPE"P"48"DIA),USF4105-622 33 EA 3,796.01 125,268.33 1133 P.I./ST/INLET(TYPE P 48"DIA),USF5100-6147 22 EA 3,989.81 87,775.82 1136 P.I./ST/INLET(TYPE P 48"DIA),USF5129-6176 13 EA 4,225.92 54,936.96 1140 P.I./ST/INLET(TYPE J 60" DIA),USF5100-6147 5 EA 8,598.27 42,991.35 1143 P.I./ST/INLET(TYPE J 60"DIA),USF5129-6176 3 EA 9,016.74 27,050.22 1210 P.I./ST/MANHOLE(TYPE"P"48"DIA),USF-385 9 EA 4,080.78 36,727.02 1220 P.I./ST/MANHOLE(TYPE"J"60"DIA),USF-385 12 EA 8,757.05 105,084.60 1230 P.I./ST/MANHOLE(TYPE"J"60"SQR),USF-385 2 EA 10,070.69 20,141.38 1250 P.I./ST/MANHOLE(TYPE"J"72"SQR),USF-385 9 EA 18,011.77 162,105.93 1252 P.I./ST/6'x 4'MH,Seated Lid 1 EA 11,400.74 11,400.74 1256 P.I./ST/9'x 6'MH,USF-385 1 EA 20,321.96 20,321.96 1258 P.I./ST/6'x 4'MH,USF-385 2 EA 10,158.62 20,317.24 1260 P.I./ST/MANHOLE(84X84"SQ MH) 2 EA 19,552.30 39,104.60 1262 P.I./ST/MANHOLE(84"DIA),USF-385 1 EA 19,081.19 19,081.19 1264 P.I./ST/CONFL.MH(TYPE"P"48"DIA),USF-385 3 EA 8,427.69 25,283.07 1270 P.I./ST/Confl.MH(TYPE"P"60"DIA),USF-385 1 EA 8,808.38 8,808.38 1280 P.I./ST/Confl.MH(TYPE"P"72"DIA),USF-385 1 EA 15,749.74 15,749.74 1290 P.I./ST/MH REHABILITATION 5 EA 1,800.00 9,000.00 1300 P.I./ST/PVC Tees(36"x 18") 11 EA 8,657.40 95,231.40 1305 P.I./ST/PVC Tees(30"x 18") 15 EA 8,657.40 129,861.00 1310 P.I./ST/PVC Tees(24"x 18") 143 EA 1,913.32 273,604.76 1320 P.I./ST/PVC Tees(18"x 18") 102 EA 962.02 98,126.04 1330 P.I./ST/18"PVC Yard Drain 280 EA 2,318.83 649,272.40 1340 P.I./ST/24"TIDEFLEX 1 EA 8,568.67 8,568.67 Pump Station 1458 P.I./ST/WEST PUMP STATION,STRUCTURES,&onsite Electrical. 2,134,806.00 2,134,806.00 Note that Offsite Electrical is to be provided by Others to within 50'of . the Control Panel. 1 EA 1460 P.I./ST/EAST PUMP STATION,STRUCTURES,&onsite Electrical. ' 1,648,873.00 1,648,873.00 Note that Offsite Electrical is to be provided by Others to within 50'of the Control Panel. 1 EA Drainage Outfalls 1461 P.I./ST/16-IN FORCEMAIN PIPE WITH FITTINGS 24 LF 305.45 7,330.80 ,1480 P.I./ST/CORE DRILL EXISTING SEA WALL 2 EA 3,677.83 7,355.66 1490 P.I./ST/INSTALL MANATEE GRATES,42"&4'x4' 2 EA 3,702.16 7,404.32 Drainage Piping 1520 P.I./ST/18-IN A2000 PIPE CULVERT WITH FITTING 7,794 LF 104.72 816,187.68 1530 P.I./ST/24-IN A2000 PIPE CULVERT WITH FITTING 3,300 LF 128.54 424,182.00 1540 P.I./ST/30-IN A2000 PIPE CULVERT WITH FITTING 1,180 LF 150.77 177,908.60 1550 P.I./ST/36-IN A2000 PIPE CULVERT WITH FITTING 1,340 LF 175.98 235,813.20 1555 P.I./ST/23"x 14"-IN RCP PIPE CULVERT 139 LF 327.57 45,532.23 1560 P.I./ST/42-IN RCP PIPE CULVERT WITH FITTINGS 60 LF 327.57 19,654.20 1570 P.I./ST/48-IN RCP PIPE CULVERT WITH FITTINGS 1,880 LF 346.06 650,592.80 1575 P.I./ST/54-IN RCP PIPE CULVERT WITH FITTING 170 LF 431.37 73,332.90 1580 P.I./ST/72-IN RCP PIPE CULVERT WITH FITTING 8 LF 479.51 3,836.08 1590 P.I./ST/4'x 4'BOX CULVERT 8 LF 1,278.40 10,227.20 1600 P.I./ST/14'x 4'BOX CULVERT 8 LF 3,027.14 24,217.12 1620 P.I./ST/15-IN CIPP REHAB EXISTING 225 LF 75.92 17,082.00 1630 P.I./ST/SS LATERAL CONFLICT OR REPAIR q 10 EA 1,399.50 13,995.00 1640 P.I./ST/SS MAIN REPAIRS(ALLL SIZES)q 100 LF 158.82 15,882.00 Subtotal Stormwater 10,055,585.46 • • \\FL-SERVER3\Activelobs\Engineering\F430 Miami Bch Palm&Hibiscus Design Build\GMP Estimate\Proposal Files\Final 90%Presentation,4-Nov\20-Nov Presentation\Attachment A,90-%-GMP-2015,Nov- 20.xlsx Page 2 @ 7 Cost Proposal Detail Printed 11/20/2015 Item No. I Description I QUANTITY I UNIT UNIT PRICE Extension SUBTOTAL Utility Work-Water and Sewer Pavement Associated with Utilities - 1650 P.I./W/TEMPORARY ASP,1"S-III 8,544 SY ,10.55 90,139.20 1660 P.I./W/TYPE B STABILIZATI0N(LBR40:12"THICK) 8,544 SY 4.75 40,584.00 1670 P.I./W/LIMEROCK BASE(8-IN COURSE PRIMED) 8,544 SY 13.16 112,439.04 1680 P.I./W/R&D UNSUITABLE MATERIAL 9,493 CY 11.12 105,562.16 1690 P.I./W/F&I SUITABLE BACKFILL 9,493 CY 10.40 98,727.20 Water Improvements 1700 P.I./W/6-IN(DIP CL 53)W/FITTINGS 400 LF 112.76 45,104.00 1710 P.I./W/8-IN(DIP CL 53)W/FITTINGS 6,840 LF 103.75 709,650.00 1720 P.I./W/12-IN(DIP CL 53)W/FITTINGS 100 LF 199.90 19,990.00 1725 P.I./W/6-IN VALVES INCLUDING NO.2 COVER,FH 25 EA 1,402.93 35,073.25 1728 P.I./W/8-IN VALVES INCLUDING NO.2 COVER 19 EA 1,720.20 32,683.80 1730 P.I./W/12-IN VALVES INCLUDING NO.2 COVER 1 EA 2,674.68 2,674.68 1732 P.I./W/12X8-IN TAPPING SLV&VALVE N0.2,BOX 2 EA 4,291.80 8,583.60 1733 P.I./W/INSTALL 2"POLLY FOR SERVICE 7,000 LF 8.41 58,870.00 1735 P.I./W/INSTALL 5/8"SERVICE 43 EA 1,865.25 80,205.75 1737 P.I./W/INSTALL 1"SERVICE 106 EA 1,865.25 197,716.50 1738 P.I./W/INSTALL 1-1/2"SERVICE 42 EA 2,330.04 97,861.68 1740 P.I./W/INSTALL 2"SERVICE 33 EA 2,716.30 89,637.90 1750 P.I./W/REMOVE EXISTING FIRE HYDRANT q 21 EA 722.84 15,179.64 1760 P.I./W/F&I FIRE HYDRANT ASSEMBLY 25 EA 3,260.96 81,524.00 1780 P.I./W/CONNECT TO EXISTING WATER MAIN 2 EA 5,409.52 10,819.04 1785 P.I./W/F&I CONCRETE SLAB FOR COVER 116 CY 176.08 20,425.28 1790 P.I./W/BACTERIOLOGICAL SAMPLE POINTS q 20 EA 818.82 16,376.40 1791 P.I./S/PRECLEAN&CCTV INSPECTION 3,230 LF 5.43 17,538.90 1792 P.I./S/CIPP 8"6MM LINING 3,230 LF 40.49 130,782.70 1793 P.I./S/LATERAL REINSTATEMENT(WITH GROUT) 79 EA 551.66 43,581.14 1794 P.I./S/HEAVY LATER CLEANING(ROOTS/DESCALING) 3,511 LF 30.83 108,244.13 1795 P.I./S/LATERAL LINING(INC LIGHT CLEANING) 117 EA 5,250.00 614,250.00 1796 P.I./S/SS MH REHAB 38 EA 2,400.00 91,200.00 1797 P.I./S/LATERAL LINING(BEYOND 30'ESTIMATED) 700 LF 150.00 105,000.00 Subtotal Water&Sewer 3,080,423.99 Sitework(Streetscape Improvements' Demolition - 1800 P.I./AG/EROSION AND SEDIMENTATION CONTROL 1 LS 39,414.93 39,414.93 1810 P.I./AG/CLEAR AND GRADE RIGHT OF WAY AREA 10,177 SY 5.71 58,110.67 1820 P.I./AG/R&D ASP PAVEMENT 500 SY 6.13 3,065.00 1830 P.I./AG/MILLING OF EXISTING PAVEMENT(1"AVG) 26,172 SY 5.00 130,860.00 1840 P.I./AG/TYPE S-III ASP PAVEMENT 1st LIFT(1") 26,172 SY 11.66 305,165.52 Roadway 1870 P.I./AG/REMOVE CONCRETE CURB&GUTTER 22,054 LF 4.93 108,726.22 1880 P.I./AG/REWORK EXISTING LIMEROCK BASE,COMPACT 26,172 SY 9.15 239,473.80 1890 P.I./AG/S-Ill ASP CONCRETE PAVEMENT 2",2 LFT 22,054 SY 15.00 330,810.00 1900 P.I./AG/ADDITIONAL TYPE B STABILIZATION 16,301 SY 4.75 77,429.75 1910 P.I./AG/ADDITIONAL 8"BASE RELATED TO REWORKED 16,301 SY 13.16 214,521.16 1920 P.I./AG/REINSTALL CONCRETE DRIVEWAY _ 651 SY 59.64 38,825.64 1925 P.I./AG/4-INCH CONCRETE SIDEWALK 1,799 SY 41.73 75,072.27 1930 P.I./AG/DRIVEWAY REMOVE BRICK/PAVERS AND PAVE 683 SY 76.42 52,194.86 1950 P.I./AG/DRIVEWAY AND RECONSTRUCT 3/4"ASPHALT 412 SY 24.99 10,295.88 1960 P.I./AG/ADD FILL TO CHANGE ELEVATIONS 17,500 CY 19.90 348,250.00 Curb and Gutter 1980 P.I./AG/GRAVITY WALL 1,010 LF 245.48 247,934.80 2010 P.I./AG/CONCRETE VALLEY GUTTER AND CURB 7,156 LF 26.98 193,068.88 2012 P.I./AG/CONCRETE"D"CURB 7,742 LF 25.91 200,595.22 2014 P.I./AG/CONCRETE"F"CURB 7,156 LF 28.23 202,013.88 2020 P.I./AG/SPEED TABLE WITH PAVERS 6 EA 12,000.00 72,000.00 \\FL-SERVER3\ActiveJobs\Engineering\F430 Miami Bch Palm&Hibiscus Design Build\GMP Estimate\Proposal Files\Final 90%Presentation,4-Nov\20-Nov Presentation\Attachment A,90-%-GMP-2015,Nov- 20.xlsx Page 3 @ 7 Cost Proposal Detail Printed 11/20/2015 Item No. Description QUANTITY UNIT UNIT PRICE Extension SUBTOTAL Misc.-Signage and Pavement Markings(Itemize by Type). ,2040 P.I./AG/FURNISH AND INSTALL NEW STREET SIGN 28 EA 300.00 8,400.00 . 2050 P.I./AG/REMOVE&DISPOSE EXISTING SIGN 28 EA 50.00 1,400.00 2060 P.I./AG/F&16"DOUBLE THERMO(SOLID)q 20,698 LF 1.80 37,256.40 2080 P.I./AG/F&118"THERMO(SOLID) 400 LF 2.70 1,080.00 2090 P.I./AG/F&124"THERMO(STOP BAR)q 400 LF 3.60 1,440.00 2100 Pi./AG/F&I RPM q 150 EA 5.00 750.00 2110 P.I./AG/IRRIGATION SYSTEM REPAIRS(PER LOT)q 117 EA 400.00 46,800.00 2120 P.I./AG/R&D ROCKS>THEN 100 LBS OR 12"DIA q 10 EA 25.00 250.00 Subtotal Streetscape 3,045,204.88 Division 2-Palm,Sitework Total: 16,181,214.33 Division 3-Landscape Landscape-Demolition _ 2130 P.I./AG/REMOVE EXISTING TREES 385 EA 250.00 96,250.00 2140 P.I./AG/REMOVE EXISTING PALMS 18 EA 250.00 4,500.00 ` 2145 P.I./AG/PROTECT PRESERVED TREES 1 LS 96,172.53 96,172.53 2150 P.I./AG/REMOVE EXISTING HEDGES q 500 LF 12.04 6,020.00 2160 P.I./AG/REMOVE EXISTING SHRUBS q 100 EA 134.27 13,427.00 2170 P.I./AG/TREE TRIMMING/PRUNING 1 LS 9,000.00 9,000.00 2180 P.I./AG/ST.AUGUSTINE'FLORATAM'PALLETTES 85,045 SF 0.43 36,569.35 2190 P.I./AG/SOIL TO BACKFILL TREE REMOVAL VOIDS 1 LS 5,000.00 5,000.00 2200 P.I./AG/LARGE TREES 265 EA 495.00 131,175.00 2210 P.I./AG/SMALL TREES 167 EA 325.00 54,275.00 2215 P.I./AG/CERTIFIED ARBORIST FOR JOBSITE 216 HR 250.00 54,000.00 Division 3-Palm,Landscaping Total: 506,388.88 Division 16-Lighting/Electrical I2220 I P.I./AG/STREET LIGHTING 11 LS 1,673,270.00 1,673,270.00 Division 16-Palm,Lighting/Electrical 1,673,270.00 2227 P.I./MAINTENANCE OF TRAFFIC 1 LS $44,310.00 • 44,310.00 Division-Maintenance of Traffic $44,310.00 1 \\FL-SERVER3\ActiveJobs\Engineering\F430 Miami Bch Palm&Hibiscus Design Build\GMP Estimate\Proposal Files\Final 90%Presentation,4-Nov\20-Nov Presentation\Attachment A,90-%-GMP-2015,Nov- 20.xlsx Page 4 @ 7 • Cost Proposal Detail Printed 11/20/2015 Item No. I Description I• QUANTITY