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HomeMy WebLinkAbout2005-25907 Reso RESOLUTION NO. 2005-25907 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROPRIATING FUNDS, IN THE AMOUNT OF $1,152,260, FROM MIDDLE BEACH QUALITY OF LIFE FUNDS, OF WHICH UP TO $750,000 ARE ANTICIPATED TO BE REIMBURSED BY MIAMI-DADE COUNTY GENERAL OBLIGATION BOND FUNDS, FOR CONSTRUCTION OF THE 41sT STREET BRIDGES PROJECT. WHEREAS, In July 2000 the City authorized Consul-Tech Engineering (CTE) to design the renovations of the two bridges on 41st Street crossing the Biscayne and Indian Creek waterways; and WHEREAS, the design was completed and approved by the Florida Department of Transportation (FDOT) in 2002; and WHEREAS, Invitation to Bid No. 22-03/04 was issued on March 16, 2004; and WHEREAS, a single bid was received on April 20, 2004, in the amount of $969,845, from Ric-Man International, Inc; and WHEREAS, the sole bid was well in excess of the 2002 engineer's cost estimate of $621 ,567, and the available funding; and WHEREAS, the Administration met with the sole bidder and the engineer of record to review possible value engineering options and scope reduction that might reduce cost; and WHEREAS, the value engineering and scope reduction options explored were not sufficient to bring down the cost materially; and WHEREAS, the sole bidder informed the City that the original bid price could no longer be honored, and issued a revised price of $1,274,000; and WHEREAS, after the revised price was issued, the sole bidder informed the City that it no longer wished to pursue the project; and WHEREAS, after the City Manager rejected the bid, the Administration sought to perform the project through one of the City's Job Order Contract (JOC) contractors; and WHEREAS, the Administration is currently in the final stages of pricing the work through one of the City's JOC contractors; and - WHEREAS, negotiations are expected to yield a price of approximately $1,300,000; and WHEREAS, the Administration deems the JOC price to represent a fair market value for this project; and WHEREAS, the construction schedule has been coordinated with other FDOT and City projects as well as other events of impact to traffic in the area; and WHEREAS, the Administration recommends appropriating the funds outlined, in order to be ready to meet the time restrictions of the construction schedule; and WHEREAS, existing funds in the amount of $415,015 from the previous appropriations for the project would be supplemented with a new appropriation in the amount of $1,152,260, which includes a 15% project contingency of $195,000, a JOe Program fee of $19,500, a CIP Office project management fee of $52,775 and construction funding in the amount of $884,985; and WHEREAS, the City is also eligible for funding in the amount of up to $750,000 from the County G.O. Bond funds passed by the voters in November 2004; and WHEREAS, when County G.O. Bond funds are received, they will be used to reimburse the Quality of Life funds; and WHEREAS, the Administration recommends approval of the appropriation, in the amount of $1,152,260, to be funded from Middle Beach Quality of Life funds, for construction of the 41st Street Bridges Project. NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission herein approve the appropriation of funds in the amount of $1,152,260, from Middle Beach Quality of Life funds, of which up to $750,000 are anticipated to be reimbursed by Miami-Dade County General Obligation Bond funds, for construction of the 41st Street Bridges Project. PASSED and ADOPTED this 18th day of May, 2005. ATTEST: David Dermer . .J.H:... .. y '. ~"f~ 11~ Crfy,CLERK Robert Parcher T:\AGEI'\IDA\2005\May1805\Regular\41 Street Bridges RESO.doc APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION ~/ CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY m Condensed Title: A Resolution of the Mayor and City Commission of the City of Miami Beach, Florida, appropriating funds, in the amount of $1,152,260, for construction of the 41st Street Bridges project. Issue: Shall funding in the amount of $1,152,260, be appropriated for construction of the 41 SI Street Bridges project? Item Summarv/Recommendation: In July 2000 the City hired Consul-Tech Engineering (CTE) to design the renovations of the two bridges on 41 st Street crossing the Biscayne and Indian Creek waterways. The design was completed and approved by the Florida Department of Transportation in 2002. At the time the design work was completed, the project was not undertaken due to the lack of sufficient funding. An invitation to bid was issued in March 2004. A single bid was received in April 2004, in the amount of $969,845, which exceeded the engineer's original cost estimate and the available funding. In an effort to bring the project into budget, the Administration met with the sole bidder and CTE to review possible value engineering options that might reduce the cost, however, these were not sufficient to bring the cost down materially. At the end of negotiations, which lasted approximately six months, the sole bidder informed the City that the original bid could no longer be honored, and issued a revised price of $1 ,274,000. At this time, the window of opportunity to avoid