Item Coversheet

Resolutions - R7  E




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Jimmy L. Morales, City Manager 
DATE:April  22, 2020
 



SUBJECT:

1.  A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE CITY MANAGER TO NEGOTIATE CHANGE ORDER NO. 5 TO THE DESIGN/BUILD AGREEMENT BETWEEN THE CITY OF MIAMI BEACH, FLORIDA AND RIC-MAN CONSTRUCTION FLORIDA, INC., FOR THE WEST AVENUE PHASE II IMPROVEMENTS NORTH OF 14 STREET PROJECT, FOR ADDITIONAL DESIGN SERVICES ASSOCIATED WITH ADDITIONAL WATER QUALITY TREATMENT AS REQUIRED BY THE MIAMI-DADE COUNTY REGULATORY AND ECONOMIC RESOURCES DEPARTMENT (RER), IN THE NOT-TO-EXCEED AMOUNT OF $1,042,761, PLUS 10% OWNER'S CONTINGENCY IN THE AMOUNT OF $104,276, FOR A TOTAL CONTRACT VALUE OF $52,165,369.67; SUBJECT TO AND CONTINGENT UPON AN APPROPRIATION OF FUNDS, AT THE CITY COMMISSION'S SOLE DISCRETION, VIA THE THIRD CAPITAL BUDGET AMENDMENT FOR FY 19/20 CAPITAL BUDGET, TO BE CONSIDERED AT THE APRIL 22, 2020, CITY COMMISSION MEETING, AND FURTHER, IF SUCH BUDGET AMENDMENT IS APPROVED, AUTHORIZING THE CITY MANAGER TO EXECUTE THE FINAL NEGOTIATED CHANGE ORDER NO. 5. 

 

2.  A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE CITY MANAGER TO NEGOTIATE CHANGE ORDER NO. 5 TO THE DESIGN/BUILD AGREEMENT BETWEEN THE CITY OF MIAMI BEACH, FLORIDA AND RIC-MAN CONSTRUCTION FLORIDA, INC., FOR THE WEST AVENUE PHASE II IMPROVEMENTS SOUTH OF 14TH STREET PROJECT, FOR ADDITIONAL DESIGN SERVICES ASSOCIATED WITH ADDITIONAL WATER QUALITY TREATMENT, AS REQUIRED BY THE MIAMI-DADE COUNTY REGULATORY AND ECONOMIC RESOURCES DEPARTMENT (RER), IN THE NOT-TO-EXCEED AMOUNT OF $581,195, PLUS 10% OWNER'S CONTINGENCY IN THE AMOUNT OF $58,119, FOR A TOTAL CONTRACT VALUE OF $21,631,252.85; SUBJECT TO AND CONTINGENT UPON AN APPROPRIATION OF FUNDS, AT THE CITY COMMISSION'S SOLE DISCRETION, VIA THE THIRD CAPITAL BUDGET AMENDMENT FOR FY 19/20 CAPITAL BUDGET, TO BE CONSIDERED AT THE APRIL 22, 2020 CITY COMMISSION MEETING, AND FURTHER, IF SUCH BUDGET AMENDMENT IS APPROVED, AUTHORIZING THE CITY MANAGER TO EXECUTE THE FINAL NEGOTIATED CHANGE ORDER NO. 5.  


RECOMMENDATION

The Administration recommends adopting the Resolutions.

BACKGROUND/HISTORY

The West Avenue Improvements, Phase II project represents a comprehensively defined Neighborhood Improvement program, focused on resolving challenges associated to climate impacts and ancient infrastructures. The proposed improvements within the West Avenue neighborhood includes the raising of the paved roadway, harmonization to the adjacent properties, installation of a new robust stormwater drainage collection and pumping system, replacement of the existing water distribution/transmission systems and gravity sanitary sewers, installation of new street lighting, pedestrian lighting, replace existing and install new signalized intersection with mast arms, new landscaping, irrigation and construction of a new baywalk. The limit of the improvements are West Avenue between 8 Street and Lincoln Road, including side streets, and Bay Road between 14 Street and Collins Canal.

 

Due to the size of the neighborhood, the project was divided into two contracts, with 14th Street being the dividing line.

 

On November 14, 2017, a public meeting was conducted to present the conceptual design and answer the community’s questions. During this meeting, the community expressed significant concerns about the West Avenue Project.

 

On December 13, 2017, the City Commission referred all planned and in-progress resiliency projects to the Sustainability and Resiliency Committee for further evaluation of stormwater criteria and design. At that time, Ric-Man had completed approximately 60% of the project design. Due to this action by the City Commission, further development of this project, including its design, was stopped, pending the findings of said Committee.

 

During the months of January 2018 through March 2018, the Sustainability and Resiliency Committee reviewed and evaluated the City’s design criteria for stormwater management. At the same time the City decided to seek evaluation by impartial, outside entities and pursued the assessment by the Urban Land Institute (ULI). The ULI is also a partner of a professional network that provides resiliency-building tools, called the 100 Resilient Cities Network.

