HomeMy WebLinkAboutSubmittal-Memo-City Manager-Substitution for RE.9TO
FROM
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
Honorable Mayor and
Members of the City Commission
Carlos A. Migc
City Manager
DATE:
June 21, 2010
FILE :
SUBJECT: Substitution for Item RE.9
Revisions to GMP Amendment No. 3
REFERENCES:
ENCLOSURES:
Please be advised that the Amendment related to item RE.9 scheduled for the June 24, 2010
Planning and Zoning Commission Meeting needs to be revised and substituted as follows:
The City has established an Owner Contingency fund in the amount of One Million Eight
Hundred Ten Thousand Nine Hundred Seventy Dollars ($1,810,970) for this Project. The
Construction Manager has no right or entitlement to the CAO Owner's Contingency fund
or Owner's Allowances and use of such funds are subject to the prior written approval
and/or issuance of a Change Order by the City. Any Gity Owner Contingency or Owner
Allowance funds remaining at the completion of the Project will accrue 100% to the City.
2. The Construction Phase commencement date (Commencement) for the Work is dafle July
4-06, 2010. The total time for performance of the Work from Commencement through the
date required for Substantial Completion is five hundred seveRty RiRe hirt five (&7-9535)
days (Construction Time). The Substantial Completion date for the entire Project is
therefore established as December 31, 2011.
3. In consideration for the reduction of the GMP from Seventy Five Million Dollars
($75,000,000) to Seventy Three Million Dollars ($73,000,000), the City has agreed to pay
Construction Manager an additional Two Hundred Fifty Five Thousand Dollars ($255,000),
provided the GMP does not exceed Seventy Three Million Dollars ($73,000,000), inclusive
of fef General Conditions, but exclusive of City Commission approved Change Orders
causing the GMP of $73.000.000 to be exceeded. The Two Hundred Fiftv Five Thousand
Dollars ($255,000) is included within the above stated GMP of Seventy Three Million
Dollars ($73,000,000). In return and if required by the City, Construction Manager has
agreed to maintain any required personnel at the Project, at no cost to the City, for a
period not to exceed 90 days from the Project Substantial Completion date of December
31, 2011. This need may arise as a result of the Construction Manager's inability to
complete all of the site work and/or surface lots due to but not limited to the Marlins / Hunt -
Moss not being finished with their Public Infrastructure scope of work surrounding the
parking sites. In consideration of the City's requests that the Construction Manager not
commence construction of the P3 and P4 parking garages until October 18. 2010, the Citv
shall provide the Construction Manager with a thirty one (31) day grace period of time
subsequent to Substantial Completion. as adiusted. where the Construction Manager shall
not be liable to the City for the per day Liquidated Damages during the grace period.
The words that have been double underlined reflect the changes and those that have been struck
through reflect the deletions.q
C: Alice N. Bravo, P.E., Director, CIP U 1'�9ITTED INTO THE
Elvi Gallastegui, Agenda Coordinator PUBLIC
RECORD FOR
a�� R. 9 OIC c/ayl��
#14
CITY OF MIAMI
AMENDMENT NO. 3 TO AGREEMENT
WITH SUFFOLK CONSTRUCTION COMPANY, INC.
FOR CONSTRUCTION MANAGER AT RISK SERVICES FOR
STADIUM SITE PARKING, B-30648
This Amendment No. 3, ("GMP Amendment") to the Construction Manager at Risk
Agreement dated February 12, 2010 (the "Agreement"), between the City of Miami, a
municipal corporation of the State of Florida ("City"), and Suffolk Construction Company,
Inc., ("Contractor") a Massachusetts corporation, for the provision of Construction
Management Services for the Stadium Site Parking ("Project") is entered into this
day of 2010.
