379-2001 RESO
RESOLUTION NO. 379-2001
A RESOLUTION OF THE CHAIRMAN AND THE MEMBERS OF THE
MIAMI BEACH REDEVELOPMENT AGENCY APPROPRIATING $200,000
FROM FY 2001 SOUTH POINTE TAX INCREMENT FUNDS FOR THE
PORTION OF THE FEE INCLUDED IN THE AGREEMENT BETWEEN
THE CITY OF MIAMI BEACH AND HAZEN AND SAWYER, P.c.,
PURSUANT TO REQUEST FOR QUALIFICATIONS (RFQ) NO. 102-99/00,
TO PROVIDE PROFESSIONAL PROGRAM MANAGEMENT SERVICES
FOR THE SOUTH POINTE STREETSCAPE IMPROVEMENTS PROJECT
WHEREAS, on November 2, 1999, the voters within the City approved the issuance of
approximately $92 Million of General Obligation Bonds for a number of public improvements,
approximately $58 Million of this amount will be used for capital right-of-way infrastructure
projects; and
WHEREAS, in addition, the Stonnwater Revenue Bond Issue, Series 2000 will make available
approximately $60 Million, the Water and Sewer Revenue Bond Issue, Series 2000 will yield
approximately $68 Million, for a total of $128 Million in capital right-of-way projects proposed
to be undertaken using these two sources, in addition, the South Pointe Tax Increment Funds
(TIF) will provide approximately $28 Million toward the South Pointe Streetscape Project, for a
combined total of approximately $214 Million in Capital improvements within the public rights-
of-way over the next six (6) years, from these sources; and
WHEREAS, the Administration has proposed a three-pronged approach to managing these
proposed Capital Improvement Projects which are expected to total over $300 Million during the
next few years. The large number of Capital Projects planned to be undertaken will be divided
into three administrative categories. These categories will be managed by three entities:
Infrastructure projects are proposed to be managed by Hazen and Sawyer, P.C. (H&S), Facilities
and selected Parks projects will be managed by a finn yet to be selected, and the remainder of
the projects, including c.ertain right-of-way projects and the remaining Parks projects will be
managed by the Construction Management Division of the Public Works Department; and
WHEREAS, in order to implement this concept, on June 2, 2000, pursuant to the authorization
of the City Commission, the Administration issued Request for Qualifications (RFQ) Number
102-99/00 seeking responses from qualified finns with experience and capability to provide
professional program management services for capital right-of-way projects within the City; and
WHEREAS, five (5) finns submitted proposals detailing their qualifications for the proposed
work; and
WHEREAS, following an evaluation by a special committee the finn of Hazen and Sawyer,
P.C. was recommended to the City Manager as best qualified to undertake this work; and
WHEREAS, the Administration received authorization under Resolution No. 2000-24140,
adopted on October 18,2000, to enter into negotiations with H&S to define the tenns of service
and the fees to be paid fOI the work to be perfonned; and
WHEREAS, On November 27, 2000, a City Commission Workshop was held where
representatives of H&S made an extensive presentation describing the fundamentals of the
program by reviewing project implementation priorities and limiting the duplication of efforts
through the grouping of projects into specific packages; and
WHEREAS, included in the list of projects proposed to be assigned to H&S is the South Pointe
Streetscape Improvements Project, with its five phases; and
WHEREAS, during 2001, the first year of operation, H&S will coordinate the planning and
design of neighborhood infrastructure programs, establish overall phasing programs and assume
management of the South Point Streetscape Phase I, the Washington Avenue Streetscape, and the
Venetian Causeway Projects, the budget for the first year of operation is proposed to be
$1,443,267; and
WHEREAS, from this budget, $200,000 has been estimated for the construction management
services to complete Phase I of the South Pointe Streetscape Project; and
WHEREAS, H&S services for this phase will include construction administration, scheduling,
monitoring, budget evaluation, consultants/contractors contract administration, design revisions
evaluation and implementation, and associated cost evaluation and recommendation.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRMAN AND
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairman
and Members of the Miami Beach Redevelopment Agency herein appropriate $200,000 from FY
2001 South Pointe Tax Increment Funds for the portion of the fee included in the agreement
between the City of Miami Beach and Hazen and Sawyer, P.C., pursuant to Request for
Qualifications (RFQ) No. 102-99/00, to provide professional program management services for
the South Pointe Streetscape Improvements Project.
PASSED and ADOPTED this 31st day of January, 2001.