I •UNIT UNIT PRICE Extension SUBTOTAL Division 2-Sitework Stormwater 2230 H.I./ST/TEMPORARY ASP - SY 10.77 - 2240 H.I./ST/TYPE B STABILIZATION(LBR40:12"THICK) 19,380 SY 4.75 92,055.00 2250 H.I./ST/LIMEROCK BASE(8-IN COURSE PRIMED) 19,380 SY 13.16 255,040.80 I 2260 H.I./ST/R&D UNSUITABLE MATERIAL 25,839 CY 11.12 287,329.68 2270 H.I./ST/F&I SUITABLE BACKFILL MATERIAL 25,839 CY 10.40 268,725.60 2280 H.I./ST/DEWATERING 1 LS 357,342.88 357,342.88 Existing Utilities 2300 H.I./ST/REMOVE EXISTING DRAINAGE STRUCTURE 69 EA 652.10 44,994.90 2310 H.I./5T/REMOVE EXISTING DRAINAGE PIPE 5,816 LF 15.99 92,997.84 2320 H.I./ST/GROUT IN PLACE EXIST DRAINAGE PIPE 500 LF 19.56 9,780.00 Drainage Structures 2328 H.I./ST/PVC DRAIN BASIN W/GRATE(36"DIA) 53 EA 3,227.26 171,044.78 2335 H.I./ST/PVC TEES 24"X18" 53 EA 1,912.18 101,345.54 2340 H.I./ST/INLET(TYPE P 48"RND CB) 65 EA 3,989.83 259,338.95 2350 H.I./ST/INLET(TYPE J 60"RND CB) 3 EA 8,598.27 25,794.81 2360 H.I./ST/INLET(60"SQUARE) 2 EA 9,016.74 18,033.48 2380 H.I./ST/MANHOLE(TYPE P 48"RND MH) 37 EA 4,080.78 150,988.86 2390 H.I./ST/MANHOLE(TYPE J 60"RND MH) 9 EA 8,757.05 78,813.45 2393 H.I./ST/MH(60"SQUARE) 4 EA 10,070.68 40,282.72 2395 H.I./ST/MH(TYPE"J"72"DIA) 6 EA 15,892.08 95,352.48 2398 H.I./ST/MH(72"SQUARE) 1 EA 11,569.23 11,569.23 2400 H.I./ST/MANHOLE(TYPE.184X84"SQ MH) 1 EA 19,528.28 19,528.28 2405 H.I./ST/MH(84"DIA) 3 EA 12,614.57 37,843.71 2410 H.I./ST/CONFL.MH(TYPE"P"48"DIA),USF-385 6 EA 8,403.63 50,421.78 2420 H.I./ST/CONFL.MH(TYPE"P"72"DIA),USF-385 10 EA 1,572.57 15,725.70 Pump Station 2670 H.I./ST/PUMP STATION,STRUCTURES,&onsite Electrical. Note . 2,189,722.00 2,189,722.00 that Offsite Electrical is to be provided by Others to within 50'of the Control Panel. 1 EA Drainage Outfalls 2672 H.I./ST/16-IN FORCEMAIN PIPE WITH FITTINGS 24 LF 305.57 7,333.68 2700 H.I./ST/CORE DRILL EXISTING SEA WALL 1 EA 3,677.87 3,677.87 2710 H.I./ST/INSTALL MANATEE GRATES 1 EA 2,113.19 2,113.19 Drainage Piping 2740 H.I./ST/18-IN A2000 PIPE CULVERT WITH FITTINGS 1,020 LF 104.72 106,814.40 2750 H.I./ST/24-IN A2000 PIPE CULVERT WITH FITTINGS 4,476 LF 124.45 557,038.20 2760 H.I./ST/30-IN A2000 PIPE CULVERT WITH FITTINGS 1,780 LF 145.39 258,794.20 2770 H.I./ST/36-IN A2000 PIPE CULVERT WITH FITTINGS 431 . LF 166.86 71,916.66 2772 H.I./ST/42-IN RCP PIPE CULVERT WITH FITTINGS - 140 LF 325.57 45,579.80 2775 H.I./ST/48-IN RCP-PIPE CULVERT WITH FITTING 372 LF 400.27 148,900.44 2780 H.I./ST/54-IN RCP PIPE CULVERT WITH FITTINGS 85 LF 428.73 36,442.05 2785 H.I./ST/72-IN RCP PIPE CULVERT WITH FITTING 8 LF 476.54 3,812.32 2790 H.I./5T/15'x 5'BOX CULVERT 8 LF 3,194.76 25,558.08 2850 H.I./ST/SS LATERAL CONFLICT OR REPAIR q 10 EA 1,399.50 13,995.00 2860 H.I./ST/SS MAIN REPAIRS(ALLL SIZES)q 100 LF 166.60 16,660.00 Subtotal Stormwater 5,972,708.36 Utility Work-Water and Sewer Pavement Associated with Utilities _ 2870 H.I./W TEMPORARY ASP 8,872 SY 10.58 93,865.76 2880 H.I./W TYPE B STABILIZATION(LBR40:12"THICK) _ 8,872 SY 4.75 42,142.00 2890 H.I./W LIMEROCK BASE(8-IN COURSE PRIMED) 8,872 SY 13.16 116,755.52 2900 H.I./W R&D UNSUITABLE MATERIAL 11,829 CY 11.12 131,538.48 2910 H.I./W F&I SUITABLE BACKFILL 11,829 CY 10.40 123,021.60 \\FL-SERVER3\ActiveJobs\Engineering\F430 Miami Bch Palm&Hibiscus Design Build\GMP Estimate\Proposal Files\Final 90%o Presentation,4-Nov\20-Nov Presentation\Attachment A,90-%-GMP-2015,Nov- 20.xlsx Page 5 @ 7 • Cost Proposal Detail Printed 11/20/2015 Item No. Description QUANTITY UNIT UNIT PRICE' Extension SUBTOTAL Water Improvements 2922 H.I./W 6-IN(DIP CL 53)W/FITTINGS 320 LF 112.76 36,083.20 2940 H.I./W 8-IN(DIP CL 53)WI FITTINGS 6,560 LF 103.75 680,600.00 2942 H.I./W 6-IN VALVES INCLUDING NO.2 VALVE COVER 14 EA 1,402.93 19,641.02 2950 H.I./W 8-IN VALVES INCLUDING NO.2 VALVE COVER 14 EA 1,720.20 24,082.80 2952 H.I./W 12X8-IN TAPPING SLEEVE&VALVE NO.2 BOX 4 EA 4,504.31 18,017.24 2960 H.I./W INSTALL 2"POLY 7,000 LF 8.41 58,870.00 2962 H.I./W/INSTALL 5/8"SERVICE 43 EA 1,865.25 80,205.75 2964 H.I./W/INSTALL 1"SERVICE 154 EA 1,865.25 287,248.50 2966 H.I./W/INSTALL 1-1/2"SERVICE 55 EA 2,330.04 128,152.20 2968 H.I./W/INSTALL 2"SERVICE 15 EA 2,716.30 40,744.50 2970 H.I./W HDD BACKYARD 51 EA 1,200.00 61,200.00 2980 H.I./W REMOVE EXISTING FIRE HYDRANT 7 EA 722.85 5,059.95 2990 H.I./W F&I FIRE HYDRANT ASSEMBLY 14 EA 3,260.96 45,653.44 3020 H.I./W CONNECT TO EXISTING WATER MAIN 3 EA 5,397.52 16,192.56 3022 H.I.1 W F&I CONCRETE SLAB FOR COVER 104 CY 176.08 18,312.32 3030 H.I./W BACTERIOLOGICAL SAMPLE POINTS q 10 EA 818.81 8,188.10 3032 H.I./S SS MH REHAB 36 EA 2,400.00 86,400.00 3039 H.I./S LATERAL LINING(BEYOND 30',ESTIMATED) 300 LF 150.00 45,000.00 3040 H.I./5 PRECLEANING&CCTV INSPECTION 6,750 LF 5.43 36,652.50 3041 H.I./S CIPP 8"6MM LINING 6,750 LF 40.49 273,307.50 3042 H.I./S LATERAL REINSTATEMENT(W/GROUT) 62 EA 551.66 34,202.92 3043 H.I./S HEAVY LATERAL CLEANING(ROOT/DESCALING) 2,759 LF 30.83 85,059.97 3044 H.I./S LATERAL LINING(INC LIGHT CLEANING) 92 EA ' 5,250.00 483,000.00 _ Subtotal Water&Sewer 3,079,197.83 Sitework(Streetscape Improvements) Demolition 3050 H.I./AG/EROSION AND SEDIMENTATION CONTROL 1 LS 39,414.93 39,414.93 3060 H.I./AG/CLEAR AND GRADE RIGHT OF WAY AREA 35,647 SY 5.72 203,900.84 3070 H.I./AG/R&D ASP PAVEMENT 500 SY 5.98 2,990.00 3080 H.I./AG/MILLING OF EXISTING PAVEMENT(1"AVG) 17,269 SY 5.00 86,345.00 3090 H.I./AG/TYPE S-III ASP PAVEMENT 1st LIFT(1") 17,269 SY 11.67 201,529.23 3120 H.I./AG/REMOVE CONCRETE CURB&GUTTER 18,183 LF , 5.39 98,006.37 • Roadway 3130 H.I./AG/REWORK EXISTING LIMEROCK BASE,COMPACT 17,269 SY 9.16 158,184.04 3140 H.I./AG/S-III ASP CONCRETE PAVEMENT 2"' 15.00 259,035.00 2nd LFT(1") 17,269 SY 3150 H.I./AG/ADDITIONAL TYPE B STABILIZATION SY 3160 H.I./AG/ADDITIONAL 8"BASE RELATED TO REWORKED SY - 3170 H.I./AG/REINSTALL CONCRETE DRIVEWAY 956 SY 59.64 57,015.84 3180 H.I./AG/DRIVEWAY REMOVE BRICK/PAVERS AND PAVE 3,657 SY 76.42 279,467.94 3190 H.I./AG/DRIVEWAY AND RECONSTRUCT 3/4"ASPHALT 3,740 SY 24.80 92,752.00 3210 H.I./AG/ADD FILL TO CHANGE ELEVATIONS 2,400 CY 17.50 42,000.00 Curb and Gutter 3260 H.I./AG/CONCRETE VALLEY GUTTER 18,183 LF 26.88 488,759.04 3270 H.I./AG/SPEED TABLE PAVER WITH CONCRETE 6 EA 12,000.00 72,000.00 Misc.-Signage and Pavement Markings(Itemize by Type). 3290 H.I./AG/FURNISH AND INSTALL NEW STREET SIGN 58 EA 300.00 17,400.00 3300 H.I./AG/REMOVE&DISPOSE EXISTING SIGN 58 EA 50.00 2,900.00 3310 H.I./AG/F&I 6"DOUBLE THERMO(SOLID)q 19,624 LF 1.80 35,323.20 3320 H.I./AG/F&I12"THERMO(SOLID)q 20 LF 1.60 32.00 3330 H.I./AG/F&I 18"THERMO(SOLID)q 220 LF 2.70 594.00 3340 H.I./AG/F&I 24"THERMO(SOLID)q 220 LF 3.60 792.00 3350 H.I./AG/F&I RPM q 150 EA 5.00 750.00 3360 H.I./AG/IRRIGATION SYSTEM REPAIRS(PER LOT)q 92 EA 400.00 36,800.00 3370 H.I./AG/R&D ROCKS>THEN 100 LBS OR 12"DIA q 10 EA 25.00 250.00 Subtotal Streetscape 2,176,241.43 Division 2-Hibiscus,Sitework Total: $11,228,147.62 \\FL-SERVER3\Activeiobs\Engineering\F430 Miami Bch Palm&Hibiscus Design Build\GMP Estimate\Proposal Files\Final 90%Presentation,4-Nov\20-Nov Presentation\Attachment A,90-%-GMP-2015,Nov- 20.xlsx Page 6 @ 7 Cost Proposal Detail - Printed 11/20/2015 I Item No. I Description I QUANTITY I UNIT UNIT PRICE ' Extension SUBTOTAL Division 3-Landscape Landscape-Demolition 3380 H.I./AG/REMOVE EXISTING TREES 195 EA 250.00 48,750.00 3390 H.I./AG/REMOVE EXISTING PALMS 48 EA 250.00 12,000.00 3400 H.I./AG/REMOVE EXISTING HEDGES 1,000 LF 12.04 12,040.00 3410 H.I./AG/REMOVE EXISTING SHRUBS q 50 EA 25.61 1,280.50 3415 P.I./AG/PROTECT PRESERVED TREES 1 LS 85,157.66 85,157.66 3420 H.I./AG/TREE TRIMMING/PRUNING q 1 LS 9,000.00 9,000.00 3430 H.I./AG/ST.AUGUSTINE'FLORATAM'PALLETTES 129,960 SF 0.43 55,882.80 • 3440 H.I./AG/SOIL TO BACKFILL TREE REMOVAL VOIDS 1 LS 5,000.00 5,000.00 3450 H.I./AG/LARGE TREES 84 EA 495.00 41,580.00 3460 H.I./AG/SMALL TREES 180 EA 325.00 58,500.00 3465 H.I./AG/CERTIFIED ARBORIST FOR JOBSITE 216 HR 250.00 54,000.00 Division 3-Hibiscus,Landscaping Total: 383,190.96 Division 16-Lighting/Electrical 3470 H.I./AG/STREET LIGHTING 1 11 LS 1,269,719.00 1,269,719.00 FPL 3480 H.I./UG/REWORK EXISTING LIMEROCK BASE,COMPACT 5,968 SY v 6.79 40,522.72 3490 H.I./UG/ADDITIONAL TYPE B STABILIZATION 5,968 SY 4.75 28,348.00 _ 3500 H.I./UG/ADDITIONAL 8"BASE RELATED TO REWORKED 5,968 SY 13.16 78,538.88 3510 H.I./UG/REINSTALL CONCRETE DRIVEWAY q 1,000 SY 66.16 66,160.00 3520 H.I./UG/DRIVEWAY REMOVE BRICK/PAVERS AND PAVE 100 SY 76.12 7,612.00 3540 H.I./UG/DRIVEWAY AND RECONSTRUCT 3/4"ASP q 1,000 5Y 24.81 24,810.00 3560 H.I./UG/24"HH 126 EA 760.61 95,836.86 3570 H.I./UG/30"HH 24 EA 942.72 22,625.28 3580 H.I./UG/48"HH 3 EA 2,033.42 6,100.26 3590 H.I./UG/TRANSFORMER PADS 47 EA 280.81 13,198.07 3600 H.I./UG/MANHOLE 1 EA 13,148.31 13,148.31 3610 H.I./UG/PVC CONDUIT TRENCH 13,252 LF 7.48 99,124.96 ATTSE • 3640 H.I./UG/ATTSE 2-4"CONDIUIT 3,401 LF 12.51 42,546.51 • 3650 -H.I./UG/ATTSE 1-2"CONDUIT 589 LF 8.45 4,977.05 3652 H.I./UG/ATT 42"X60"HANDHOLE 11 EA 9,171.67 100,888.37 3658 H.I./UG/ATT 30"X48"HANDHOLE 11 EA 8,929.17 98,220.87 ABB 3680 H.I./UG/ABB 1-2"CONDUIT 2,020, LF 9.12 18,422.40 3690 H.I./UG/ABB 1-3"PVC 12,653 LF 9.97 126,150.41 3700 H.I./UG/ABB 1-4"PVC 745 • LF 10.70 7,971.50 3710 H.I./UG/ABB 2-4"CONDIUIT 3,401 LF 10.70 36,390.70 3740 H.I./UG/ABB VAULT 1 EA 5,736.54 5,736.54 Division 16-Hibiscus,Lighting/Electrical $2,207,048.69 1 3758 H.I./MAINTENANCE OF TRAFFIC 11 LS 44,310.00 44,310.00 Division-Maintenance of Traffic $44,310.00 I • • \\FL-SERVER3\ActiveJobs\Engineering\F430 Miami Bch Palm&Hibiscus Design Build\GMP Estimate\Proposal Files\Final 90%Presentation,4-Nov\20-Nov Presentation\Attachment A,90-%-GMP-2015,Nov- 20.xlsx Page 7 @ 7 Lanzo Construction Co.,Florida 11/20/2015 11:59 F430GMPOTBR Palm&Hibiscus 90%Rev 19 Month Eq Adj Page: 1 Bid Summary Totals Report Standard Markup Instructions Previous Run Summary: 11/20/2015 11:35 AM Cost Basis Markup"/0 Markup Spread: 11/20/2015 11:35 AM Labor. 