Resolution 2023-32454 (2)RESOLUTION NO. 2023-32454
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OFJTHE CITY OF
MIAMI BEACH, FLORIDA, APPROVING THE SETTLEMENT AGREEMENT
AND RELEASE BETWEEN THE CITY OF MIAMI BEACH , FLORIDA (CITY)
AND RIC-MAN INTERNATIONAL, INC. (RMI) IN THE AMOUNT OF $950,000,
WHICH SETTLEMENT SUMS ARE AVAILABLE IN THE PROJECT BUDGET,
TO SETTLE ALL OUTSTANDING CLAIMS PERTAINING TO THE
DESIGN/BUILD SERVICES ASSOCIATED WITH NEIGHBORHOOD NO. 8:
CENTRAL BAYSHORE SOUTH RIGHT-OF-WAY INFRASTRUCTURE
IMPROVEMENTS PROJECT AND AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE THE SETTLEMENT AGREEMENT.
WHEREAS, on April 13, 2016, the Mayor and City Commission adopted Resolution No.
2016-29363, pursuant to Request for Proposals No. 2015-133-YG, awarding design/build
services to Ric -Man International, Inc. ("RMI" or the "Contractor") for the Neighborhood No. 8:
Central Bayshore South Right -of -Way (ROW) Infrastructure Improvements project; and
WHEREAS, on June 10, 2016, a design -build contract (the "Design -Build Contract") was
executed in the amount of $18,061,646 plus $1,300,000 owner's contingency for a total of
$19,361,645.95; and
WHEREAS, the Central Bayshore South Neighborhood project limits include the public
rights -of -way bounded on the north by the south right-of-way line of 34th Street; on the east by
the west right- of way line of Pine Tree Drive; on the south by Dade Boulevard; and on the west
by the Miami Beach Golf Course; and
WHEREAS, the scope of this Design -Build project consisted of the design and
construction of new water mains, road raising/reconstruction, storm drainage, installation of
stormwater pump station, stormwater outfalls, and concrete sidewalk repairs; and
WHEREAS, on July 14, 2016, Notice to Proceed (NTP) No. 1 was issued directing RMI to
start the pre -construction work including engineering design and permitting; and
WHEREAS, on December 8, 2016, a Community meeting was held to kick-off the start of
construction for water main installation and to present the 60% stormwater design including
information about the road raising strategy; and
WHEREAS, following the meeting, the City received significant opposition from the
Bayshore Neighborhood community regarding the proposed road elevation improvements;
WHEREAS, in February 2017, RMI began construction activities related to the water main
scope of work, including sidewalk repairs, and road reconstruction from Dade Boulevard to 34th
Street and milling, resurfacing and striping from Dade Boulevard to 28th Street; and
WHEREAS, the 60% level stormwater design encountered challenges in meeting the
specified design criteria, as well as obtaining consensus from the community on the road raising
strategy; and
WHEREAS, for several months the Administration and Design/Builder attempted to
finalize the stormwater design, but these efforts proved unsuccessful; and
WHEREAS, on June 2, 2017 a stop work letter was issued to RMI for all design work
related to the drainage and right-of-way infrastructure scope of work, until further direction by the
City; and
WHEREAS, the City's Stormwater Management strategy was reviewed by the Urban Land
Institute (ULI) and by the Columbia University Resilience Accelerator in 2018 and based on
recommendations made by ULI, the Resilience Accelerator and other agencies, the
Administration was to determine next steps in the stormwater program to better implement the
projects; and
WHEREAS, on December 18, 2020 a Notice of Termination for Convenience for the
Design -Build Contract for the Central Bayshore South Right -of -Way (ROW) Infrastructure
Improvements project was sent to the Contractor, and as required by contract terms, the City
requested a final termination payment proposal with substantiating documentation as a final
settlement for all work performed on the project; and
WHEREAS, RMI submitted a claim letter on January 15, 2021 with a final termination
payment proposal in the amount of $3,898,305.25; and
WHEREAS, the Contractor claimed that the final termination payment proposal included
the opportunity costs of maintaining the payment and performance bond active for an amount
equal to the contract amount for a lengthy period of idle time, compromising their bonding
capacity, and the overhead costs associated with management and accounting services to
monitor the project and continuously assess the availability of resources to be prepared to
proceed with the work upon notification by the City; and
WHEREAS, after numerous written communications and negotiation meetings, the City
and the contractor agreed to a final termination payment in the amount of $950,000 in full
settlement of all claims pursuant to a settlement agreement, a copy of which is attached to the
Memorandum accompanying this Resolution as Attachment A (the "Proposed Settlement
Agreement"), said termination payment to account for the reduced bonding capacity and
unabsorbed office overhead costs and expenses allegedly incurred by RMI, subject to City
Commission approval of the Proposed Settlement Agreement; and
WHEREAS, the City will also be releasing the remaining retainage held for work previously
completed in the amount of $10,000; and
WHEREAS, the Administration recommends that the Mayor and City Commission
approve the resolution.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA approving the settlement agreement
and mutual release between the City of Miami Beach, Florida (city) and Ric -Man International,
Inc. (RMI) in the amount of $950,000, to settle all outstanding claims pertaining to the design/build
services associated with Neighborhood No. 8 Central Bayshore South Right-of-way
Infrastructure Improvements project and authorizing the City Manager and City Clerk to execute
the settlement agreement, which settlement sums are available in the project budget.
