466-2004 RDA ResoRESOLUTION NO. 466-2004
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF
THE MIAMI BEACH REDEVELOPMENT AGENCY
RATIFYING THE AWARD OF A CONTRACT TO THE FIRM
OF WIDELL, INC., IN THE AMOUNT OF $17,352,615, FOR
COMPLETION OF THE WATER AND WASTE WATER PUMP
STATION UPGRADES PROJECT (BID NO. 99-97198),
PURSUANT TO THE ACTION(S) DELEGATED TO THE CITY
MANAGER AND/OR HIS DESIGNEE PURSUANT TO
RESOLUTION NO. 2002-24924; AND APPROPRIATING
FUNDS, IN THE AMOUNT OF $1,218,956.71, AS FOLLOWS,
TO FULLY FUND THE PROJECT CONSTRUCTION COST;
ADDITIONAL SERVICES FOR CONSTRUCTION
ADMINISTRATION AND FIELD OVERSIGHT SERVICES TO
CAMP, DRESSER & MCKEE (CDM); PROJECT
CONTINGENCY; AND PROJECT MANAGEMENT FEES:
$1,173,063.00 FROM CITY CENTER REDEVELOPMENT
AREA TAX INCREMENT FUNDS, AND $15,893.71 FROM
SOUTH POINTE REDEVELOPMENT AREA TAX
INCREMENT FUNDS, RESPECTIVELY.
WHEREAS, on February 1999, Resolution No. 99-23061 awarded a contract to
Felix Equities, Inc. (FEI or Contractor) in the amount of $17,692,568.00, pursuant to Bid
No. 99-97/98 for the Water and Waste Water Pump Station Upgrades in the City of Miami
Beach (Project) (the Contract); and
WHEREAS, since the commencement of construction, several delays related to
coordination of unforeseen conditions, omissions and deletions occurred; and
WHEREAS, on May 21,2001, FEI submitted a Request for Equitable Adjustment
(REA) to the City's consulting engineer, Camp Dresser & McKee, Inc. (CDM), for
approximately $1.7 million, representing increased costs the Contractor attributed to delays
associated with the issues referenced above; and
WHEREAS, repeated City requests for FEI to submit specific documentation to
support the REA were not provided in sufficient detail to allow a thorough analysis by CDM
or City staff and, without this information, the City could not evaluate the Contractors REA;
and
WHEREAS, the City's Project team actively addressed alternatives to encourage
FEI to proceed with construction without further delays, including discussions to set out a
plan to resolve outstanding claims issues, and to persuade FEI to immediately bring the
major subcontractors back to work; produce a realistic recovery schedule to advance the
Project's critical path; and to provide sufficient skilled labor and equipment to prosecute the
work in a timely manner; and
WHEREAS, the City Administration, as a measure of good faith, did offer additional
time and money to resolve the outstanding REA for those areas that it felt could be
supported by the information it had but, unfortunately, these discussions did not yield
positive results; and
WHEREAS, for several months, FEI continued to fall seriously behind schedule and
did not appear to have a plan of action to correct the situation, and the ever-dwindling level
of manpower assigned to the Project mirrored the lack of progress; and
WHEREAS, several of FEI's subcontractors on the Project notified the City of FEI's
failure to pay them, and that they had therefore stopped work and/or refused to provide FEI
with release of liens; and
WHEREAS, in this phase of the Contract, the critical path ran through the electrical
and mechanical subcontractors, and the electrical subcontractor for several months
severely reduced the number of its employees on site to well below what was needed to
make effective progress, and the mechanical contractor apparently left the Project entirely;
and
WHEREAS, both the electrical and mechanical subcontractors indicated that their
lack of responsiveness on the Project was due to non-payment by FEI; and
WHEREAS, because of the lack of progress of the two major subcontractors, the
critical path did not advance for nearly four months, and at those manpower levels,
extensive additional delays were anticipated which contributed to inexcusable delays in the
Contract time; and
WHEREAS, the lack of adequate manpower to advance the Project resulted in the
effective abandonment of the Project by FEI; and
WHEREAS, FEI did, however, file a second Request for Equitable Adjustment
(REA), in the amount of $1.4 million, in May 2002, bringing the total REA claim by FEI to
$3.1 million; and
WHEREAS, similar to the first REA, this second REA did not include sufficient detail
to support the Contractor's request for additional dollars; and
WHEREAS, as FEI continued in its failure to properly staff the job, the City
Administration, on June 7, 2002, sent FEI a Notice of Default, due to the lack of progress in
the Project, and provided FEI ten (10) days to correct the lack of progress issues; and
WHEREAS, upon FEI's failure to properly remedy its lack of progress, the City
Administration certified FEI in default on June 18, 2002; and
WHEREAS, subsequently, on July 10, 2002, and pursuant to Article 8.8 of the City's
Contract with FEI, the Administration recommended that the City Commission remove the
prosecution of work from FEI, and further authorized the City Manager, or his designee, to
prosecute the remainder of the work; the City Commission approved this request on that
date, through Resolution No. 2002-24924; and
WHEREAS, Resolution No. 2002-24924, also declared an emergency situation and
waived formal competitive bidding requirements for the Project, providing the City Manager
the necessary tools to procure a new contractor, who could successfully complete the
Project; and
WHEREAS, not withstanding the authority granted to it pursuant to Resolution No.
