R7G-Execute GMP Amendment South Pointe Park Pier ProjectCOMMISSION ITEM SUMMARY
~ondensed Title·
A Resolution Approving And Authorizing The Mayor And The City Clerk To Execute Guaranteed Maximum Price
(GMP) Amendment No. 1 To The Pre-Construction Services Agreement With The Weitz Company, Dated April 5,
2012, For Construction Management At Risk Services For The South Pointe Park Pier Project, In The Amount Of
$4,809,017 With Funding For This Amendment Previously Appropriated As Follows: $1 ,442,417 From The South
Pointe Capital Fund 389; And $3,366,600 From The South Pointe COT Agreement Rev/Municipal Resort Tax Fund
388.
Key Intended Outcome
Ensure well-designed quality capital projects
Supporting Data (Surveys, Environmental Scan, etc.): The 2012 Customer Satisfaction Survey indicated that
81% of businesses rated completed capital improvement projects as "excellent" or "good."
Issue:
J Shall the Commission Adopt the Resolution?
Item Summary/Recommendation:
On June 1, 2012, the Weitz Company held a bid opening which representatives of the City and Atkins attended.
Subcontractors submitted sealed bids which were opened by Weitz in the presence of the City and Atkins. The GMP
submitted, prior to negotiation, was for the amount of $5,527,465.
Following a number of discussions, evaluation of value-engineering (VE) options, and analysis of constructability
recommendations, Weitz submitted the current negotiated GMP in the amount of $4,809,017 (Attachment A). The
GMP reflects current market conditions and additional scope never anticipated in the original BOOR and required by
the Environmental permitting agencies: associated with the relocation of the existing protected corals. This work
involves a 30 day notice prior to the relocation and the proper monitoring to the satisfaction of the environmental
permitting agencies prior to the demolition phase. It also includes the entrance plaza, the waterside construction of
the pier and the offsite storage/staging area due to limited access from the park.
The final estimate of probable construction cost conducted by Atkins, the Engineer of Record, on August 26, 2011 is
$4,454,433. Since the CMR construction contract does not contemplate any change orders and assumes the
owner's risk in the construction process, the final estimated construction cost of $4,836,637 includes the 10% CMR
premium (Attachment C).
In order to obtain further assurance that the best value for this project had been negotiated, the City contracted CMS
Estimating Services (CMS), to perform an independent construction cost estimate. CMS' estimated construction cost
is $4,778,559 which includes a 10% CMR premium (Attachment B).
The administration is of the opinion that the final GMP is a competitive, fair and a reasonable price as the difference
between the comparative estimates and the GMP is less than 1% and within industry standards.
Currently, the City has a Florida Inland Navigation District (FIND) Assistance Program Phase I grant approval for
design consulting fees in the amount of $323,077. This grant amount will be reimbursed upon compliance with the
grant requirement to award a construction contract by September 30, 2012. In addition, the City has applied for the
Fl NO Assistance Program Phase II, in the amount of $986,000, for reimbursement of construction costs for the South
Pointe Park Pier project.
The construction duration of this project has been negotiated at 448 calendar days. This includes 90 day pre-
construction activities, commencing with the relocation of the corals prior to demolition of the pier.
It is recommended that the Mayor and City Commission adopt the resolution.
Advisory Board Recommendation:
IN/A
Financial Information:
Source of
Funds:
MIAMI BEACH
77-067357
2577-067357
2577-069358
515
Account
AGENDA ITEM ~.;...;R;.....7 __
DATE Cf-/2-/2..
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the Cit
FROM: Kathie G. Brooks, Interim City Manager
DATE: September 12, 2012
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE
MAYOR AND THE CITY CLERK TO EXECUTE GUARANTEED MAXIMUM
PRICE (GMP) AMENDMENT NO. 1 TO THE PRE-CONSTRUCTION
SERVICES AGREEMENT WITH THE WEITZ COMPANY, DATED APRIL 5,
2012, FOR CONSTRUCTION MANAGEMENT AT RISK SERVICES FOR
THE SOUTH POINTE PARK PIER PROJECT, IN THE AMOUNT OF
$4,809,017 WITH FUNDING FOR THIS AMENDMENT PREVIOUSLY
APPROPRIATED AS FOLLOWS: $1,442,417 FROM THE SOUTH POINTE
CAPITAL FUND 389; AND $3,366,600 FROM THE SOUTH POINTE COT
AGREEMENT REV/MUNICIPAL RESORT TAX FUND 388.
