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X-MResolution
File Number: 10-00720
Final Action Date:
A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S),
AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 3 TO THE
CONSTRUCTION MANAGER AT RISK AGREEMENT WITH SUFFOLK
CONSTRUCTION COMPANY, INC., HEREINAFTER THE "GUARANTEED
MAXIMUM PRICE AMENDMENT", FOR THE STADIUM SITE PARKING PROJECT,
IN SUBSTANTIALLY THE ATTACHED FORM, FOR THE PURPOSES OF
ESTABLISHING A GUARANTEED MAXIMUM PRICE ("GMP"), OWNER
CONTINGENCY, OWNER ALLOWANCES, CONSTRUCTION MANAGER'S FEE,
AND GENERAL CONDITION EXPENSES; PROVIDING FOR A SUBSTANTIAL
COMPLETION DATE, INCREASING THE COMMUNITY SMALL BUSINESS
ENTERPRISE ("CSBE") PARTICIPATION GOAL, AUTHORIZING CSBE
INCENTIVE PAYMENTS, MODIFYING CONTINGENCY DISTRIBUTIONS, AND
OTHER ACTIONS; ALLOCATING FUNDS FROM THE SALE OF SPECIAL
OBLIGATION PARKING REVENUE BONDS.
WHEREAS, on January 14, 2010, the City Commission adopted Resolution No. 10-0003,
confirming the award to Suffolk Construction Company, Inc. ("Suffolk") pursuant to Request for
Proposals No. 08-09-056 issued July 2, 2009 and authorizing the City to enter into a Construction
Manager at Risk Agreement with Suffolk ("Agreement"), for the provision of construction management
at risk services for the Stadium Site Parking Project ("Project"), providing for an amount not to exceed
$168,174, for pre -construction services; and
WHEREAS, Resolution No. 10-0003 further authorized the City Manager to execute the
Agreement without further City Commission approval, accepting an Initial Guaranteed Maximum Price
("IGMP"), and a Final Guaranteed Maximum Price ("GMP") in an amount not to exceed $75,000,000,
inclusive of the fee for pre -construction services of $168,174, providing that the GMP did not exceed
$75,000,000; and
WHEREAS, in order to expedite the Project, on March 11, 2010, the City Commission adopted
Resolution No. 10-0105 authorizing the City Manager to execute Amendment No. 1 to the Agreement,
allowing certain services to be moved forward into the pre -construction phase of the Project and
authorizing an increase in the fee of the pre -construction services to an amount not to exceed
$333,174, providing that the GMP did not exceed $75,000,000; and
WHEREAS, pursuant to Resolution No. 10-0003, the construction funds are to be allocated from
the sale of Special Obligation Parking Revenue Bonds ("Bonds") and the issuance of a Notice to
Proceed for the construction phase is not to take place until the sale of the Bonds; and
WHEREAS, in order to remain on schedule for completion of the Project by the December, 2011
completion date, the City Commission adopted Resolution No. 10-0172 authorizing the City Manager
to execute Amendment No. 2 to the Agreement, allowing the City to issue a limited Notice to Proceed
City of Miami Page I of 3 File Id. 10-00720 (Version: I) Printed On: 617/2010
File Number: 10-00720
prior to the sale of the Bonds, for an amount not to exceed $3,000,000 of the GMP, to allow Suffolk to
begin performance of certain construction services; and
WHEREAS, Amendment No. 3 to the Agreement (the "GMP Amendment") establishes the GMP
amount of $73,000,000, which includes an Owner Contingency of $1,810,97b, Owner allowances of
$3,550,834, a Construction Manager's Fee of $1,825,000, General Condition expenses $3,470,843, a
trench safety allowance, and other provisions relating to payments and damages; and
WHEREAS, the GMP Amendment further establishes a Substantial Completion date of December
31, 2011; and
WHEREAS, in an effort to provide incentive for CSBE participation, the GMP Amendment
increases the current CSBE participation goal from 15% to 26%, and provides for an incentive
program for which the City will pay the Construction Manager $20,000 if Construction Manager
achieves 30% CSBE participation, and for which the City shall pay the Construction Manager an
additional $10,000 for each percentage point of CSBE participation above 30%, up to a total not to
exceed incentive payment of $100,000, which shall be paid from the Owner's Contingency and which
shall not cause the final GMP to be increased beyond $73,000,000; and
WHEREAS, in addition, pursuant to the Agreement, the Construction Manager is to receive forty
percent (40%) and the City sixty percent (60%) of the remaining balance of the Construction
Manager's contingency, but only of the amount initially included in the GMP; and
WHEREAS, the Agreement directs that any funds remaining in the Construction Manager's
Contingency which exceed the initially approved contingency, shall accrue one hundred percent
(100%) to the City; and
WHEREAS, the Construction Manager's contingency may increase during the Project if savings
are realized on planned expenditures; and
WHEREAS, the GMP Amendment modifies this language to provide for the distribution of any
remaining balance in the Construction Manager's contingency at forty percent (40%) to the
Construction Manager and sixty percent (60%) to the City, to be applied even in the event that the
remaining balance exceeds the amount initially included in the GMP; and
WHEREAS, this modification to the Agreement provides a greater incentive for the Construction
Manager to control costs; and
WHEREAS, funds for completion of the Project are to be allocated from the sale of the Bonds; and
WHEREAS, pursuant to Resolution No. 10-0003, execution of the GMP Amendment was
contingent upon the sale of the Bonds; and
WHEREAS, in an effort to expedite the Project, authorization for execution is currently being
sought, with Notice to Proceed issuance to remain contingent upon the sale of the Bonds;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI,
FLORIDA:
City. of Miami Page 2 of 3 File Id. 10-00720 (Version: 1) Printed On: 617/2010
File Number: 10-00720
Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by
reference and incorporated as if fully set forth in this Section.
Section 2. The City Manager is.authorized {1} to execute Amendment No. 3 to the Construction
Manager at Risk Agreement with Suffolk Construction Company, Inc., the "Guaranteed Maximum
Price Amendment," for the purposes of establishing a GMP, Owner Contingency, Owner Allowances,
Construction Manager's Fee, and General Condition Expenses, providing for a Substantial
Completion date, increasing the Community Small Business Enterprise ("CSBE") participation goal,
authorizing CSBE Incentive Payments, modifying contingency distributions, and other actions;
allocating funds from the sale of Special Obligation Parking Revenue Bonds.
Section 3. This Resolution shall become effective immediately upon its adoption and signature of
the Mayor. {2}
APPROVED AS TO FORM AND CORRECTNESSv
JULIE 0. BRU
CITY ATTORNEY
Footnotes:
{1} The herein authorization is further subject to compliance with all requirements that may be imposed
by the City Attorney, including but not limited to those prescribed by applicable City Charter and Code
provisions.
{2} If the Mayor does not sign this Resolution, it shall become effective at the end of ten calendar days
from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective
immediately upon override of the veto by the City Commission.
Cite of Mianti Page 3 of 3 File Id. 10-00720 (Version: 1) Printed Ort: 6/7/2010