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HomeMy WebLinkAbout2003-25158 Reso RESOLUTION NO. 2003-25158 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE GUARANTEED MAXIMUM PRICE (GMP), IN THE AMOUNT OF $4,840,933, SUBMITTED PURSUANT TO THE AGREEMENT FOR PRE-CONSTRUCTION SERVICES BETWEEN THE CITY AND JASCO CONSTRUCTION COMPANY, INC., DATED APRIL i8, 2001, FOR CONSTRUCTION MANAGEMENT AT RISK SERVICES, PURSUANT TO RFQ. NO. ii7-99100, SAID GMP ACCEPTED ONLY FOR THAT PORTION OF THE AGREEMENT PERTAINING TO THE CONSTRUCTION OF TWO THREE MILLION GALLON WATER STORAGE TANKS, A WATER PUMP STATION, A TEMPORARY PARKING LOT NEAR THE PUBLIC WORKS YARD AND A PARTIAL SITE DRAINAGE SYSTEM; AND FURTHER APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A CONSTRUCTION MANAGEMENT AGREEMENT WITH JASCO FOR THE CONSTRUCTION PHASE OF THE AFORE MENTIONED WORK; SAID AGREEMENT TO BE IN SUBSTANTIAL FORM AS ATTACHED HERETO; AUTHORIZING THE CITY MANAGER, THROUGH THE CAPITAL IMPROVEMENT PROJECTS OFFICE, TO CONTINUE TO NEGOTIATE ANY NON-SUBSTANTIVE ISSUES AND/OR CHANGES TO THE AGREEMENT AS DEEMED NECESSARY BY THE CITY; FURTHER RATIFYING THE PRE-CONSTRUCTION SERVICES AGREEMENT, AS PERTAINING TO THE EXPANSION AND RENOVATION OF FIRE STATION NO. 2, FOR WHICH NO GMP HAS YET TO BE CONSIDERED OR ACCEPTED, PURSUANT TO THE TERMS AND CONDITIONS SET FORTH THEREIN. WHEREAS, on July 17, 1996, the Mayor and City Commission, authorized the Mayor and City Clerk to execute an Agreement with the firm of STA Architectural Group (STA), pursuant to RFLI No. 133-94/95 for Architectural and Engineering Services for the Renovation and Expansion of Fire Station No. 2 and a Master Plan for the Site at 451 Dade Boulevard (the Project); and WHEREAS, a Pre-Construction Services Agreement with Jasco Construction Co. (Jasco)was signed and executed on April 18, 2001, and Jasco was retained by the City to act as Construction Manager at Risk (CM @ Risk) on the Project and to prepare a Guaranteed Maximum Price (GMP) based on the construction documents prepared by STA; and WHEREAS, on August 17, 2001, Jasco was directed to include in its GMP, and the Pre-Construction Services Agreement was amended to include, the construction of the Emergency Operations Center and the construction of the water tanks and pump station at the Public Works Yard (the Water Tanks and Pump Station portion of the Project); and WHEREAS, on May 8, 2002, the City retained the firm of Camp Dresser & McKee, Inc. to prepare design and construction documents for the Water Tanks and Pump Station portion of the Project; and WHEREAS, on January 8, 2003, the City Commission directed the Administration to continue the process with Jasco for the preparation of the GMP on the Water Tanks and Pump Station portion of the Project and to submit it to the Finance and Citywide Committee at a special meeting; and WHEREAS, the GMP was presented to the Finance and Citywide Committee on January 29, 2003, and the Administration recommended to the Committee that the City not accept the GMP for the Water Tanks and Pump Station portion of the Project; and WHEREAS, the City Attorney's Office also gave an oral presentation, at the Finance and Citywide Projects Committee meeting of January 29, 2003, responding to the City Manager's request for legal opinion, and concluded that on the date of Jasco's submittal in response to the RFQ, November 17, 2000, Jasco was a Florida Corporation, whose officers and stockholders were neither principals, officers, nor employees of MasTec/Church and Tower, and that there was insufficient evidence to establish that Jasco might have intentionally omitted its relationship to MasTec/Church and Tower both in its response to the RFQ, and in the subsequent selection process; and WHEREAS, notwithstanding evidence to show that there was no legal relationship linking Jasco to MasTec / Church and Tower, the City Attorney's Office stated that Jasco, in order to comply with the five (5) years experience requirement of the RFP, did submit projects performed during the period when it was still a wholly- owned subsidiary of MasTec/Church and Tower; and WHEREAS, the Administration recommended that the Pre-Construction Services Agreement be terminated in accordance with the provisions available in said Agreement, and that the Project, including the Water Tanks and Pump Station portion of the Project, be placed out to bid for a replacement