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CHAIRMAN
ATTEST:
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SECRETARY
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Miami Beach
Redevelopment Agency
1700 Convention Center Drive
Miami Beach, Florida 33139
Telephone: (305) 673- 7295
Fax: (305) 673- 7772
REDEVELOPMENT AGENCY MEMORANDUM NO. 01- 7
DATE: January 31, 2001
TO: Chairman and Members of the
Miami Beach Redevelopment Agency
FROM:
Jorge M. Gonzalez
Executive Director
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SUBJECT: A RESOLUTION OF THE CHAIRMAN AND THE MEMBERS OF
THE MIAMI BEACH REDEVELOPMENT AGENCY
APPROPRIATING $200,000 FROM FY 2001 SOUTH POINTE TAX
INCREMENT FUNDS FOR THE PORTION OF THE FEE
INCLUDED IN THE AGREEMENT BETWEEN THE CITY OF
MIAMI BEACH AND HAZEN AND SAWYER, P.C., PURSUANT
TO REQUEST FOR QUALIFICATIONS (RFQ) NO. 102-99/00, TO
PROVIDE PROFESSIONAL PROGRAM MANAGEMENT
SERVICES FOR THE SOUTH POINTE STREETSCAPE
IMPROVEMENTS PROJECT
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
FUNDING:
Funds are available from FY 2001 South Pointe Tax Increment Funds Number 167.
ANALYSIS:
On November 2, 1999, the voters within the City approved the issuance of approximately
$92 Million of General Obligation Bonds for a number of public improvements,
approximately $58 Million of this amount will be used for capital right-of-way
infrastructure projects. Other funding for these right-of-way projects totaling $128
Million include: $60 Million from the Stormwater Revenue Bond Issue, Series 2000, and
$68 Million from the Water and Sewer Revenue Bond Issue, Series 2000. In addition,
the South Pointe Tax Increment Funds (TIF) will provide approximately $28 Million
AGENDA ITEM JA
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January 31, 2001
Miami Beach Redevelopment Agency Memorandum
South Pointe Streetscape Improvements - Phase 1: Appropriation of Funds/or Hanzen and Saweyer, P.C. Contract
Page 2 of6
toward the South Pointe Streetscape Project, for a combined total of approximately $214
Million in Capital improvements within the public rights-of-way over the next six (6)
years, from these sources. Due to the large number of proposed projects, the complexity
of the proposed work, and the difficulty of managing the large number of planned
projects, altemate solutions were sought by the Administration to assure that these
activities were managed effectively.
As the various right of way infrastructure projects progress from planning to design,
construction and operation, the requirement for oversight of design and construction
activities becomes essential to Program success. This need becomes more prevalent
when considering the magnitude of the number of projects being undertaken, the
likelihood that individual project phases will overlap with other improvements, and the
potential impact on the day-to-day life of the residents of the City.
The Administration determined to supplement existing staff through obtaining outside
assistance in managing these projects by retaining a firm with extensive experience in
Program Management, that is, the administration of the planning, design, construction
and implementation process of the capital improvements being planned. Proposed
program and construction management services include a variety of administrative tasks.
Services to be provided include the administration and construction supervision of
approximately 65 infrastructure improvement projects within thirteen City neighborhoods
over a period of six years.
Toward this goal, the Administration has proposed a three-pronged approach to managing
these proposed Capital Improvement Projects which are expected to total over $300
Million during the next few years. The large number of Capital Projects planned to be
undertaken will be divided into three administrative categories. These categories will be
managed by three entities:
> Infrastructure projects are proposed to be managed by Hazen and Sawyer,
P.C. (H&S),
> Facilities and selected Parks projects will be managed by a firm yet to be
selected, and
> Other right-of-way projects and the remaining Parks projects will be managed
by the Construction Management Division of the Public Works Department.
In order to implement the Administration's three-pronged management concept, on June
2,2000, pursuant to the authorization of the City Commission, the Administration issued
Request for Qualifications (RFQ) Number 102-99/00 seeking responses from qualified
firms with experience and capability to provide professional program management
services for capital right-of-way projects within the City. Five (5) firms submitted
proposals detailing their qualifications for the proposed work.
January 31, 2001
Miami Beach Redevelopment Agency Memorandum
South Po;n/e Streetscape Improvements - Phase I: Appropriation of Funds/or Hanzen and Saweyer, P.c. Contract
Page3of6
An Evaluation Committee was appointed by the City Manager to review the proposals.
This Committee met on August 23, 2000 and determined a point system to use in
evaluating the proposals received. The Committee invited all five (5) firms to present
their qualifications directly to the Committee on September 28, 2000. Following this
meeting, the Committee recommended the firm of Hazen and Sawyer, P.C., to the City
Manager as best qualified to undertake this work.
