2007-26692 ResoRESOLUTION NO. 2007,26692
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE AMENDMENT NO. 1 TO THE EXISTING AGREEMENT WITH
RIC-MAN INTERNATIONAL, INC., DATED DECEMBER 6, 2006, FOR THE
NEIGHBORHOOD NO. 7 - NAUTILUS RIGHT-OF WAY INFRASTRUCTURE
IMPROVEMENT PROJECT, IN THE AMOUNT OF $27,110,222 (AUTHORIZED BY
RESOLUTION NO. 2006-26423); SAID AMENDMENT IN AN AMOUNT NOT TO
EXCEED $6,369,544, TO ACCOMMODATE ADDITIONAL WORK SCOPE FOR THE
PROJECT; FURTHER AMENDING THE AGREEMENT TO MEMORIALIZE THE
AGREEMENT BETWEEN THE CITY AND RIC-MAN TO CAP THE PROJECT COST
AT A NOT TO EXCEED AMOUNT OF $33,479,766.
WHEREAS, on December 6, 2006, the Mayor and City Commission adopted Resolution
No. 2006-26423, authorizing the Mayor and City Clerk to execute aDesign-Build Agreement
with Ric-Man International Inc., (Ric-Man), pursuant to Invitation to Bid No. 36-05/06, for the
Design, construction and construction management associated with Neighborhood No. 7 -
Nautilus Right-of-Way Infrastructure Improvement Project (the Project);
WHEREAS, the proposed improvements for the Project are based upon a Design
Criteria Package (DCP) and the Basis of Design Report prepared by the City's A/E consultant,
Reynolds, Smith and Hills, Inc., including earthwork, roadway narrowing, milling and
resurfacing, driveway paving, sidewalk construction; water main installation, water services
relocation; storm drainage infrastructure installation; roadway lighting, and streetscape/planting
improvements; and
WHEREAS, the DCP was based upon a design that was 60% complete; and
WHEREAS, the City and Ric-Man have negotiated an amendment to the Agreement, in
the amount of $7,775,000, to address additional requirements that became evident after
completion of the design by Ric-Man and to address items in the Risk Assessment Plan; and
WHEREAS, the City and Ric-Man have value engineered the Project, which includes
using High Density Polyethylene (HDPE) pipe and structures in lieu of concrete, reducing the
depths of pipe, reducing the proposed thickness of pavement overlay, and removing P3.2 pipe
from Nautilus West, reducing the cost of the Project by $1,405,456 (with additional savings to be
negotiated); and
WHEREAS, the City allocated funds for this additional work as follows: $5,319,544, in
the Capital Budget Fiscal Year 2007/2008; and two stormwater grants from the Florida
Department of Environmental Protection, in the amounts of $750,000 and $300,000, for a total
of $1,050,000; and
WHEREAS, in addition to the additional work to be referenced in the proposed
Amendment No. 1 to the Agreement, the City and Ric-Man have negotiated, and Ric-Man
agrees and acknowledges, that the Project work shall be completed for a guaranteed maximum
price, in the amount of $33,479,766; and
WHEREAS, funding is available as follows: $5,319,544 in Stormwater Bonds 2000S -
Account 428-2282, appropriated in the Fiscal Year 2007/2008 Capital Budget for construction;
$1,050,000 in FDEP Stormwater Grants -Account 303-2282, for construction; $4,171,624 in
G.O. Bonds -Account 384-2282, for construction; $305,040 in Gulf Breeze Bonds -Account
423-2282,for construction; $2,695,751 in Water & Sewer Bonds -Account 424-2282, for
construction; and $19,937,807 in Stormwater Bonds -Account 428-2282, for construction.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission of the City of Miami Beach hereby approve and authorize the Mayor and City Clerk
to execute Amendment No. 1 to the existing Agreement with Ric-Man International, Inc., dated
December 6, 2006, for the Neighborhood No. 7 -Nautilus Right-of-Way Infrastructure
Improvement Project, in the amount of $27,110,222 (authorized by Resolution No. 2006-26423);
said amendment in an amount not to exceed $6,369,544, to accommodate additional work
scope for the Project; further amending the Agreement to memorialize the Agreement between
the City and Ric-Man to cap the project cost at a not to exceed amount of $33,479,766.
PASSED and ADOPTED this 17th day of
ATTEST:
~ ~~.~
City Clerk
Robert Parcher
T:WGENDA\2007\oct1707\Regular\Nautilus GMP Resolution.doc
APPRO~_ ~D ~ TO
FORM $ ~NGUAGE
~ F~ EXECUTION
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution authorizing execution Amendment No. 1 to the existing Agreement with Ric-Man
International, Inc., dated December 6, 2006, for the Neighborhood No. 7 -Nautilus Right-of-Way
Infrastructure Improvement Project in the amount of $27,110,222, authorized by Resolution No. 2006-
26423, amendment in an amount not to exceed $6,369,544, to accommodate additional work scope for the
Project; further amending the Agreement to memorialize Contractor's Agreement to cap the project cost at
a not to exceed amount of $33,479,766.