PASSED and ADOPTED this f day of Febri-ee. 2023.
Dan Gelber, Mayor
AT -TEST:
FEB 0 8
Ra6ael E. Granado, City Clerk
APPROVED AS TO
FORM & LANGUAGE
&FOR EXECUTION
'7 - z-3
Obj Atforftay rca :Date
e 1 e
MIAMIBEACH
COMMISSION MEMORANDUM
TO; Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: February 1, 2023
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING THE SETTLEMENT
AGREEMENT AND RELEASE BETWEEN THE CITY OF MIAMI BEACH,
FLORIDA (CITY) AND RIC-MAN INTERNATIONAL, INC_ (RMI) IN THE
AMOUNT OF $950,000, WHICH SETTLEMENT SUMS ARE AVAILABLE IN
THE PROJECT BUDGET, TO SETTLE ALL OUTSTANDING CLAIMS
PERTAINING TO THE DESIGN/BUILD SERVICES ASSOCIATED WITH
NEIGHBORHOOD NO. 8: CENTRAL BAYSHORE SOUTH RIGHT-OF-WAY
INFRASTRUCTURE IMPROVEMENTS PROJECT AND AUTHORIZING
THE MAYOR AND CITY CLERK TO EXECUTE THE SETTLEMENT
AGREEMENT.
RECOMMENDATION.
The Administration recommends that the City Commission approve the Resolution.
On April 13, 2016, the Mayor and City Commission adopted Resolution No. 2016-29363,
pursuant to Request for Proposals No. 2015-133-YG, awarding design/build services to Ric -
Man Intemational, Inc. ("RMI" or the "Contractor") for the Neighborhood No. 8: Central
Bayshore South Right -of -Way (ROW) Infrastructure Improvements project. On June 10, 2016,
a design -build contract (the "Design -Build Contract') was executed in the amount of
$18,061,646 plus $1,300,000 owner's contingency for a total of $19,361,645.95.
The Central Bayshore South Neighborhood project limits include the public rights -of -way
bounded on the north by the south right-of-way line of 34th Street; on the east by the west right -
of way line of Pine Tree Drive; on the south by Dade Boulevard; and on the west by the Miami
Beach Golf Course. The scope of this Design -Build project consisted of the design and
construction of new water mains, road raising/reconstruction, storm drainage, installation of
stormwater pump station, stormwater outfalls, and concrete sidewalk repairs.
On July 14, 2016, Notice to Proceed (NTP) No. 1 was issued directing RMI to start the pre -
construction work including engineering design and permitting:
Page 649 of 1420
On December 8, 2016 a community meeting was held to kick-off the start of construction for
water main installation and to present the 60% stormwater design including information about the
road raising strategy. Following the meeting, the City received significant opposition from the
Bayshore Neighborhood community regarding the proposed road elevation improvements.
In February 2017, RMI began construction activities related to the water main scope of work,
including sidewalk repairs, and road reconstruction from Dade Boulevard to 34th Street and
milling, resurfacing and striping from Dade Boulevard to 28th Street.
ANALYSIS
The 60% level stormwater design encountered challenges in meeting the specified design
criteria, as well as obtaining consensus from the community on the road raising strategy. For
several months, the Administration and RMI attempted to finalize the stormwater design, but
these efforts proved unsuccessful..
On June 2, 2017 a stop work letter was issued to RMI for all design work related to the drainage
and right-of-way infrastructure scope of work, until further direction by the City. The City's
Stormwater Management strategy was reviewed by the Urban Land Institute (ULI') and by the
Columbia University Resilience Accelerator in 2018. Based on recommendations made by ULI,
the Resilience Accelerator and other agencies, the Administration was to determine next steps
in the stormwater program to better implement the projects.
On December 18, 2020 a Notice of Termination for Convenience for the Design -Build Contract
for the Central Bayshore South Right -of -Way (ROW) Infrastructure Improvements project was
sent to RMI, and as required by contract terms, the City requested a final termination payment
proposal with substantiating documentation as a final settlement for all work performed on the
project. RMI submitted a claim letter on January 15, 2021 (Attachment A) with a final termination
payment proposal in the amount of $3;898,305.25.The Contractor claimed that the final
termination payment proposal included the opportunity cost of maintaining the payment and
performance bond active for an amount equal to the contract amount for a lengthy period of idle
time, compromising their bonding capacity, and the overhead costs associated with
management and accounting services to monitor the project and continuously assess the
availability of resources to be prepared to proceed with the work upon notification by the City.