Construction Manager; and WHEREAS, at the February 5, 2003 City Commission meeting, the Administration presented its recommendation to terminate the Pre-construction Services Agreement with Jasco, and also reported on the discussions with, and the recommendation of, the Finance and Citywide Projects Committee, which agreed with the Administration to terminate the Pre-construction Services Agreement with Jasco; and WHEREAS, after extensive discussion, the Mayor and City Commission rejected the City Manager's recommendation to terminate the Pre-Construction Services Agreement with Jasco and instead accepted the GMP prepared by Jasco and directed the Administration to prepare a Construction Management at Risk Agreement for construction of the Water Tanks and Pump Station portion of the Project only; said preposed Agreement to include the following: · an increase in the retainage to twenty pement (20%) of the value of the contract instead of the customary ten pereent (10%); · a monthly pregress report by Jasco submitted to the General Obligation Bond Committee through the CIP Office; · an updated project schedule showing March 2003 as the start of construction; · an expanded liquidated damages clause; and · that agreements with sub-contractors be assignable to the City in case the Agreement with Jasco was terminated in the future for any reason; and WHEREAS, the City Commission further stated that the City's acceptance of the GMP for the Water Tanks and Pump Station of the Project in no way bound it, at a future date, to accept a GMP for the renovation and expansion of Fire Station No. 2 (the Project), and that all previsions of the Pre-Construction Services Agreement pertaining to the City's rights with regard to the consideration of a GMP for the Project still remained in full force and effect; and WHEREAS, Jasco's submittal of a GMP for the Water Tanks and Pump Station portion of the Project, in the amount of $4,840,933, is within the funding allocation and acceptable to staff; and WHEREAS, based on the Mayor's and City Commission directive at its February 5, 2003 meeting, the Administration and City Attorney's Office have prepared the attached Construction Management at Risk Agreement, which will govern the construction phase of the Water Tanks and Pump Station portion of the Project; and WHEREAS, the Administration would recommend that the Mayor and City Commission appreve the attached Construction Management at Risk Agreement, in substantial form as presented herein, and further authorize the City Manager, threugh the City's Capital Improvement Projects Office, to further negotiate and revise, as the City deems necessary, any non-substantive changes to the Agreement. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission accept the Guaranteed Maximum Price (GMP), in the amount of $4,840,933, submitted pursuant to the Agreement for Pre-Construction Services between the City and Jasco Construction Company, Inc., dated April 18, 2001, for Construction Management at Risk Services, pursuant to RFQ. No. 117-99/00; said GMP accepted only for that portion of the Agreement pertaining to the Construction of Two Three Million Gallon Water Storage Tanks, a Water Pump Station, a Temporary Parking Lot Near the Public Works Yard and a Partial Site Drainage System; and further appreving and authorizing the Mayor and City Clerk to execute a Construction Management at Risk Agreement with Jasco for the construction phase of the afore mentioned work; said Agreement to be in substantial form as attached hereto; authorizing the City Manager, through the Capital Improvement Projects Office, to continue to negotiate any non-substantive issue and/or changes to the Agreement, as deemed necessary by the City; further ratifying the Pre-Construction Services Agreement, as pertaining to the Expansion and Renovation of Fire Station No. 2, for which no GMP has yet to be considered or accepted, pursuant to the terms and conditions set forth therein. PASSED and ADOPTED this 19th ATTEST: day ~3. T:~AGENDA~003\mar1903\regular\Water Tanks Resolution.doc APPROVED~ FORM & LANGUAGE & FOR EXECUTION CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY Condensed Title: IA Resolution of the Mayor and City Commission approving the Guaranteed Maximum Price (GMP) of $4,840,933 submitted by Jasco Construction Co., Inc. pursuant to the Agreement for the Fire Station No.2/Water Tanks and Pump