the business peak season was not available anymore. The project construction had to be postponed to early spring of 2005. The City Manager then exercised his authority pursuant to the City Code, and rejected the sole bid received. The CIP Office then directed CTE to update its cost estimate to reflect a price based on current market prices. CTE issued a revised cost estimate of $1,045,213. The CIP Office is finalizing negotiations with one ofthe City's Job Order Contract (JOC) contractors, which are expected to yield a price of approximately $1,300,000, which is within 2.5% of the sole bidder's revised price. Despite the difference between the revised estimate and the JOC price, City staff considers the JOC price to be an accurate reflection of current market costs. The Administration recommends appropriating funds at this time to meet the new proposed construction schedule for the Indian Creek and Biscayne Bridges between mid July 2005 and mid January 2006 and avoid conflicts with other construction projects and events in the area. This schedule will also avoid the next peak season activities. Existing funds in the amount of $415,015 would be supplemented with a new appropriation in the amount of $1,152,260, which includes a 15% project contingency of $195,000, a JOC Program fee of $19,500, a CIP Office project management fee of $52,775 and construction in the amount of $884,985. The County GO bonds will provide $750,000 which will be used to reimburse the Quality of Life funds. Advisory Board Recommendation: I n/a Financial Information: Amount to be expended: Source of Funds: Finance Dept. AGENDA ITEM DATE R7-S- $"' -rl7 -o~ CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.miamibeachfl.gov COMMISSION MEMORANDUM From: Mayor David Dermer and Members of the City Commission Jorge M. Gonzale7 1, n 0 (, City Manager ~ ~ ~ Date: May 18, 2005 To: Subject: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROPRIATING FUNDS, IN THE AMOUNT OF $1,152,260, FROM MIDDLE BEACH QUALITY OF LIFE FUNDS, OF WHICH UP TO $750,000 ARE ANTICIPATED TO BE REIMBURSED BY MIAMI-DADE COUNTY GENERAL OBLIGATION BOND FUNDS, FOR CONSTRUCTION OF THE 41sT STREET BRIDGES PROJECT. ADMINISTRATION RECOMMENDATION: Adopt the Resolution. FUNDING: Total remaining project costs are anticipated to be $1,567,275, inclusive of both soft and hard costs. Of this amount, $415,015 of previously appropriated funds for this project remains available. Funding for the current unfunded amount is available from Middle Beach Quality of Life Funds. The City is also eligible for funding in the amount of up to $750,000 from the County General Obligation (GO) Bond funds passed by the voters in November 2004. When those funds are received, they will be used to reimburse the Quality of Life funds. It should be noted that the County is considering deducting up to 1 % of this amount to cover the administrative costs of their bond program. ANALYSIS: On June 4, 1997 the Mayor and City Commission, following a selection process, approved a professional services agreement with Consul-Tech Engineering, Inc. (CTE), in the amount of $413,222, for the design and construction administration services for the renovation and beautification of the entire right-of-way of 41st Street from Alton Road to Collins Avenue. This agreement anticipated that the complete renovation of the 41st Street right-of-way would be undertaken, in a five-phase project, with a total project budget of $5 million. Commission Memorandum May 18, 2005 41st Street Bridges Page 2 of 5 The originally proposed five phases consisted of the following: Phase I Phase II Phase III Phase IV Phase V Landscaping, irrigation & replacement of pavers. Medians with irrigation, up-lighting and landscaping. Improvement of Indian Creek and Biscayne Waterway bridges. Improvement of side streets with lighting, landscaping and irrigation. Improvement of 40th and 42nd Streets, landscaping and re-paving. Subsequently, it was determined that anticipated revenues would be insufficient to fund the debt service on the proposed $5 million loan, and the full proposed scope of the project was not considered feasible. On March 12, 1998, the Finance and Citywide Projects Committee recommended that only Phase I and Phase II ofthe originally planned 5 phases of the project be undertaken, at an estimated cost of$1 ,727,250. Following this reduction in scope, the required design work was completed, and the construction of the reduced scope streetscape project, was completed in 2001. While renovation of the Biscayne Waterway and Indian Creek bridges was a part of the original Master Plan as Phase III, it was removed from the project scope in March of 1998. However, since the completion of the reduced scope 41st Street Beautification Project, members of the 41st Street Merchants Association continued to request that the bridge renovation portion of the project be done, because they considered the lack of a finished look on the bridges made the street appear incomplete. In July 2000 the City authorized CTE to proceed with design of the renovations of the two bridges. Improvements to the Indian Creek Bridge consist of road resurfacing, sidewalk widening, replacement of the existing concrete sidewalks with brick pavers, installation