2002-24924, the Administration did follow a modified bid process in choosing a
replacement contractor by requesting proposals from three replacement contractors, some
who had done business with the City previously, and others who were recommended by
the Project designer as providing superior work on previous projects; and
WHEREAS, the emphasis on the selection of a replacement contractor was on
qualifications, so that the City could contract with a contractor who specialized in the type
of work contemplated in the Project, and one who could demonstrate a track record of
success; it was also deemed preferable to have a contractor that had stepped in and
completed contracts as a replacement contractor in the past; and
WHEREAS, on July 9, 2002, the day before the City Commission action taken in
Resolution No. 2002-24924, Linc Net, the parent company of FEI, filed for bankruptcy and
an automatic stay was placed on the FEI Contract; and
WHEREAS, this action precluded the City from implementing any action regarding
FEI, and FEI's Contract without obtaining Bankruptcy Court approval; and
WHEREAS, at approximately the same time, FEI and its surety company, United
States Fidelity and Guaranty Company (USF&G), requested a meeting with the City to
discuss potential settlement options, but these initial discussions did not produce a
settlement that met the interests of all parties; and
WHEREAS, as a result of FEI's default under the Contract, the City, through the
delegation of powers granted the City Manager pursuant to Resolution No. 2002-24924,
properly invoked the Performance Bond on the Project (provided by USF&G in August
2002), but USF&G declined to honor said Performance Bond, based on the bankruptcy of
FEI; and
WHEREAS, subsequent demands and settlement discussions continued throughout
the balance of 2002 and into 2003; and
WHEREAS, to date, the City Administration and City Attorney have been unable to
negotiate an acceptable settlement, and many of these issues have become a source of
current litigation; and
WHEREAS, due to the continued deterioration of the pump stations, the City
Administration decided in late 2002 that it was not in the City's interest to continue to wait
for the conclusion of the FEI/United States Fidelity and Guaranty Company surety issues
noted above before continuing the Project and therefore, the Administration decided to
complete the previously approved informal bid process to secure a replacement contractor;
and
WHEREAS, on June 10, 2003, (the deadline for bids pursuant to the modified bid
process for a replacement contractor), bids were received by the City's Procurement
Division; and
WHEREAS, only one contractor was deemed qualified and responsive; the City
decided to proceed with negotiations with Widell, Inc., whose initial bid was in the amount
of $20,970,000; and
WHEREAS, the City entered into long and very detailed negotiations with Widell,
Inc., wherein ClP staff and CDM, as well as personnel from Widell, evaluated every item in
the bid proposal; reviewed carefully the established scope; and reviewed the documents
submitted for bid, etc.; in the end, the parties agreed upon a final cost to complete the
Project of $17,352,615; and
WHEREAS, work will include furnishing and installing all necessary materials,
equipment, supplies and associated work including labor, excavation, etc. to complete the
major renovation of twelve (12) dry pit waste water pump stations; four (4) water pump
stations; six (6) electrical/generator buildings; a new system-wide process instrumentation
and control system; and the replacement of eleven (11) submersible waste water pump
stations; and
WHEREAS, at this time, the conditions of some of the pump stations are in
emergency status; the equipment installations that FEI was providing was never completed
and the pump stations are still working with extremely outdated and damaged equipment
installed almost 30 years ago; and