After numerous written communications and negotiation meetings, the City and the Contractor
agreed to a final termination payment in the amount of $950,000 in full settlement of all claims
pursuant to a settlement agreement and release (Attachment B), said termination payment to
account for the reduced bonding capacity and unabsorbed office overhead costs and expenses
allegedly incurred by RMI, subject to City Commission approval of the settlement agreement.
Additionally, the City, will be releasing the remaining retainage held in the contract, for work
previously completed, in the amount of $10,000.
SUPPORTING SURVEY DATA
Not applicable.
FINANCIAL INFORMATION
Not applicable.
Page 650 of 1420
Amount(s)/Account(s):
$950,000 432-0820-069357-26-418-000-00-00-00-28940
CONCLUSION
The Administration recommends that the City Commission approve the resolution.
Applicable Area
Middle Beach
Is this a "Residents Right
to Know" 'item. pursuant to
CitiLCode Section 2-14?
9M1 7
Strategic Connection
Non -Applicable
Legislative Tracking
Capital Improvement Projects
P 77 - •
:. . _ �.
No
ATTACHMENTS:
Description
o Attachment A- RMI Claim's Letter Dated January 15, 2021
o Attachment B - Settlement Agreement
o Resolution
Page 651 of 1420
ATTACHMENT A
d1oRIC-MAN INTERNATIONAL, INC.
r GENERAL CONTRACTOR 49*
1545 NW 27TH Ave • Pompano Beach, Florida 33069
Phone: (954) 426-1042 • Fax: (954) 426-0717
Raul J. Aguila 1/15/2021
Interim City Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FI 33139
Re: Notice of Termination for Convenience
Project: Design/Build Services for Neighborhood No. 8: Central Bayshore South Right -Of -Way
Infrastructure Improvements.
Dear Mr. Aguila,
This letter is in response to the December 10, 2020 Notice of Termination for Convenience ("Notice
Letter") issued by the City of Miami Beach (City) concerning the referenced Contract between the City and
Ric -Man International, Inc. (RMI). As you presumably are aware, the Contract was awarded to RMI on
June 10t', 2016. On June 2, 2017, RMI was instructed to stop its Contract work; no date was provided as
to when the resumption of the work was expected to occur. To our dismay, three and a half years passed
before the City notified us that the Contract was being terminated for the City's convenience, effective
December 18, 2020.
During the extraordinary 1,295-day period between June 2, 2017 notice to stop work and the
December 18, 2020 termination for convenience, RMI was required to maintain its Performance and
Payment Bond issued to the City at the outset of the project, which meant over $18 million in bonding
capacity was unavailable for our use; RMI was required to have its management and accounting
departments continue to oversee and monitor the project, and RMI was required to continuously assess
the availability of resources so that it would be prepared to proceed with the work when the City notified it
that the work would be resuming.
According to the Notice Letter, RMI has calculated a final termination payment proposal for your
review and consideration. Our original contract sum was $18,061,645.95, and according to our records,
the retainage still owed to us is $548,343.00. In addition, to determine our unreimbursed costs due to the
three -and -a -half -year suspension of the project, we have utilized the formula accepted by the Florida
Department of Transportation. Enclosed, you will find the calculations, which totals $3,898,305.25.
Pursuant to the above calculations, the total final payment pursuant to the Agreement and the
termination for convenience is $4,446,648.25. Please find enclosed, latest payment application and letters
received. Should you have any questions, please feel free to contact us.
Best Regards,.
Anh i CGC
General Manager
Cc: Michael Jankowski
Alina Hudak, CIP Asst. City Manager
David Martinez, P.E. CIP Director
David Gomez, CIP Division Director
Sabrina Baglieri, Senior Capital Projects Coordinator
Enclosed: Letter to Stop Work
Notice of Termination
Latest Pay-App#21
FDOT Calculation
Page 652 of 1420
I I P a 9 e
ATTACHMENT A
JUN 0 5 20Y
^fr' ?�A111,tit f�T71
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www,miamibeachfl.gov
OFFICE OF CAPITAL IMPROVEMENT PROJECTS
Tel: 305,673.7071 Fox: 305.673.7073
June 2, 2017
Sent Via Email and CertiFed US Mail
Rene L. Castillo, Sr. Tracking # 7014 1200 0000 2403 8826
President
Ric —Man International, Inc.,
1545 NW 27 Avenue
Pompano Beach, FL 33069
Re: NEIGHBORHOOD NO. 8: CENTRAL BAYSHORE SOUTH RIGHT-OF-WAY
INFRASTRUCTURE IMPROVEMENTS — Notice to Cease & Desist ROW Design
Dear Mr. Castillo,
You are hereby given notice to cease & desist all design work related to the drainage and ROW
infrastructure improvements for the subject -project, until further direction from City of Miami Beach
Administration is provided,
Please continue with all construction activities for the water main scope of work for this project, as
originally scheduled.
