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HomeMy WebLinkAboutItem #25 - Discussion ItemINTER -OFFICE MEMOR,04DUM 'TO: Honorable Mayor and Members of the City Commission FROM : d Cesar H. O�lib rk City Managey,4 REL'"OMMENDATION W DATE MAC FILE m SUBJECT : Local Drainage Project E-69 - DE,FAULT BY ORIGINAL CONTRACTOR, REFERENCES : ASSIGNMEW TO NEW CONTRACTOR ENCLOSURES: It is respectfully requested that the City Commission adopt the attached Resolution ratifying the City Manager's finding that U.S. Underground, Inc. has defaulted in its contract with the City for construction of Local Drainage Project E-69 thereby rescinding Resolution 92-317 in its entirety; further ratifying the City Manager's written finding that a valid emergency exists and in executing a contract with M. Vila & Associates for said project in the amount of $243,892.00 to cover the contract cost and $60,962.96 to cover the estimated expenses for an estimated total cost of $304,854.96. BACKGROUND The Department of Public Works in an effort to serve all residents of the City of Miami, has determined that it is now appropriate and in order for the City Commission to ratify the City Manager's finding that U.S. Underground, Inc. has defaulted on its September 8, 1992 contract with the City for construction of Local Drainage Project E-69 and to ratify the City Manager's emergency.finding justifying execution of a contract with M. Vila & Associates. The reasons for the finding of default by the original contractor and subsequent authorization for M. Vila & Associates, Inc, to proceed are as follows: The City Commission awarded a contract to U.S. Underground, Inc. for construction of Local Drainage Project E-69, Capital improvement Project No. 352275, on May 14, 1992, as a result of said firm's low bid submitted on April 7, 1992The project consists of the construction of local drainage facilities at five locations in the City. The contract documents were executed by U.S. Underground, Inc. on September 8, 1992, and the contractor was authorized to proceed with construction. 1SC;t)SSt�1l� a M On October 8, 1992, the contractor notified the City in writing that he could not continue the construction due to a "catastrophic situation" caused by Hurricane Andrew. The contractor also requested, and was granted, a two --week time extension to resolve his difficulties and resume construction. Several months have now elapsed and the contractor has not been able to resume construction. Therefore, in accordance with Section 6--10 of the City's Standard Contract documents and Specifications for Public Works Projects entitled "Annulment of Contract. By City", U.S. Underground, Inc. was found to be in default of its September 8, 1992, contract with the City for construction of Local Drainage Project g--69, B-- 5593, C.I.P. No. 352275. The Director of Public Works determined that due to the severity of the drainage problems that exist at the five locations in this project, it was imperative that construction resume on this project as soon as possible so that the new drainage facilities can be operational before the next rainy season in the Spring of 1993. Formal competitive bids were submitted for this project by seven contractors on April 7, 1992. The second lowest bidder, Miri Construction, Inc., exercised its option of not holding its bid price beyond the sixty --day period after opening of formal bids stipulated in the City's bid documents, and was not interested in constructing said project. The third lowest bidder, M. Vila & Associates, Inc., agreed to honor its April 7, 19929 bid of $243,892, and agreed to start construction in the second week of February, 1993. Failure to expeditiously correct the severe drainage problems that will be addressed in Local Drainage Project g--69 could endanger the health, safety and welfare of our citizens. It was decided that the most cost effective and expeditious manner to address these drainage problems was to allow M. Vila & Associates, Inc. to proceed with construction of said project as soon as possible rather than readvertise for bids. (The readvertisement process would take at least 3 months to award a new contract). Funds for the contract with M. Vila & Associates, Inc. are available from monies already appropriated for local drainage improvements in the City's Capital Improvement Appropriation Ordinance No. 10938,. Project No. 332275. 