RECITALS
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 GNIP 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 prior to the sale of the Bonds, for an amount
not to exceed $3,000,000 of the GNIP, to allow Suffolk to begin performance of certain
construction services; and
Submitted Into the public,
Dq �
record in connection with
D bc) item E R on (o-24 -/0
3 Priscilla A. Thompson
City Clerk
Page 1 of 8
WHEREAS, this 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 Construction Manager's contingency may increase during the
Project if savings are realized on planned expenditures; 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 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;
NOW THEREFORE, for the considerations of the foregoing, the parties hereby
amend the Agreement in the following particulars:
Section 1 — Pre -Construction Phase
Article 79: Small Business/Local Workforce Participation
Pursuant to the CAA, the City, in cooperation with the County's
Department of Small Business Development, has established certain
goals for the utilization of local small businesses and local workforce in
the construction of the Project, in accordance with the County's
Community Small Business Enterprise (CSBE) program for construction,
and the Community Workforce Program (CWP). The preliminary Ste€
aPA--CWP goals aye is set forth in the Request for Proposals, and the
Submitted Into the public
record in connection withPage 2 of 8
item = n (o -24- 4
-Priscilla A. Thompson
City Clerk
CSBE goal in the Request for Proposals has been revised and an
incentive program created as described herein. Construction Manager
shall make a good faith effort to assist the City in establishing the final bid
CSBE and CWP goals associated with each bid package for the Project,
if needed, and shall use good faith efforts to comply with the established
CSBE and CWP goals. Construction Manager shall, and shall require all
Subcontractors to, grant the City all rights of access to records to monitor
compliance with the CSBE and CWP goals, and shall include the above
requirements in each bid package and Subcontract.
The 'CSBE participation goal shall be 26%. The City will pay the
Construction Manager Twenty Thousand Dollars ($20.000) ("CSBE
Incentive Payment") if ConstructiorL Manager achieves 30% CSBE
participation. In addition. the City shall pay Construction Manager an
additional Ten Thousand Dollars ($10.000) as part of the CSBE Incentive
Payment for each percentage point of CSBE participation above 30%. In
no event shall the amount paid to Construction Manager for the CSBE
Incentive Payment exceed One Hundred Thousand Dollars ($100.000 or
cause the GMP to be increased.. The CSBE Incentive-PaymenL shall be
funded from the Owner's Contingency and shall be paid to Construction
Manager within 30 days from the date the Construction Manager
achieves substantial completion for the entire Projectand it notifies to the
City in writing that the maximum CSBE participation has been achieved.
The CSBE incentive will be based on the CSBE percentage achieved a
the substantial completion of the Proiect. The Construction Manager is
committed to making its best efforts to contract with firms located within
the boundaries of the Citv.
Section 2 — Pre -Construction Phase
Article 11: Guaranteed Maximum Price
...Construction Manager shall include a line item for Construction
Manager's Contingency amount in the Schedule of Values for the Project,
which Contingency amount, if accepted by the City, shall be included
within the GMP and to the GMP Agreement for the Project, and, subject
to the prior agreement of the City. The Contingency shall be used as the
source of funds for unforeseen costs that are reasonably and necessarily
incurred and paid by the Construction Manager, which costs shall be at
rates not higher than the standard paid in Miami -Dade County, as follows:
(a) first, in connection with the proper performance of Work required
hereunder which Work was unforeseeable by the Construction Manager,
the Consultant, and the City at the time of execution of the GMP
Agreement, (b) second, to the extent that any portion of the Contingency
remains unallocated on the date of Final Completion and after the
issuance of final payment for the Project, such remaining portion of the
Contingency shall be split between the City and the Construction
Manager. The Construction Manager shall receive 40% and the City 60%
of the remaining balance of the Construction Manager's Contingency
including any funds remaining in the
Construction Manager's Contingency that exceeded the initially approved
f ubrnitted Into the public Page 3 of 8
faecord in connection with
m pe. 9 on G_ ?q- l4
Priscilla A. Thompson
City Clerk
Contingency aGGFue 100%. The Construction Manager's
Contingency amount shall be set forth in the GMP Agreement for the
Project, and within the Schedule of Values attached thereto. Use of the
Construction Manager's Contingency shall be at the sole discretion of the
City and requires the prior written approval of the City's Project Manager.
The Construction Manager's Contingency shall not be used for rework,
cost increase caused by a lack of coordination or communication with the
Consultant or Subcontractors, or to correct errors and omissions in the
Contract Documents.
A new section of the Agreement is hereby created as set forth below:
Section 4 — Additional Terms and Conditions
1. Construction Manager's GMP for the Construction Phase of the
Work shall be Seventy Three Million Dollars ($73,000,000). Included in
the GMP is an Owner Contingency of One Million, Eight Hundred Ten
Thousand, Nine Hundred Seventy Dollars ($1,810,970) and Owner
Allowances in the amount of Three Million, Five Hundred Fifty Thousand,
Eight Hundred Thirty Four Dollars ($3,550,834), all of which shall be
utilized in accordance with the provisions of the Agreement and this
Amendment.
