Item Coversheet

Resolutions - R7  L




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Jimmy L. Morales, City Manager 
DATE:February  12, 2020
 



SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE SETTLEMENT AGREEMENT AND MUTUAL RELEASE BETWEEN THE CITY OF MIAMI BEACH, FLORIDA (CITY) AND RIC-MAN INTERNATIONAL, INC., (RMI) IN THE AMOUNT OF $1,650,000, TO SETTLE ALL OUTSTANDING CLAIMS PERTAINING TO THE DESIGN/BUILD SERVICES ASSOCIATED WITH THE RIGHT OF WAY INFRASTRUCTURE IMPROVEMENTS, NEIGHBORHOOD NO. 8, SUNSET ISLAND 3 & 4 PROJECT, SUBJECT TO RMI'S COMPLETION OF THE OUTSTANDING WORK IDENTIFIED IN THE SETTLEMENT AGREEMENT; AND AUTHORIZING THE CITY MANAGER AND CITY ATTORNEY TO TAKE THE NECESSARY AND APPROPRIATE STEPS FOR THE IMPLEMENTATION THEREOF; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE SETTLEMENT AGREEMENT; WHICH SETTLEMENT SUMS ARE AVAILABLE IN THE PROJECT BUDGET.

RECOMMENDATION

The Administration recommends adopting the Resolution.

BACKGROUND/HISTORY

On September 10, 2014, the Mayor and City Commission adopted Resolution No. 2014-28749, pursuant to Request for Proposals No. 2014-051-SR, authorizing the Mayor and City Clerk to execute an Agreement with Ric-Man International, Inc. (RMI), for design-build services for Neighborhood No. 8: Sunset Islands 3 & 4 Right-of-Way (ROW) Infrastructure Improvements in the amount of $7,774,967.51.

The scope of this Design-Build project consisted of the design and construction, associated with the earthwork, pavement reconstruction, overhead utility undergrounding, sidewalk construction, water main improvements, water meter replacement, storm drainage infrastructure installation, sanitary sewer main and structure lining, new conduits, conductors and service point for the existing street lights and streetscape/planting improvements.

On January 5, 2015, Notice to Proceed (NTP) No. 1 was issued directing RMI to start the pre-construction work including engineering design and permitting. On June 8, 2015, the NTP No. 2 was issued directing RMI to commence construction.

On January 13, 2016, the Mayor and Commission adopted Resolution No. 2016-29275, authorizing the Mayor and City Clerk to execute Amendment No. 1 for additional services associated with the roadway design and hardscape modification and design and construction associated with the pump station and use of the park as staging area.


On May 18, 2016, the Mayor and Commission adopted Resolution No. 2016-29414, authorizing the Mayor and City Clerk to execute Amendment No. 2 for additional design, permitting, construction services, general conditions and the cost associated with the disruption to the continuity of the construction activities and re-sequencing of the work.

 

The total contract to date is $11,250,593.

On November 19, 2018, portions of the project (hardscape, streetlight conduits and conductors, stormwater drainage system and water distribution system) were substantially completed. Sanitary sewer system, stormwater pump stations, underground franchise utility equipment, landscaping, pavement markings and signage are the remaining disciplines in need of substantial completion. The Design-Build team is responsible to address all deficiencies, closeout all the permits and achieve final project completion.

On September 6, 2019, the Contractor asserted a claim for additional compensation against the City associated with pipe oversize, bridge limit restrictions, Department of Regulatory and Environmental Resources (RER DERM) design and permit requirements, pump station relocation, schedule and productivity impacts, additional as-built requests, pump stations additional line reactors and repair of sewer channels in the total amount of $3,191,216.58 (Attachment A).

City staff and the Design Criteria Professional reviewed the claim and supporting documentation submitted by the Design-Builder and found the items related to pipe oversize, bridge limit, pump station relocation, schedule and productivity impact and pump station line reactors to have some merit for consideration. City staff negotiated the scope and the amount sought by the Design-Builder in the best interest of the City and agreed to settle the disputed claim in the amount of $1,650,000, subject to City Commission approval of the settlement agreement and the associated terms. (Attachment B).

Retainage withheld in the amount of $277,764.92 will be released upon completion of all contractual obligations including final acceptance and close-out of all permits issued by City and all outside agencies and to the satisfaction of all terms and conditions included in the settlement agreement.

FINANCIAL INFORMATION

Subject to Settlement Agreement for Bayshore Neighborhood Bid Pack D, Project #23180

CONCLUSION

The Administration recommends approval of the Resolution.

Applicable Area

Middle Beach
Is this a Resident Right to Know item? Does this item utilize G.O. Bond Funds?
Yes No 

Strategic Connection

Environment & Infrastructure - Reduce risk from storms, high tides, groundwater, and sea level rise.
Legislative Tracking
Capital Improvement Projects

ATTACHMENTS:
Description
Attachment A
Attachment B
Resolution