Should you have any questions and/or need additional information pertaining to this matter, please
contact me at your convenience.
Z
epital Projects Coordinator
cc: David Martinez, P.E., LEED AP, CIP Director
Humberto Cabanas, CIP Division Director
Eric Arencibia, P.E., CIP Capital Projects Coordinator
Page 653 of 1420
VVe are c:cmrni!tad to providing a<cel!en! Public servrc:e and safen,: ry oil %%-ho live, ::vrf;. and ploy in cur vibrun!, !ropico! his!onc comrrruni!y.
ATTACHMENT A
City of Miami Beach 17,110 Convention Center Drive Miami Beach. FI 331.39 Tel 305-673.7010 Fax- 305-673-7782
OFFICE OF THE CITY MANAGER
Tel. 305-673-7010. Fax: 305-673-7782
December 10, 2020 Via: E-Mail & Certified Mail Return Receipt
9214 8901 9403 8300 0027 3669 04
Andres Garcia, P.E./ General Manager
Ric -Man International, Inc.
1545 NW 27th Avenue
Pompano Beach, FL 33069
Re: Notice of Termination for Convenience ("Notice of Termination")
Project: Design/Build services for Neighborhood No. 8: Central Bayshore South
Right -of -Way Infrastructure Improvements ("Project").
Dear Mr. Garcia
Please allow this correspondence to serve as written notice that, pursuant to
Article 16.1 of the agreement between the City of Miami Beach, Florida (the "City") and
Ric -Man International, Inc. ("RMI"), (the "Agreement"), pertaining to the above
referenced Project, the City hereby terminates the Agreement for convenience, which
termination shall become effective on December 18, 2020.
In accordance with article 16.1 of the Agreement; RMI shall be compensated
for all Work satisfactorily performed up to the time of receipt of this Notice of
Termination, and for the assembly and submittal to the City of documents for the
services performed, as set forth in Article 16.1 of the Contract. The City shall have no
further liability for compensation, expenses or fees to RMI, except as set forth in Article
16.1, but only to the extent such provisions therein are applicable to this Notice of
Termination.
Upon receipt of this Notice of Termination for convenience, RMI is hereby
directed to immediately:
(1) Stop the Work specified as terminated in the Notice of Termination for
Convenience;
(2) Promptly notify all Subcontractors of such termination, cancel all contracts and
purchase orders to the extent they relate to the Work terminated to the fullest
extent possible and take such other actions as are necessary to minimize
demobilization and termination costs for such cancellations;
(3) Immediately deliver to the City all Design Materials as defined in Section 22.1
of the Agreement, in their original/native electronic format (i.e. CAD, Word,
Excel, etc.), any and all other unfinished documents, and any and all warranties
and guaranties for Work, equipment or materials already installed or purchased.
The Design/Builder acknowledges and agrees that all amounts previously paid
to the Design/Builder with respect to the creation and preparation of Design
Materials in approved Applications for Payment, along with the final payment
for the Design Materials, to be based on the percent completion of the Design
Materials, shall include the consideration to Design/Builder for City's ownership
and receipt of Design Materials, with final payment for Design Materials shall
be provided after receipt of Design Materials;
(4) If specifically directed by the City in writing, assign to the City all right, title and
interest of Design/Builder under any contract, subcontract and/or purchase
Page 654 of 1420
ATTACHMENT A
order, in which case the City shall have the right and obligation to settle or to
pay any outstanding claims arising from said contracts, subcontracts or
purchase orders;
(5) Place no further subcontracts or purchase orders for materials, services, or
facilities, except as necessary to complete the portion of the Work not
terminated (if any) under the Notice of Termination for Convenience;
(6) As directed by the City, transfer title and deliver to the City (a) the fabricated
and non -fabricated parts, Work in progress, -completed Work, supplies and
other material produced or required for the Work terminated; and (b) the
completed or partially completed Project records that, if this Agreement had
been completed, would be required to be furnished to the City;
(7) Settle all outstanding liabilities and termination settlement proposals from the
termination of any subcontracts or purchase orders, with the prior approval or
ratification to the extent required by the City; and
(8) Take any action that may be necessary, or that the City may direct, for the
protection and preservation of the Project, including life safety and any property
related to this Agreement that is in the Design/Builders possession and in which
the City has or may acquire an interest.