of decorative handrails, installation of colorful decorative tiles along the side walls, structural enhancements to meet new wind load requirements, flood lights to enhance the bridge's exterior appearance, and colorful lighting fixtures on the deck of the bridge to replace the existing standard fixtures. The smaller Biscayne Waterway Bridge will receive a reduced level of improvement, consisting of decorative tile work and brick paver sidewalks. The design was completed and approved by the Florida Department of Transportation (FDOT) in 2002. At the time, CTE produced a construction cost estimate for the project in the amount of $621,567. After the design was complete, the project was not undertaken due to a lack of sufficient funding. The project was dormant during this period because of the identified costs at the time and the funding issues. After the City considered that new funding sources could be identified, an Invitation to Bid was issued in March 2004, and a single bid was received in April 2004, in the amount of $969,845, from Ric-Man, Inc., which was well in excess of the 2002 engineer's cost estimate of $621,567, and the available funding. In an effort to bring the project into budget, the Administration met with the sole bidder and the engineer of record to review possible value engineering options and scope reduction that might reduce cost. However, these were not sufficient to bring the cost down materially. Commission Memorandum May 18, 2005 4151 Street Bridges Page 3 of 5 During negotiations, it was found that CTE's cost estimate had not taken into account certain elements, including requirements for an off-duty police officer, increased traffic controls required to work within the tight area of the bridge, and the cost of the contractor's bond and insurance. These costs are not generally considered in consultant's estimates of probable cost and some fall under the category of construction means and methods, therefore they were not included in the original 2002 estimate and not recognized at the time as potential additional costs to the project. Also not reflected in the cost estimate, were significant increases in material cost from the time the estimate was produced to the time of bidding in 2004. The negotiations effort and the value engineering and scope reduction effort lasted approximately six months and were unsuccessful. During that period several publicly advertised meetings were held where different options and approaches to the project were explored and for which different prices were submitted by the contractor for discussion. At the end of this period, the sole bidder informed the City that the original bid price could no longer be honored, and issued a revised price of $1,274,000. His justifications were related to increases in cost due to time and some of the construction methods required to complete the tasks. Under recommendation of the CIP Office and Procurement staff, I exercised my authority under section 2-367 of the City Code, and rejected the sole bid received. The City's agreement with CTE was approved in 1997 under an old contract format and did not include a provision to require the consultant to redesign the project to meet the construction budget, as newer agreements do. In December 2004, after the negotiations with Ric-Man were ended, CIP requested that CTE revise its estimate to reflect a price based on current market values. By that time, due to requests from the community not to be in construction during peak season, the window of opportunity to start construction was missed and the project could not be implemented until early spring 2005 at the earliest. CTE issued a revised cost estimate of $1,045,213, which places it reasonably close to the revised cost submitted by the sole bid contractor. The original agreement with CTE included design and construction administration services for the five phases of the broader 41st Street beautification project, including the two bridges. Certain additional services outside the original scope must be added to the contract. Such services include revisions to the plans and specifications to reflect changes required under the new building code, re-permitting the project through all applicable regulatory agencies, updating the cost estimate, and an increase in the original construction administration cost, commensurate with the revised project scope and current billing rates. Certain credits, conversely, are also currently being negotiated. Such credits arise from the elimination of Phases IV and V from the original scope of work of CTE's contract. Phases IV and V are being completed separately through a combination of the Bayshore Neighborhood Project, the Nautilus Neighborhood Project, and the 42nd Street Streetscape Project. Some of these services have already been performed under the existing agreement Purchase Order where funds are available in order to try and expedite Commission Memorandum May 18, 2005 41st Street Bridges Page 4 of 5 the completion of the pricing process and initiate construction. CIP staff is currently negotiating with CTE for the aforesaid additional services and reductions in scope, which are expected to result in an overall reduction to the original contract