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2012-066-1661 - Provision in the GMP 2 Change Order to SkanskaResolution No. 2012-66-1661 Page 3 of 3 VOTE: 4-2 Mayor Shirley Gibson (Yes) X (No) Vice Mayor Oliver Gilbert, III. X (Yes) ____ (No) Councilman David Williams Jr X (Yes) ____ (No) Councilwoman Lisa Davis X (Yes) ____ (No) Councilman Aaron Campbell, Jr . (Yes ) ____ (No) (not present) Councilwoman Felicia Robinson X (Yes) ____ (No) Councilman Andre’ Williams (Yes) X (No)   1515  NW  167  Street, Building  5  Suite  200    Miami  Gardens, Florida  33169    City of Miami Gardens Agenda Cover Memo Council Meeting Date: April 25, 2012 Item Type: Resolution Ordinance Other X Fiscal Impact: Yes No Ordinance Reading: 1 st Reading 2 nd Reading X Public Hearing: Yes No Yes No Funding Source: Capital Projects Fund Advertising Requirement: Yes No X Contract/P.O. Required: Yes No RFP/RFQ/Bid #: RFP# 10 ‐11 ‐064 City Hall Municipal Complex GMP Construction Contract X Strategic Plan Related Yes No Strategic Plan Priority Area: Enhance Organizational Bus. & Economic Dev Public Safety Quality of Education Qual. of Life & City Image Communication Strategic Plan Obj./Strategy: (list the specific objective/strategy this item will address) N/A X Sponsor Name Dr. Danny O. Crew, City Manager Department: Capital Improvements  Short  Title:  A  RESOLUTION  OF  THE  CITY  COUNCIL  OF  THE  CITY  OF  MIAMI  GARDENS, FLORIDA, AUTHORIZING  THE  CITY  MANAGER  TO  INCLUDE  A  PROVISION  IN  THE  GMP#2  CHANGE  ORDER  WITH  SKANSKA  BUILDING, INC. TO  ALLOW  FOR  A  ONE  TIME  PAYMENT  OF   THREE  HUNDRED  FIFTY  THOUSAND  DOLLARS  ($350,000.00) FOR  ADDITIONAL  PROJECT  COST  ASSOCIATED  WITH  MOBILIZING  AND  RETAINING  RESOURC ES  DURING  THE  PERIOD  BETWEEN  GMP#1  AND  THE  ISSUANCE  OF  A  NOTICE  TO  PROCEED  FOR  GMP#2; PROVIDING  FOR  THE  ADOPTION  OF  REPRESENTATIONS; PROVIDING  FOR  AN  EFFECTIVE  DATE.  Staff  Summary:  Background    In  September  2011, the  City  Council  awarded  a  contract  to  Skanska  USA  for  the  initial  earthwork  on  the  City  Hall  project. In  addition  to  the  earthwork, City  Council  also  tentatively  awarded  a  contract  to  APRIL 25, 2011 ADD-ON ITEM # 1 RESOLUTION   1515  NW  167  Street, Building  5  Suite  200    Miami  Gardens, Florida  33169   Skanska  USA  for  the  second  phase  of  the  project  (Actual  Construction), pending  successful  negotiations  with  staff  on  a  Guaranteed  Maximum  Price  (GMP) contract.    The  City  began  negotiations  with  Skanska  in  October  2011, with  an  expected  conclusion  date  in  early  January  2012.  It  was  expected  that  final  permit  approval  would  shortly  follow.    At  this  time  City  staff  is  still  in  negotiations  on  the  cost  of  GMP# 2, however, we  have  not  received  the  final  permit  approval.   Miami  Dade  County  has  notified  us  this  week  that  they  have  been  approved, thus  we  only  have  to  get  a  final  sign ‐off  from  our  own  building  department  and  they  will  be  issued.     Because  of  the  unanticipated  four ‐month  delay  in  permitting, Skanska  has  had  to  mobilize  and  maintain  staff  on  stand ‐by  over  this  four ‐month  period  and  has  born  other  costs  not  anticipated.  They  have  asked  for  $690,000  in  reimbursement  for  these  expenses.  I  have  negotiated  that  cost  down  to  $350,000  as  full  and  complete  compensation  for  the  additional  project ‐related  expenses.  Proposed  Action:  Recommend  that  the  City  Council  authorize  Skanska  to  add  the  $350,000  in  additional  costs  as  a  line ‐item  in  their  final  GMP#2  price.  Attachment:  Attachment  A: Proposed  release  language     Attachment A Additional Project Costs . The parties agree to a one-time payment of Three Hundred Fifty Thousand Dollar s ($350,000.00) (“Funds”) from t he City to Contractor for additional project costs associ ated with mobilizing and reta ining resources (“Additional Project Costs”) during the per iod between GMP#1 and a Notice to Proceed for GMP#2. The parties acknowledge and agree that these Funds are for additional project costs only and do not represent any payment for dam ages by the City. In addition, the parties acknowledge and agree that these Funds repr esent the total amount to be paid for the Additional Project Costs. Contractor by executing the Change Order for GMP#2 agrees to release the City from any further obligation related to these Additional Project Costs or any time delays or other costs a ssociated with coming to terms on GMP#2.