ADMINISTRATION RECOMMENDATION
Adopt the resolution.
KEY INTENDED OUTCOME SUPPORTED
Ensure well-designed quality capital projects
FUNDING
Funding for this amendment in the amount of $4,809,017 has been previously appropriated as
follows: $1 ,442,417 from the South Pointe Capital Fund 389; and $3,366,600 from the South
Pointe COT Agreement Rev/Municipal Resort Tax Fund 388.
ANALYSIS
The Mayor and City Commission at its December 14, 2011 meeting authorized the
Administration to issue an RFQ for a Construction Manager at Risk (CMR) firm to provide pre-
construction services and construction phase services via a Guaranteed Maximum Price (GMP)
amendment for the South Pointe Park Pier Project.
RFQ No.18-11/12 was issued on December 19, 2011 and the Weitz Company (Weitz)
submitted their proposal and were interviewed along with four (4) other CMR firms. On January
12, 2012, the selection committee unanimously ranked the Weitz Company as the top-ranked
firm.
Pursuant to the City Manager's recommendation, on February 8th, 2012, the Mayor and City
Commission approved Resolution No. 2012-27831, authorizing the Mayor and City Clerk to
execute a Pre-Construction Services Agreement with the Weitz Company. These services
included: review of project requirements, existing on-site conditions, review of preliminary
budget, project scheduling and phasing, value engineering, and submission of constructability
recommendations to Atkins of North America (Atkins), the AlE of Record.
516
Commission Memorandum-Weitz Company GMP for the South Pointe Park Pier Project
September 12, 2012
Page 2 of 3
On June 1, 2012, Weitz held a bid opening which was attended by representatives of the City
and Atkins. Subcontractors submitted sealed bids which were opened by Weitz in the presence
of the City and Atkins. The GMP submitted, prior to negotiation, was in the amount of
$5,527,465.
Following a number of discussions, evaluation of value-engineering (VE) options, and analysis
of constructability recommendations, Weitz submitted the current negotiated GMP in the amount
of $4,809,017 (Attachment A). The GMP reflects the current market conditions as well as
additional scope not anticipated and additional requirements by the Environmental permitting
agencies: associated with the relocation of the existing protected corals. This work involves a
30 day notice prior to the relocation and the proper monitoring to the satisfaction of the
environmental permitting agencies prior to the demolition phase. It also includes the entrance
plaza, the waterside construction of the pier and the offsite storage/staging area due to limited
access from the park.
The final estimate of probable construction cost conducted by Atkins, the Engineer of Record,
on August 26, 2011 is $4,454,433. Since the CMR construction contract does not contemplate
any change orders and assumes the owner's risk in the construction process, the final
estimated construction cost of $4,836,637 includes the 10% CMR premium (Attachment C).
In order to obtain further assurance that the best value for this project had been negotiated, the
City contracted CMS Estimating Services (CMS), to perform an independent construction cost
estimate. The estimated construction cost as submitted by CMS is $4,344,145. Since the CMR
construction contract does not contemplate any change orders and assumes the owner's risk in
the construction process, the estimator has recommended an additional 10% premium on their
estimated construction cost, for a total of $4,778,559 (Attachment B).
The administration is of the opinion that the final GMP is a competitive, fair and a reasonable
price as the difference between the comparative estimates and the GMP is less than 1% and
within industry standards.
Currently, the City has a Florida Inland Navigation District (FIND) Assistance Program Phase I
grant approval for design consulting fees in the amount of $323,077. This grant amount will be
reimbursed upon compliance with the grant requirement to award a construction contract by
September 30, 2012. In addition, the City has applied for the FIND Assistance Program Phase
II, in the amount of $986,000, for future reimbursement of construction costs for the South
Pointe Park Pier project.