Subsequently, the Administration received authorization under Resolution No.
2000-24140, adopted on October 18, 2000, to enter into negotiations with H&S to define
the terms of service and the fees to be paid for the work to be performed. On November
27,2000, a City Commission Workshop was held where representatives ofH&S made an
extensive presentation describing the fundamentals of the program.
The terms and conditions of service of the proposed Agreement between the City and
H&S outlines that the H&S program management team will provide the necessary
administration of planning, design and construction tasks as a number of the projects will
proceed concurrently over the course of the next six years. Included in the list of projects
proposed to be assigned to H&S is the South Pointe Streetscape Improvements Project,
with its five phases.
Program management will help accomplish the City's goals by reviewing project
implementation priorities and limiting the duplication of efforts through the grouping of
projects into specific packages. In addition, standards will be established to ensure that
all contract documents are uniform, linked, and integrated with other ongoing and future
elements of the Program.
In addition to the tangible benefits of this program, it is expected that the City will realize
intangible benefits from the arrangement in that City Staff will be exposed to these
professional's procedures, and the computer technology supporting their project
administration activities; furthermore, a formal process will be established for assuring
that we receive all "as-built" drawings, maps, project files, and data at the conclusion of
each project.
H&S has agreed to provide the services for a "not-to-exceed" fee of $12,298,334 over a
six-year contract term for all the projects. Billing under the Agreement is based on labor
hours expended, not on a percentage of construction cost. H&S's Professional staff will
bill for actual hours expended to the program with a billing limit of 40 man hours per
week. Labor expenses for the professional staff above and beyond the 40-hour work
week, as well as other direct costs deemed to be non-reimbursable by the program, will
be provided at no cost to the City.
Due to the uncertainty involved with project planning, development and
implementation, the contract was structured to allow the City to review allocated
manpower on an annual basis. Therefore, the City has the ability to review proposed
manpower allocations and adjust the allocations accordingly so that the Agreement
January 31, 2001
Miami Beach &development Agency Memorandum
South Pointe Streetscape Improvements - Phase 1: Appropriation of Fundsfor Hanzen and Saweyer, P.C. Contract
Page4of6
amount is not exceeded. The City will also have the opportunity to review actual versus
proposed project schedules to establish the appropriate level of manpower based on the
projects assigned to H&S. The Agreement provides a termination clause "for cause", or
for the convenience of the City, with a 30-day notice period. Key H&S staff will be
assigned to the project full-time to coordinate and administer the program.
The proposed scope of work to be accomplished by H&S is quite extensive H&S
provided fee estimates to perform additional support services, such as alternative funding
analysis, surveying, and a public information program, which may include: an intemet
web site, community outreach, and a community liaison program. The total fee estimate
for Support Services is estimated at $840,550, for a total Program Management fee
estimate of $13,138,884. The City can authorize all or a portion of the Support Services,
as deemed necessary during the program period. The following services are available on
an as-needed basis:
>> The creation and maintenance of a special internet web site which will provide the
public with a continuing picture of the status of projects and the plans for the future,
as well as a description of projects already completed and put into service.
>> Public information hotline - Provide a single telephone number that is widely
publicized for the purpose of providing information about on-going construction
activities, and where citizens can voice their comments, concems and complaints.
The requests for information and complaints will be logged and responded to within
24-hours. Written reports on the handling of each such inquiry or complaint will be
provided to the Administration for review and follow-up, if appropriate.
>> Community Involvement and Public Information Program - In addition to the public
meetings in the Design Phase Program Management Services, H&S working in
concert with City staff, will implement a community involvement program to keep
affected residents abreast of Program status. The objectives of the community
involvement program are to inform and educate the public about program elements
and benefits. This will allow H&S to provide residents with accurate and timely
information, and discuss the impact of the City's Program from the resident's
perspective. In addition to these general meetings detailed above, specific detailed
meetings will be held in each neighborhood to provide additional information for
residents and businesses that will be directly impacted by the Program. Follow-up
activities may include, but not be limited to: phone calls, additional meetings,
correspondence, or development of additional informational materials. The City will
assign a representative to each geographical area to serve as the focal point to receive
comments and concems from City residents and business owners.
>> The objective of the Public Information Program is to generate community
understanding of the program, and may include, but not be limited to the following:
January 31, 2001
Miami Beach Redevelopment Agency Memorandum
South Po;nte Streetscape Improvements - Phase I: Appropriation of Funds/or Hanzen and Saweyer, P.C. Contract
Page 5 of6
* Inform and educate the general public, visitors and business owners of the overall
program elements and benefits.