WHEREAS, the City is required to act at once and proceed with the upgrades to
provide its citizens, including residents and visitors, with a system comparable with the
progress of the City of Miami Beach; and
WHEREAS, the City has provided due notice to the surety, USF & G, of all actions
taken to complete the Project including, but not limited to, giving the surety ample
opportunity to hire a replacement contractor to complete the Project or allow the surety to
complete the Project itself and the surety has failed and refused to do so; and
WHEREAS, funding, in the amount of $13,659,893,83, from Water and Sewer Bond
- Series I, is appropriated and available for use on this Project; a portion of which is the
balance of FEI's Contract amount; and
WHEREAS, additional funding in the amounts of $1,173,063.00 and $15,393.71 are
available for use on this Project from the City Center and South Point Redevelopment Area
tax increment funds, respectively; and shall be appropriated by separate action; and
WHEREAS, funding, in the amount of $4,862,562.00, from the Water & Sewer Bond
- Series I (Fund 426), has been appropriated for use on the South Pointe Wastewater
Master Booster Pump Station Project, which is in the design phase, but can be replaced by
South Pointe Redevelopment Area tax increment funds; and
WHEREAS, with the adoption of this Resolution, $4,862,562.00 from the Water &
Sewer Bond - Series I (Fund 426), that had been appropriated for use on the South Pointe
Wastewater Master Booster Pump Station Project, will be reallocated to the Water and
Wastewater Pump Station Upgrades Project; the South Pointe Wastewater Master Booster
Pump Station Project will be funded by South Pointe Redevelopment Area tax increment
funds; and
WHEREAS, these funds will be used to fund the construction costs for Widell, Inc.;
a new contingency on the Project; additional services for CDM to complete the construction
administration and field oversight (which is sought to be awarded in an accompanying
resolution); and additional Project management fees for the ClP Office; and
WHEREAS, accordingly, the Administration recommends the ratification of award of
a construction contract to the replacement contractor, Widell, Inc., for the Water and Waste
Water Pump Stations Upgrade Project, in the amount of $17,352,615, and the requisite
appropriation of funds to fully fund the project.
NOW, THEREFORE BE IT DULY RESOLVED BY THE CHAIRMAN AND
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairman and
members of the Miami Beach Redevelopment Agency ratify the award of a construction
contract to the replacement contractor, Widell, Inc. for the Water and Waste Water Pump
Stations Upgrade Project, in the amount of $17,352,615; and appropriate funding in the
amounts of $1,173,063.00 and $15,393.71 for use on this Project from the City Center and
South Point Redevelopment Area tax increment funds, respectively, to fully fund the
construction and related Project costs.
/
PASSED AND ADOPTED this 14thd (d~( ~ 2004.
~1-1~ ~;LERK ' I
APPROVF. D AS TO
FORM & LANGUAGE
& FOR EXECUTION
T:~,GENDA~2004~Jan1404~egular~Pump Stations Upgrades RDA Reso - Widell.doc
REDEVELOPMEN~AGENCY ~
COMMISSION ITEM SUMMARY
Condensed Title:
Ratify Award of the contract to Widell Inc. for re-procurement of Water and Waste Water Pump Stations Upgrades in the
Amount of $17,352,615; ratify additional services to CDM for related Construction Administration services; and appropriating
funds in the amount of $1,218,956.71 as follows, to fully fund the construction cost, additional services for construction
administration and field oversight services to CDM, project contingency and project management fees: $1,203,063.00 from
City Center Redevelopment Area Tax Increment Funds, and $15,893.71 from South Pointe Redevelopment Area Tax
Increment Funds.
Issue:
I Should the Redevelopment Agency Ratify Award of the Contract to Widell, Inc. and Additional Services to CDM, and
I
appropriate the requisite funds?