The construction duration of this project has been negotiated at 448 calendar days (includes 90
days for pre-construction environmental compliance) and it is anticipated that this work will
commence in October 2012 (pending the approval of the USACE permit). The first activity will
be the relocation of the corals prior to the demolition of the existing pier. The City is taking
measures to offset any impact to the project schedule and FIND grant deadlines. The
anticipated Project Schedule for the construction of the South Pointe Park Pier is as follows:
Commission GMP Awarded:
Anticipated Notice to Proceed Number One:
Anticipated Notice to Proceed Number Two:
Anticipated Construction Start:
Anticipated Substantial Completion:
517
September 12, 2012
October 1, 2012 -(30 day notice & coral
relocation)
December 1, 2012 -(demolition of existing
pier)
January 2013
January 2014
Commission Memorandum-Weitz Company GMP for the South Pointe Park Pier Project
September 12, 2012
Page 3 of3
CONCLUSION
The Administration recommends the approval of the attached resolution authorizing the Mayor
and the City Clerk to execute Guaranteed Maximum Price (GMP) Amendment No. 1 to the Pre-
Construction Services Agreement with the Weitz Company, dated April 5, 2012, for Construction
Management at Risk Services for the South Pointe Park Pier project, in the amount of
$4,809,017.
Attachments:
Attachment A: The Weitz Company-Construction Management at Risk GMP Document
Attachment B: CMS -Third Party Estimate of Construction Costs
Attachment C: Atkins -Estimate of Probable Construction Cost
T:\AGENDA\2012\9-12-12\South Point Park Pier-GMP Amendment Weitz. MEMO.doc
518
519
ATTACHMENT A
''.41Hif1 BUILD IN
GOOD COMPANY~
Project: South Pointe Park Pier
Job#:
Trade Descr:pUon
dd for MMFX reinforcing steel in primary $
520
CONSTRUCTION MANAGEMENT SERVICES, INC.
10 Falrway Drive • Suite 301 • Deerfield Beach, Florida 33441 '95,H81-1611 'FAX 954-427-3142
SOUTH POINTE PARK PIER PROJECT ,
CITY OF MIAMI BEACH
1700 CONVENTION CENTER DRIVE
MIAMI BEACH, FLORIDA 33109
GMP CONSTRUCTION DOCUMENTS
COST ESTIMATE
August 31, 2012
PREPARED FOR:
CITY OF MIAMI BEACH
PREPARED BY:
CMS-CONSTRUCTION MANAGEMENT SERVICES, INC.
CMS FILE # 21 01
Quantity Surveyors • Construction Managers
521
MAIN SUMMARY CMS-CONSTRUCTION MANAGEMENT SERVICES, INC. Conlident!al Page 1
CMS-Construclion Management Services, Inc.
1 0 Fairway Drive, Suite 301
Deerfield Beach, Fl33441
954-481·1611
CMS FILE# 2101
SOUTH POINTE PARK PfER PROJECT
CJTY OF MIAMI BEACH
1700 CONVENTION CENTER DRIVE
MIAMI BEACH, FLORIDA 33109
GMP CONSTRUCTION DOCUMENTS
COST ESTIMATE
August 31, 2012
PR_EPARED FOR:
CITY OF MIAMI BEACH
MAIN SUMMARY
DIVISJON DESCRIPTION AMOUNT
~21000 .....
02000
.lf3000
GENERAl CONDITIONS
"" '"""'"""" '"""'="""~""'
S!Tf:: WO~I${ DEMO
C0t!9RE7E
f_!JIOIST. PROTECTIOt:L
)DOORS & WINDOWS 1 """"~~~~""~~"'"''
1FIN1SHES ·~~~~..t~~-••.. ·····~~·-~~--~~-~~···
········~ !sPEC!~_LTIES I Sl(3_t,IAGE ..... .
EO!l!f'~J!HI .
'·""·"·'~·-~~-~~~-.F!J.EN!§!ilt-l~~-~~~
SPECIAL CONSTR~UCTION ..... .
}1000 ..... .
32000
1.0%
2.5%
5.0%
Prepared by Gary Weinstein 8!3112012
522
'
596,611.46[
1 3?§J21~:.Q.~J-.~·-··
11 o, 202. nl ......................................... 0.001 ·-············ ··········~······'
·····==<·-''·············
........... !U!Q:
29,l{O?cilfL~ _
·····················~--~ 95,Q~?,If!l:
.2.0Q~
.Q.OO%
0.48~·-·
. 0.71%
~-0.00% ~~~
O.QQ.~• ······················~······~··
--t!.15%
9:Q.Q~
5~3,833.89 1 12.98%
................................ 111, .. ·''~"--1~~-~--~··· 2.57%
~-0.68%_~~~-.