Key Intended Outcome Supported:
Ensure Well-Designed, Quality Capital Projects
Supporting Data (Surveys, Environmental Scan, etc.): In the 2007 Community Satisfaction Survey,
only 42% of residents stated that storm drainage was excellent or good. This GMP Agreement provides
increased drainage in the Nautilus neighborhood.
Issue:
Shall the City Commission adopt the Resolution?
Item Summa /Recommendation:
Staff believes it to be in the City's best interest to have a Guaranteed Maximum Price with Ric-Man
International, Inc. (Ric-Man) for the design and construction of the Neighborhood No. 7 -Nautilus Right-of-
Way Improvements Project (Project). Ric-Man is responsible for the design, construction, and construction
management associated with the Project. The improvements are founded upon the Basis of Design Report
prepared by Reynolds, Smith and Hills, Inc. On June 23, 2006, the City's Procurement Division issued
Invitation to Bid (ITB) No. 36-05/06 for Design/Build Services for the Neighborhood No. 7 Project to obtain
bids from qualified General Contractors to provide all Design/Build services for the Project. On October 11,
2006, the Mayor and City Commission authorized the Administration to enter into negotiations with the firm
of Ric-Man International, Inc., as the best and lowest bidder, with a bid in the amount of $27,110,222. Ric-
Man has since been completing the design and has begun to install water mains. During this time, the City
and Ric-Man negotiated a Guaranteed Maximum Price that will address added scope that became evident
after completion of the design, will address items identified in the contractor's risk assessment plan, and
will limit the risk to the City from potential change orders. To reduce the cost of the additional work, the City
and Ric-Man have further value engineered the project. Changes include using HDPE pipe and structures
in lieu of concrete, reducing the depths of pipe, reducing the proposed thickness of pavement overlay, and
eliminatin the re lacement of lower riorit water i e P3.2 from the sco a of Nautilus West.
Advisory Board Recommendation:
Financial Information:
Source of Amount
Funds: 1 $5,319,544
2 $750,000
3 $300,000
4 $4,171,624
5 $305,040
6 $2,695,751
7 $19,937,807
OBPI Total $33,479,766
Financial Impact Summary:
Cit Clerk's Office Le islative Trackin
Aurelio Carmenates x6343
Account
428 Stormwater Bonds 2000S
303-2282-DEP Grant
303-2282-DEP Grant
384-2282-GO Bond
423-2282 Gulf Breeze Funds
424-2282 Water & Sewer Bonds
428-2282 Stormwater Bonds
Approved
Sign-Offs:
Department irector Assists it anager City Manager
EC TH JMG ='
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City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor David Dermer and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: October 17, 2007
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK
TO EXECUTE AMENDMENT NO. 1 TO THE EXISTING AGREEMENT WITH RIC-MAN
INTERNATIONAL, INC., DATED DECEMBER 6, 2006, FOR THE NEIGHBORHOOD NO.
7 -NAUTILUS RIGHT-OF-WAY INFRASTRUCTURE IMPROVEMENT PROJECT, IN THE
AMOUNT OF $27,110,222 AUTHORIZED BY RESOLUTION NO. 2006-26423; SAID
AMENDMENT IN AN AMOUNT NOT TO EXCEED $6,369,544, TO ACCOMMODATE
ADDITIONAL WORK SCOPE FOR THE PROJECT; FURTHER AMENDING THE
AGREEMENT TO MEMORIALIZE THE AGREEMENT BETWEEN THE CITY AND RIC-
MAN TO CAP THE PROJECT COST AT A NOT TO EXCEED AMOUNT OF $33,479,766.
ADMINISTRATIVE RECOMMENDATION
Adopt the Resolution.
FUNDING:
Funding is available as follows: $5,319,544 in Stormwater Bonds 2000S -Account 428-2282,
appropriated in the Fiscal Year 2007/2008 Capital Budget for construction; $1,050,000 in FDEP
Stormwater Grants -Account 303-2282, for construction; $4,171,624 in G.O. Bonds -Account 384-
2282, for construction; $305,040 in Gulf Breeze Bonds -Account 423-2282, for construction;
$2,695,751 in Water & Sewer Bonds -Account 424-2282, for construction; and $19,937,807 in
Stormwater Bonds -Account 428-2282, for construction.
ANALYSIS
The City of Miami Beach required the services of a Design/Build Firm for the design and
construction of the Neighborhood No. 7 -Nautilus Right-of-Way Improvements Project (Project).
The Design/Build Firm (DBF) will be responsible for the design, construction, and construction
management associated with the work related to earthwork, roadway narrowing, milling and
resurfacing, driveway paving, sidewalk construction, water main installation, water services
relocation, storm drainage infrastructure installation, roadway lighting, and streetscape/planting
improvements.
The Neighborhood No. 7 -Nautilus Right-of--Way Improvements Project (Project) is located in
Middle Beach and is bounded by Surprise Waterway to the north, Biscayne Bay to the west, Pine
Tree Drive to the east, and State Road 112/Arthur Godfrey Road (W. 41st Street) to the south.