4,900,443 20.00 980,089 . Summary run on Takeoff Quan and Adjusted to Bid Quan. Burden: 1,960,177 20.00 392,035 Penn Matt: 5,326,985 0.00 0 Standard Spreads Const Matl: 137,881 0.00 0 Indirect Spread: Total Sub: 16,149,660 0.00 0 Markup Spread:, Total less Sub Eq.Op.Exp: 1,179,346 20.00 235,869 Addon/Bond Spread: Total Co.Equip: 2,848,834 20.00 569,767 Rented Eq.: 0 0.00 0 Totals as of Last Spread Miscl: 0 0.00 0 Cost: Markup: Total: Misc2: 0 0.00 0 Direct: 32,503,326 2,177,760 34,681,086 Msc3: 0 0.00 0 Indirect: 0 0 0 Overrides: 0 0 Addons: 0 0 0 Total: 32,503,326 6.70 2,177,760 Bond: 208,886 208,886 SubTotal: 32,712,212 2,177,760 34,889,972 Selected Bond Table: 02 Pass Through: 0 0 Total: 32,712,212 2,177,760 34,889,972 Key Indicators Balanced Markup / Total Labor = Balanced Markup/Total Labor 2,177,760.12 / 6,860,620.07 = 31.74% Indirect Cost ? Direct Cost = Indirect Cost/Direct Cost 0.00 / 32,503,326.13 = 0.00% A eg),41 6911 e d e.4 7-7 ni e 4ae .,6 2:47 re Oveer/prit itilaie 47-- .9 Y449° /1'7 0/41.j X iJ,C_I /6- -e e, 66• _________-----------___ 20 • 7 714 • 7 ? ,, l& o2- . 7V v 9Q 1 vc?'fr./ / Lanzo Construction Co Ft Burden Rates 2013 2013 FICA As Published 7.85% State Unemployment As Published 5.40% Federal Unemployment As Published 0.80% Health/Dental/Life Insurance 2012 Premiums $ 414,750.00 Divide by Job Payroll FY 2012 $ 5,018,660.00 Health Insurance 8.27% Workers Comp WC Rate Bridgefleld 2013 8.68% 8/94 r 1 0� 401K Matching 401K Match 3.00% Vacatlon/Holiday/Sick Pay 2 Weeks Vacation/52 weeks(80 Hours) 3.85% 6 Paid Holfdays(48 ire) 2.31% General Liability/Umbrella/inland Marine/Auto/Crime Premium Billings 10/01/12-9130/13 $ 269,755.00 Divide by Job Payroll FY 2012 $ 5,016,680.00 General Liability/Umbrella/Inland Marine 5.38% Grand Total Job Overhead rate 45.33% 11/13/2015 HftDocuanen1sBurden Rates 18.adsJoe lawrence "Attachment B"City of Miami Beach Palm and Hibiscus Islands Draft Guaranteed Maximum Price(GMP)(Phase 2) Assumptions, Exceptions, and Clarifications PROJECT: Neighborhood 13,Palm Island&Hibiscus Island COMPANY NAME: Lanzo Construction Co.Inc.,Florida 1 200-LF Work Zone will be waived to enable"Train Construction". 2 Bypass Maintenance of Traffic(MOT), RFI-15. 3 Pump Station Sites& Round-a-Bout areas to be utilized for Staging. 4 Material Testing(Soil Densities,Concrete Compressive Strength,etc.) by Owner. 5 PIO Services by the City 6 Existing Outfalls abandoned by"Plug&Grout". Existing Seawalls can be breached by"Core&Seal". No money is in this GMP for rebuilding the Seawall if necessary. 7 Includes work necessary to comply with DCP. Onsite Pump Station Electrical Service will be provided by others. Any interim electrical service necessary for Start- . up,Testing,and Temporary Service will be provided by Public Works Generators. No FPL Service costs to Pump 8 Station Sites is included in this GMP. Note that Silfredo Trujillo of FPL has provided typical Service Drawings (attached)and noted Ballpark pricing at$338,430(Palm)and$ Minimal (Hibiscus). These costs are not included in Lanzo's GMP. No fabric is necessary under Limerock Roadbase. Removal &Replacement of Unsuitables will enable establishment 9 of Stabilized Subgrade of LBR-40,thereby making the PSI recommendation for fabric unnecessary 10 Landscape Planting within swale areas consists of Sod &Trees only. 11 Arborist Definition is sufficient for City needs at 4 hours per week. 12 Existing Landscape will be removed as necessary to accommodate construction of Swales. Utility Undergrounding complete upon As-Built Submittal to the Owner Utilities. Service turnover&Pole removal by the Utility Owner,Cost&Time associated with service transitions are not included in Lanzo's Cost Presentation. 13 Lanzo has been told that 3 utilities(FPL,ATT, &ABB)are on the poles. Pole removal will be by the last utility on the pole. Resident agreements do not exist(could take a couple of years). Boxes&Pedestals by ABB(not in GMP Cost presentation). Manufacturer will only sell to end User. ATT will install 14 Pedestals as part of service transfer(Andres Hernandez, 305.222-0932). FPL pricing is Labor& Equipment only to install FPL supplied Materials. Driveway transition harmonization extending onto private property will be at a 7:1 grade transition and constructed 15 in accordance with the Miami Beach Restoration Policy. The limit of construction will be determined by the 7:1 grade transition. Work is in City Right-of-Way only with the exception of Driveway Transitions and "Back-to-Front"water service 16 installations. All Private Property access agreements will be negotiated through the City. 17 With the lowest grate elevation at 2.7 NAVD, no Black Base is expected or included in GMP. The Work Definition associated with CIP's October 12,2015 directive is complete with concepts presented in Lanzo's 18 RFI-034(Private Property Harmonization), RFI-035(Private Drainage Accommodation), &Savino-Miller's November 3 E-Mail (Remove/Replace 225 Trees). Restoration approach between Stormwater Installation Phase and Roadway Construction from "Temporary Asphalt" 19 to"Limerock Base" only(Maximum 60 Days). Temporary access on Roadbase. West Palm Island is the exception. "Attachment B"City of Miami Beach Palm and Hibiscus Islands Draft Guaranteed Maximum Price(GMP)(Phase 2) Assumptions, Exceptions, and Clarifications PROJECT: Neighborhood 13,Palm Island&Hibiscus Island COMPANY NAME: Lanzo Construction Co.Inc.,Florida Modified Work Zone Phasing to enable work concurrently on both sides of each island (opposite sides of Fountain 20 Street). Allows 4 work zones in each work definition (i.e.,Water installation on Palm Island-Zones 1&3, Hibiscus Island—Zones 1&3). 21 19 Month Work Schedule. 18 month work to Substantial,30-Days to Final Michael Bone From: Tom zyk,Mark<MarkTomczyk c,miamibeachfl.govs Sent Wednesday,September 03,2014 5:47 PM To: Michael Bone Cc Cerra, Maria;Sanchez,Olga Subject RE:Palm and Hibiscus Contract Review Mike, See our responses in red.. 1.Article 4 Compensation,paragraph 4.1."Design Builders Fee"5%of cost of the work. Where was this fee amount derived from?The RFQ documents had this space blank and it was reasonable to expect the fee to be negotiated.!Vs our position this fee is not adequate compensation for a project with the risk involved and It would not be prudent to negotiate this until other parts of the Contract have been clarified. See responses below for requested clarifications 2.Article 5,Payment.It Is unclear as to whether payment will be made from an approved schedule of values,that reflect the approved GMP or by submitted backup for reimbursement plus a fee.5.3.3,uses the term"actual GMP"and GMP in the same paragraph.5.3.5,states, "3)back-up documentation for each pay item billed".5.6.2,states,"a final accounting for the GMP".4.4,Cost of the Work,states"The Cost of the work shall mean costs reasonably and actually Incurred by the Design Builder in the proper performance of the Work and Services."4.10,Refers to audit of actual costs.Please clarify the procedure for payment. Payments will be processed from schedule of values,as presented in the negotiated GIMP as determined from actual sub- contractor and supplier bidding. 3.5.4.2,Does not allow payment for stored material.4.5.3,Does not reimburse us for cost of capital used in the performance of the work.Is It the intent of this contract for the cost of capital used to be part of the Contractor's fee? The City will not pay for stored materials or equipment. 4.6.1,For Design Services Contemplated in Phase I,150 calendar days are in line with the original DCP,but does not reflect changes for additional review times for the City as requested for the original base DCP. We have determined the City does not need additional review time therefore the 150 calendar days will be acceptable. 