* Prioritize the issues that have direct impact on residents, visitors and businesses.
* Implement components of an ongoing public information campaign that will keep
the public well informed about the program, highlight the progress of the
program, and emphasize the importance of developing a comprehensive
infrastructure system for the City.
* Inform the public about construction time lines over the next six years.
* Develop materials and information, written in everyday terms, that give the public
an accurate picture of the Program's progress.
* Encourage community participation in the planning phases of neighborhood
proj ects.
> Public Meetings - Due to the size and magnitude of the Program, H&S will hold one
meeting in each of the Neighborhoods to inform the public on the Program and to
specify work that will be ongoing in the respective areas. Materials will be printed in
both English and Spanish.
Administrative staff reviewed local program / construction management costs for projects
of similar size and complexity within the tri-County area and determined that typical
program / construction management services range between 6% (site specific
construction) and 16% (City wide programs) of total construction costs. Hence, the
Administration's review indicates that the negotiated individual labor rates as well as the
total program fee are very competitive in the professional services marketplace.
Additionally, H&S has provided assurances that they will not enter into a like contract
within Florida, with a lower overall percentage profit potential for the firm during the life
of the Program Management Agreement.
Since FY 2001 activities will be focussed on laying the groundwork and planning the
overall program, the cost of H&S's services for the first year have been divided among
the three bond issues. In future years, these costs will be allocated among the funding
sources based on the type of improvements planned, and the estimated extent of
Program Management services required.
Specifically, the South Pointe Streetscape Improvement - Phase I Project will be at a
stage of completion of the sub-phases A-I and B-1: The Washington Avenue extension
into the South Pointe Park and the west portion of Third Street, respectively. The
Project's construction cost is $5,592,718. H&S services for this phase will include
construction administration, scheduling, monitoring, budget evaluation,
consultants/contractors contract administration, design revisions evaluation and
implementation, and associated cost evaluation and recommendation.
H&S intends to establish an office in Miami Beach to house the program management
staff servicing City projects, this office will include: the Program Manager, Deputy
January 31, 2001
Miami Beach Redevelopment Agency Memorandum
South Poinle Street8cape Improvements - Phase I: Appropriation of Funds/or Homen and Saweyer, P. C. Contract
Page 6 of6
Program Manager, Engineering 1 Planning Manager, Construction Managers and other
key staff. In addition, the office will serve as the base of operations for H&S' s
construction observation staff. Based on the current schedule, it is estimated that at the
maximum, in 2004, H&S will have 17 employees working in the management of City
projects assigned hereunder. During 2001, the first year of operation, H&S will develop a
program work plan, create a Program Master Schedule, provide a Master Program Cost
Model and produce monthly Program Management Status Reports. During the first year,
H&S will coordinate the planning and design of neighborhood infrastructure programs,
establish overall phasing programs and assume management of the South Point
Streetscape Phase I, the Washington Avenue Streetscape, and the Venetian Causeway
Projects, the budget for the first fiscal year of operation (approximately nine months
remain in the current fiscal year) is proposed to be $1,443,267. From this budget,
$200,000 has been estimated for the construction management services to complete Phase
I of the South Pointe Streetscape Project.
Fee estimates were based upon proposed manpower allocations and hourly billing rates
for the Agreement contract term. City administrative staff reviewed local program
management programs of comparable size within the Miami-Dade, Broward and Palm
Beach County area to compare H&S's hourly billing rates with billing rates approved in
other programs. It was determined that the proposed hourly billing rates were less than or
equivalent to those rates charged on other programs. A verification of H&S's raw labor
rates and audited overhead was performed after establishing the hourly billing rates.
In future years, the costs associated with the projects will be allocated among the funding
sources based on the type of improvements planned, and the extent of Program
Management services required.
The City's G.O. Bond Oversight Committee, at a special meeting on January 22, 2001,
reviewed the Draft Agreement and recommended to the City Commission approval of
the contract and the FY 2001 G.O. Bond allocation.
Therefore, the Administration recommends that the Chairman and the Members of the
Miami Beach Redevelopment Agency appropriate $200,000 from FY 2001 South Pointe
Tax Increment Funds for the portion of the fee included in the agreement between the
City of Miami Beach and Hazen and Sawyer, P.C., pursuant to Request for Qualifications
(RFQ) No. 102-99/00, to provide professional program management services for the
South Pointe Streetscape Improvements Project
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