A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER, TO AUTHORIZE NEGOTIATIONS RELATING TO REQUEST FOR PROPOSALS NO. 2020-180-ND, FOR DESIGN/BUILD SERVICES FOR 72ND STREET COMMUNITY COMPLEX (THE RFP); AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE HASKELL COMPANY, AS THE TOP RANKED PROPOSER; FURTHER, IF THE ADMINISTRATION IS NOT SUCCESSFUL IN NEGOTIATING AN AGREEMENT WITH THE HASKELL COMPANY, AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH PCL CONSTRUCTION SERVICES, INC., AS THE SECOND RANKED PROPOSER; FURTHER, IF THE ADMINISTRATION IS NOT SUCCESSFUL IN NEGOTIATING AN AGREEMENT WITH PCL CONSTRUCTION SERVICES, INC., AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH KAUFMAN LYNN CONSTRUCTION, INC., AS THE THIRD RANKED PROPOSER; PROVIDED, HOWEVER, THAT THE FINAL NEGOTIATED AGREEMENT SHALL BE SUBJECT TO THE PRIOR APPROVAL OF THE MAYOR AND CITY COMMISSION. 

On November 6, 2018, Miami Beach residents approved a ballot measure, which authorized the issuance of a general obligation bond (G.O. Bond) for the design, permitting, installation, and construction of the 72^nd Street Community Complex.  A total of $53.8 million of general obligation bonds are allocated to fund the project, including but not limited to the design, permitting, and construction. An additional $10.6 million has been allocated from different funding sources bringing the total project budget to $64.4 million. The Project programming as described in the Design Criteria Package (DCP) includes a multi-level mixed-use parking garage requiring the program components of a 500 space parking structure, 50-meter competition pool with support amenities, 25-meter multi-purpose pool, 7,500 SF Miami-Dade County library, 5,000 SF commercial/retail, 7,500 SF fitness center, 5,000 SF community center, 60,000 SF of active green space, and a jogging path.

Furthermore, the DCP included Project Enhancement components that could be considered by the proposers as desired (but not required) project elements with the intent to be included within the proposed project budget.

On June 24, 2020, the Mayor and City Commission authorized the issuance of Request for Proposals (RFP) 2020-180-ND for Design/Build Services for 72^nd Street Community Complex.  The RFP stipulated a two-phase process. Phase I required the submittal and consideration of the Design/Build firm’s qualifications. Phase II required the submittal and consideration of the Design/Build firm’s Technical Proposal which included each firm’s proposed design, project approach during design and construction, project schedule and the Guaranteed Maximum Price (GMP). On June 26, 2020, the RFP was issued. 

The RFP established a proposed project budget of $55 million for design and construction. The intent was to have the Design/Build firms include all the project programming and any project enhancements that could be implemented within this proposed project budget.

On August 10, 2020, the City received seven (7) Phase I proposals. On September 16, 2020, City Commission adopted Resolution No. 2020-31387 shortlisting the following firms to be further considered in Phase II: Kaufman Lynn Construction, Inc, PCL Construction Services, Inc. and The Haskell Company. On December 14, 2020, the City received proposals in response to Phase II of the RFP from the three short-listed proposers.

The Evaluation Committee, appointed by the City Manager via LTC # 276-2020, convened on January 29, 2021, to consider the Phase II technical proposals received.  The Committee was comprised of Monica Beltran, Assistant Director, Parking Department; Cynthia Casanova, Assistant Director, Parks and Recreation Department; David Gomez, Division Director, The Office of Capital Improvement Projects; Carolina Jones, Member, Parks and Recreation Advisory Committee; Carmen Sanchez, Deputy Planning Director, Planning Department; Daniel Veitia, Resident, North Beach; and Elizabeth Wheaton, Director, Environment and Sustainability Department.

The Committee was provided an overview of the project, information relative to the City’s Cone of Silence Ordinance and the Government Sunshine Law. The Committee was also provided general information on the scope of services, a copy of each proposal, and engaged in a question and answer session with each proposer.  The Committee was instructed to score and rank each proposal pursuant to the evaluation criteria established in the RFP for Phase II. The evaluation process resulted in the ranking of proposers as indicated in Attachment A, in the following order:

            1^st The Haskell Company

            2^nd PCL Construction Services, Inc.

3^rd Kaufman Lynn Construction, Inc.

The Guaranteed Maximum Price (GMP) submitted by each firm is as follows: 

The Haskell Company                        $94,200,025.

PCL Construction, Inc.                       $80,202,724.

Kaufman Lynn Construction, Inc.       $79,976,000.

Given the large size of the Phase II proposals, they are not attached to this item but are available upon request. A summary of each of the firms follows:

Kaufman Lynn Construction, Inc.

Kaufman Lynn Construction, Inc. (Kaufman Lynn), founded in 1989, is a local construction company that has built high-quality buildings for more than 30 years, with a diverse portfolio of projects to reflect this expertise.  Its management approach is focused on fulfilling the objectives of their clients by embracing the collaborative nature of the process.  Kaufman Lynn has grown into an industry leader by blending best in class cost savings with stringent quality control processes.  It is consistently recognized by peers for quality, safety, business practices, and community service, and rank among the largest contractors in the nation. 