5.7.5.16.7,"Design Builder Participation",requires the Design Builder to perform not less than 25%of the work with its own organization.How Is the cost determined for this work?Does the Contractor perform this work at current unit prices as established by recent work in the area,negotiated labor,material and equipment plus a fee,or cost of the work,as identified 1 eelse■ here in the Contract?How is the fee determined for this work? Percentage of work completed as depicted on the negotiated GMP 6.4.7,"Out of Scope Services,7.21.12,"Notice of Potential Claim",7.5.1,"Unforeseen Conditions"and 7.19,Changed or Additional Work„contemplate the possibility of additional work.This contract doesn't have a section that outlines how to cost additional work and the definitions for what is allowed and the determination of the Contractors Fee,and what amount is applicable to different situations.Is the Contractor's Fee,as identified elsewhere in this Contract,meant to be the same for Additional Work?We think that a section should be added to cover this situation. The City does not antklpate any change orders or additional work.If additional work is requested by the City a separate amendment that spedfically covers the scope will be negotiated. From:Michael Bone[mailto:MichaeIB @Lanzo.org] Sent Tuesday,September 02,2014 8:55 AM To:Tomczyk,Mark Subject:Palm and Hibiscus Contract Review Mark, Here are my comments. Mike 2 Benitez & Company CPAS CERTIFIED MARX ACCOUNTANTS AND ADVISORS 6001 Coral Way • Miami,Florida 33155 Independent Auditors'Report 305261.8689 • Fax 305.261.6585 www.BeniteaCPAs.aom To the Board of Directors Lanzo Group Deerfield Beach,Florida Report on the Combined Financial Statements We have audited the accompanying combined financial statements of Lanzo Group (the "Grote), which comprise the combined balance sheet as of December 31,2014,and the related combined statements of income,equity,and cash flows for the year then ended,and the related notes to the combined financial statements. Management's Ifesponsibility for the Combined Financial Statements Management is responsible for the preparation and fair presentation of these combined financial statements in accordance with accounting principles generally accepted in the United States of America;,this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of combined financial statements that arc free from material misstatement,whether due to fraud or error. Auditors'Responsibility Our responsibility is to express an opinion on these combined financial statements based on our audit. We conducted our audit In accordance with auditing standards generally accepted in the United States of America.Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the,combined financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the combined financial statements.The procedures selected depend on the auditors'judgment,including the assessment of the risks of material misstatement of the combined financial statements,whether due to fraud or error.In making those risk assessments,the auditor considers internal control relevant to the entity's preparation and fair presentation of the combined financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management,as well as evaluating the overall presentation of the combined financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion,the combined financial statements referred to above present fairly,in all material respects, the combined financial position of Lanzo Group as of December 31,2014,and the results of its combined operations and its combined cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. eletlAve mss. Certi S Public Accountants Miami,Florida March 23,2015 1 American Inatituta of CPAs Florida institute of CPAs Construction Financial Management Association LANZO GROUP COMBINED STATEMENT OF INCOME Year Ended December 31,2014 (Expressed in United States Dollars) Revenues: Contract revenues earned $55,314,966 Sales and rental income 991,234 Total revenues: 56,306,200 ---- t vF 4)&1 Cost of revenues: Cost of revenues earned 42,659,480 Cost of goods sold 633,781 Total cost of revenues: 43,293,261 --- Gross profit before indirect costs 13,012,939 Indirect costs not allocated to contracts 861,933 .."17 8 Gross profit 12,15 1,006 �oS General and administrative expenses 7,409,169 Income from operations 4,741,837 Otter(expenses)income: Other income 15,123 Interest and dividend income 109,673 Provision for bad debt(Note-3) (1,792,650) Interest expense (921,044) Total other expenses (2,588,898) Income before income taxes 2,152,939 Provision for income taxes(Note-16) (304,838) Net income $ 1,848,101 Less:Net income attributable to noncontrolling interests(Note-24) (86,648) Net income attributable to the Group $ 1,761,453 Other comprehensive incornu; Cash now hedges: Gain on swap contracts 19,884 Other comprehensive income: 19,884 Comprehensive income $ 1 781,337 The accompanying notes are an integral part of these combined financial statements. 4 Benitez&Company mu 1 1 1 1 1 1 1 ...:. -.1. : . ■ : . : a : t 1 ,-, Z= . • . . , 0= : . . . . . . , . . Lq _ 'r 1 -; 4 1 1 I 1 6 g 0 < t : i -: 1 1 1 -i 1- 1- 1- -:- 1 1- 2= . = . . . a • . -:- : a : . . . : s e . . . • I ' , : I 0- . . . . . . . : . . . . . . - , z= . : '.-,....=,.. r . ' . . . . . . 0= . . : . . . . . ' : . . ; . . . . . <= I .. . . : . : . . . . . . . . . , . . . . . I . . ; . . i . _▪ , 2 ! . 1 a 6 a • . a : , : . . . . . . . . . . . . 2= , . . . . . . . . . ,=\" I; L..:1- fl . , . . . : . . . _= ,..0:N • ' . ' . . . . ' . : - `. :E- -go--ce.r sg . . . a ,--, 0- Cl Z Z., a : ■.=.r----Or..-0.•46--111.0' . : e : *"••■a". 1 0. 0.•:•• ' 16 s a , '■=7 3 3 g g 1 3 --cr el--er-e:-o 4,- '1 ,-: 0-01-Yi-i-i-A--X--`.2--49:-1-0-ti--1-A2---ri-i- -et ,= 4 4 4 4:4 ::Sr :Li ' ' 4 A, ' ':4 1 A > AI ■-■ ,ii.CV CNI lN CV:01 .-..-t I : .3--;- 4:4 4 4 1 2 2 : c„z= i- T it t --- i-2- *-g 2 7 7 4- 4 lilt - 1 :4' IL r . 4.- , ...... M.A... ; ;12. cr 0= 1 .-i-.t- ----1-4. ,- - - - q- ........ :- 1- : . .. < , .= -:cs .0 2 2 : 1 :, -05 1 1 I 1 I 1 10 10,WI;10 JO 10 10 la 10 10 10 10 10 10 it, .0 io . r. to go 10 10 10 A f,, 1 A'A> Aill 1 :0-1 -iiii .v.0, =, 4121.2:21 ,i1A1 1111 ,0 t ti .tgAli ,,L,,_ 2. A.A ci, -A 11' A :1-- giigttgt''S;Z :L'itigiA4,1AEIAAA A A A A A A A '' 4 g A A g''ci,,' ,; cv ,«42 %.2 15' c' ;', ,', & 6, 6. 6. 6. .stgfggg, (4' AA ggg88H88 88 5zt gggg ,it v t IL TP. I I i ' F2 : 1 1 I " ' ' -----"-- o o 0 0 0 0 0 0 o 0 o o o o V> 0 .g cF., g .4{8,000.o 0 cg o g o o o o 0 . . - - ___g_ii-2- ?)2) . . 8 r.. .4ito -i-I- , eV4 :=Ii*.V..fitRA Vi8i8 8 8i818i21.s -i-Igig141-1-1- .5" i 1 , , , , : , : __......4_.:___+___:____4___‘,. : . ; . '----- ---M--- . . , . . . . . 1 i 1 1 if 1 .2 : I ' I 1 i la 1 • : : ■ i , : . , . , , ' . , ii . , . 1 1 . 1 I ill I g III e 1 ' 0 1 ...,1., i I litiu g Il I . ! ill c. 1 .517 .3 , a c -4.,:. _ . c re .., 'r rl 0 I 0 I i •- .. t r ,I, . 6 ° I i .,k I g w g -g ? ciii- i-cr! g i ei il g 8 Er, z II 4111i I- 2 t V.I ' 611' NCI ) :52. X t * P -Aie, -,-„- 1 .., 8 I Al I k LLp . p, illig 1 E, i ,, 2' g 111:1 cst ; F, 0 pill,: T.- z :' °- t 8 a- .= 1 SigIlit:IP 16. •g 12 ., 72 ,.'j,.. g .E,..F1 r.,:a , c2 .E2 I [1 u-1 1 3 8 S p 2 .5 .M / 9,1 r 2 2 2 ..E 0 a, (2 co i -1.. itItl ET o'. :`,„13 2 ? 5 (.:.! 'a i 8 1'.1 i 1 ! '4a. 2ccc ' aSroV: IX % . -. . . . B. .. . . .. Ic0402 .0c .g. .. 2 .?. .14-066 .5,6i2 'do 0 /11:13 3111 -1 .a2 .,, 9 L u t, 2 2 2 r, ; z 2- 2- s 2- 2. .3 a 0 0 a. 8 8 .3:m c 0 1 c:, c 5 .1. c I 2 / a_ -2 . . 0 U . sE -s! , 1) . 222 1't i-i . .0 .7 E.m ii -ill °ire '-' e,ix t ,t, 8 8 8 ,.. o t, cl; 3 .Z• r, 1 .st u_ a Ili . A,AR .0 .0'1..0 A (0. 2 pp . .:! ,..} II i 2 4'3 5•1=t5 in .2, rei.alccia. o o o o o c, o O o a a m co,wital IMIZ ;(3 i0 ja.iu.I 10jo.,0j . - t , i I i'.iits'iz: 8 t,ivivls 88.8 51.'VJ i F t S co 'a .-_---• - ,.., , (... x e., 4 .. r. o ... ce 74 cil g F...4 5.7 ...1 1 .F4i. .7 .4.5 1 ...7 6; • . . 6 c.., .41 ez .- o ....: .D rs 4.3 : -. z ± - u" = 112g222222222 c. g 2 p..8 p:8gEN8i,118i2 ,2 11 g gill c2 1i. . . = 6 wwwwwwwwwwwww ',Julia .. . ww . uy , www -. - 0 -Pz - oclocoocioracooc1000clocacloocio• I 1 000 g i 1 ,55 2, 2 , i z. • ' i ' i I ' . __ II = V `:2 :3:::2 c1.2 1 i,,..I . 1 1 i — 1 .,_— i i ill i .- 0 = ,,.■— 'I 3 i.. ■ ■_•■N.No_ 4 14-• -:- : . 2 ... us o= ' . ' ' . . , 0 _ 1 4* 4 t 4 z. •: . ... 4- . . . , . .= .= . . . 4. . , 4 t 4 4 4 0 ... 6 ... i I 4 4 4 2 .... . 8 -.. 2 wm • • . 8 <= EN 4- ••■• m— ; — ; IL-■Il • • • : • ■ o • • --•■ : • MAO T : 4 IMO . • e IMMO z_ ...., — ..„ 0 . . — , . . f-; fl I i • S.' a ... . . . ........ - ■ ,,,, ■ : . • c. . , • ----" . . 3. . ... , . ■ _ra.:g.... : . ... . . . 2= • • • o.:NI • . • . 2:o . ........ . , < . 0,2-i:if ... . .. . . ... . . /....... • 2 MIS i ME U.:U. i 14 rii F: tii ■•'••C r: MID ••J•A 4:-- ..ill. - A ME '' ' ' Anrorieafe-g--EC--1--te to---dvitt uf ,z3eers rd . ..- . 0-■,. toy 13 . _n_6 (6_6.6.4 a =1-41-1-1+7----- • * 1 -.- .........-..-- 4 A 4 c4 4.. a• ; - i ; ,, ; Essmilikaiiiiimosallos... • - ... I "IP- - . . .......■ i,s,--- 1_,1-:.-2,-—1 i . . u, 1.n tr, . La in . Lc, . it, . . . o m . . . ..., .44--a" -16..- *4:11%i A ' -.-- Irv -ri L2 .2 ,,,2 7:0 0 , ; 0:ia a 4 : .. 000:. . . oa:uo00 . 00000:0 ,-, ■.■7 , , , ?.6 6 i 4 griii--g " . g, 1 11 1 I I 1 I ' 3 . . . . . . . ,.. co■ vi lir_ elfl 14? 0 I:: 1:: 0 . , 0 so on to . 0 , 0 0 0 ID 0 , ,1 0 0 10 0 10 I 10 11 i ii t I I I A:.v 1 • ,, 1 1 1 1 111111111,1 ›... , .,..:..,_ 1 , , , 1 IJAA kiAAAIIIA i A' ,;, AAAAAAA A A A A A A A A A A A A A „(71 g g .4 4 4 , ,1 4tg * * 4 ?I CS1 01 1 OA g g' Fi gggggtggggggggggtggg L! E ilial 'i'l "1"71"INTII" V!' ' c;'.;: 5 F gi' :2 11 lir r. g A' '14 '14 21 U Ulg,1417,Ri,gli IF3 I , I 1 i I 1 --1F-I z— li1on 111 i I 1I 1 !I. 0 i— — . c. o en c7.,1 . 