 

On April 2018, the City entered into a successful partnership with the Urban Land Institute in order to review the citywide Stormwater Resiliency Program. The ULI’s preliminary findings were not only a validation of the project’s initial efforts, but also a call to raise our standards to ensure a livable and sustainable community.

 

On May 31, 2018, the West Avenue project was selected to participate in the Resilience Accelerator. The Resilience Accelerator Program is a partnership between 100 Resilient Cities and the Center for Resilient Cities and Landscapes at Columbia University. Miami Beach’s West Avenue Neighborhood Improvement Project was selected as one of five projects in South Florida to participate in the Resiliency Accelerator Program.

 

In June 2018, the 100 Resilient Cities and Columbia University held meetings with City staff and members of the community to present information and obtain feedback on the West Avenue Project.

 

On August 6 - 8, 2018 the Resilience Accelerator workshop was held. Columbia University and the City’s Chief Resiliency Officer brought together multi-disciplinary expertise to provide guidance on urban design, innovative engineering solutions, and stakeholder engagement. Over the course of the three-day workshop, the team identified appropriate enhancements based on the project’s lifecycle, existing and future site challenges, and feedback from the local community.

 

In September 2018, meetings were held with the West Avenue Neighborhood Association (WAVNA) and the North of Fifth Neighborhood Association (NOFNA) to present the findings of the Resilience Accelerator Workshop.

 

On September 26, 2018, Staff presented the findings of the Resilience Accelerator Workshop to the Sustainability and Resiliency Committee.

 

On October 17, 2018, City Staff presented the recommendations of the Resilience Accelerator to the City Commission. The City Commission accepted the recommendations of the Resiliency Accelerator. In addition, the City Commission accepted the final ULI Report for implementation.

West Avenue Phase II North of 14th Street

 
On March 22, 2017, the Mayor and City Commission passed Resolution No. 2017-29800, awarding design/build services to Ric-Man Construction Florida, Inc (Ric-Man), for West Avenue North of 14th Street Improvements Phase II with the guaranteed maximum price of $29,669,344, including a 10% contingency.

 

On January 11, 2018, Change Order No. 1 was executed for a 30-day non-compensatory extension, to the time of the Agreement due to the impact of Hurricane Irma.

On March 16, 2018, Change Order No. 2 was executed in the amount of $3,270,932 for funding of the above-ground improvements, to the project, with no additional time extension, increasing the cost of the Agreement to $32,940,276.

 

On December 12, 2018, City Commission adopted Resolution No. 2018-30652 Authorizing the City Manager to negotiate Change Order No. 3 for additional design and construction changes associated with the recommendations by the Resiliency Accelerator Program, the ULI report and recommended additional scope for a total of $17,763,900, including contingency.

 

On April 30, 2019, Change Order No. 3A was executed in the amount of $579,752.47 as the first partial request from the Design/Builder of the approved Change Order No. 3 for the costs incurred in support of the Urban Land Institute’s Resiliency Effort Accelerator Workshop, Re-start Impacts after a 1 year delay and 10 year Storm Drainage Modeling to allow for further design and negotiate the price of the remaining change order scope, increasing the cost agreement to $33,520,028.47.

 

On June 16, 2019, Change Order No. 3B was executed in the amount of $17,171,211.00 as the second partial request from the Design/Builder of the approved Change Order No. 3 for the costs of design and construction of the recommendations by the Urban Land Institute’s Resiliency Effort Accelerator and Design Criteria Enhancements, such as emergency generator sets, street end enhancements, additional pumps, additional street improvements, increasing the cost agreement to $50,691,239.47, including a 10% Contingency.

 

On September 17, 2019, Change Order No. 4 was executed in the amount of $327,093.00 to account for the 10% contingency for the above-ground improvements, which were previously added to the Contract as Change Order No. 2, increasing the cost of the agreement to $51,018,332.67.

West Avenue Phase II South of 14th Street

 
On March 22, 2017, the Mayor and City Commission passed Resolution No. 2017-29799, awarding design/build services to Ric-Man Construction Florida, Inc (Ric-Man)., for West Avenue South of 14th Street Improvements Phase II with the guaranteed maximum price of $12,809,754, including a 10% contingency.

On January 11, 2018, Change Order No. 1 was executed for a 30-day non-compensatory extension, to the time of the Agreement due to the impact of Hurricane Irma.

On March 16, 2018, Change Order No. 2 was executed in the amount of $1,468,359 for funding of the above-ground improvements, to the project, with no additional time extension, increasing the cost of the Agreement to $14,278,113.

 

On December 12, 2018, City Commission adopted Resolution No. 2018-30653 Authorizing the City Manager to negotiate Change Order No. 3 for additional design and construction changes associated with the recommendations by the Resiliency Accelerator Program, the ULI report and recommended additional scope for a total of $6,567,000, including contingency.