Kaufman Lynn in association with Zyscovich Architects and Recreational Design & Construction bring a high-quality design sensitive to the issues of the location and the community, with specialized experience in recreational aquatics design and the quality of construction to meet the high expectations of Miami Beach.  Combined, the team has worked on over 350 parking garages, and more than 400 pools, including elevated, competition, and Myrtha pools in various design and construction functions. The team members have collaborated on various projects including the FAU Mixed Use Parking Garage, Mirador Mixed Use Parking Garage, Bluesten Park, and many others.  Its significant parking garage and aquatic experience is supplemented by its experience building community spaces for municipal and other public clients.

PCL Construction Services, Inc.

PCL Construction Services, Inc. (PCL) specializes in multi-faceted projects including mixed-use, parking structures, aquatic facilities, libraries and community/recreation centers in coastal communities.  Its Florida staff of over 200 provide full service preconstruction, estimating, purchasing, human resources, and marketing services in-house.  PCL is ranked #1 contractor in Florida by Engineering News-Record (ENR).  Finally, its capability to manage a large and complex design-build project is reflected in the firm’s experience on more than 870 previous design-build projects. 

PCL along with BEA Architects and Brooks + Scarpa have assembled a team of highly qualified professionals to execute the 72^nd Street Community Complex.  This strategic team brings the City of Miami Beach the combined depth and breadth of PCL, the nation’s 9^th largest contractor with two of South Florida’s most prominent architects, with 40 years of trusted local experience and superior standing in the South Florida market.  Its selected subconsultants round out this team with their extensive relevant experience, local knowledge, and commitment to the success of this high-profile project. 

The Haskell Company

The Haskell Company (Haskell), is a global pioneer in design-build construction with over 55 years of experience.  It has been working and committed to the Miami area for over 20 years, completing such projects as three Miami Dade College parking garages and most recently, the Norwegian Cruise Line Terminal also known as the “Pearl of Miami”. The Miami office has supported landmark projects, such as the Adrienne Arsht Center. With over $1B in annual revenues and over 2,500 design-build projects completed to date, Haskell is appropriately experienced, staffed and financed to support large and complex design-build projects that are fast-tracked and programmed with multiple disciplines. 

Partnered with Haskell is Arquitectonica, who brings a very experienced team of professionals that have creativity and community in mind, as well as Kimley-Horn, McNamara Salvia, Weston & Sampson, SEQUIL, SLS and Weller Pools.  The team, combined with noteworthy consultants with vast local experience, was formed for each firm’s relevant field experience and organizational excellence in order to bring the City the best design-build solution. This team, which contains a considerable degree of experience, imagination and capability, intends to combine the criteria noted in the design criteria package, while delivering on time and within budget.

Results from the 2019 resident survey show that 80% of residents are satisfied or very satisfied with living in North Beach.  In order to continue to improve the satisfaction of these residents, the City intends to contract with a design/build firm to design and construct the 72^nd Street Community Complex which will provide the North Beach residents with a multi-level mixed use parking garage.  

Final project costs to be determined via negotiations, not to exceed the approved project budget.

After reviewing all of the submissions and the Evaluation Committee’s rankings and commentary, I concur with the Evaluation Committee and find that The Haskell Company provided the best technical proposal.  However, because the GMPs proposed exceed the City’s cost expectation, I also concur with staff’s recommendation that the City negotiate with the firms, in rank order, to finalize a design build agreement.  Some of the highlights of the technical proposals of the three firms, as articulated by the evaluation committee, include:

The Haskell Company

• The firm designed a multifunctional field that can hold up to 2,000 people and can be utilized for athletic and event programming.
• The firm designed the largest footprint, but the least overbearing.
• The firm designed a cohesive community civic center.
• From the four street fronts, to the elevated green field and upper pool deck, the entire complex is oriented to enhance the well-being of the community.

PCL Construction Services, Inc.

• The firm designed the complex to serve as an urban living room that would be ideal for relaxing and socializing as well as providing a recreational anchor for the North Beach district.
• The firm’s design provided the best pedestrian connection.  However, the footprint did feel overpowering.
• The solar roof was well thought out with the panels strategically placed to capture as much energy as possible.
• The building design is massive and does not necessarily engage Collins Avenue.

Kaufman Lynn Construction, Inc.

• The firm incorporated a rain garden in the design.
• The design was disjointed.  The pool, the community center, and fitness center had no connectivity between them.
• The design places the field on the west side, which forms a screen that protects the turtles from the evening lights.
• The design has no integration. It is a building on a field.

Given the disparity between the GMP proposals submitted by the Design-Build firms and the proposed project budget, City staff is in the process of hiring an independent consultant to develop a cost estimate of the DCP programming in order to assist in negotiations.

This award recommendation was originally included in the February 10, 2021 agenda; however, following a protest submitted by the second-ranked bidder, PCL Construction Services, the award recommendation was deferred to March 17, 2021. The protest and the City's response are attached as Exhibits A-1 and A-2, respectively. 

For the reasons stated herein, I recommend that the Mayor and City Commission approve the resolution authorizing the Administration to enter into negotiations with The Haskell Company, as the top ranked proposer; further, if the Administration is not successful in negotiating an agreement with The Haskell Company, authorizing the Administration to enter into negotiations with PCL Construction Services, Inc., as the second ranked proposer; further, if the Administration is not successful in negotiating an agreement with PCL Construction Services, Inc., authorizing the Administration to enter into negotiations with Kaufman Lynn Construction, Inc., as the third ranked proposer; provided, however, that the final negotiated agreement shall be subject to the prior approval of the Mayor and City Commission.