0 0 10 0 0 10 0 0 0 0 Ul . LI, LAI Ed :I a •i■ 1 IA. v■ 2 11 2 1 .... ...) (..) c2 E . I i till ' I ; ■ ' ; : N. "' " , ! . f ! ■ : • I I I I 1 1 I ! " 1 I ' ' • e 1 I I s I Jill . A2 .11g i.i ... E 2 !,.. 2 :1 tr- a 2 a .0 2) i, i 8 CO . CC •2 11 I 0 0 7 ' '.. 11 3 x co 2 -•-r;„ -2 Q '- .Q. J c1-.n i g Igcl. gi 10 glgli 1 111111 rcA 11 iii 1 1 ,74 ! I 1 2 : 2 2 :* 67 5 '.cl ' .2 0 is -i — 0, 1 ,,,c' E •E 8 s c 2 2 1 II/11g :§, '&" ID: 8 LI S '5 °- co> 0 7";) .g j 1% 2 ra. , 7 ft ft ft ft ft ft ft .ft ft ft ft ft ft Ad .0 ,5 .0 ... , 2 1-,9, 45.,'..5 1 o'S 2 t 8 2 .3 .S.c°c' c r'A csi ui iz I 1 E Cr: , 1 ,_ ■ _,_ .,___, ,_ ;._ t '.5 I i • ! _. -2 1000 000000 , N ' - i i%) 2 Cs1 0 0 0 •- CC MI':, .8 ° ° ° 8 P g 2.3 p, 8 a. -.!2. g 2 e gi*:g RI,LorgillisiRIRig ? e, s ,e. s s n " Au i 1 m 2_ 0 e❑= °_,= z— o N C ° Q— o N m W _ ❑ : .I. J Q — L J LL z o :D_Z o c co ro ro 6 m --= .1 ;- -§ °o cc 2- c▪— - .2' a ii 1 2 � � o c co m co cc m co co ro ao ci - Qom- o c bro ,ro; o; °r m _ — .0 °m-m-LL- -- t -LL m- °-w LL n:7O °-i°- r:0 a-�° ri:�o D ri:�o c t_t_t�_t_t.t m t 4 m m Q a:—tt � a;u ' -, ¢s +r � ,- - - m d g g ° o oQno o Q 6 �_� -.=Kv- -g -8 N N 8- -Q - --QD-❑- -❑-Q;n-- -a- -- j - - - - ;D_ b_w'_rb__d'.r--r_ _cr__.1 r n=❑ ❑ ❑ . �IfDf� ' n N''N N' cN N N'N' N cN N N'm N N N N'N ° ■■IN Ali■■ ■ ■ ■ ro ®; fl � _ - ■ ■ ■ ■ ■ ■■ ■ ■■ room:omommo-0--"°---2--'2"1 m = ■ ■ ■ 'n 6 6LLLL; p. t°r tni°--m--trr-to--m;ler-m-Irr-to--crr;In--`-,yr-rc-ar;u-7,--c-4m--cm;E--$m--c-4--6-6--4-4-A•-c%r z=° ° o 'o to 'r 'r' o 7 77 4 .4 m m m m b ° O. ^-U__i_g__i, __i_.0.L..��._q Yj:_Sj._o__Y}_oj__4,_Yj-_o__Y}_-8-g;-8-in CI_CII__II,_I_a_°_O__O,O__O_O_O_.O•Q N a .DD OO YM ❑;❑ o o 0;❑ ❑ o 0 ❑;❑ � 0 � 0 � 4{‘o 0 0"S g'o"o'g-o' cq i. J M m m m! ' M m m M O N 0 0 0 0 N 7 0 7 0 O O 0 7 0 0 0 * * m m m ' m m * m y P t 4ttlG m c G b tA .d AMd AMMAMMmMAAm AAAc t c c c c c c c c c c4 $ 4.LL 'b g $ a c'',L' a a a g g a o f N r' N' cN N cN ch N cN b cN cN ch cc:',, N' cN cN cN g b s, c'' c A A A A A N N O a '- Q r ?. d i o b m � � � � o � � � � o 0 o m � � � � t t c t c c t t t c t • oac000000000 m m m m m m m m m m m g a d a d d d d a a a a u6 a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a <.,,) p co O O O O O O O O O O N M O O O O O O O O O N N O h • O M O 7 O< N O p O N O M O M V 7 M M M N R N N m O N O O O N O O N M M cg). M r N N N M tO A < N Fs C. ' LL ,u�a C b O O O t0 O O t0 O O Lo O E :y,t0 t° 0) N N t° t° t° t° t0 h h 10 t0 t0 'O h t° t° 10 t° t° t° t° 10 t° t0 t0 to N to , N N V M M < N v —r.2 W 121 , Y iib N N V . c°n c°n . c N . C 5, `1° t° . t0 t0 t0 l0 . t0 0 t0 t0 t0 0 t0 0 0 N t0 t0 0 t0 t0 t0 t0 t0 0 t0 t0 10 t0 7 �❑ m C S' I (j m • m m N m Y .22s 4. 4' y' H ` `� 2. , Y . 8 Q C $ F l N f .- p ` I 1 t t 4 t o K c Hm y SP p 42 ( m 2 S m C 7 7 m ,� d C 5 d I ❑ d LL yY 1 2 0 C G ❑ 6 4 i 0 C U j L V O O pC o N .0 . mV N m E 2 0 g o 1 i c2 m -O ), V W A X 1 N 2 92 c m m m r - - a 2 i ic2 7,, ,i S -6 15, 73 a J f0 m C m I'. s a N a m m h .2 .) 0 m & La F. 9la1 _ Y $ a i8 i 8 . 6 S '� E l 1 28 m at o A o o > > U i m m _ m N N o . N$ t Z a a w w a �' m iL • co a ❑ w co U U 0 0 a U u- a w a LL Q v) a a a t w 2 a a • 1 111 t11 i .1 .I .i .1 .1 .1 .1 .1 .1 .1 .i .1 .1 .1 .1 .1 .i .1 .1 .1 .1 .i g .i .1 .1 .1 .1 .1 .1 w , 1 ' Q g N 7 > > > > > > > > > .0 m m R m a R K R a 2 a m R R m m 2 m m a m a c'c' m a m if 2 m m a a c'c' ) i o To. En OP ;b U• .5 m y C J m 8 O N O V N 8 n O rz g rs f-O N O 0 0 § 8 O a 8 8 O 8 8 O O O O C § O 1O O M O N rg O p M 2 m ? m N N N N N N N N p O O . O O O O O O O O O O O O O O N N O O O O O O O _O O O O O O O N N U m W U Cl) U Cl) N p Cl) U U U CO .2 `a a R ce R R ( Ct a 4: a CX a a CX a a CX 4! a LX CX a CX a a CX CX CX CX a ❑_ ° ,❑ I I A" a o — F 1 1 1 :' f 1 4 V LL O • = J J l i : J — . : t, : . O_ t J J l J 4 Q 7: ▪— ` N = i r j F r i m ▪_ O m O a 2 C x i C 0 ~ m A¢ .44 m Z C }. N rX o rX o= g' m ;If -`1i N �t A N ; I N — f N L o -, ■ m o_Iai!1I FU f1 m m l0 N:N N N N N N ii A E• ii--cp 7-ri- -d'-�--r--,o----' -ar--tea-tir as--ma-,m-�- -ero-�2 t-Ei--�-�-1--- -4-a-�-,f^^�-ar -v ` " ' m m m m m 112 d N c�5 . - m o «i+•0 • - . m N E. co co O A A 1111 wW � � C N N N 0 4 N N '�•� t•N • g 3 3 2 NN N N ,O •i '� O 1 0 o O N Q w a N Z o M O. • V __ >° I 1 i : m • o m o 0 o m m o m o 0 o 2 2 0 2 m'® m mlmio m ro o1m m o m mo m m <o o ro m 112 m m ° _ 11111 1'1i1144i, $ .i 1.iI ` 1231 llil i '! 'li .t n'E1 ?) ik! U .� 1 aziadg g tgAt � � s1st1_s � g'g (g � t � g+gr'' ` g''A � A1� AA LL N M P) N N N N N N N N N N - f j AN i I l i l l r- o m o m o m oomim m o o m m m o 0 o momko m m oom m'o1m m o g m m m 2112 I I !1; 111 aiiaii •t . l iii1 .1 ¢ k•!4 ti # .t.t.t A g gat N AN AAA •AN AN AN AAO Mt6 . 9dvlN i ‘IgVt6A4.66 e aggd NIr. N .a m C* e) r) V) ggi f f f f co co f co el N N 1 O rp to i1 fj Lei;i co r; :1; ; A 2 2 ca ro .I ili ! 1 TS t 1 i ■ (■ s I J4 E r S c N c o N 1 o t o .- iq O O .- , .- , N O O 1 0 O O,s 0 N 0 1 0 o O 4 M S N F b rf l,-l r. M;N in i o l d) M ,Q ( N N N∎ NIN `- CN, i 1 I .N b :M M l ( D 1 1 i , I , 3 2 N j O IN- N q i''''f I—iI'u i O i 0 — • — - N O O O N 42,O N •O o o p O I N f 1 f A A P) N b '12131 M .0 i . m 1 1 I i I ! O 1 1 i i1 , Ili II ii i 1 1 l 1 l f U N ( U j I I I ( 1' i 1 i • M I - 1 ! I a I i i 8 m 1 1 I c 1 1 I I i f I l to 2 2 Y 3 N N I i 81( c m :Ea 3 c I i ed E N v !Y g u ?, E p I t c m m m y y . > 0 1. s. �i m 3 > o c 3 ? i I E .Sd .Q ` ` a o ` m a > ° u m rn m I o . 8' fo d a I * kit! 1' g >. v o A a 2 / o c a 2a - Z W O 4 m 10 � O W O SA 1 t! oil. N N ai ai >. ,- , _ Z O > U N N U > 0 o co O 2 4 Q 2 X o ;+ Y w C g V7 . Q N Fe 'a Cn F 0 S- W 12 >▪ A 2 W co U I - c m C . .0 y i « �f - " . IS .5,.... E ` 0 v U c w I . - U N � R o c c a I o a Q _. C), U W cO c - i w N I _, N j O p(p A 00000 f O 3 3 i O O O M O 1O p O . I I O O p C J M gg O 8802 O O O O O O O a O O g cN, ill N _ er M O O^ g O g g G A . 8 8 0 8 8 8 8 2 8 p O O 2g g. a RQag O' 3 3 3 3 3 f 3 3 3 3 3 3 3 3 I— F- F- F- 0 0 0 0 0 0 0 0 0 0 0 ! -. M N N N N N N N N N N N N N 4 4 4 N 4 4 PITT IT { N N NN NN MNNN N N 0- i I I ( 1 1 11 ■j I I ° 1 ! iii E ,Y y I 1 , • - 8 2= if ;f f i i f--- i aaa.4" .mS ' > o . 1 ❑— '� O _ i i 4. N--- ! a a ft-* i Z— m ig O= 1 A< r r O IN-:. L J a t _�__-_^3 77_ J r _ i ♦ i i iems- r- ' aj N i -. ,r":. W d - -Y � �=W; i......4. �_ .�. ^ N N � ' 2 N f j i • a _ . R_ LL-5.t .o .i5.D-. _ N, 'F 'W �0 /0 E_g>' ' m ' d N • :68 r ' ,� A N N N N N N c7 O Z r Y:�_ N ..1 !'---r-*•LL-.. Z�. �m O ii T7 ' N N O'er d•A LS m• •O to N m Oi t t 3 d N N A • N y E I 1 fn N N Iii , a it LL= N N Z a -'i p O� . V _ �T 3 o o 0 0 0 0 0 0�0 o r. 1. 5. o ,. n ri,r r r r r r r r r r 1. r1. ti � ,...1 1. r. . . n 1. ,.1� 1 ° t kl!g S ll A WiAjl f j it! tli o 1A !!!4 1 2 N N O N N N i N N N O O N N .= N ? ' T' 1 I� ! F. 0 0 0 0 5. ..2 o F. o o 12 o o � ,. LIB -kr i'I� ,,-_- r 1. r r I r;','`r);'N. r` ki*Iii $ SSill Am > r ,11144 t 4 tigi i i l l aN a i 4 tr S t O N N N N N N .iN NN b N g $ t, d1 $f,Jg 4N 8 $ g Nl 'N N N N d g NM m 4 m 5. c " d lE .22 2;;0 Nib Tbl2 tb+)� CI Nib jt. , 0 Id jPI Nl-ill HOT RN ib 1.ha!Lf`.b I.!N 0figt Nv N N A A N N N a _�o I ; , I II I � II I 1 ( C O c� N-'u9''n l0 C) t- m Nib b A'r .- b b bIP)1N'b b 5.'O b'b!b b io'in-N'O Ib b N NI O O1N iii �,� 'n M�l0 r � � b 'n r ^s � �N N .- V' � � N N IN I C I i �k 1 4 � c i1 m o E t r HIHHI o 1 I + % E I 3 I L N` d m 1 I C I. Y 1 '!0 1 t 1 i 1 tD l` N m > i7 C f I 6E aa o `m '> 3 y m m > m m > m m w x o y in I D o i n ° > o E m >. o m p g '2 . f , ° T- s a c c m a- - c !IJ1'i !i 'i oo d o E 'm ; '`�i g m t' C y � ❑ m i m I o m 1 l Q 3 m o `` ci U o 3 3 a' w c LL t _w 4 to m E :°. > to W ! .�.. a rn u y �n m :? m S- m m �a m m _Y m°O y N i C 1 �VX( 0 C N N N N Ul N Ul N N N J C � ~ W 0 W W N J C C � C C C C C m C C � � m ., -.O O NN N M�y O aOa ��Opp �b�p fpp O O O p J 7 N N O A,N..N O 1 0 g ^ 0 0 0 0 0 0 0 0 g ^ 0 0 0 0 0 0 0 0 0 O I i j i R I J N =8.801i ' 8i81 8.8 cc cc cc Irc 8o888ccccrcx1rccc cc cc cc I gg Q OI111���If� O i�O ( 'K •❑ ❑ 0 0 0 K m K fY cc K 0 0 0 0 0 0O ❑ ❑ D a itr)f I Q ` i 5 0 = S S x x 0 0 0 0 0 0 x S S S x 2 S x x S o) ri j�� `C V O V 1n .n u) 'n 'n 'n 'n 'n 'n 'n 'n b b 1n b u2 �2 b to sp , I-I CC m ❑ NN NI I■ 1 in g?N I 1 .N N N N N N N N N N N N N N N N In;N'N'11 N INJ:N NN N N N N N1NI -_ .< I I Q • -2= , i • ' . _.; • • i i g i i l'A I 03 : M : i i x...i. xt .: 1m- t . ,_•,_, 0 8 i : 8 8 i i . _ r,i i. 14 . . t---7 t= t=1 I 14:1- ■'—*g 1 1 -g r,s : a lc ,.... t.: :-..-iv--t:--t r d.1 g.-t--1----t I tyz--,A- .1,:.- 0= 660 (''.:c•1 6 . . . A. 463 ,17,1" .-.... de i ■ Mt- i i . .... : t ttlt 4 t --It4-P---.0--z- — • fi.- .= N • N- ,-: A <— o :,-: ,-:r-7 ;•_- t..-:67 o tt::*-- _, 4:7 a 2 g :7 7 1 Ne. o. t. 0 'E------; t= :::4 2, 5 , ,i 6, 7. ° -3:4 8 ''' i I• cv i..,..° rc4: $4.11144 " " ,,_-.6 A• ! 1.= •I• :',;-- ' ' N P.:•" '- It It : 4 4 i.4jJ' is:1:cc:IS N N .—.---,- •:.: := ta. '''''''—i-6 11.1-t—§-6144 1- '1 " i - A .=-. t- - i -----_--_-, wi -t ‹.