Item Summary/Recommendation:
On February 1999, Resolution 99-23061 awarded a $17,692,568.00 contract to Felix Equities, Inc. (FEI) pursuant to
Invitation to Bid No. 99-97/98 for the Water and Waste Water Pump Station Upgrades. On June 18, 2002, the Administration
certified FEI in Default. On July 10, 2002, the Mayor and City Commission adopted Resolution 2002-24924, which declared
an emergency situation and waived the formal competitive bidding requirements for the project. Linc Net, the parent
company of FEI, filed for bankruptcy and an automatic stay was placed on the FEI contract. This action precluded the City
from implementing any action regarding FEI and FEI's contract without Bankruptcy Court approval. At approximately the
same time, FEI and its surety company, United States Fidelity and Guaranty Company (USF&G), requested a meeting with
the City to discuss potential settlement options. These initial discussions did not produce a settlement that met the interests
of all parties. Therefore, the City invoked the Performance Bond on the project provided by USF&G in August 2002. USF&G
declined to honor its Performance Bond based on the bankruptcy of FEI. Subsequent demands and settlement discussions
continued throughout the balance of 2002 and into 2003. To date, the City Administration and City Attorney have been
unable to negotiate an acceptable settlement and many of these issues have become a source of current litigation. Due to
the continued deterioration of the pump stations, the City Administration decided in late 2002 that it was not in the City's
interest to continue to wait for the conclusion of the FEI/Surety issues noted above before continuing the project. Therefore,
the Administration decided to complete the previously approved informal bid process to secure a replacement contractor.
The CIP Office, together with the Procurement Department, conducted a selective re-bid for the project in 2003 with a
deadline of June 10, 2003, to receive bid proposals for the re-procurement. Widell, Inc. was the only respondent deemed
qualified and responsive and presented an initial bid proposal in the amount of $20,970,000, which was later negotiated,
with the assistance of Camp Dresser and McKee, the City's consultant on the project, and which resulted in a final bid
proposal in the amount of $17,352,615. The work includes the completion of a major renovation to twelve (12) dry pit waste
water pump stations, four (4) water pump stations, six (6) electrical/generator Buildings, a new system-wide process
instrumentation and control system, and the replacement of eleven (11 ) submersible waste water pump stations. At this time
the conditions of some of the Pump Stations are in emergency status; the equipment installations that FEI was providing was
never completed and the Pump Stations are still working with extremely outdated and damaged equipment installed almost
30 years a~lo.
Advisory Board Recommendation:
I N/A
Financial Information:
Funds: $1,203,063.00 City Center RDA TIF
2 $15,893.71 South Pointe RDA TIF
Finance Dept. Total $1,218,956.71
City Clerk's Office Legislative Tracking:
I JECh
Si n.Offs:
AGENDA ITEM ,.~
DATE l-l -Oy
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.miamibeachfl.gov
To:
From:
Subject:
REDEVELOPMENT AGENCY MEMORANDUM
Chairman and Members of the Board
Miami Beach Redevelopment Agency
Jorge M. Gonzalez ¥ d..,..~/~/
Executive Director ,~ ~
U
Water and Waste Water Pump Stations Upgrades Project.
Date: January, 14, 2004
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY RATIFYING THE AWARD OF A
CONTRACT TO THE FIRM OF WIDELL, INC., IN THE AMOUNT OF
$17,352,615, FOR COMPLETION OF THE WATER AND WASTE WATER
PUMP STATION UPGRADES PROJECT (BID NO. 99-97~98), PURSUANT TO
THE ACTION(S) DELEGATED TO THE CITY MANAGER AND/OR HIS
DESIGNEE PURSUANT TO RESOLUTION NO. 2002-24924; AND
APPROPRIATING FUNDS, IN THE AMOUNT OF $1,218,956.71, AS
FOLLOWS, TO FULLY FUND THE PROJECT CONSTRUCTION COST;
ADDITIONAL SERVICES FOR CONSTRUCTION ADMINISTRATION AND
FIELD OVERSIGHT SERVICES TO CAMP, DRESSER & MCKEE (CDM);
PROJECT CONTINGENCY; AND PROJECT MANAGEMENT FEES:
$1,203,063.00 FROM CITY CENTER REDEVELOPMENT AREA TAX
INCREMENT FUNDS, AND $15,893.71 FROM SOUTH POINTE
REDEVELOPMENT AREA TAX INCREMENT FUNDS.
ADMINISTRATION RECOMMENDATION
Adopt the Resolutions.