0.79%
~~~~~~,~~~'t?O"&
2.03%
-~--~-~~
Page 1
QUALIFICATIONS CMS-CONSTRUCTION MANAGEMENT SERVICES, INC. Confidential Page 1
CMS-Construction Management Services, Inc.
10 Fairway Drive, Suite 301
Deerfield Beach, Fl 33441
954-481-1611
CMS FILE# 2101
SOUTH POINTE PARK PIER PROJECT
CITY OF MIAMI BEACH
MIAMI BEACH, FLORIDA 33109
GMP CONSTRUCTION DOCUMENTS
COST ESTIMATE
August 31, 2012
QUALIFICATIONS
ITEM
1 THIS COST ESTIMATE IS BASED ON A STANDARD OPEN-BID PROCESS.
2 IF TYPE OF CONTRACT: 11CM -AT· RISK." ADD AJiPROXIMATEL Y 10 T0-15% TO THE COST
3 GENERALCONDlTIONSAREBASEDON A 12:MONTH CONTRACT. --· '""-·-· 'v'"'~-
··--·ITHls ESTiMATEISBASED ON DRAWINGS BY ATK-INS DATED JUNE 20, 2012:AND ADDITIONAL INFORMATION
4 IAT MEETiNG ON 8/2812012.
5 !Due to the present volatile natureol the construction market, construction materlaTcostcou!dcfiange .
!substantially prior to construction.
jAn Allo~§!Il9ifor ALL!:§EMITSgf $152,00Q:22Js Inc]yged .........
·•········
~ .Te~t!ng is lncludgf!:~~-... .. . ....
8 ~lmpactJE?~.2L21h~ruUI1ty company chargt;~s are .. f:.!OT.Jn~ludt!d. ...
Prepared by Gary Weinstein 8/3112012 Page 1
523
ATTACHMENT C
South Pointe Park Pier Project
City of Miami Beach
100% Submittal Package
South Pointe Park Pier Project
Estimate of Probable Construction Cost
DESCRIPTION
Site work Mis./Constr, Disruption Adjustments
ate (Allowance
Removal of existing pier (Allowance}
Survey and Construction layout (A!!owance}
atee Watch Personnel [Allowance)
New Pier Decking-1 x 6 Premium IPE Wood Decking
IPE Wood Decldn Cit s (Allowance)
New Stainless Steel Grating Decking-2" Deep
(Allowance
New Guard Railing-SS (A1!owam:;e}
524
QTY
118
8,500
Rev: B/26/2011
TOTALPRlGE
EA $1,00\LCO $1 i 8,000
$20,000
$1,000
$2,500.00
$120.00
$162,900
$37,713
$110,250
$370,000
$161,600
$20,000
$464,600
$360,0
SPPF Project
South Pointe Park Pier Project
City of Miami Beach
100% Submittal Package
South Pointe Park Pier Project
Estimate of Probable Construction Cost
igh grade (A 3161
Wood-Fishing Area (Allowance)
New Concrete Pavers (Allowance)
New Coral Stone Edging (Allowance\
New 12" x 12" Shell Pavers (Allowance)
SS Bike Racks (Allowance)
New Bike Racks Concrete Pad (Allowance)
Low Level Retaining Walls (Allowance)
wance)
s -on Pier, includes shipping and handling
n (Allowance)
aste Containers -on Pier, incL shipping &
.a & installation (Allowance)
Service to Pier-4" DIP
525
Rev: 8126/2011
$5,000
$9,900
$1,760
SPPP Project
South Pointe Park Pier Project
City of Miami Beach
100% Submittal Package
DIV
South Pointe Park Pier Project
Estimate of Probable Construction Cost
Fittings, etc.
South Pointe Park Pier Project Subtotal Direct Costs
General Conditions @ 12%
Subtotal
Bonds & Insurance (includes Builders Risk)@ 4.5%
Building Permit (Allowance)
Subtotal
Overhead & Profit @ 8%
Subtotal
Unforeseen Conditions Allowance @ 5%
Subtotal
Total Probable Construction Cost
526
Rev: 812612011
$22,500
$5,000
$121 028
$10,000
$60,000
$70 000
$3,601,429
$432,171
$4,033,600
$181,512
$50,000
$4,265,112
_j_341 ,209
~
$230,316
$4,836,637
$4,836,637
SPPP Project
RESOLUTION TO BE SUBMITTED
527
THIS PAGE INTENTIONALLY LEFT BLANK
528