LTC 546-2018 Commission Agenda Item for Palm & Hibiscus Right of Way Infrastructure Improvement Project MIAMI BEACH
OFFICE OF THE CITY MANAGER
NO. LTC # LETTER TO COMMISSION
546-2018
TO: Mayor Dan Gelber and Members • the Cit Commission
FROM: Jimmy L. Morales, City Manager
DATE: October 12, 2018
SUBJECT: Commission Agenda Item for Palm & Hibiscus Right Of Way Infrastructure
Improvement Project
The purpose of this Letter to Commission is to inform the City Commission of Mayor
Dan Gelber's intention to pull, for discussion, agenda item # C4 E, Referral to Finance
and Citywide Projects Committee (FCWPC), discussion on Amendment No. 5 to the
Lanzo Construction Inc. (Lanzo) contract for Palm and Hibiscus Islands Right-of-Way
Infrastructure Improvements Project (attached).
This Amendment No. 5 to the Lanzo contract is necessary to complete the project. The
residents of Palm and Hibiscus Islands are anxious to see their community
improvements finalized, as the neighborhood has been under construction for over two
(2) years.
Mayor Gelber would like to discuss this item during the October 17, 2018 Commission
Meeting, in order to provide staff with a directive that will allow the Palm and Hibiscus
Project to obtain completion expeditiously.
Should you have any questions on the amendment or the Palm and Hibiscus Project,
please contact David Martinez at 305-673-7071.
Attachments:
Agenda Item # C4 E
JLM/EC/
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Commission Committee Assignments-C4 E
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales,City Manager
DATE: October 17,2018
SUBJECT: REFERRAL TO THE FINANCE AND CITYWIDE PROJECTS COMMITTEE MEETING ON OCTOBER 26, 2018, TO
DISCUSS AMENDMENT NO. 5 TO THE DESIGN-BUILD AGREEMENT BETWEEN THE CITY OF MIAMI BEACH,
FLORIDA, AND LANZO CONSTRUCTION CO., FLORIDA, FOR DESIGN-BUILD SERVICES FOR NEIGHBORHOOD
NO. 13: PALM AND HIBISCUS ISLANDS RIGHT-OF-WAY INFRASTRUCTURE IMPROVEMENTS;THE AMENDMENT
INCLUDES ADDITIONAL DESIGN SERVICES AND CONSTRUCTION ASSOCIATED WITH NEW DRAINAGE
POLICY; FOR INSTALLATION OF ADDITIONAL DRAINS AND ASSOCIATED HARMONIZATION IN PRIVATE
PROPERTIES WITH FINISH FLOOR ELEVATION LESS THAN THE CROWN OF THE ROAD, IN THE AMOUNT OF
$775,000, PLUS AN OWNER'S CONTINGENCY IN THE AMOUNT OF $77,500, FOR THE TOTAL NOT-TO-EXCEED
AMOUNT OF$852,500, SUBJECT TO A FUTURE CAPITAL BUDGET AMENDMENT.
RECOMMENDATION
The Administration recommends adopting the Resolution.
ANALYSIS
On July 17,2013,the Mayor and City Commission approved 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 Mayor and City Commission approved the recommendation by the Mayor's Blue Ribbon Panel on
Flooding and Sea Level 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 system criteria.
On September 18, 2014, the City negotiated Design and Pre-Construction Services(Phase 1)with Lanzo, in the lump sum amount
of$599,464, based on the Design Criteria Package(DCP)included in the original solicitation.
On November 19, 2014, the Mayor and 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 stormwater criteria, bringing
the total contract amount to$850,480.
On October 14, 2015, the Mayor and 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 and the Fire and Public Works Department's changes in the criteria related to the placement of
Florida Power and Light(FPL)transformers within City's Right-of-Way.
On December 9, 2015, the Mayor and City Commission adopted Resolution No. 2015-29643 approving Amendment No.3 for
Phase 2 -construction services for the Palm and Hibiscus Islands Right of Way Infrastructure Improvement Project in the
Guaranteed Maximum Price(GMP)of$36,500,000, plus a$2 million owner's contingency.
On July 21, 2016 Change Order No.1 in the amount of$313,905.06 was issued from the approved contingency funds for additional
watermain installation and to supply and maintain temporary pumps to mitigate king tides on Palm and Hibiscus Islands.
On April 26, 2017, the Mayor and City Commission adopted Resolution No. 2017-29840, reaffirming a commitment to the design
and implementation of a stormwater system with sufficient capacity to handle both public and private stormwater runoff into the
City's system and directed the administration to develop a policy and engineering solution for private property owners to connect to
the City's municipal stormwater system.
As a result of the Commission's directive (Resolution No. 2017-29840)and in order to accommodate the new elevated roads in the
Palm and Hibiscus neighborhood, on April 4, 2018, the Public Works Department directed the implementation of a new drainage
policy for this project. The new drainage policy requires that any property with a Finish Floor Elevation (FFE) at or below the new
crown of the road may receive a yard drain/catch basin inside the private property and associated harmonization. The property
owners must execute a license agreement with the City allowing access to their property for the installation of the drain,
harmonization and any other required work.
On July 25, 2018, the Mayor and City Commission adopted Resolution No. 2018-30444 authorizing the City Manager to negotiate
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and execute Amendment No.4 in the not-to-exceed amount of$1,951,208, plus a $195,121 owner's contingency for the Design,
Permitting and Installation of Auxiliary Power Generators for the three (3) Stormwater Pumps Stations on Palm and Hibiscus
Islands. Staff negotiated Amendment No.4 in the amount of$1,900,000.
The Administration has negotiated and is processing Change Order No. 2 in the amount of$686,094.94 for work associated with
additional services related to the force main replacement; additional water main valves; relocation of stormwater pipe to salvage
existing trees; installation of five (5) additional water meters; relocation of two (2)fire hydrants; inspection and cleaning of existing
outfalls; installation of empty conduits for future utilities undergrounding; additional temporary pavement; Hurricane Irma impacts;
associated general conditions and other miscellaneous work. This change order also accounts for credits related to scope of work
reductions in street lighting, speed tables and road width reduction along North and South Coconut Lanes. The Change Order is
being funded through the contract's current contingency.
This Amendment No.5 will include additional design, permitting and construction services associated with the new drainage policy.
In addition to the installation of a yard drain and connection to the City's drainage system, the work includes harmonization and
restoration within the private property to its original or better condition.
The Design-Builder submitted a proposal in the not to exceed amount of $775,000, which includes, $675,000 for the
implementation of the new drainage directive (including: Cost of the Work, General Conditions Lump Sum Costs, General
Allowance, and Design-Builder's Fee), and a Specific Allowance in the amount of$100,000 for certain required tasks, which level
of effort is unknown.This item will also include approval of a 10%owner's contingency in the amount of$77,500.
This Amendment No. 5 in the amount of$775,000,will revise the total contract in the not to exceed amount of$40,175,000.
CONCLUSION
The Administration recommends adopting the Resolution.
Legislative Tracking
Capital Improvement Projects
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