FUNDING
Funding has been appropriated and is available from the existing Standing Order for Felix
Equities, Inc. (FEI), in the amount of $11,107,245.95. Additional funds from Water &
Sewer Bond - Series I (Fund 426) allocated to the Water and Wastewater Pump Station
Upgrades Project in the amount of $2,552,647.88 have also previously been appropriated
and are available for use on the project.
Funding in the amount of $4,862,562.00 has been appropriated for use on the South
Pointe Wastewater Master Booster Pump Station project, which is in the design phase.
With the approval of this item, this funding will be reallocated to the Water and Wastewater
Pump Station Upgrades Project. The South Pointe Wastewater Master Booster Pump
Station project will be funded by South Pointe Redevelopment Agency (RDA) Tax
Increment Funds (TIF).
Redevelopment Agency Memorandum
Water and Wastewater Pump Station Upgrade Contractor Re-Procurement
January 14, 2004
Page 2 of 6
Additional funding in the amounts of $1,203,063.00 and $15,893.71 are available from the
City Center and South Pointe RD^ TIF and are being appropriated through the adoption of
this resolution.
The sum of these amounts, $19,741,412.54, will fully fund the Construction contract with
Widell ($17,352,615.00), Additional Services for Construction Administration and Field
Observation for CDM (not to exceed $500,000.00), additional CIP Office project
management fees ($158,455.11 ), and a project contingency ($1,730,342.43).
ANALYSIS
On February 1999, Resolution 99-23061 awarded a $17,692,568.00 contract to Felix
Equities, Inc. (FEI) pursuant to Bid No.99-97/98 for the Water and Waste Water Pump
Station Upgrades in the City of Miami Beach.
Since the commencement of construction, several delays related to coordination of
unforeseen conditions, omissions and deletions occurred.
On May 21, 2001, the Contractor (FEI) submitted a Request for Equitable Adjustment
(REA) to the City's consulting engineer Camp Dresser & McKee, Inc. (CDM) for
approximately $1.7 million, representing increased costs the Contractor attributed to delays
associated with the issues referenced above. Repeated City requests for FEI to submit
specific documentation to support the REA were not provided in sufficient detail to allow a
thorough analysis by CDM or City staff. Without this information, the City could not
evaluate the Contractor's REA.
On November 28, 2001, as a result of staff concerns, a Letter to Commission (LTC) was
provided to the City Commission advising that the conditions described above had
contributed to time delays and additional costs.
The City's Project team actively addressed alternatives to encourage FEI to proceed with
construction without further delays, including discussions to set out a plan to resolve
outstanding claims issues, and to persuade FEI to immediately bring the major
subcontractors back to work, produce a realistic recovery schedule to advance the project's
critical path, and to provide sufficient skilled labor and equipment to prosecute the work in a
timely manner. The City Administration, as a measure of good faith, did offer additional
time and money to resolve the outstanding REA for those areas that it felt could be
supported by the information it had. Unfortunately, these discussions did not yield positive
results.
For several months FEI continued to fall seriously behind schedule and did not appear to
have a plan of action to correct the situation. The ever-dwindling level of manpower
assigned to the project mirrored the lack of progress. Several of FEI's subcontractors on
the project notified the City of FEI's failure to pay them and that they had therefore stopped
work and/or refused to provide FEI with release of lien letters.
Redevelopment Agency Memorandum
Water and Wastewater Pump Station Upgrade Contractor Re-Procurement
January 14, 2004
Page 3 of 6
In this phase of the contract the critical path ran through the electrical and mechanical
subcontractors. The electrical subcontractor for several months severely reduced the
number of their employees on site to well below what was needed to make effective
progress. The mechanical contractor apparently left the project entirely. Both the electrical
and mechanical subcontractors indicated that their lack of responsiveness on the project
was due to non-payment by FEI. Because of the lack of progress of the two major
subcontractors the critical path did not advance for nearly four months. At that manpower
level, extensive additional delays were anticipated which contributed to inexcusable delays
in the contract time. The lack of adequate manpower to advance the project resulted in the
effective abandonment of the project by FEI.
FEI did, however, file a second Request for Equitable Adjustment in the amount of $1.4
million in May 2002. The second REA brought the total REA claim by FEI to $3.1 million.