Areas to be affected by the proposed improvements include but are not limited to North Bay Road,
Nautilus Drive, Nautilus Court, Michigan Avenue, Jefferson Avenue, Adams Avenue, Meridian
Avenue, Chase Avenue, Prairie Avenue, Post Avenue, Royal Palm Avenue, Sheridan Avenue, 48th
Street, 47th Street, 47th Court, 46th Street, 45th Street, 44th Street, 44th Court, 43rd Street and
Court, and 42nd Street. The Flamingo Waterway Historic District lies within the boundary of the
Nautilus Neighborhood. The neighborhood is divided in two by the Biscayne Waterway. The area to
the West of the Biscayne Waterway is commonly known as Nautilus West and the area to the East
of the Biscayne Waterway as Orchard Park.
Commission Memorandum -Nautilus GMP
October 77, 2007
Page 2 of 3
The proposed improvements to be performed for the Project are founded upon the Basis of Design
Report for Neighborhood No. 7 -Nautilus and a Design Criteria Package (DCP) prepared by
Reynolds, Smith and Hills, Inc. The DCP includes conceptual specifications and plans for the civil,
electrical, mechanical, structural, and landscaping disciplines.
On June 23, 2006, the City's Procurement Division issued Invitation to Bid (ITB) No. 36-05/06 for
Design/Build Services for Neighborhood No. 7 -Nautilus Right-of-Way Infrastructure Improvement
Project. The purpose of this ITB was to obtain bids from qualified General Contractors to provide all
Design/Build services for Nautilus Neighborhood No. 7.
On October 11, 2006, the Mayor and City Commission authorized the Administration to enter into
negotiations with the firm of Ric-Man International, Inc. (Ric-Man), as the best and lowest bidder.
Ric-Man submitted a bid in the amount of $27,110,222, pursuant to ITB No. 36-05/06. The City
evaluated the bid submitted by Ric-Man and found it to be appropriate and in accordance with the
required scope and timeline.
On December 6, 2006, the City Commission authorized the execution of an Agreement with Ric-Man
in the amount of $27,110,222, with an additional $2,700,000 for contingency, authorized by
Resolution No. 2006-26423, for a total of $29,810,222.
The DCP was based upon 60% complete plans, and as the design was completed, the need for
additional stormwater items became apparent. This had been anticipated by Ric-Man and had been
mentioned in the Risk Assessment Plan (RAP) submitted as part of the bid. The bid value of the
RAP was $12,000,000, which included additional stormwater pump stations, discharge wells, and
piping as well as the need to remove organic material and replace it with suitable fill material.
Upon completion of the design plans, the City and Ric-Man were able to negotiate a guaranteed
maximum price for the work using more accurate and precise quantities and unit costs. Thus, the
guaranteed maximum price addresses additional stormwater pump stations, injection wells, and
piping and minimizes the risk of claims from unknown conditions. The negotiated value of this work
is $7,775,000.
To reduce the cost of the additional work, the City and Ric-Man have value engineered the project.
Changes include using HDPE pipe and structures in lieu of concrete, reducing the depths of pipe,
reducing the proposed thickness of pavement overlay, and eliminating the replacement of lower
priority water pipe (P3.2 lines) from the scope of Nautilus West. The savings are valued at
$1,405,456. Therefore, the new contract total is $33,479,766, equal to the $27,110,222 original
contract value plus the $7,775,000 negotiated guaranteed maximum price less the $1,405,456 value
engineered out of the project.
Area residents have noted several drainage problems at the intersections of 44th with Post Avenue
and 44th with Royal Palm Avenue in the Orchard Park section of the Nautilus neighborhood.
Although the current project does not include stormwater infrastructure improvements in Orchard
Park, Ric-Man is re-grading areas to better direct stormwater to drainage structures and swales.
Further targeted infrastructure improvements including additional piping will be completed in the next
several months. The City is also modeling all of Orchard Park to accommodate a standard 5-year
24-hour storm event. This model will determine the number of pump stations and wells needed to
discharge the design storm without flooding.
In the interim, the City has completed cleaning the stormwater system in the neighborhood, which
has resulted in some improvements in the time required to clear stormwater from the streets. The
combination of cleaning and targeted improvements will then be evaluated during storm events to
see if more improvements are needed.
Commission Memorandum -Nautilus GMP
October 17, 2007
Page 3 of 3
CONCLUSION
The Administration recommends approval of the attached Resolution, authorizing the Mayor and
City Clerk to execute Amendment No. 1 to the existing Agreement with the firm of Ric-Man
International, Inc., for the Neighborhood No. 7 -Nautilus Right-of-Way Infrastructure Improvement
Project in the amount of $27,110,222, authorized by Resolution No.2006-26423, to accommodate
additional work scope in the negotiated amount of $6,369,544, and to cap the project cost at a not to
exceed amount of $33,479,766.
T:WGENDA\2007\oct1707\Regular\Nautilus GMP Memorandum.doc