---- N., .1 . : —4=,' ; 2, .th_d_ii._,■+ t..] i 4 4 . a a . a ■ : a . : . ■ I a : 0 E 1 : . : I . . z.. . . . . , . c.2 --, o= . . + -i- . . z° (0= . . . . . . . ' . . , . 7 - -I : 11 . . ,= ! • . :. . . . . , . — . . • . : —.--. , . . . • . . . : . —■ . . . : ' . i . -...,—. , . . • ■a--e . a a a s 4 : I +. i. •I' ,= .—• : i .: I I.. I .. 2 —, ... , f : a a a a MZ= . ria I I i•• 4 4 - 00= . >, I 0. 3 tr. t.... NNNNNNNNNN ttNNN N i .. it titttMtt t,ttttttitt ; ; Illii$A1.1, illkkikiki !..6-: 0 r. 17. 888tE014g slitgAggiii3 ; iitt := AltitAt 1:144 " 4644 • • 1 .. ... NN ,... . . p. ,.. ,.. ,... ,.. NN it 1411130 " W " " ttl ttttttt $A1g' $1$11114kk , ..E ; gt0004eii ; ii .“ iw," iiii3730, 4444 '44 * - 60, 0 .— m— OON commmmmgR3 vm .evmmielgigz vcovvolmme &v .rm u!• .. 1 1 I.- • i 1 rvi I 1- 1-, I 12 i . . ON NNt.. V. 1,04. N NCIIN. NN,P.T.,01VN csi.NgggggloloN NNV 7,E $ .1 .4711 : 111 ! ! iiI 1 i I 3 : : . . • . I I : 1:: . NNt..... P. , VH ,C,1104111... .rt7t, HtN NINgggg,golo.p, Ni01 . . . . . 0MN IA 1 1 I I • . 2 732• . : , . , . . . . i I I } t 32 1• i I 1 t • .... 1 I ; IA I . I .a 2 . „ • o 0 . 2 . i I Lit ' .1 :2 , • t a, m gmm 1 g i 1 *IA 92 z 5.1, .., ' 15 -2 -ope.. -. i%. A t8 ° ,1' 112 R2 't, ,S (2 , ' 8-7F filinil ('-if tc,31; 0! 1 j72 A: , u. m u. 2: i2 A 2 - u_ ,,, u_ cs . .. iIEF '6) E ',' . ' 12' 2m2' ''' 111912 (012Et7g .F122 Vr -e g 2 8 -; 2 7 5 i ,,,,, . ui. ' I 1 / ' ' 2' ‘g 8 ° 8 :11..SWg888N .2 ,9 ,53 ° ,288. ,8F2, g 1 8N :2F, i g 'th' h ' $48 8 s sits EA 8 8 8 ci 8 8 8 811,11 81111 8 1 h 2 8 8 8 111111ft I i 1 gi ',, .';'.5, $ c'f,1 gi 115 I% i c% q2w (% EF, cc, Fg Fg Ei 1 1 h Fi5 'fii gi: w Cfg *. cc,i (% % c`g I' 1 I ,2 -4 '71 .7, gi.mln gicgiinmm ri r:1 ;:irs1 ,:1 `,1 '44:1Q . 41 AA' N A A . A A 4.4in A 13 4 i g 1 , ,.,•,,,.. , •:' 1 I I I I . • — 1 O 4-2 kF f ':- I i F . 4 $ =t v}t--Z; a : 4i . 4 : . z-- Ni o . _ a i o N •.t 4 L :. i i J J ,3 a o ,. L J L J J Q J m l l . L J. J z :.c m . o � g ; o Q b m m y - Ol : :mmmm; Q ii �..—..-■ kiD c,IL } ' 0 0 0 0 0 0 0 �:�� ��_�.-�. . i IIIIIFHI!1!llh. E LL N i4 '—----'l � ro m:m ro m m m 0 m .�I ;mmmmmo LL. t t 6tt N 4-4-4 _1.4.2. �_T _- p Z N N N N N N d O O v 111 � � im T m o o or o m o t'-'°' o m m o m m m;mloIm m m m o 0 0 o m m o 0 0 o m Ip o of aL A it ii : 44 44444I4 i4j''l'I .i A.k .. iU 'lllli i 4` m Z - > > LLV'y , y. iL II- 4 IL IL 4. 1► 2 1 a �1 T 12 - t V ' N t N A el E N '4 TA t O O O tit t f• is gS P I4 A A a 8 6 c �C I I I�. t cp , CO O O 0I ICI(O O 0 0 0 0 0 0 0 m 0:711p7 0 10 0 0 0 0 O m O m m O m 0 0 010 0 0 0 r Al. �i 7 tilt 44 # # 11 Ilatill .W.t4.1.t lnt -ti- 1I 7 7u, # ' A e A !A A jj A N N N N N d a d e5 14 {6 N N I 0 . N N N N N N N . . O O O O 0 :fh CO w0gmmmmmm $ mmmlmmm 3mm1mm mmm3 mm V 3333 M±s i , i j I I{ � i €1 C o 8 9iN N N1—fO,� 7 �# iiN1—,N r_lr N 041011.-,CO A LO Pl —;—IN A P �.4 m. 8 f ��f i i I t N N 1 f i•- LQi C Q i ! ( i ; , r illi �1iI1 . Q i I ; . I I t { o` �.4 0 W.NNC, r, 7,� — — — —1 .- n Of Of , .-!.-1N rl: ' N! C_ i 1.4 U 2 ; . f i Y,. _LL ± qp I 7 " I q 10 Cg 9.G ( i St Y i dd 1 .4 1 , .4 t9 5 r, Q m '..X ~ L m �, m p .x �. L m , m. :.6 1 H i �.. �. m ,... in F r p .8 z , W o a 3 W o ' U6'O ,W c $ of p,? `° m g O tm i _ 03 r�i 8. i ' i o � � z H p g 5 ' 26 6 o o 0 m �, 0 ° o 88i .iii g g m l 3 fA o ,1 W c� �+ pp y o Q T ,.a;w J 5 U H in W J 5 U c 1-- to W_J 5,O-_-I- W J U 1- fA W J . U . I- I- i W `4i Et p o 0 0_ p p pt O " i0' ( 1R O O s O O SS P. O N c4, °v .9 8 O ;.'� O O O 8 O ";O N R V .2 O 1� C N _ O 33 IIII i 888888 8888888 as IN8 (808Noo8og J_ �,, `":g a . a ( 1 2 2 2 2 2 2 ,."2 3 2 2 2 2 2 a;2 212 2 2 a 2 2 2 2 1 °g 1 _ N " Elkin R k k a s c _ M R k R k k ;.a t k _ e_ k k k �k k F a J 0`N N N NiN?N-N rry. `n7 `n7 `M `M `r� N N N N,N,N N N N p N N N N N I?N N i3 N wi F E ?d I ■ . i ; i t Ih.."".. : '.' ....■ I -:- .... ci ... , --'-' : . E i .,.. ., .: 1 i 1 i o— : — : 4---0 .. I I 4;L.' i ,-: : . : : ., .t: i ti g 1: = ; ---1 r 1 r 4- t '4), ....•....., . , g : •,■• :,-,' : t..7 P.: V l. : .-.- ■ 7:7 7 • +.-- . i. i A. L 1 4.-1-* i ...: ..i: ---- . -r , : . Fil;;-: d ::: •-, m....... r..: ..... ÷. , i. i i 1I-= ... :--- . RI: O' -,= m: .... o . 11 = i . i Al : __• ,....i. ,... ,:- -- . ...- . . . . co -0--'iri-ti---0.:To--9---V--t z-- . — : i W i fli .1 V: '7 '''' =-... , _.i...0.s...i.i ......2.1...g....g.Tt 0— i .... .A. .:. .. .4.1. .2.6,..it. .0.A lc,•AV CM= S52 of 0 it, A: ' cr,E.: :...., - ' i te i tit,' i - — ; N N. al I. . g 8 .7, . "h- . #--6- 13)--'- 1---vi - iis e -0 ' : . . < of r5 :i 37. :ttta ——: , _ ...... .-..., 2 1 FLLi =---titl----------T--- '-`— -ra-42-- --•— i2-'--2-'--"' I2-1249--k kk-i. -,= ,: ; 11.6, mal• , . 4 §:t ' A A el,: . _,=o#..../ i---- - --f-1-4-1- - isz-se-■e es-.--f-.- -•e•c- -41-- -- : . . _ =., II d m= oil. . _,-4_ 4.19.-- ___Is..0...,... i ..i.:4 441 .Z.A 1..: i t t 4 .4 c•I' A . . . . . a14-* •-'--24 -er-To-ii,-...--2--c.-----.■--...--7-- ' . . ; . . : . . =• II .e. ....41.........4 2= 2 u. =,c):-4..— -4-4(11-••-.2. .- ..-:— ' " . . . . I.-....2 "v-7.4 :. . i . . : . awe,L 1- ... I- a..... 0,z■ : . 2 min , iii■ :- i 4- , it li t c-, := '4' t ii- s+1'is',i'A 3 3 Q.--iisiJ,Ii -cl,q, t.v: 0., 0, g II, .4 0 g 4 4 4- glt g t fi,silig t',.• ! II ;117 : 11 l'Ii.iiIiI II , IL!.L'I 3 1 ii I 2 n a a iliro r, --. -,. v[v. 12 Iv 12 4.! z.-, (.•; m v :2 t2 :2 m z.-, ::?, 22 V V t2 g g 2 v Iv ite its c,.- u Is Is /8 1 1 1 : ?- : t C O O O 41.'1,"I'1.14.i2 '' IHII ', 1 I ' .. ' ---. g 3 , , i . , I , ■ , , , 8 cc -----' I 73 P. ,e 2 i 4 ■ I I i , , . , 1 • 1, III I 1 1 II ,, , . !, I , I ! I . 's> ' ,, ! ! ! ! i i I , , _. 8 8 c 1 ' I ' 1 , , 1 I : 1 1 ' ' ■ • co c .Q _. -o o •Q 'di . 8 8 ! ? 0 . ' & •-, . g &•;.. 1 , 0 .- . = 6 .t pp 6 0 .f. o• 1 o 0 1 .S2 . '2 111 l' i. f., & 3 -gligli s Tat; 1, f., rig. a“ .7 I 11 1; „4 I ,S c) cs E, 7 1 t. (5' ,_ :1.., ,,at i III, i :3- :is a A 3 1 l; fi 3g. c .iiiiiil Iglilli 1 (?) .<- -;; 23- 1 aitli L.1' Ail 23,- ii' A' Di' = ; 2 , A1,6 A 1 -ci', LT°, — '.-----,--- ,3,' •15 ,,' ! —I —6 8 R. R, 2 `ii• (9, S' 8 R ," Fl 8 c7, R1 'Al F u 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 . ° ° ° ° -,--'' g igg 0000 8 ° xcemxwm, mccmccreceg gg 1,1 , , , , , , , , • P-: 1,'" REREg RRRRRR RRRRRRV sm i RR RRRRRR ''.R. RRR c°,' .',.> 2222 ,,, ,,J ,, ,, ,, ,, MMMMMMM g n, 1 1 isi Pi r7, rI rs; r7, r7, 74 g g g g 6 I 1 I I .... 1 . . : , , : . , .. '8 '-=.: 1 i 4, i. ; :. H-- -I t ' r : 1 1' ,,-u_= : = .; 1 1 1 t i . N N ','-' ,= : :. .t. .- .- o =..1 1 1 4 . r 1--i . , cp ■ i --.--4-•- = z= . • ■ o :a. : . ..- ,„....— = 1 1 1-F ..—... -:4- ;._ . ts•.-:--,-4---:- --r.ti;--;-4.- -ti- 1-' . . . :. .,,,= _ • -g-8---.4,..--,t--i-- -- i k„1 ..„ L 1* [g- - --8-4 0-1-2--E-Att 8 1.--- 4. c•S'5.- •0. 1,-_-:t: I.= ...es.. .....•111 al es rs es P- t11-1 % g a =til--1--1--a--;•444--A- - ii" .. ,i <= ,•A A ,L 4 Z.;:° ° t t.:-;t1--7--.-- - i.- A-t--e-t--t--4--t-It--g =:-.1.K.,...N . " :s.sir IBM t-- I.:. : r.: r.--: 1:-.7 A-Al 1 1 •-• Nth ii 1 7 4 -1 -i ,47 u. ▪.... •-,-... ..-0.- . 1 --.....' ,.re —4-4...-41.--A-,4-59-: a i ' . r . . . . • > A , I ■ , '2 0 . • . . . . • . t A . . . . . . . . . . . . : . : . . • . • . • : • . • . • . . . . . . <= . • . . • . . : . : . : . . . . . . . . . . . . . . . . . . . . . . . r 1 4 . • r . 1 I 0 3• s.,,,rs..,r■Ir-I. . . . . . . . . . 4, .1) ei. . . .1. Jr. .1. . . . rs r•-• I.- r-i P- ._ ._ ._1..._ ''"' ._ r 7 7,717:7;77 7 . . 7 .7 7 ''- '" ''" .- .- '-1.- r r - . . . 7 '7 7 '7 . '-:•- 7 •-l'' V-- := ;7- :-. .- '4-- 0, 1 f2 nililitlIk•-ti i .1.. .f 11 i A A (9 1 ii iiiIii111111 t .- thiltillAlli A '.Lf. —"--- r -- i 1 I I I I 1 iliiiil‘.U.Mii AAAA1 i 'ti4 44iii :=.- t4tty -6- ; ; i :i g‘ !!! '.1. 7.; 48813;- 1,-; :.140. 8 .4 '414agsiggt { 1. := Atra. 4!3 ,- 33iiii7liiii i Li r, giSSSaaa34444 3333,3333313832 S1S c.s- le 12 V18 siv v1 ia aa a , - - -1 — 1 2 1 I 1 1 I ' ■ . , , i 1 1 i 'f 11i 111111 ! pg a. 01 N 04 i 10 OD ILO N 4 4 1... IC N 0 WI 10 •-!,,-i 0 10 10'0'0.ID 041,10,10 N.0.0 1t, , N'N'0 0 0$I0 N ':11 I H I • I II ...■.■. C2 ID 8 — 4, co N cv,so 10,41,eJ 0 4, in I.,N 0 ill 10 .- ••• . 0 .•0 ., cq;o wa . -- N N 6.5 o o 0'N•0 . q -,• , ili i-i II - - . - - - - i .2 •g H 1 i I ! 1 1 1 ■ i i i i 1 i i .1___ , ' , . . _ . ; I ! ' I r , ; 111 1 i ' 1 ; r ■ ' ! i 1 r ;s2ri 11 I. • , i . . i • • , i , : ; ! ! ! ! / I. . : • ' ' , ' , i ! ! I I i i . ' ! i i „ 3 i 1; , 1 .E7' 1 i i , I . cl S2 118, t , : t6 5 i .6 .,-, 2 •4 6 8. (,n2 I 2 11 1 1 ; t ' `,2 :-5 = r'n6 (r.2 ° % ; t . ; iii ' C 1_ > . x ca 1,4 /I ' _ , II ? It." = jlic§ ilq "..1 .11.172 .L. ; fi. f as ,I1 .. .6'; 'A , 2 c... ::_. 1 2 g 8 i 1 ,11 r3a ?, 3 I2). ,. o . o a 12 a 'F. 4.., a w 3. ; .5 c'j ci o o a_ w :,-a ; ci 1 'e,-, '2 t, 0 a.u• IN 3 3 c' ' lii °- -; 5 --i u w `2 Z 7 = (!) .0 .5! .. g to .G '...• .1 1 I 1 ... 1 ri,2 2ii I 11116,a u1 2 2 2,2,2 ci 2 *2' ci I 1 LE 8 ii "411 -231i I 4r, c% - 1 r-T--,--i---f- T -,-- i 2 gc9 .2 ? ? ;51288 ,282 ,9- 8 § 8 V-IR ',; q (48 .7F2 ? .P. 888 F- R, 2 `4S8P- 1118 a ' 888 ° ° ° 888 ° ° ° ° •- 8'8888888su ,2) ii cc cc ce ii Cc' Fe cc cc cc,c cc cc cc % 1 x cc re re re 1 z,cci % 1:t cc cc :.'; cc ce ce c'c' rt 0 i g 1 REERERRRRRVRP. R.