Similar to the first REA, this second REA did not include sufficient detail to support the
Contractor's request for additional dollars.
As FEI continued in its failure to propedy staffthe job, the City Administration, on June 7,
2002, sent Felix Equities a Notice of Default due to the lack of progress in the project and
provided FEI 10 days to correct the lack of progress issues. Upon FEI's failure to properly
remedy its lack of progress, the City Administration certified FEI in default on June 18,
2002. Subsequently, on July 10, 2002, and pursuant to Article 8.8 of the City's contract
with FEI, the Administration recommended that the City Commission remove the
prosecution of work from the hands of FEI and authorize the City Manager, or designee, to
prosecute the remainder of the work. Pursuant to Article 8.8, any remaining funds in the
contract would be returned to the contractor, or if the remaining funds are insufficient, the
contractor, after completion of the work, would be required to paythe City the cost overrun.
This action was consistent with the contract requirements. The City Commission approved
this request on that date through Resolution 2002-24924.
Resolution 2002-24924 declared an emergency situation and waived formal competitive
bidding requirements for the project, providing the City Manager the necessary tools to
procure a new Contractor which could successfully complete the project. Although, for the
above reasons, the Administration recommended a waiver of competitive bid requirements,
the Administration did follow a modified bid process in choosing a replacement contractor.
The City requested proposals from three replacement contractors, some who had done
business with the City previously and some who were recommended by the designer as
providing superior work on previous projects. The emphasis on the selection of a
replacement contractor was on qualifications. The City wanted to contract with a contractor
who specializes in this type of work and one that could demonstrate a track record of
success. It was also preferable to have a contractor that has stepped in and completed
contracts as a replacement contractor in the past.
On July 9, 2002, the day before the City Commission action noted above, Linc Net, the
parent company of FEI, filed for bankruptcy and an automatic stay was placed on the FEI
contract. This action precluded the City from implementing any action regarding FEI and
FEI's contract without Bankruptcy Court approval. At approximately the same time, FEI
and its surety company, United States Fidelity and Guaranty Company (USF&G),
Redevelopment Agency Memorandum
Water and Wastewater Pump Station Upgrade Contractor Re-Procurement
January 14, 2004
Page 4 of 6
requested a meeting with the City to discuss potential settlement options. These initial
discussions did not produce a settlement that met the interests of all parties. Therefore,
the City invoked the Performance Bond on the project provided by USF&G in August 2002.
USF&G declined to honor its Performance Bond based on the bankruptcy of FEI.
Subsequent demands and settlement discussions continued throughout the balance of
2002 and into 2003.
To date, the City Administration and City Attorney have been unable to negotiate an
acceptable settlement and many of these issues have become a source of current
litigation. As a side note, and due to one of the issues raised by FEI and USF&G, the
Commission Resolution accompanying this Commission Memo requests that the City
Commission re-affirm that the City Manager and/or designee had authority to act regarding
all provisions of the City's contracts with both entities, including default actions, invoking of
performance bonds, and any similar or related actions.
Due to the continued deterioration of the pump stations, the City Administration decided in
late 2002 that it was not in the City's interest to continue to wait for the conclusion of the
FEI/Surety issues noted above before continuing the project. Therefore, the Administration
decided to complete the previously approved informal bid process to secure a replacement
contractor.
On June 10th, 2003, the deadline for bids pursuant to Invitation to Bid No. 10-02/03, were
received atthe Procurement Department. Only one contractor, who was deemed qualified
and responsive, submitted an initial bid proposal and the City decided to proceed with
negotiations. The initial bid by Widell, Inc. was in the amount of $20,970,000.
The City entered into long and very detailed negotiations with Widell. CIP staff and CDM
as well as personnel from Widell evaluated every item in the bid proposal, reviewed
carefully the established scope, and reviewed the documents submitted for bid, etc., and in
the end agreed upon a final cost to complete the project of $17,352,615. Work will include
furnishing and installing all necessary materials, equipment, supplies and associated work
including labor, excavation, etc. to complete the major renovation of twelve (12) dry pit
waste water pump stations, four (4) water pump stations, six (6) electrical/generator
buildings, a new system-wide process instrumentation and control system, and the
replacement of eleven (11) submersible waste water pump stations.
