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Home My WebLink AboutR-10-0271Vop City of Miami ' Legislation < U R �O Resolution: R-10-0271 File Number: 10-00720 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Final Action Date: 6/24/2010 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 COMPETION DATE, INCREASING THE COMMUNITY SMALL BUSINESS ENTERPRISE ("CSBE") PARTICIPATION GOAL, AUTHORIZING CSBE INCENTIVE PAYMENTS, MODIFYING CONTIGENCY DISTRIBUTIONS, AND OTHER ACTIONS; AUTHORIZING THE -CITY MANAGER TO NEGOTIATE A COMMUNITY WORKFORCE PROGRAM ("CWP") INCENTIVE PAYMENT, IN AN AMOUNT NOT TO EXCEED $50,000, WHICH INCENTIVE PAYMENT WILL NOT CAUSE AN INCREASE IN THE GMP, AND FURTHER AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AMENDMENT TO THE CONSTRUCTION MANAGER AT RISK AGREEMENT WITH NO FURTHER CITY COMMISSION ACTION EMBODYING THE CWP INCENTIVE PAYMENT; 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 City of Miand Page 1 of 3 File Id. 10-00720 (Version: 2) Printed On: 8/1/2017 File Number: 10-00720 Enactment Number: R-10-0271 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 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 $1,810,970, 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, the City desires to further negotiate a Community Workforce Program ("CWP") Incentive Payment, in an amount not to exceed $50,000, which incentive payment will not cause an increase in the GMP; and City of Miand Page 2 of 3 File Id. 10-00720 (Version: 2) Printed On: 8/1/2017 File Number: 10-00720 Enactment Number: R-10-0271 WHEREAS, the City Commission desires to authorize the City Manager to enter into an amendment to the Agreement with no further City Commission action embodying the CWP incentive payment; and WHEREAS, funds for completion of the Project are to be allocated from the sale of the Bonds; and WHEREAS, pursuant to R-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: 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; negotiate a Community Workforce Program ("CWP") Incentive Payment, in an amount not to exceed $50,000, which incentive payment will not cause an increase in the GMP and enter into an amendment to the Construction Manager at Risk Agreement with no further City Commission action embodying the CWP incentive payment; 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}. 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. City of Miami Page 3 of 3 File Id. 10-00720 (Version: 2) Printed On: 8/1/2017