Station Project. Issue: Whether to adopt the Resolution and accept the GMP on the Water Tanks/Pump Station portion of the Project. Item Summary/Recommendation: An Agreement with Jasco Construction Co. (Jasco) was signed and executed on April 18, 2001. Jasco was retained by the City to act as Construction Manager at Risk on the Fire Station Project and to provide a Guaranteed Maximum Price based on the construction documents prepared by STA. The Agreement was amended to include the construction of two Water Tanks and a Pump Station adjacent to the Fire Station site. At the February 5, 2003 City Commission meeting, the Administration presented the recommendation to end the Agreement with Jasco and also a report on the discussions with and, the recommendation of, the Finance and Citywide Projects Committee. After extensive discussion, the Mayor and City Commission rejected the City Manager's recommendation to terminate the Agreement with Jasco and instead directed the Administration to amend the Agreement to include several provisos which will make Jasco more responsive to the City's needs. Jasco has submitted a GMP for the Water Tanks and Pump Station portion of the Project in the amount of $4,840,933 which is within the funding allocation and acceptable to staff and has agreed to all the provisos of the amended Agreement as directed by the Mayor and City Commission. Therefore, staff recommends that the GMP for the Water Tan ks and Pump Station portion of the Project be accepted on the basis of the amended Agreement and the directions by the Mayor and City Commission given on February 5, 2003, and that the City execute the amendment with Jasco Construction Company, Inc. for the Water Tanks and Pump Station. Advisory Board Recommendation: I N/A Financial Info~;;ation: Source of ~Ou.t ACCOUnt: APPrOved Funds: I $ 362,933 Fund 504 J J 2 $4,478,000 Fund 424 WO 2136 and 2138 Finance Dept. Total $4,840,933 City Clerk's Office Legislative Tracking: J Jorge E. Chartrand J Sign-Offs: ~i '~ City Manager AGENDA ITEM DATE CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\.miamibeachfl.gov COMMISSION MEMORANDUM TO: FROM: SUBJECT: DATE: March 19, 2003 Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez ~ ,~ City Manager ~'~ A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING AMENDMENT B FOR THE PROPOSED GUARANTEED MAXIMUM PRICE, IN THE AMOUNT OF $4,840,933, SUBMITTED PURSUANT TO THE AGREEMENT FOR PRE- CONSTRUCTION SERVICES BETWEEN THE CITY OF MIAMI BEACH, FLORIDA, AND JASCO CONSTRUCTION COMPANY, INC. FOR CONSTRUCTION MANAGEMENT AT RISK SERVICES, PURSUANT TO RFQ. NO. 1t7-99100, ENTITLED CONSTRUCTION MANAGEMENT AT RISK FOR THE FIRE STATION NO. 2 RENOVATION AND EXPANSION, AS PREVIOUSLY AMENDED TO ADD WATER TANKS, PUMP STATIONS, AND RELATED ITEMS, FOR THE CONSTRUCTION OF TWO THREE MILLION GALLON WATER STORAGE TANKS, A WATER PUMP STATION, A TEMPORARY PARKING LOT NEAR THE PUBLIC WORKS YARD AND A PARTIAL SITE DRAINAGE SYSTEM; AND FURTHER AUTHORIZING EXECUTION OF THE AGREEMENT WITH JASCO FOR THE WATER TANK PORTION OF THE PROJECT. ADMINISTRATION RECOMMENDATION: Adopt the Resolution .FUNDING: Funds are available from Funds 504 and 424 previously appropriated for the Water Tanks, the Pump Station and the Public Works Yard. .ANALYSIS On July 17, 1996, the Mayor and City Commission adopted a resolution authorizing the Mayor and City Clerk to execute an Agreement with the firm of STA Architectural Group (STA), pursuant to RFLI No. 133-94/95 for architectural and engineering services for the renovation and expansion of Fire Station No. 2 and a Master Plan for the site at 451 Dade Boulevard. An Agreement with Jasco Construction Co. (Jasco) was signed and executed on April 18, 2001. Jasco was retained by the City to act as Construction Manager at Risk on the Project and to provide a Guaranteed Maximum Price based on the construction documents prepared by STA. Commission Memorandum March 19, 2003 Water Tanks and Pump Station Page 2 Earlier in the last calendar year, it was determined that it was necessary to construct two new water tanks and demolish the existing water tank located within the Public Works Yard before the construction on the Fire Station could begin. As a result, the water tanks and related pump station were added to the Jasco Construction Manager at Risk Agreement as an amendment. On January 8, 2003, the City Commission directed the Administration to