„, y,i tg g E g glic g 1 1".51 I"Cj?).1 .ri).1 i N2 g2N 2N N2 Si IN IVIN N IN 1 . CC A144,4,4,4311g3Lnl n,4 L4 't,?1 SI Si' NNNNNN,NiNj N g a ' , 1 I 1 i , tf.▪ t I I < : , ._ -- , o — I- i - F i--- i i u.� ii i N . 1 ...t_7..,t...-t 0z., 'p',_Q► Ni '. �rN : N. 0 i _...;'.- _QiQ Ate '. N O .r _11104- " "__ . y 1 r N , =f� A A .. N.A " i 7 7 7 7 7 i N W . O O; O _,_ .- r m=4 , ,7 7 N N N . . r a 2 _ } i i ► { i o z E °J O +' 1 i a- N . d 7,z= • O a` c0= C. NM . v ■ W U= ,.. ,..4.. „. . N. ,..!,..1,..i ' £ o r ' J P P A A P A A k hP P P A P . P P P FilViriiii ::011.t.tlikli gistliktsli -1 $ ggit � 4g AAgggtgt $ $Iglu' At A g � t: r: er: gags ,, N /h P'f pl N N ; i N N N N W i l l 1 ! ( 1 1 I j t 1 i ' i i i i i i # i i # i .t.t h k i $ 1tBT1i ii i i E g g i i i O O 14 O O O O N i i jj i i N g O! O N N N i i O N g a $ g 'i0 Oig gO $ Qg RS g g g ,4Z O O t 3 O V O m m m EO lea O V ' O O m m N N mC211.*rn vi iO m , V N °" wic D „, 1 { 1 t i F" N O W W W N O{W N N N O O O O Y O WFN N-fiNfO O M�V O1OtN NjN 0110 W W N O WIN I N N N N I 1N N ( .-,r i 1 f I I I p ' j i F I i 1 1 ( j i k 1 f j i Y I I ' ! { 1 I ; I ° I ( , i p p [ E i ' ! �.0 Ni b W �1 l N�O i O N N N $ c°il IN N v1O i^iN N1N IN IN N . Y O1O IN N N �Iv STN OIW N m O I 4 ! t ' t 1 1 I ! f { ' 1 I :c I I I € I it Vii ` ' �' 1 I U f •j1 iI , Ek i I , i I i I 1 f , I i i i tj . I„: N Y 7 i 7 . 1 i C U C I U U o W I t N I N 7 W T I N -12 N (1' 0•W. F C U C U Z V 3 Y O 6.`.= a 1 G o W c N e d C C U N W ”: a f O, ° ° N W C ` S a N I� C 1. 5 W 3 N° O C Q 1 Y Q W z UW Y LL ° L Q Y i qz i O W °3 s > r > fo iw V v � 0 � J .> n wUigy; at J N w n ° a J �.4 w-( ,I=;re a iliii - : . , i `_ -f d w a �)1 im O S ° N SH Qpe i 1 O N S 0 0 Nop 5 h m m S O ON IS iO I V $ g Q¢8 S S S S S p O p N q 8 $ 8 8 8 8 o 1 c S to _ o 8 8 i E 1 S 8 S O : J cc cc cc CC Cr CC CC CL CC CC R R IIE a a R a Na) a a) a) Na) ) =a a R��� W E a a a W a .O. Fig)- Q 1 I 4 i• MN M M N N N N N N N N N N N N N N °N N N N N N � N N N N N N N NN�1 I ' N I I Exhibit B Sta ntec 21301 Powerline Road,Suite 311 Boca Raton, FL 33433 Tel: (561)487-3379 Fax: (561)487-3466 November 25, 2015 Olga Sanchez, E.I., LEED AP Capital Projects Coordinator CAPITAL IMPROVEMENT PROJECTS OFFICE 1700 Convention Center Drive Miami Beach, FL 33139 Re: Palm and Hibiscus Neighborhood Improvements City of Miami Beach, Florida 90% GMP Proposal Dear Ms. Sanchez: Please note that Stantec Consulting has worked closely with staff to review and negotiate the GMP Proposal documentation from Lanzo Construction in our capacity as the Design Criteria Professional. The most recent proposal is dated November 20th, 2015 with a gross bottom line price of $37,325,582.44. Please accept this letter as an evaluation of the GMP and recommendation to the City for further action. In evaluating the cost proposal, our primary focus of attention is on the unit rates applied to the elements being constructed. In our experience, the unit rates developed on this project are generally higher than typical in the South Florida market. We understand that the sensitive nature of working in the island neighborhoods and the tight confines of the right-of-way will result in a cost premium above and beyond the unit rates applied to projects in a more typical environment. Even so, the unit prices seem higher than warranted. The Contractor has provided a substantial amount of backup to substantiate these unit rates. The backup provides a complex combination of personnel salary, burden, overtime and crew configurations combined with equipment and operating expenses. All of this cost is applied at production rates developed for each bid item. While this information provides the reasoning behind the unit rates, it ultimately is based on what the Contractor inputs into the program. Whether the items can be performed in less time or with smaller crews or less equipment is ultimately an arbitrary determination of the Contractor. At the end of it all, this information is helpful in understanding the Contractor's approach but it is actually immaterial to the City. The unit rates are the ultimate determination of whether the pricing is reasonable. In an open and competitive environment, we feel that the City could get a more cost effective project. However, the City of Miami Beach is in a challenging market for bidding projects. In recent history, projects of this nature have not attracted a substantial number of bidders with the most recent projects only receiving two bids. Since Lanzo Construction has been one of the bidders in some of those cases, the concern is that the City may not get enough bids to ensure a competitive outcome. Design with community in mind • Stantec November 25, 2015 Page 2 of 2 It is our opinion that the City should continue to negotiate with Lanzo Construction in order to lower the currently tendered GMP. Considering the construction marketplace that the City is facing, we recommend that the negotiation should proceed with a target goal GMP of$34.5 million dollars. If you have any questions, please feel free to contact me at any time.. Sincerely, STANTEC CONSULTING SERVICES INC. Jeffrey Crews, P.E., LEED AP Senior Associate V:\2156\active\215612258\correspondence\GMP Recomend Draft.docx • • Exhibit C • • 9'0% CONSTRUCTION COST ESTIMATE OWNER: .,v�1 � �C�l{'f * `INCORP 'ORATED �� -, 1' phi 't+1h9t,f-! 26a= PALM ISLAND & HIBISCUS P M ISLAND NEIGHBORHOOD IMPROVEMENT c PROJECTS MIAMI BEACH, FLORIDA • t kir r. . Lr Sjl�. l,� f7.-was C i . !'► ap w��• 'Vl�tia / ti1 ` 1 k,„•t•P.� ,,,,, t i°`i _/...,fir PREPARED FOR: PREPARED BY: 0)1 R BJSCC)ST 9* °iii^., *; running toiaety 9 Wcopi3ORATr,,c.i, Capital Projects Coordinator to RIB U.SmC®ST the City Manager 11900 Biscayne Boulevard 77717th Street, Suite 300 Suite 620 Miami Beach, Florida 33139 North Miami, Florida 33181 NOVEMBER 25, 2015 VRIBUCS.COST , :riwnHtfg vigevher TABLE OF CONTENTS Executive Summary II Basis of Estimate III Palm & Hibiscus Islands Summary & Markup Report IV Estimate Detail Report City of Miami Beach I Palm&Hibiscus Islands Neighborhood Improvement Project—Miami Beach,Florida I. EXECUTIVE SUMMARY . � RIBUISICOST rrar�nnn, ioaaa?izer RIB U.S. Cost was tasked with providing a 90% Executive Cost Summary construction cost estimate, utilizing the 90% plans and specifications, provided by the City Of Miami Base Bid: Beach. Palm&Hibiscus Islands Neighborhood Improvement Project This project includes the construction of new water distribution and storm drainage systems, General Conditions $ 2,048,652 roadway paving and curbs, driveway restoration and demolition of the existing. Florida Power& Palm Island $ 14,943,692 Light,Atlantic Broadband s,AT&T systems will be Hibiscus Island $ 14,016,596 modified on Hibiscus Island.The street lighting systems will be modified on both Palm and Hibiscus Islands. Total $ 31,008,940 Work is assumed to be performed in 8 hour shifts, during normal business hours, Monday thru Friday. The estimate also assumes that special care will have to be given for maintaining the residents access to their properties at all times. The estimate assumes the project will be constructed under a single general contract,with concurrent construction occurring on both islands.The cost estimate has been priced for construction by a site work contractor utilizing subcontractors. City of Miami Beach I Palm&Hibiscus Islands Neighborhood Improvement Project—Miami Beach,Florida H. BASIS OF ESTIMATE 02§ RIB U.S.COST rur,„t?Soricfi"t PROJECT INFORMATION Designer TBD Estimator RIB U.S.Cost Owner City of Miami Beach Project Location Palm& Hibiscus Islands, Miami Beach,Florida Date of Report November 25,2015 Estimate Class/Methodology Class 3/Concept Processing Software Success Estimator® Work Breakdown Structure(WBS) CSI Uniformat Project Number 4999.001 Basis of Pricing Local material and installed quotes, RIB US COST, Historical Data and Estimator Judgment Method of Measurement Imperial (US Standard) Currency United States Dollar PROJECT SCOPE Design Mission Improve existing paving and utility systems within the public right of way. Building Type N/A Roof Type N/A Building Utilization N/A Number of Buildings N/A Demolition Pavement,curbs,storm drainage system, landscape plants. Hazardous Materials No Site Work Not Applicable DATA Drawings 90%Plan Design Analysis N/A Site Visits Attended No Meetings Attended No Discussions No Previous Estimating Comments N/A INCLUSIONS Trench shoring Temporary dewatering Traffic controls The design build contractor's quantities were utilized for water service connections,unsuitable soil removal and replacement,fill quantities and landscaping quantities,as these items were not City of Miami Beach I Palm&Hibiscus Islands Neighborhood Improvement Project—Miami Beach,Florida I. BASIS OF ESTIMATE � RIB m S rumatng together clearly idenfified. EXCLUSIONS Land/Real Estate Costs Permanent Utility Consumption Charges Design Fees Permits and Testing Legal and Accounting Fees Hazardous Waste Removal and Disposal Project Management Activities Change Order Contingency Owners Contingency 7.5%design-build fee Additional storm drainage requirements not defined on the drawings ESTIMATING TEAM Estimating Team Lead/Project Manager Howard Campbell Architectural Estimator Not Applicable Structural Estimator Not Applicable Civil Estimator Howard Campbell Mechanical Estimator Not Applicable Electrical Estimator Dennis Longarzo ESTIMATE BASIS General Conditions/Onsite Field Personnel 6.00% Security and Access 0.00% General Contractor Home Office Overhead 2.50% Bonds and Insurance 2.00% General Contractors Risk/Profit 6.00% General Contractor Quality Control Included in General Conditions Subcontractor Markup Varies from 15.76%to 20.20% Estimate Date November 25,2013 Construction Start Date January 2016 Estimated Construction Midpoint July 2016 Estimated Construction Duration 14 Months Escalation for Current Market Conditions 0.00% Design/Estimating Contingency 0.00% Labor Premium Not Applicable Sales Tax 7.00% Labor Rates Local prevailing wage rate, Miami Beach, Florida Labor Burdens Included in Labor Rates Contracting Methodology Design/Build City of Miami Beach I Palm&Hibiscus Islands Neighborhood Improvement Project—Miami Beach,Florida IL BASIS OF ESTIMAtE .