amount. If required, the Administration will bring an appropriate amendment to the City Commission for approval. Shortly after the revised construction cost estimate was issued by CTE, the CIP Office began pricing the work through one of the City's Job Order Contractors (JOC). CIP staff is currently in the final stages of pricing the work, and negotiations are expected to yield a price of approximately $1 ,300,000. This price is within 2.5% ofthe price obtained from the sole bidder approximately one year ago. A final cost has not been agreed upon, because certain specifications related to the lighting fixtures, and decorative tiles are subject to HPB review of alternates, and may affect the final price. It should be noted, however, that none of these alternates are expected to affect the price significantly, and none would cause the price to exceed $1,300,000 but rather may result in lower costs. Despite the difference between the consultant's revised cost estimate and the actual price, CI P staff deems the JOC price to represent a fair market value for this project, considering those elements which are more closely related to the means and methods of construction, rather than the design of the project. Such elements are typically not represented in any cost estimate, and include the lack of a nearby staging area, requiring the contractor to transport materials in smaller quantities at more frequent intervals, a requirement of the FDOT, which limits working hours between 9:30am to 3:30pm, restricting work to only 6 hours per day, the intricacies of working on the outside walls ofthe bridge, requiring special scaffolding, and protective measures required to prevent debris and materials from falling into the waterway. In 2002 the project received approval by the Historic Preservation Board (HPB), however, this approval expired in May 2003, due to a lack of construction activity and staff could have had extended for one year but did not. The project has now been rescheduled for review by the HPB on June 16,2005. In conversations with Planning Department staff CIP does not expect the Board to make any comments or request changes that will impact the current project costs or schedule. Any comments that are made will be quickly addressed by the consultant and reviewed with the JOC contractor in order to bring the project to construction. The current contract documents have been reviewed for permitting, and are 100% complete. Construction ofthe Indian Creek Bridge includes widening ofthe sidewalk, and milling and resurfacing of the road surface, requiring temporary lane closures during non-peak traffic hours. In contrast, the Biscayne Waterway Bridge will have a lesser impact to traffic, as it does not include sidewalk widening or road resurfacing. The construction schedule has been coordinated with other FDOT and City projects as well as other events of impact to traffic in the area, such as the work projected next spring for the 63rd Street f1yover. The JOC contractor has estimated that they could substantially complete the Indian Creek Bridge within four months and the Biscayne Waterway Bridge within two months. This Commission Memorandum Mar 18, 2005 415 Street Bridges Page 5 of 5 would assure that the most disruptive construction within the Indian Creek Bridge will occur within the six month period of mid July 2005 to mid January 2006 to avoid overlapping with other projects and events. The less disruptive Biscayne Waterway bridge may fall within this period, or, should a delay in construction occur, it may fall outside the six-month time window and overlap with other projects, which is not expected to pose a problem, due to its minimal impact on traffic. This schedule also takes into consideration the community's concerns about construction during peak season and will avoid the heaviest period of activity in the area. The Administration recommends appropriating the funds outlined, despite HPB approval not yet being obtained in order to be ready to move forward as soon as the HPB order is issued, in order to meet the six-month construction time window. Existing funds in the amount of $415,015 from the previous appropriations for the project would be supplemented with a new appropriation in the amount of $1,152,260, which includes a 15% project contingency of $195,000, a JOC Program fee of $19,500, a CIP Office project management fee of $52,775 and construction funding in the amount of $884,985. The Administration recommends approval of the appropriation, in the amount of $1,152,260, to be funded from Middle Beach Quality of Life funds. The City is also eligible for funding in the amount of up to $750,000 from the County G.O. Bond funds passed by the voters in November 2004. When those funds are received, they will be used to reimburse the Quality of Life funds. It should be noted that the County is considering deducting up to 1 % of this amount to cover the administrative costs of their bond program. It also must be noted that when negotiations are completed with the consultant on the additional services and expected credits the remaining amount will be used for reimbursement to the Quality of Life accounts. JMG/RCM/TH/JEC/KLM/MB T:\AGENDA\2005\May1805\Regular\41 Street Bridges MEMO.doc