Additionally, RMI shall submit, for the City's review and consideration, a final
termination payment proposal with substantiating documentation, including an updated
Schedule of Values, within thirty days of the effective date of this termination. Such final
payment shall be in full and final settlement for all work performed on the Project
pursuant to the Agreement.
Thank you or your prompt attention to this matter. Should you have any
is, pleasentact Sabrina Baglieri at (305) 673-7071.
M
Cc�Alina Hudak, CMB-CIP Assistant City Manager
David Martinez, P.E., CMB-CIP Director
David Gomez, CMB-CIP Division Director
Sabrina Baglieri, CMB-CIP Senior Capital Projects Coordinator
Page 655 of 1420
ATTACHMENT A
APPLICATION AND CERTIFICATE FOR PAYMENT AIA DOCUMENT G702
TO OWNER: City of Miami Beach PROJECT: D/B Services for Neighb. 8 - Central Bayshore South ROW Infrastructure Improvements
Office of Capital Improvements Projects
1701 Meridian Avenue, Suite 300, Miami Beach, FL 33139 APPLICATION NO.: 21 Distribution to:
FROM: Ric -Man Intemational, Inc.
1545 NW 27th Ave
Pompano Beach, FL 33069
CONTRACTOR'S APPLICATION FOR PAYMENT
Application is made for payment, as shown below, in connection with the Contract.
Continuation Sheet, AIA Document G703, is attached.
1. ORIGINAL CONTRACT SUM
2. Net change by Change Orders
3. ,CONTRACT SUM TO DATE (Line 1 + 2)
$18,061,645.95
$1,300,000.00
$19,361,645.95
4. TOTAL COMPLETED & STORED TO DATE $5,483,430.00
(Column L on G703)
5. RETAINAGE:
a. 10% of Completed Work $548,343.00
(Columns J + K on G703)
b. 0% of Stored Material 0
(Column F on G703)
Total Retainage (Line 5a + 5b or
Total in Column N of G703) $548,343.00
6. TOTAL EARNED LESS RETAINAGE: $4,935,087.00
.....................................
(Line 4 less Line 5 Total)
7. LESS PREVIOUS CERTIFICATES FOR PAYMENT
(Line 6 from prior Certificate) 4,815,611.95
S. CURRENT PAYMENT DUE $119,475.05
9. BALANCE TO FINISH, INCLUDING RETAINAGE
(Line 3 less Line 6) $14,426,558.95
CHANGE ORDER SUMMARY
ADDITIONS
DEDUCTIONS
Total changes approved in
previous months by Owner
$1,300,000.00
Total approved this Month
TOTALS
$ 1,300,000.00
$0.00
NET CHANGES by Change Order
$1,300,000.00
PERIOD FROM:
05/01/18 OWNER
PERIOD TO:
07/31118 ENGINEER
PROJECT NO.:
ROW BAY080 C.E.I.
CONTRACT DATE:
06/10/16
The undersigned Contractor certifies that to the best of the Contractor's knowledge, information and
belief the Work covered by this Application for Payment has been completed in accordance with the
Contract Documents, that all amounts have been paid by the Contractor for Work for which previous
Certificates for Payment were issued and payments received from the Owner, and that current
payment shown herein is now due.
Contractor: Ric -Man International, Inc.
By:
Andres G. Diaz, PE
State of: Florida
County of: Miami -Dade
Subscribed and sworn to before me this
Notary Public:
My Commission expires:
ENGINEER CERTIFICATE FOR PAYMENT
Date:
In accordance with the Contract Documents, based on on -site observations and the data comprising this application, the Contractor
certifies to the Owner that to the best of their knowledge, information and belief the Work has progressed as indicated, the quality of the
Work is in accordance with the Contract Documents and the Contractor Is entitled to payment of the AMOUNT CERTIFIED.
Additionally, the FOR certifies to the Owner that the design and permitting associated with the Work has progressed as indicated and
has been undertaken, and the quality of work is in accordance with the Contract Documents, and the Contractor is entitled to the
respective portion of the payment of the AMOUNT CERTIFIED. '
AMOUNT CERTIFIED $119,475.05
(Attach explanation if amount ceAified differs from the amount applied for. Initial all figures on this Application and on Continuation
Engineer Of Record: Chen Moore & Assoc. - Gregory Mendez, P.E.
