2008-26842 ResoRESOLUTION NO. 2008-26842
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND
THE CITY CLERK TO EXECUTE AMENDMENT NO. 10 TO THE AGREEMENT
BETWEEN THE CITY AND RIC-MAN INTERNATIONAL, INC., IN AN AMOUNT
NOT TO EXCEED $147,861, FOR THE PROVISION OF ADDITIONAL SCOPE
DUE TO BETTERMENT AND UNFORSEEN CONDITIONS ON 6T", 9TH' 10TH
11T",12T",13T"AND 14T" STREETS, BETWEEN WASHINGTON AVENUE AND
OCEAN DRIVE; 14T" LANE, BETWEEN COLLINS AVENUE AND OCEAN
DRIVE; AND ESPANOLA WAY, BETWEEN WASHINGTON AVENUE AND
COLLINS AVENUE, FOR THE RIGHT-OF-WAY INFRASTRUCTURE
IMPROVEMENTS PROGRAM IN NEIGHBORHOOD NO. 10 -FLAMINGO /
LUMMUS PROJECT; WITH FUNDING TO BE APPROPRIATED FROM THE
CAPITAL RESERVE FUND 304.
WHEREAS, pursuant to Resolution No. 2004-25463, the Mayor and City
Commission approved and authorized the Mayor and City Clerk to execute a Guaranteed
Maximum Price Contract with Ric-Man International, Inc., pursuant to Invitation to Bid No.
22-02/03 for Design Build Services to Design and Construct the Washington Avenue
Improvements -Phases II, IV and V Streetscape and Utility Improvement Project .(the
Agreement); and
WHEREAS, the Agreement provides for the design, permitting, construction and
construction engineering services during construction for the Washington Avenue
Improvements Project, Phase II, IV and V, from Stn to 16tH Streets (the Project); and
WHEREAS, the Agreement was executed for a Guaranteed Maximum Price of
$12,104,429; and
WHEREAS, pursuant to Resolution No.2006-26205, the City approved Amendment
No. 1 to the Agreement, in the amount of $555,783.98, for the inclusion of right-of-way
improvements to coordinate the Flamingo / Lummus drainage infrastructure improvements
within the Washington Avenue right-of-way that were.required to be constructed so that the
drainage system would operate as designed; and
WHEREAS, Amendment No. 1 increased the total Agreement fee by $555,783.98,
for a total fee of $12,660,212.98; and
WHEREAS, pursuant to Resolution No.2005-26024, the City approved Amendment
No. 2 to the Agreement, in the amount of $686,880.00, with Miami-Dade County for the
inclusion of traffic signal improvements on 11tn,12tn, 13tH, and 14th Streets on Washington
Avenue; and
WHEREAS, Amendment No. 2 increased the total Agreement fee by $686,880.00,
for a total fee of $13,347,092.98; and
WHEREAS, pursuant to Resolution No. 2006-26101, the City approved Amendment
No. 3 to the Agreement, in the amount of $1,642,301.22, for the inclusion of planned right-of-
wayimprovements along 7tH and Stn Streets, between Washington Avenue and Ocean Drive;
and
WHEREAS, Amendment No. 3 increased the total Agreement fee by $1,642,301.22,
for a total fee of $14,989,394.20; and
WHEREAS, pursuant to Resolution No.2006-26128, the City approved Amendment
No. 4 to the Agreement, in the amount of $574,560, for the inclusion of Green Malayan
Coconut Palms in the medians from the 600 to the 1600 block of Washington Avenue; and
WHEREAS, Amendment No. 4 increased the total Agreement fee by $574,560.00,
for a total fee of $15,563,954.20; and
WHEREAS, pursuant to Resolution No. 2006-26199, the Cityapproved Amendment
No. 5 to the Agreement, in the amount of $1,094,815.46, for the inclusion of improvements
to the drainage on 16tH Street and other miscellaneous improvements along the Washington
Avenue corridor; and
WHEREAS, Amendment No. 5 increased the total Agreement fee by $1,094,815.46,
for a total fee of $16,658,769.66; and
WHEREAS, pursuant to Resolution No. 2006-26346, the Cityapproved Amendment
No. 6 to the Agreement for the additional drainage wells which are required for the proper
operation of the drainage component of the 7th and 8th Street improvements; and
WHEREAS, Amendment No. 6 increased the total Agreement fee by $197,760.00,
for a total fee of $18,856,529.66; and
WHEREAS, pursuant to Resolution No. 2006-26375, the City approved Amendment
No. 7 to the Agreement for the inclusion of traffic signal improvements on 7tn,8tn, and Stn
Streets on Collins Avenue; and
WHEREAS, Amendment No. 7 increased the total Agreement fee by $726,757.00 for
a total fee of $17,583,287; and
WHEREAS, pursuant to Resolution No.2006-26414, the City approved Amendment