2. The Construction Manager's Fee for the Construction Phase of
the Work is hereby established as a lump sum amount of One Million
Eight Hundred Twenty Five Thousand Dollars ($1,825,000), and said
lump sum amount is included within the above stated GMP.
3. The General Conditions expenses for the Construction Phase of
the Work are hereby established as a lump sum amount of Three Million
Four Hundred Seventy Thousand Eight Hundred Forty Three Dollars
($3,470,843), and said lump sum amount is included in the above stated
GMP. Construction Manager acknowledges and agrees that the City shall
have no liability for any General Condition expenses beyond payment of
the above noted lump sum and Construction Manager agrees that it shall
not be entitled to receive any additional compensation from the City for
the General Conditions beyond the lump sum amount unless expressly
adjusted by a Change Order.
4. Monthly installment payments of the GMP, not including the
Construction Manager's General Conditions expenses shall be based
upon the percentage of completion of the portion of Work completed and
accepted by the City for the preceding month. There shall be 19 equal
monthly installment payments for the Construction Manager's General
Conditions expenses commencing with the first payment application after
issuance of the GNIP Notice to Proceed.
5. Direct reimbursements allowed under the Agreement shall be
made upon submission of proof of payment to the City by the
Construction Manager.
Submitted Into the public
record in' connection vk(dh Page 4 of 8
item (E -q on10-24 /10
T
Priscilla A. home YY
City Cleric
6. The City has established an Owner Contingency fund in the
amount of One Million Eight Hundred Ten Thousand Nine Hundred
Seventy Dollars ($1,810,970) for this Project. The Construction Manager
has no right or entitlement to the Owner's Contingency fund or Owner's
Allowances and use of such funds are subject to the prior written approval
and/or issuance of a Change Order by the City. Any Owner Contingency
or Owner Allowance funds remaining at the completion of the Project will
accrue 100% to the City.
7. If at the time final payment is made to the Construction Manager
for the Construction Phase of the Work the total cost has been increased
by approved Change Orders in an amount causing the original GMP as
set forth in this Amendment to be exceeded by more than One Dollar
($1.00), then the Construction Manager shall be entitled to an increase in
the Construction Manager's Fee in the amount of two and one half
ep rcent (2.5%) of the amount exceeding the sum of One Dollar ($1.00).
8. Construction Manager acknowledges that the Agreement includes
Work for trench excavation and that the requirements set forth in Section
553.63, Florida Statutes, Trench Safety Act, apply. Construction Manager
certifies that the required trench safety standards will be in effect during
performance of the Work.
9. The amount of Nine Thousand Dollars ($9,000) has been
separately identified for the cost of compliance with the required trench
safety standards and said amount is included within the GMP.
10. The Construction Phase commencement date (Commencement)
for the Work is July 06, 2010. The total time for performance of the Work
from Commencement through the date required for Substantial
Completion is five hundred thirty five (535) days (Construction Time). The
Substantial Completion date for the entire Project is therefore established
as December 31, 2011.
11. Pursuant to the Agreement, the parties have established a
liquidated damages rate for reasons stated therein, which the parties
acknowledge and agree apply to this Amendment and Construction
Manager's responsibility to complete the Work within the Construction
Time. Accordingly, the liquidated damages rate established in the
Agreement shall be assessed from Construction Manager for each
calendar day Construction Manager fails to achieve Substantial
Completion for the entire Project within the Construction Time.