By:
Date:
This Certificate is not negotiable. THE AMOUNT CERTIFIED is payable only to the Contractor named herein. 1puance, payment and
acceptance of payment are without prejudice to any rights of the Owner or Contractor under this Contract,
G702-1992
Page 656 of 1420
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ATTACHMENT A
AIADacunwrd0703-APPUCATIONANOCERTIFIGTEFORPAYMENT NUMBERr� Daft 07131110
A B C D E F O I H I 1 I ir 117 Lr M I NI N
Central Bayehom South -Neighborhood No.8
WORK COMPLETED
PROJECTNO.: 2016.133-YO
(S)AMOUNT
(S)AMOUNT
(3)AMOUNT
BALANCE
LAST
THIS
TOTAL
ITEM UNIT TOTAL
PREhOUB
COMPLETED
COMPLETED
%
RETAINAGE
TO FINISH
APPLICATIONS
NO. DESCRIPTION OF WORK CITY UNITE PRICE VALUE C X E
PERIOD
PERIOD
TO DATE
FOR PAYMENT
THIS PERIOD
TO DATE
Complete
101h
1- Nr of Or
11.01 lConsideraWn for IndemnKcation of Cq
1
LS
$25.00
$2500
0.00
0.00
0.00
$0.00
$0.00
S0.0o
0.00%
$0.00
$25.00
Suhtatal kvmwnasum
1112M
.00
114.111011
$0.06
OAW%
$OA0
I SSS.00
S-CW Mfa/Mw1t ditft- S111SDNn1aat*DTMA% Ass '
12.01 Cost for compliance tong Federal and State requirements of the Trench Safety Act
1
LS
$25.00
525,D0
0.00
0.00
0.00
$0.00
$0.00
$0.00
0.0(r1
$0.00
$25.00
fubbw Tmtch
Sam
$0.110
$0.01)
1110.01)
0.00%
$0.00
S"
CoftetTew
A1if1
'SOUL9S.SS
S13.2mia1.17
13 - Change Orders
Charge Order I RFCD #1 - Additional Watimmain W 23rd St. RFCO N2 - Additional
13.01
Filings (Replacement of 16' BV win GV, Fire Hydrants in front of school moved to 16- WM.
1
LS
S219,755.99
$219,765.99
1.00
0.00
1.00
$219,755.99
$0.00
$219.755.99
100.00%
$21.975.60
$O.W
Change of cope sizes at Tie-in al Dade Blvd.)
13.03
Change Order 2. Charge Order to move Owners Contingency funds into Project.
1
LS
S1.080,244.01
$1,080,244.01
$657,376.37
14 - Contingency
Drava
Contingency Draw 01 - Design and pennititng of drainage pipe on Prune Ave to carry
stormwater to the existing Dade Blvd. pump station (S44.000.00).
14.01
-Design, permitting. and installation of approximately 4,700 LF of (2).2 inch PVC conduit
I
LS
$283,447.19
$283.447.19
0.1225
0.0000
0.1225
$34,727.78
$0.00
$34.727.78
12.25%
$3,472.78
and 18 pull boxes for low-voftage conduit ($168,075.82).
$248,719.41
-Additional drainage system analysis outside of original contract scope and DCP
$71.371.37
14.02
Contingency Draw #2- RFCO e6 Field ordered installation of connecting to existing 6"
1
LS
$23.830.40
$23,830.40
1,0000
0.00W
1.0000
$23.830.40
$0.00
523,830.40
100.00%
$2,383.04
$0.00
fireline and 4- domestic line In front of Miami Beach Senior Highwhool
Contingency Draw N3 - RFCD 03 - Public Works requested the relocation of (15) fifteen
existing water service meter boxes from driveways into adjacent sidewalks. Along Prairie
Avenue from Dade Blvd. to W 341h Street S37,510.08
RFCD #4 - The Public Works water atlas were not accurme aid showed a 8 inch watermain
supptiyrg water to the Goff Course. However during excavation RMI found that the
walennain described as 8 inch was 12 inch. CIP by directive from Pubic Works instructed
RMI to correct the newly installed iG watermain at 29th St. to an existing 12" watermain to
supply water to the goff course (Approximate STA 43+85. 10' Left Offset of Prairie Avenue
Base Lim). $29.215.97.
RFCD N5 - CIPIPW directed RMI to connect several additional unforeseen fire hydrants in
1403
font of the high school to the new, 16"
1
LS
$115,590.05
$116,590.05
00000
1.000D
1.0000
$0.00
$116,590.05
$115.590.05
100.00%
$11,60.01
$0.00
watenmain. Right offset of Prairie Avenue Base Line approxmnate STA 18+21 and STA
22+88. $26,608.92.
RFCD 06 - RMI was directed by pubic works to connect the existing 4- domestic ire acid 6"
fire lime off of the 8" main located at STA 21+25 for the High school, these connections were
Prot part of our scope of work and were issued via a field order. This resulted in additional
materials. labor and equipment costs. $17.685.35:
RFCD 07 - CIP at the request of Public Works directed RMI to relocate the existing meter
located at 3191 Prairie Ave. from private properly into the publd ROW: these connection
were not pan of our scope of work and wete issued via a field order. The meters were
_
originally located on the owners property. $4.569.73.