continue the process with Jasco for the GMP on the water tanks portion and to submit it to the Finance and Citywide Projects Committee at a special meeting. At the Finance and Citywide Projects Committee meeting of January 29, 2003, the Administration recommended that the Agreement with Jasco be terminated and that the Project be placed out to competitive bid for a new Construction Manager/General Contractor. The City Manager stated that the City had lost confidence in the ability of Jasco to perform on the contract and on the relationship itself. At the February 5, 2003 City Commission meeting, the Administration presented a recommendation to end the Agreement with Jasco and also a report on the discussions with and, the recommendation of, the Finance and Citywide Projects Committee which was in agreement with the City's recommendation to terminate the contract. After extensive discussion, the Mayor and City Commission rejected the City Manager's recommendation to terminate the Agreement with Jasco. Instead, they directed the Administration to amend the Agreement to include several provisos which will make Jasco more responsive to the City's needs. The Mayor also stated that if Jasco was not willing or able to comply with the amendment requirements the Agreement should be terminated as recommended by the City Manager. Jasco has submitted a GMP for the Water Tanks and Pump Station portion of the Project in the amount of $4,840,933 which is within the funding allocation and acceptable to staff. Therefore, staff recommends that the GMP for the Water Tanks and Pump Station portion of the Project be accepted on the basis of the amended Agreement and the directions by the Mayor and City Commission given on February 5, 2003, and that the City execute the amendment with Jasco Construction Company, Inc. for the Water Tanks and Pump Station portion of the Project. The City has made reference checks for Jasco on more recent projects and clients with whom they have involvement, additional to those previously obtained during the original Agreement award process. The results have been generally positive and client representatives contacted by the City have stated that Jasco has performed well, on time and on budget in their projects. They have also stated that Jasco has performed as Construction Managers at Risk in several projects. The persons and the organizations contacted are as follows: · Peter de la Horra, Executive Regional Director of Construction for the Dade County School System. · Ernesto Santos, Santos Raimundez (Consultant) on a Design/Build Middle School project. Commission Memorandum March 19, 2003 Water Tanks and Pump Station Page 3 · Janet Kelly, Regional Supervisor of Construction for the Dade County School System. ·Sylvia Giardina, Director of CM @ Risk for the Dade County School System. ·Carlos Hevia, Executive Regional Director of Construction for the Dade County School System. The projects have ranged from small renovation projects valued at $150,000 to large new projects of up to $7,000,000. Comments generally have been that their performance is good, on time, with minimal, justified cost over runs. The representatives contacted have also stated that Jasco is a cooperative contractor willing to work as a team with the consultant and Owner. An additional amount of $240,000 has been appropriated and allocated as a contingency for the Project. The contingency will be used by the City at its discretion for additional scope if it became necessary or if the Administration so deemed appropriate. Given the nature of a CM @ Risk Agreement, no additional costs will be incurred by the City except for those related to additional scope. A copy of the proposed Amendment B for the Water Tanks and Pump Station portion is attached hereto. A copy of the previous Commission Memorandum is also attached for information purposes. City staff, its consultants, and Jasco Construction Company, Inc. will continue to refine the Fire Station No. 2 documents during the course of the Water Tanks and Pump Station construction. If acceptable solutions become available within the City's relationship with Jasco, then a Guaranteed Maximum Price proposal for the Fire Station No. 2 portion of the Project should be submitted to the Mayor and City Commission for their consideration within the next six to eight months. Attachment T:~AGENDA~2003~rnarl903~'egular~Water Tanks Comra Memo.doc