12. In consideration for the reduction of the GNIP from Seventy Five
Million Dollars ($75,000,000) to Seventy Three Million Dollars
($73,000,000), and as an incentive for the Construction Manager to
control its costs, the City and Construction Manager have agreed that all
savings realized by the Construction Manager in the Cost of the Work,
excluding Owner Contingency and Owner Allowances shall accrue to the
Construction Manager's Contingency, and that at Substantial Completion
of the entire Project, the remaining Construction Manager's Contingency
shall be shared in the following percentages: 60% to City, 40% to
Construction Manager. There shall be no monetary cap on the total
Submitted Into the public Page 5 of 8
record in connection with
item � E • R on (o- Zq- /0
Priscilla A. Thompson
City Clark
amount of savings that will be shared by the Parties. All savings in the
Owner Contingency and Owner Allowances and shall accrue 100% to the
City. ,
13. The City has determined that it is in the City's best interest to
increase the current CSBE participation in the GMP to 26%. In
furtherance thereof, the City will pay the Construction Manager Twenty
Thousand Dollars ($20,000) ("CSBE Incentive Payment") if Construction
Manager achieves 30% CSBE participation. In addition, the City shall pay
Construction Manager an additional Ten Thousand Dollars ($10,000) for
each percentage point of CSBE participation above 30% as an additional
CSBE Incentive Payment. In no event shall the amount paid to
Construction Manager for the CSBE Incentive Payment exceed One
Hundred Thousand Dollars ($100,000) or cause the final GMP to exceed
Seventy Three Million Dollars ($73,000,000). The CSBE Incentive
Payment shall be funded from the Owner's Contingency and shall be paid
to Construction Manager within 30 days from the date the Construction
Manager achieves substantial completion for the entire Project, and it
notifies to the City in writing that the maximum CSBE participation has
been achieved. The CSBE Incentive Payment shall be based on the
CSBE percentage achieved at the completion of the Project. The
Construction Manager is committed to making its best efforts to contract
with firms located within the boundaries of the City.
14. In consideration for the reduction of the GMP from Seventy Five
Million Dollars ($75,000,000) to Seventy Three Million Dollars
($73,000,000), the City has agreed to pay Construction Manager an
additional Two Hundred Fifty Five Thousand Dollars ($255,000), provided
the GMP does not exceed Seventy Three Million Dollars ($73,000,000),
inclusive of General Conditions, but exclusive of City Commission
approved Change Orders causing the GMP of $73,000,000 to be
exceeded. The Two Hundred Fifty Five Thousand Dollars ($255,000) is
included within the above stated GNIP of Seventy Three Million Dollars
($73,000,000). In return and if required by the City, Construction Manager
has agreed to maintain required personnel at the Project, at no cost to the
City, for a period not to exceed 90 days from the Project Substantial
Completion date of December 31, 2011. This need may arise as a result
of the Construction Manager's inability to complete all of the site work
and/or surface lots due to but not limited to the Marlins / Hunt -Moss not
being finished with their Public Infrastructure scope of work surrounding
the parking sites. In consideration of the City's requests that the
Construction Manager not commence construction of the P3 and P4
parking garages until October 18, 2010, the City shall provide the
Construction Manager with a thirty one (31) day grace period of time
subsequent to Substantial Completion, as adjusted, where the
Construction Manager shall not be liable to the City for the per day
Liquidated Damages during the grace period.
15. In accordance with Section 1 Paragraph 7 of the Agreement, the
City intends to enact an Owner's Direct Purchase Program.
16. The Agreement, as amended by the First, Second and Third
Amendment, constitutes the entire agreement and understanding
Submitted Into the public Page 6 of 8
record in connection with
item RE- q on
Priscilla A. Thompson
City Clerk
among the parties with respect to the subject matter hereof. The City
and Construction Manager acknowledge and agree that except as
specifically modified hereby, all of the provisions of the Agreement
which are not in conflict with the terms of this Amendment shall
remain in full force and effect. In event of any conflict with the
Agreement, the terms of this Amendment shall control.
Submitted Into the public Page 7 of 8
record in connection with
stem RE• q on (o -Z'4-1()
Priscilla A. Thompson
Citv Clerk
0
THE CITY OF MIAMI, FLORIDA
ATTEST:
By:
Priscilla A. Thompson, City Clerk
CITY OF MIAMI, FLORIDA, a municipal
Corporation of the State of Florida
BY:
Carlos A. Migoya,
City Manager
APPROVED AS TO LEGAL FORM AND APPROVED AS TO INSURANCE
CORRECTNESS: REQUIREMENTS:
By:
Julie O. Bru, City Attorney
ATTEST:
Bv:
Corporate Secretary
(Affix Corporate Seal)
Bv:
LeeAnn Brehm,
Risk Management Director
CONTRACTOR
SUFFOLK CONSTRUCTION COMPANY,
INC.
By:
Print name, Title of Authorized Corporate
Officer
a Balm
tecolln connection e
m E- q on to -z4- /0
Priscilla A. Thompson
City Clerk
Page 8 of 8