TItOd O1dNe i1,iN0S6N ilTSS1417 i11/MOM {SRSfOi!! 5030% SSS.750A3 iS/ST1SA/
fTWAL!REM• TO DATA NS,SMMSM 8.70SAmu $Iva SOS I $44p.4KM I SS.SS11 I wits A INSfTSt1SN
Page 659 of 1420
ATTACHMENT A
RIGMMAN INTERNATIONAL, INC.
dcoor GENERAL CONTRACTOR 464h
1545 NW 27TH Ave • Pompano Beach, Florida 33069
Phone: (954) 426-1042 • Fax: (954) 426-0717
Florida Department of Transportation Formula
Original Contract x 8%
Average Overhead/Day =
Original Contract Time
mm mn
new n"=
NTP 1 DESIGN l;< PERMITTING
7/14/2016
7/1412016
SUBSTANTIAL COMPLETION
420
9/7/2017
FINAL BA
60 1
11/6/2017
# of Days 480
REVISED NTP & ADDENDUM 12
OF CONTRACT STATES THESE
$18,061,645.95 x 8%
Average Overhead/Day = 480 Days
Average Overhead/Day = $3,010.27
Day of Stop
6/2/2017
Tenn Date
12/18/2020
# of Days
1295
Total Overhead = Days of Suspension x Average Overhead/Day
Total Overhead = 1,295 x 3,010.27
Total Overhead = $3, 898, 305.25
11 P a g e
Page 660 of 1420
ATTACHMENT B
SETTLEMENT AGREEMENT AND RELEASE
THIS SETTLEMENT AGREEMENT AND RELEASE (this "Agreement") is entered into as
of the day of , 2023 by and between RIC-MAN INTERNATIONAL, INC.
(hereinafter referred to as "RMI"), and the CITY OF MIAMI BEACH, FLORIDA (hereinafter
referred to as the "City"). The parties hereto (the "Parties") agree as follows:
RECITALS
WHEREAS, RMI and the City entered into that certain Design/Build Agreement pursuant
to Request for Proposals No. 2015-133-YG, dated June 10, 2016 (the "DB Agreement") in the
amount of $18,061,646 plus $1,300,000 owner's contingency for a total of $19,361,645.95,
pursuant to which RMI would provide design -build services for the project known as the
"Neighborhood No. 8 Central Bayshore South Right -of -Way Infrastructure Improvement" (the
"Project"); and
WHEREAS, on July 14, 2016, Notice to Proceed (NTP) No. 1 was issued directing RMI to
start the pre -construction work including engineering design and permitting.
WHEREAS, In February 2017, RMI began construction activities related to water main
scope of work, including sidewalk replacement, and road reconstruction from Dade Boulevard to
34t' Street and milling and resurfacing and striping from Dade Boulevard to 28' Street; and.
WHEREAS, the stormwater design reached a 60% level and encountered challenges in
meeting the specified design criteria and consensus from the community on road raising; and
WHEREAS, on June 2, 2017, the City advised RMI that design work related to stormwater
and right-of-way infrastructure scope of work of the Project should be suspended; and
WHEREAS, RMI was to proceed with all construction activities associated with the water
main scope of work; and
WHEREAS, on December 10, 2020, the City exercised its right to terminate the
Agreement for convenience pursuant to its terms; and
WHEREAS, RMI has made claims against the City for reduced bonding capacity and
unabsorbed office overhead costs and expenses allegedly incurred by RMI during the period
between the date of the suspension notice and the effective date of the termination for
convenience; and
WHEREAS, the City has denied any liability to RMI for the alleged damages; and
WHEREAS, to avoid the costs and uncertainties of litigation, the Parties are desirous of
resolving all claims and disputes between themselves, on the terms and conditions hereinafter
set forth.
NOW, THEREFORE, in exchange for the good and valuable consideration more
particularly set forth herein, but without admission of any liability, fault or wrongdoing, the Parties
agree as follows:
Page 1 of 4
Page 661 of 1420
ATTACHMENT B
1. Recitals. The above recitals are true and correct and are incorporated herein by this
reference. Capitalized terms used herein and not otherwise defined shall have the meanings
given to them in the DB Agreement.
2. Representation. This Agreement is entered into voluntarily by the Parties who
stipulate and agree that they are under no duress or undue influence. The Parties represent that
in the execution of this Agreement, they had the opportunity to consult legal counsel of their own
selection with respect to the execution this Agreement.
3. Settlement Payment. Within thirty (30) days of the Effective Date of this Agreement,
the City agrees to pay, and RMI agrees to accept, the total sum of Nine Hundred Fifty Thousand
Dollars and Zero Cents ($950,000.00) (the "Settlement Proceeds"), as a full and final settlement
between the Parties of all claims raised, or that could have been raised, by RMI pursuant or in
relation to the DB Agreement.