No. 8 to the Agreement for the inclusion of planned improvements along and beneath the
remainder of the Lummus neighborhood -identified by 6tH, Stn, 10tH, 11tH, 12tH, 13th, 14tH
Streets, 14tH Lane, and Espanola Way, between Washington Avenue and Ocean Drive; and
WHEREAS, Amendment No. 8 increased the total Agreement fee by $12,313,687 for
a total cost of $29,896,974; and
WHEREAS, pursuant to Resolution No. 2008-26791, the City approved Amendment
No. 9 to the Agreement, which amended the Joint Participation Agreement (#AOM259)
between FDOT and the City, executed on November 15, 2006, for the additional construction
costs incurred for the signalization improvements along State Road (SR) A1A / Collins
Avenue Corridor, from 7tH through Stn Streets; and
WHEREAS, Amendment No. 9 increases the total Agreement fee by $73,087 for a
total cost of $ 29,970,061.
WHEREAS, this Amendment No. 10 provides for the inclusion of betterment to the
project and unforeseen conditions which are attached as Exhibit "A" hereto; and
WHEREAS, the total change orders on the Project, in the amount of $932,861,
constitute 7.6% of the cost of the Lummus improvements authorized in Amendment No. 8 to
the Agreement; and
WHEREAS, it is in the City's best interest to implement this work as part of this
Agreement in order to minimize the future impact to the residents and business owners of
the neighborhood; and
WHEREAS, Amendment No.10 increases the total Agreement fee by $147,861, for a
total cost of $30,117,922.
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, hereby approve and authorize the Mayor and the City Clerk to execute
Amendment No. 10 to the Agreement between the City and Ric-Man International, Inc., in an
amount not to exceed $147,861, forthe provision of additional scope due to betterment and
unforeseen conditions on 6t" 9th 10th 11th,_12th, 13th and 14th Streets between Washington
Avenue and Ocean Drive; 14th Lane, between Collins Avenue and Ocean Drive; and
Espanola Way, between Washington Avenue and Collins Avenue; for the Right-of-Way
Improvements Program in Neighborhood No. 10 -Flamingo / Lummus Project; with funding
to be appropriated from the Capital Reserve Fund 304. .
PASSED AND ADOPTED this 16th day of July , 2008.
ATTEST:
~/l- ~~
CITY CLERK
Robert Parcher
YOR
Matti Herrera Bower
APPROVED AS TO
FORM & LANGUAGE
COMMISSION ITEM SUMMARY
f _nnrlen¢orl Ti+la•
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 Amendment No.10 to the Agreement between the City
and Ric-Man International, Inc., in an amount not to exceed $147,861, to provide for additional scope due
to betterment and unforeseen conditions for the Right-of-Way Infrastructure Improvement Program in
Neighborhood 10 -Flamingo /Lummus Project. Funding to be appropriated in the amount of $147,861
from the Ca ital Reserve Fund 304.
Ke Intended Outcome Su orted:
Ensure Well Designed Quality Capital Projects.
Supporting Data (Surveys, Environmental Scan, etc.):
Infrastructure improvements are a key driver of residents overall quality of life.
Issue•
Should the City Commission approve the Amendment?
Item Summa /Recommendation:
Construction of the Lummus project commenced in March 2007, and it was anticipated that the
contingency budget would not be exceeded. However, a subsequent request from City staff
recommending the replacement of water mains classified as P3.1 line at 11th Street and 14th Streets,
resulted in additional work scope valued at $400,000. Although the additional work scope represents half
of the project's original contingency funds, it presented the opportunity and advantage of completing the
additional water main installation utilizing the already mobilized Lummus Project contractorwithout causing
additional delays to the project. Following several negotiating sessions held between Ric-Man, the City's
Program Manager, Hazen and Sawyer, P.C, and the City's Capital Improvement Projects Office, an
agreement was reached on the required scope of services to be provided and construction costs that were
consistent with current industry standards and with the previous projects in the area. Pursuing this option
further eliminated any construction overlaps with the work just completed on the Lummus Neighborhood.