The City and CDM feel that Widell's price is reasonable at this time. Not only has the price
gone up since 1999 when the project was originally bid, due to time and escalation, but
also that original price from FEI has now been determined to be, by the Program Manager
and the City, most probably lower than what it should have been at that time. The original
Engineer's estimate of probable cost was $20,992,900, but after discussions with FEI and
evaluation of FEI's qualifications and references, they assured the City and CDM that their
price was accurate and that they could perform the work for the amount quoted. Based on
FEI's ultimate financial disposition, this assertion by FEI appears to have been proven
wrong.
Redevelopment Agency Memorandum
Water and Wastewater Pump Station Upgrade Contractor Re-Procurement
January 14, 2004
Page 5 of 6
There will also be additional services for CDM to complete the Construction Administration
and Field Oversight, in an estimated amount of $500,000. The proposal the City received
from CDM is higher than this amount, but the City and CDM have not yet begun
negotiations regarding the scope and amount of the fee. If the City cannot negotiate a fee
of $500,000 or less, an item may be brought to the Commission at a later date for
additional funds. By amending the contract amount now, continuity of services is
guaranteed so construction can begin without having fully negotiated the final amount.
Similarly, the City must provide a new contingency on the project, in the amount of
$1,730,342.43. Finally, there will be additional project management fees for the CIP Office
in the amount of $158,455.11. A total of $19,741,412.54 is needed to complete the
project.
Item Amount
Widel Negotiated Bid Amount
Contingency for Project
Construction Administration and Field Oversight
CIP Office Management Fees
$17,352,615.00
1,730,342.43
500,000.00
158,455.11
Total Project Costs $19,741,412.54
The original contract value with FEI was $17,692,568.00. Payments were made to FEI for
the work performed prior to the abandonment of the project. The City had to maintain the
project site and materials once FEI was removed from the project until a new contractor
could assume responsibility for the site and materials. A balance of $11,107,245.95
remains from the original FEI contract value for use to procure a new contractor.
Additional funds from Water & Sewer Bond - Series I (Fund 426) allocated to the Water
and Wastewater Pump Station Upgrades Project in the amount of $2,552,647.88 have also
previously been appropriated and are available for use on the project.
Funding in the amount of $4,862,562.00 from the Water & Sewer Bond - Series I (Fund
426) has been appropriated for use on the South Pointe Wastewater Master Booster Pump
Station project, which is in the design phase. With the adoption of this item, this funding
will be reallocated to the Water and Wastewater Pump Station Upgrades Project. The
South Pointe Wastewater Master Booster Pump Station project will be funded by South
Pointe Redevelopment Agency (RDA) Tax Increment Funds (TIF).
Additional funding in the amounts of $1,173,063.00 and $15,393.71 are available from the
City Center and South Pointe RDA TIF and are being appropriated through the adoption of
this resolution. The following table demonstrates the funds being recommended for use to
fully fund this project.
Redevelopment Agency Memorandum
Water and Wastewater Pump Station Upgrade Contractor Re-Procurement
January 14, 2004
Page 6 of 6
Funding Source
Balance from FEI Contract
Water & Sewer Bond - Series I (Fund 426)
Water & Sewer Bond - Series I (Fund 426) (from
South Pointe Wastewater Master Booster Pump Station)
City Center RDA TIF
South Pointe P, DA TIF
Amount
$11,107,245.95
2,552,647.88
4,862,562.00
1,203,063.00
15,893.71
Total Funding $19,741,412.54
CONCLUSION
At this time the conditions of some of the Pump Stations are in emergency status; the
equipment installations that FEI was providing was never completed and the Pump
Stations are still working with extremely outdated and damaged equipment installed almost
30 years ago. The City is required to act at once and proceed with the upgrades to provide
the citizens with a system comparable with the progress of the City of Miami Beach.
Therefore, the Administration recommends ratification of the Widell, Inc. final negotiated
bid proposal, in the amount of $17,352,615; the award of a construction contract to Widell,
Inc. for the Water and Waste Water Pump Stations Upgrade project; awarding additional
services to CDM in an amount not to exceed $500,000 for Construction Administration and
Field Oversight services, and the requisite appropriation of funds to fully fund the project.
T:~AGENDA~2004~lan1404~:{egular~ump Stations Upgrades RDA Memo.doc