 

On April 30, 2019, Change Order No. 3A was executed in the amount of $353,094.85 as the first partial request from the Design/Builder for the costs incurred in support of the Urban Land Institute’s Resiliency Effort Accelerator, Re-start Impacts and 10 year Storm Drainage Modeling, increasing the cost agreement to $14,631,207.85.

 

On June 16, 2019, Change Order No. 3B was executed in the amount of $6,213,895.00 as the second partial request from the Design/Builder for the costs incurred in support of the Urban Land Institute’s Resiliency Effort Accelerator and Design Criteria Enhancements, increasing the cost agreement to $20,845,102.85, including a 10% Contingency.

 

On September 17. 2019, Change Order No. 4 was executed in the amount of $146,836.00 to account for the 10% contingency for the above-ground improvements, which were previously added to the Contract as Change Order No. 2, increasing the cost agreement to $20,991,938.85.

ANALYSIS

The purpose of the West Avenue Project was to address flooding conditions and upgrade aging infrastructure. The purpose of the Resilience Accelerator was to test and evaluate elements of the West Avenue Project to come to a compromise with modifications that enhance the project’s resiliency and builds community consensus, while remaining fiscally responsible.

 

One of the requirements to obtain a permit from the Miami-Dade County Regulatory and Economic Resources Department (DRER), to discharge stormwater into the bay (Class II permit), is the inclusion of sufficient water treatment capacity.  The project team has held multiple discussions and meetings with DRER to discuss project approach and proposed water quality treatment components.  DRER has emphasized that although projects were previously permitted using mechanical treatment, future projects would not be permitted without retaining the first inch and a half of rainfall runoff.  This involves additional design and construction effort, beyond what was identified in the Design Criteria Package (DCP).

 

Change Order No. 5 for West Avenue Phase II North of 14th Street

The Design/Builder submitted a proposal (Attachment A) for the design of additional quality treatment in the amount of $1,042,761 for the north section. Once, the design is completed and approved by DRER, the design/builder will determine the additional construction costs and time impacts associated with the additional water quality components.

This Change Order No. 5 will include additional design services associated with the recommendations by the DRER for additional water quality treatment that will address the first inch and a half of run-off from the stormwater system prior to entering Biscayne Bay

The proposed additional not-to-exceed costs for the section north of 14 Street shall be $1,042,761, plus 10% owner’s contingency in the amount of $104,276 for a not- to-exceed total of $1,147,037.

This Change Order will increase the existing contract with Ric-Man Construction from $51,018,332.67 to $52,165,369.67, for West Avenue North of 14th Street Improvements Phase II, including contingency.

Change Order No. 5 for West Avenue Phase II South of 14th Street

The Design/Builder submitted a proposal (Attachment A) for the design of additional quality treatment in the amount of $581,195 for the section south of 14 Street. Once, the design is completed and approved by DRER, the design/builder will determine the additional construction costs and time impacts associated with the additional water quality components.

This Change Order No. 5 will include additional design services associated with the recommendations by the DRER for additional water quality treatment that will address the first inch and a half of run-off from the stormwater system prior to entering Biscayne Bay

The proposed additional not-to-exceed costs for the section south of 14 Street shall be $581,195 plus 10% owner’s contingency in the amount of $58,119 for a not-to-exceed total of $639,314.

This Change Order will increase the existing contract with Ric-Man Construction from $20,991,938.85 to $21,631,252.85, for West Avenue South of 14th Street Improvements Phase II, including contingency.

The scope included in these not-to-exceed proposals submitted by the Design/Builder was reviewed and analyzed by CIP, Environment and Sustainability and the Public Works Departments and was found to be an adequate means of addressing storm water quality of an acceptable order of magnitude considering the complex logistics of construction. 

The siting for the Lincoln Road Stormwater Pump Station, including above ground components, will be presented at the next Land Use and Sustainability Committee. This Change Order is not affected by that decision.

 

Funding will be addressed as part of the next Capital Budget Amendment.


CONCLUSION

The Administration recommends that the Mayor and City Commission adopt the resolution approving and authorizing the City Manager to negotiate Change Order No. 5 with Ric-man Construction Florida, Inc., for the West Avenue Phase II Improvements North of 14th Street for a not-to-exceed amount of $1,042,761, plus 10% owner’s contingency in the amount of $104,276, for a not- to-exceed total of $1,147,037; and,

 

The Administration recommends that the Mayor and City Commission adopt the resolution approving and authorizing the City Manager to negotiate Change Order No. 5 with Ric-man Construction Florida, Inc., for the West Avenue Phase II Improvements South of 14th Street for a not-to-exceed amount of $581,195 plus 10% owner’s contingency in the amount of $58,119 for a not-to-exceed total of $639,314.


Applicable Area

South Beach
Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? 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
Resolution 1
Resolution 2