In addition to the original contingency amount and in order to finalize this project, it is necessary to
increase the contingency amount by an amount not to exceed $147,861 due to the additional betterment
and unforeseen conditions encountered in the project. These additional change order proposals are
attached as Exhibit A. Based on the aforementioned, the Administration recommends that the Mayor and
City Commission, hereby approve and authorize the Mayor and the City Clerk to execute Amendment No.
10 to the Agreement between the City and Ric-Man International, Inc. dated December 6, 2006, for the ~
Right-of-Way Improvements Program in Neighborhood No. 10 -Flamingo /Lummus Project, in the
amount of $147,861, for the funding of additional change orders for the improvements on 6th, 9 , 10th, 11th,
12th, 13th, 14th Streets, 14th Lane and Espanola Way between Washington Avenue and Ocean Drive; with
funding in the amount of $147,861 to be appropriated from the Capital Reserve Fund 304, Account
Number 304-2345-069357 for Construction.
_.
Advisory Board Recommendation:
Financial Information:
Source of Amount Account
Funds: ~ $147,861 304-2345-069357 (Capital Reserve Fund)
2
3
OBPI Total $147,861
Financial Impact Summary:
Ci Clerk's Office Le islative Trackin
Aurelio J. Carmenates, P.E., CIP Office
Si n-Offs•
Department Director ssistant City Manager City Manager
JECh TH
T:WGENDA\2008Wu1y 16\Consent\Lummus Amendil(ent 10 -Summary 175.doc / - V
u AGENDA ITEM C 7~
~ ~ ~ ~ ~ ~~ DATE 7-~NJ-l~8'
m MIAMIBEACH
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 C' Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: July 16, 2008
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 AMENDMENT N0.10 TO THE AGREEMENT
BETWEEN THE CITY AND RIC-MAN INTERNATIONAL, INC., IN AN AMOUNT
NOT TO EXCEED $147,861, FOR THE PROVISION OF ADDITIONAL SCOPE
DUE TO BETTERMENT AND UNFORSEEN CONDITIONS ON 6T", 9TH 10TH
11TH, 12TH, 13T" AND 14T" STREET BETWEEN WASHINGTON AVENUE AND
OCEAN DRIVE; 14T" LANES, BETWEEN COLLINS AVENUE AND OCEAN
DRIVE; AND ESPANOLA WAY, BETWEEN WASHINGTON AVENUE AND
COLLINS AVENUE, FOR THE RIGHT-OF-WAY INFRASTRUCTURE
IMPROVEMENTS PROGRAM IN NEIGHBORHOOD NO. 10 -FLAMINGO /
LUMMUS PROJECT; WITH FUNDING TO BE APPROPRIATED FROM THE
CAPITAL RESERVE FUND 304.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
FUNDING
Funding, in the amount of $147,861, to be appropriated from the Capital Reserve
Fund 304, Account Number 304-2345-069357 for Construction.
ANALYSIS
The City of Miami Beach has implemented various programs to improve the quality of life of
residents in the City's 13 neighborhoods via twenty four (24) capital improvement projects.
The Capital Improvement Planned Progress Initiative is funded by Series 2000 Water and
Sewer Revenue Bonds, Series 2000 Storm Water Revenue Bonds, and 1999 General
Obligation Bonds. Construction of the Washington Avenue Improvements Project - Phase II,
IV and V from 5th Street to 16th Street is now completed. Additional scope assigned to the
Design/Build contractor, Ric-Man International, Inc. (Ric-Man), includes a portion of the
Lummus Neighborhood Bid Pack 10B which includes 6th, 7th 8th. 9th 10th, 11th, 12th, 13th, 14th
Streets, 14th Lane and Espanola Way. The project is nearing completion.
The City has previously approved several Amendments to the Ric-Man Agreement for
additional scope, most of which has already been completed. These amendments include
additional work to integrate the drainage systems of Washington Ave. and the
Flamingo/Lummus neighborhoods; additional landscaping and beautification of the
Washington Ave. medians; drainage improvements to 16th Street between Washington Ave.
and Collins Ave.; replacement of existing water pipes on 11th and 14th Streets; traffic
City Commission Memorandum -Lummus
July 16, 2008
Page 2 of 3
signalization at several Washington Ave. intersections requested and paid by Miami-Dade
County; and improvements completed on 7th & 8th Streets.