93- 162• 1 t J 1-ftJ ^-22--9'_A M0W 1 :2"r - 02 4 CITY OF MIAMI, FLORIDA INTEROFFICE MEMORANDIUM TO u 9MT9 : January 29, 1993 ME: 8„5593 SUEUEGT : EMERGENCY FINDING Local Drainage Project E­69 PROM: DEFAULT BY ORIGINAL CONTRACTOR, rc h"kNUAASSIGNMENT TO NEW CONTRACTOR Cesar H . Od i o �Ha.oauh�a . My KADISfir,_,� �O' Based on information supplied to me by the Director of the Department of Publio Works, I have found U.S. Underground, Inc. to be in default of its contrast with the City of Miami for oonstruotion of Local Drainage Projeot E-69, B--5593, C.I.P. No. 352275. Additionally, I have found that an emergency exists justifying tho Authurizat,ion for M. Vile & Aaaooistea, Inc. to proceed with oonstructlon of said drainage project as soon as possible. The reasons for the finding of default by the original contractor and subsequent authorization for M. Vila 6 Assooiates, Inc. to proceed are as follows: The City Commlasion awarded a contract to U.S. Undergground, Inc. for oonstruotion of Local Drainage Project E-69, Capital Improvement Project No. 3522T5, on May 14. 1992, as a result of sold f1rm9:s low bid submitted on April T, 1992. The • -pro4eot oons13t3 of the construction of local drainage faoilitl+es at five locations in the City. The contract documents were executed by U.S. Underground, Inc. on September 8, 19921, and the oontraotor was authorized to proceed with construction Immediately. On October 6, 19929 the contractor notified the City min writing that he oould not continue the oonstruotion due to a "catastrophic situation" caused by Hurrloane Andrew. The oontraotor also requested, and was granted, a two. -week time extension to resolve hIs d1ff1cu1tie3 and resume oonstruotion. Three months have now elapsed and the contractor has not been able to resume construction. Therefore, in accordance with Section 6•10 of the Cityle Standard Contract documents and Specifications for Public Works Projeots entitled "Annulment of Contract By City", I hereby ratify the Construction Engineer's finding that U.S. Underground, Inc. is in default of its September 6, 1992, eontreat with the City for construction of Local Drainage Pro jeot E•-69, B• 5593, C.I.P. No. 352275. 93-- 162-1 2 r File Furthermore, 2 have baan informmd by the pireotor of public Works that duo t.n the Severity of the drainage problems that exlat at the five imo4t1*A3 in this projeaL. IL Is imporative thgt Aonistruotion rasume on this projeot as soon as possible so that the new drai.noge facilities can be operational before the next rainy season in the Spring of 1993. Formal competitive bids were submitted for this projeot by seven contractors on April 7, 1992. The second lowest bidder, Miri Construction, Inc., has exercised its option of not holding Its bid prioe beyond the sixty-day period after opening of formal bids as stipulated in the City's bid documents, and is not Interested in constructing said projeot. The third lowest bidder, M. Vila & Assooiates, Ino., has agreed to honor its April T, 1992, bid of $2439692, and has agreed to start oonstruotion within two weeks. Failure to expeditiously correct the severe drainage problems that will addressed in Local Drainage Project E-69 could endanger the health, safety and welfare of our citizens. I have decided that the most cost effective and expeditious manner to address these drainage problems is to allow M. Vila 6 Associate, Inc. to prooeed with oonstruotion of said projeot as soon as pos3ible rather than readvertise for bids. (The readvertioement process would take at least 3 months to award a new contract). Funds for the oontraot with M. Vile h Assuoistea, Ino. are available foram monies already appropriated for local drainage - Improvements in the City's Capital Improvement Appropriation Ordinance No. 10936.e Project No. 332275. 2 93- 162.) FACT SHEET PUBLIC WORKS DEPARTMENT DATE 04IM1992 JOB : B-5590 PROJECT Nr1ME: LOCAL DRAINAGE PROJECT E-69 CIP A: 352275 LOCATION: _ CITYWIDE TYPE: 8t" $"*I PROJECT MANAGER: LEO GARCIA _ FEDERAL PARTICIPATION: Q ASSOCIATED DEPARTMENT: PUBLIC WORKS ASSESSABLE: EMERGENCY: RESOLUTION: BID REQUEST: FORMAL Q INFORMAL Q DESCRIPTION: THE PRDim WIMSTS OF THE 1`.oNSTRUCTION OF "MYRATION DRAM' AND DUCTILE NM PIPE' CATCH BA81INS AND MANHOLESo AND SIDEWALK, CUR08, 0UTTM, AND PAVEMENT RESTORATION IN CONSTRUCTION AREAS. THE PROJECT n LOCATED AT S DESIGNATM LOCATIONS CITYWIDE. F NECESSARY CONTINUE ON THE SCOPE OF SERVICES: CITY OUTSIDE AMOUNT (% OF CONST. COST) SURVEY / PUT SITE INVESTIGATION Q Q $ PUNNING AND STUDY Q Q ; ��, `A OF (EC) DESIGN Q Q i 28,140.00 �%OF (EC) SPECS AND BID PROCESS Q Q t 1.575.00 % OF (EC) BLUEPRINTING AND ADVERTISING Q Q $ (E) CONSTRUCTION Q Q s 243.M2.00 (BID) COSST. INSP. & MANAGEMENT Q Q i 21.950.00 9 % OF BID OTHER TESTING Q © S 5,000.00 (Fa SUBTOTAL S 300.557.00 �115 % INDIRECT COSTS : 4.207.9E (E) (ENG. FEE) CONTINGENCIES (5%) $ (EC) ESTIMATE COSTT. CO S 469,000.00 TOTAL t 304,854.9e (E) ESTIMATE CONTRACTOR'S INFORMATION: CUSS: Q [ :r.i I.— =J TYPE OF WORK STORM SEWER, MINORITY © 0 YEARS OF ESTABUSHMENT: 1978 LICENSE NAME: M. V I LA A ASS( MTES INC. TELEPHONE 305 )821-1220 AbDRESS: 4395 PALM AVENUE. HIALEAH, FL CONTACT PERSON: JOSE SANCHEZ, VICE PRESIDENT — SUB -CONTRACTORS NAMES: c i 1 93- 462•) CLASS: J• JOINT P= PRIME S= SUB MINOR(4Y: B+ BLACK H• HISPANIC F• FEMALE . S