4. Release. RMI, for itself and on behalf of its Consultants, all Subcontractors, all
Design Subconsultants and all material suppliers at every tier, hereby remise, release, acquit
and forever discharges the City, its attorneys, representatives, officers, employees and agents
from any past, present and future claims, actions, causes of action, demands, rights, damages,
costs, losses, expenses, compensations and obligations which exist or which may hereafter
accrue, whether known or unknown, whether foreseen or unforeseen, whether matured or not
mature, whether discovered or undiscovered, and the consequences thereof, having resulted,
resulting or to result from any or all of the following:
a. RMI's performance of any work pursuant to the DB Agreement;
b. the City's suspension of work pursuant to the DB Agreement;
C. the City's termination of the DB Agreement; and
d. any and all claims for attorney's fees (including paralegal fees) and costs in any
way related to any of the foregoing.
5. Warranty of No Assignment; Satisfaction of Third -Party Interests. RMI
represents, warrants, and certifies that it has not in any manner assigned, pledged or otherwise
voluntarily or involuntarily disposed of or transferred to any person or entity any interest in any
claim(s), actions, causes of action, suits, damages, losses, judgments, executions, demands,
liabilities, obligations, responsibilities, liens, expenses, costs and attorney's fees raised by RMI
and/or referenced in this Agreement (collectively, "Claims"), and if any person or entity has any
interest in any such Claim, RMI will fully satisfy and discharge such person or entity's interests
from the Settlement Proceeds payable by the City pursuant to this Agreement. RMI will hold
harmless and indemnify the City from and for any and all actions, causes of action, damages
and costs, including reasonable attorneys' fees, incurred in defense of or in settlement of all
actions, causes of action, suit or suits, or demands, by any third party whose interest in any
Claim is not fully satisfied and discharged by RMI.
6. No Admission of Liability. RMI acknowledges and agrees that any payment by
the City pursuant to this Agreement, and/or any other act, representation, inaction or silence by
Page 2 of 4
Page 662 of 1420
ATTACHMENT B
the City is not to be construed as an admission of liability but is made to protect the interest of
the City and to avoid litigation and the expense thereof.
7. Effective Date. The Effective Date of this Agreement shall be the date upon
which the second Party to sign has affixed the signature of its representative to the Agreement
and delivered an executed copy to the other Party.
8. Entire Agreement. This Agreement constitutes the sole and entire agreement
between the Parties and supersedes all prior and contemporaneous statements, promises,
understandings or agreements, whether written or oral.
9. Amendments. This Agreement may be amended, modified or altered at any
time upon the approval of the Parties; however, any such amendment must be in writing and
signed by all Parties in order for such amendment to be of any force and effect.
10. Partial Invalidity. In the event that any provision of this Agreement is declared
by any court of competent jurisdiction or any administrative judge to be void or otherwise invalid,
all of the other terms, conditions and provisions of this Agreement shall remain in full force and
effect to the same extent as if that part declared void or invalid had never been incorporated in
the Agreement and in such form, the remainder of the Agreement shall continue to be binding
upon the Parties.
11. Applicable Law. This Agreement shall be subject to and governed by the laws
of the State of Florida, without regard to conflict of law rules.
12. Counterparts. This Agreement may be signed and executed in one or more
counterparts, each of which shall be deemed an original and all of which together shall constitute
one Agreement. Delivery of an executed counterpart of a signature page of this Agreement by
facsimile or email shall be effective as delivery of an originally executed counterpart of this
Agreement.
13, No Adverse Construction. The Parties acknowledge that this Agreement has
been prepared by each of them. In the event any part of this Agreement is found to be
ambiguous, such ambiguity shall not be construed against either of the Parties.
14. Further Acts. In addition to the acts recited in this Agreement, the Parties agree
to perform, or cause to be performed on the date of this Agreement, or thereafter, any and all
such further acts as may be reasonably necessary to consummate the transactions
contemplated hereby. Each of the Parties agrees that it will execute and deliver all such
documents and instruments as may be necessary and appropriate to effectuate the terms of this
Agreement.
[BALANCE OF PAGE IS INTENTIONALLY BLANK.]
Page 3 of 4
Page 663 of 1420
ATTACHMENT B
15. Authority. Each person(s) executing this Agreement as an agent or in a
representative capacity further warrants that he or she is duly authorized to do so.
The Parties have executed this Agreement as of the date set forth below.
IN WITNESS WHEREOF, the parties hereto have caused this Settlement Agreement
to be executed in their names by their duly authorized officials as of the date first set forth above.
ATTEST:
Rafael E.
Granado, City
Clerk
ATTEST:
Secretary
Print Name
CITY OF MIAMI BEACH, FLORIDA
Dan Gelber
Mayor
RIC-MAN INTERNATIONAL, INC.
President
Print Name
Page 4 of 4
Page 664 of 1420