Resolution 2006-26414 authorized the City to amend the existing Design Build Agreement
with Ric-Man, increasing the Agreement fees by an amount of $12,313,687 to provide
Engineering, Urban Design, Landscape Architecture, and Construction Administration
Services for Design, Permitting, Construction and Construction Administration of the
Additional Lummus Neighborhood Right-of-Way (ROW Improvements, Bid Pack 10B,
consisting of 6th 9th 10th, 11th, 12th, 13th, 14th Streets, 14t Lane, and Espanola Way. This
resolution further authorized the allocation of $800,000 or 6.7% of the total project cost as
project construction contingency.
Construction of the Lummus project commenced in March 2007, and it was anticipated that
the contingency budget would not be exceeded. However, a subsequent request from City
staff recommending the replacement of water mains classified as P3.1 lines at 11th Street
and 14th Streets, resulted in additional work scope valued at $400,000. These pipes were
found to be in a very deteriorated state and warranted replacement.
Although the additional work scope represents half of the project's original contingency
funds, it presented the opportunity and advantage of completing the additional water main
installation utilizing the already mobilized Lummus Project contractor without causing
additional delays to the project. Following several negotiating sessions held between Ric-
Man, the City's Program Manager, Hazen and Sawyer, P.C, and the City's Capital
Improvement Projects Office, an agreement was reached on the required scope of services
to be provided and construction costs that were consistent with current industry standards
and with the previous projects in the area. Pursuing this option further eliminated any
construction overlaps with the work just completed on the Lummus Neighborhood.
The original contingency for the project was established at the time of award in the amount
of $800,000. The funding source allocated for the contingency was from Fund 302 Pay as
You Go. When the request from the City to replace the water pipes found to be in disrepair
was agreed to, it was intended to be paid from the original contingency value for the project.
This additional work was negotiated with the contractor and agreed to in the amount of
$400,000. Other change orders for the project, in the amount of $277,860, were also paid
from the original contingency. In addition, Public Works funded some work scope they
requested from Storm Water Operating funds in the amount of $24,925. The total change
order amount already funded to the contractor is $702,785.
In addition, a number of Requests for Change Orders, in the amount of $240,001 have been
presented by the contractor for work already performed or for work which the City has
agreed to fund. These change order proposals were negotiated with the contractor and their
values established. Since the project is expected to reach substantial completion in July
2008, it becomes necessary to fund the additional Change Orders to account for the shortfall
in the contingency. Based on the already approved and funded additional costs and the
costs now required to close-out the project, the amount needed to fully fund all change
orders for work in place is $132,861.
The existing remaining contingency funding from Pay as You Go would be used for other
allocations up to the $800,000 level. The remaining change orders for a value of $132,861
plus an additional $15,000 for a close out contingency, which many not be used, constitutes
the request of this appropriation Resolution. No additional change proposals have been
presented and none are anticipated but the additional contingency is requested to account
for possible punch list requests by regulatory agencies during close out which may not be
part of the contract at this time. The total additional costs for this project represent 7.6% of
City Commission Memorandum -Lummus
July 16, 2008
Page 3 of 3
the total construction cost which is well below the accepted industry standard of 10%.
CONCLUSION
Based on the aforementioned, the Administration recommends that the Mayor and City
Commission, hereby approve and authorize the Mayor and the City Clerk to execute
Amendment No. 10 to the Agreement between the City and Ric-Man International, Inc. dated
December 6, 2006, for the Right-of-Way Improvements Program in Neighborhood No. 10 -
Flamingo /Lummus Project, in the amount of $147,861, for the funding of additional change
orders for the improvements on 6tH 7tH Stn, Stn 10~', 11tH 12tH 13~', 14th Streets, 14th Lane
and Espanola Way between Washington Avenue and Ocean Drive; with funding in the
amount of $147,861 to be appropriated from the Capital Reserve Fund 304, Account
Number 304-2345-069357 for Construction.
Attachment
T:\AGENDA\2008Wu1y 16\Consent\Lummus Amendment 10 -Memo 175.doc
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