128-1999 LTC
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\ci.miami-beach.f1.us
L.T.C. No.
128-1999
LETTER TO COMMISSION
June 3, 1999
TO: Mayor Neisen O. Kasdin and
Members of the City Commission
FROM: Sergio Rodriguez
City Manager
SUBJECT: COMPLETION OF THE BOARDWALK PROJECT
This Letter to Commission is to provide the status and information relative to the completion of the
Boardwalk resurfacing project.
Since the abandonment of the project by the contractor (Miami Hardwoods, Inc.), the City
Administration and the Legal Department have made numerous attempts to take whatever legal
actions possible in an attempt to have the contractor honor their existing contract with the City and
to complete the Boardwalk resurfacing project. Despite numerous meetings with the contractor and
their attorneys, including a Replevin Hearing to protect the materials purchased by the City that
Miami Hardwoods, Inc. had in their possession, and a mediation hearing by an independent Certified
Mediator, Miami Hardwoods, Inc. has elected to close their doors and go out of business rather than
honor their contract with the City.
Because further delays in the completion of the project are unacceptable, I have directed Property
Management to take all necessary actions to complete the project as soon as possible. The Legal
Department is also proceeding with settlement negotiations with the bonding company, to secure
all funding necessary, to offset any potential loss by the City in materials and labor deficiencies
created as a result of Miami Hardwoods' failure to complete their contract with the City.
The following is a summary of the project's current status and the required actions necessary to
complete the project.
Remainin~ Scope of Work
The remaining sections of the Boardwalk project yet to be completed, consist of the surface
decking between 43rd and 47th Street and the associated handicap ramps, stair landings, and
stairs that were to be resurfaced as part of the original contract. Property Management
performed a complete site inspection and has determined that a total of28,758 sq. ft. of the
original 130,000 sq. ft. project, remains to be completed. The breakdown of the remaining
areas are as follows:
.
.
.
Boardwalk Surface Decking
Handicap Ramps
Stair Landings and Steps
Total
18,822 sq. ft.
4,320 sq. ft.
5,616 sq. ft.
28,758 sq. ft.
Property Management has also determined that a total of 65,000 lineal feet of hardwood
materials and associated fasteners will be required to complete the remaining unfinished
portion of the project.
Available Fundin~
Funding to complete the project consists of a combined total ofthe retainage held back for
the completed portions of the Boardwalk, and the balance of the contract that was not paid
to the contractor. The combined total of this portion of funding is $79,281.91. Additionally,
the Legal Department has received a settlement offer of$33,000.00 to date, from the bonding
company that bonded the project for Miami Hardwoods, Inc. This provides for the total
funding currently available to complete the project at $l12,281.91.
Project Costs
Materials
As mentioned previously, Property Management has completed a hard estimate of the
unfinished portion of the Boardwalk and has determined the total amount of hardwood
needed to complete the project is 65,000 lineal feet. Additionally, the 2-1/2" x 9 gauge
(marine environmental grade) screw fasteners needed to complete the project, based on the
use of 5 screws per sq. ft. as used in the previously installed portions, are 145,000 pieces.
Although these items will need to be formally bid, Property Management has already
received firm quotes from vendors as to the exact match, availability, and costs of the
materials needed to complete the project. The hardwood quotes are from Timber Holding
Limited, the largest importer in the United States of tropical hardwoods, and the supplier of
hardwoods to the Disney Beach and Yacht Club Boardwalk in Orlando, Universal Studios,
Sunken Meadows Boardwalk in New York State Park, and the Indian Lakes Wetland Exhibit
at the Brookfield Zoo in Chicago. The following is a breakdown of the estimated costs:
. Hardwood (quote date 6/2/99)
65,000 1.f. of " Ipe" tropical hardwood, edge 4 edge (E4E), surfaced 4 sides (S4S), first
export quality (FEQ), first one face (F1F) grade, at 5/8" thickness x 5" width x 8-16' random
defined lengths in various 2' increments, delivered to the City of Miami Beach Property
Management yard.
65,000 1.f. @ .75 per lineal foot = $ 48,750.00
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. Fasteners (quote date 6/2/99)
Dumar International Inc, the Miami-Dade county vendor for fasteners has provided a quote
for the required 150,000 pieces of 2-1/2" x 9 gauge, "Dacrotized" (marine environment
grade) "Woodex" decking screws, square head boxed, drill tip point, @ .035 per piece. This
= $ 5,325.00.
Total Material Cost = $ 54,075.00
Labor
The Labor unit price for the completed existing application of the hardwood costs $1.04 per
square foot of resurfaced area. This unit price includes the end beveling of the boards to
prevent any tripping hazards on the walking surface. As the economy of scale of purchasing
power has been greatly reduced from the original 130,000 sq. ft. to the remaining 28,758 sq.
ft., Property Management estimates the labor cost of the remaining portion of the hardwoods
will cost approximately $1.50 per square foot to complete. The following is the estimated
cost for the installation.
28,758 sq. ft. @ $ 1.50 per square foot = $ 43,137.00
In addition to the hardwood needed to complete the project, Property Management is adding
an extra 3,000 lineal feet of hardwood material to the order to provide for an in-house stock
of material for maintenance needs and requirements. The cost of the stock material will add
$ 2,250 to the project cost.
Total Project Cost = $ 99,462.00
Commission Actions Required
At my direction, Property Management has already developed the necessary specifications
and purchase requisitions required and has submitted the bid package for the hardwood
materials to the Procurement Division for the required formal bid process. Procurement has
issued the bid and has the bid opening date set for June 15, 1999. The request for the award
of the contract will be placed on the June 23,1999 consent agenda for the Commission's
approvaL Specifications for the "labor" or installation portion of the project are also currently
being developed for the formal bid process and will also be bid in late June, and we will try
to place the request for the award of the contract on the July 7, 1999 consent agenda for the
Commission's approvaL This will avoid any time delays with the August Commission break
and will allow for the awarded contractor to start work immediately upon delivery of the
hardwood materials.
Project Duration
The hardwood material supplier has estimated the delivery of the materials will require
between 60-90 days after they receive the order due to the special size of the materials,
packaging, and the shipping requirements from BraziL Installation of the product is
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estimated to take between 6-8 weeks. With the delivery and installation times combined, the
project should be completed during the first week of December 1999.
Based on the information received, there should be sufficient funding in place to complete the
project without the need for additional funding, and within the original contract amount of
$572,000.00, by utilizing the balance of the contract and the recovery from the Bonding Company
for inadequate contract compliance by Miami Hardwoods, Inc. The balance of funds remaining after
the contract awards are made, should be utilized for the installation of Boardwalk "benches" to
replace the built-in seating that was required to be removed as part of the resurfacing project.
To assure these schedules stay on track, I have assigned Matthew D. Schwartz, Assistant City
Manager, to oversee the project until it is completed. Additionally, Brad A. Judd, Property
Management Director, will serve as construction manager on the project, to oversee the day-to-day
activities of the contractor until the project is complete. I believe these actions will expedite the
completion ofthe project to its fastest possible conclusion.
If you require any additional information, please do not hesitate to contact me.
l1)i)S
SRlMDSIBAJ
c: Matthew D. Schwartz, Assistant City Manager
Brad A. Judd, Property Management Director
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