§ RIBUS COST funr1,)logelPe The basis of the 90%Cost Estimate was established as follows: A quantity survey was performed as detailed as possible relative to the levels of design and documentation available. Where quantities are not available, assumptions have been made based on the historical information from similar type or other projects recently estimated by RIB U.S. Cost. The basis of the pricing used reflects the probable construction costs which can be obtained in the Miami Beach, Florida area for the schedule time period of the Project. This estimate assumes a competitive bid situation, and is an opinion of probable costs based on fair market value, and is not a prediction of the anticipated low bid. RIB U.S. Cost has no control over the cost of labor and materials,the General Contractor's or any subcontractor's method of determining price or competitive bidding and market conditions. This opinion of probable costs of construction is made on the basis of the experience, qualifications and best judgment of the Cost Estimator. RIB U.S. Cost cannot and does not guarantee that proposals, bid or actual construction costs will not vary from this or subsequent estimates RIB U.S. Cost has prepared this estimate in accordance with generally accepted cost estimating and practices and standards. • • City of Miami Beach I Palm&Hibiscus Islands Neighborhood Improvement Project—Miami Beach,Florida 014 RIB U.S.COST rufpmg ogeri;?C III. PALM & HIBISCUS ISLANDS SUMMARY MARKUP REPORT City of Miami Beach I Palm&Hibiscus Islands Neighborhood Improvement Project—Miami Beach,Florida 90%Estimate FOR City of Miami Beach SUMMARY REPORT Palm&Hibiscus Islands Neighborhood Improvement Project Total Cost 0 RIB RIBU.S.COST PALM ISLAND fu:tflt:l=N.., LEVEL DESCRIPTION TOTAL QUANTITY UNIT UNIT COST - US ISLANDS NEIGHBORHOOD IMPROVEMENT PROJECT $31,008,940 1 LS $31,008,939.74 - GENERAL CONDITIONS&BOND COSTS $2,048,652 1 LS $2,048,652.21 1000 GENERAL CONDITIONS $102,660 1 LS $102,660.15 1010 MOBILIZATION $90,001 1 LS $90,001.01 1011 SITE SERVICES $33,528 1 LS $33,528.38 1012 CONSTRUCTION ADMINISTRATION $609,466 1 LS $609,465.84 1013 CPM SCHEDULING $24,508 1 LS $24,508.28 1014 CONSTRUCTION QUALITY CONTROL $451,654 1 LS $451,654.07 1015 FIELD OFFICE $38,890 1 LS $38,890.44 1016 INDEMNIFICATION $204,116 1 LS $204,115.71 1017 BONDS $493,828 1 LS $493,828.34 - PALM ISLAND NEIGHBORHOOD IMPROVEMENT $14,943,692 1 LS $14,943,691.70 - DIVISION 2-SITEWORK $11,938,134 1 LS $11,938,134.17 - DIVISION 3-LANDSCAPING $802,611 1 LS $802,611.35 - DIVISION 16-LIGHTING/ELECTRICAL $2,107,801 1 LS $2,107,800.54 - MAINTENANCE OF TRAFFIC $95,146 1 LS $95,145.63 - HIBISCUS ISLAND NEIGHBORHOOD IMPROVEMENT $14,016,596 1 LS $14,016,595.84 - DIVISION 2-SITEWORK $9,041,382 1 LS $9,041,382.20 - DIVISION 3-LANDSCAPING $625,234 1 LS $625,234.29 - DIVISION 16-LIGHTING/ELECTRICAL $4,254,834 1 LS $4,254,833.73 - MAINTENANCE OF TRAFFIC $95,146 1 LS $95,145.63 Report Date: Wednesday,November 25,2015 Professional Sevices Group Page No.1 of 1 90%Estimate FOR City of Miami Beach Palm&Hibiscus Islands Neighborhood Improvement Project PROJECT MARK-UP REPORT ®akI B - PALM ISLAND Estimate Cost To Prime $28,540,211 Mark-up Mark-ups For 4.Home Office Overhead 2.50% $713,505 6.Contractor Profit 6.00% $1,755,223 Total Project Cost $31,008,939 (Including all Mark-ups) Report Date: Wednesday,November 25,2015 Professional Services Group Page No. 1 of 1 90%Estimate FOR City of Miami Beach SUMMARY REPORT-LEVEL 1 Palm&Hibiscus Islands Neighborhood Improvement Project Cost To Prime Only /�� RIB U.S.COST PALM ISLAND LEVEL DESCRIPTION TOTAL QUANTITY UNIT UNIT COST - US ISLANDS NEIGHBORHOOD IMPROVEMENT PROJECT $28,540,211 1 LS $28,540,211.45 - GENERAL CONDITIONS&BOND COSTS $1,885,552 1 LS $1,885,551.96 1000 GENERAL CONDITIONS $94,487 1 LS $94,487.02 1010 MOBILIZATION $82,836 1 LS $82,835.72 1011 SITE SERVICES $30,859 1 LS $30,859.07 1012 CONSTRUCTION ADMINISTRATION $560,944 1 LS $560,944.17 1013 CPM SCHEDULING $22,557 1 LS $22,557.09 1014 CONSTRUCTION QUALITY CONTROL $415,696 1 LS $415,696.34 1015 FIELD OFFICE $35,794 1 LS $35,794.24 1016 INDEMNIFICATION $187,865 1 LS $187,865.36 1017 BONDS $454,513 1 LS $454,512.97 - PALM ISLAND NEIGHBORHOOD IMPROVEMENT $13,753,973 1 LS $13,753,973.03 - DIVISION 2-SITEWORK $10,987,698 1 LS $10,987,698.27 - STORMWATER $6,557,281 1 LS $6,557,280.81 - UTILITY WORK-WATER&SEWER $1,996,963 1 is $1,996,963.06 - SITEWORK(STREESCAPE IMPROVEMENTS) $2,433,454 1 LS $2,433,454.39 - DIVISION 3-LANDSCAPING $738,713 1 LS $738,712.70 - LANDSCAPE DEMOLITION $132,430 1 LS $132,430.16 - NEW LANDSCAPING $606,283 1 LS $606,282.54 - DIVISION 16-LIGHTING/ELECTRICAL $1,939,991 1 LS $1,939,991.30 2220 P.I./AG/STREET LIGHTING $1,939,991 242 Ea $8,016.49 - MAINTENANCE OF TRAFFIC $87,571 1 LS $87,570.76 2227 P.I./MAINTENANCE OF TRAFFIC $87,571 1 LS $87,570.76 - HIBISCUS ISLAND NEIGHBORHOOD IMPROVEMENT $12,900,686 1 LS $12,900,686.46 - DIVISION 2-SITEWORK $8,321,567 1 LS $8,321,566.69 STORMWATER $4,765,798 1 LS $4,765,798.17 - UTILITY WORK-WATER&SEWER $1,802,666 1 LS $1,802,666.26 - SITEWORK(STREESCAPE IMPROVEMENTS) $1,753,102 1 LS $1,753,102.26 - DIVISION 3-LANDSCAPING $575,457 1 LS $575,457.24 - LANDSCAPE DEMOLITION $102,163 1 LS $102,162.86 ■ Report Date: Wednesday,November 25,2015 Professional Services Group Page No.1 of 2 90%Estimate FOR City of Miami Beach SUMMARY REPORT- LEVEL 1 Palm&Hibiscus Islands Neighborhood Improvement Project Cost To Prime Only 0 RyIaB U.S.0®ST PALM ISLAND LEVEL DESCRIPTION TOTAL QUANTITY UNIT UNIT COST - NEW LANDSCAPING $473,294 1 LS $473,294.38 - DIVISION 16-LIGHTING/ELECTRICAL $3,916,092 1 LS $3,916,091.79 3470 H.I./AG/STREET LIGHTING $2,178,140 260 Ea $8,377.46 - FPL $1,045,857 1 LS $1,045,857.41 - ATTSE $174,615 1 LS $174,615.30 - ABB $517,479 1 LS $517,479.38 - MAINTENANCE OF TRAFFIC $87,571 1 LS $87,570.76 3758 P.I./MAINTENANCE OF TRAFFIC $87,571 1 LS $87,570.76 Report Date: Wednesday,November 25,2015 Professional Services Group Page No.2 of 2 Exhibit JRIB U.S.COST T+1 786 953 7817 11900 Biscayne Boulevard,Ste.620 F+1 786 953 7824 inln � t Miami,FL 33181 www.uscost.com November 30, 2015 Mark Tomczyk, P.E. Sr. Capital Projects Coordinator CAPITAL IMPROVEMENT PROJECTS OFFICE City of Miami Beach 777 17 Street Suite 300, Miami Beach, FL 33139 Re: Palm & Hibiscus Islands Right-Of-Way Improvements 90% Estimate Mark Tomczyk, RIB US Cost Estimated Construction Cost is$31,008,940. The 90% Cost estimate was produced utilizing in-progress drawings received on November 9,2015. A quantity survey was performed as detailed as possible on these documents however some scope was not clearly defined. Based on a preliminary review of the documents, contractor's bid tabulation sheet and discussion with you and your staff, the design build contractor's quantities were utilized for water service connections, unsuitable soil removal and replacement,fill quantities and landscaping quantities. For example the sanitary sewer system rehabilitation were not identified on the drawings, however we have included cost in our estimate using the quantities provided on the contractor's bid tabulation sheet. We have included a market conditions adjustment in the burdened labor cost for Miami Beach, local material prices were obtained where possible. This estimate does not include land or real estate costs; relocation/moving Costs; Design Fees; 7.5%design-build fee; design permits; after hours work; legal and accounting fees; owner's contingencies of owner cost; escalation. Also excluded are any additional storm drainage requirements not defined on the drawings. As an example, per the Palm Island Documents,we measured 11,064 LF of storm drain piping and 158 EA storm structures verses the contractor's 16,112 LF of storm drain piping and 405 EA storm structures. Sincerely, Howard Campbell Sr. Estimator (770)481-1618 CC: Glenn Wilcox, Patrick Pedigo, Russell McElreath, File 1/1