| | | | | | | |  | Resolutions - R7 N
COMMISSION MEMORANDUM |
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| | | | | | | | | TO: | Honorable Mayor and Members of the City Commission | | | FROM: | Jimmy L. Morales, City Manager | | | DATE: | November 18, 2020 | | | |
| | SUBJECT: | A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING A MODIFICATION AND REDESIGN OF THE LINCOLN ROAD IMPROVEMENTS PROJECT, REDUCING THE SCOPE AND IMPACT TO LOCAL BUSINESSES. |
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| | | | | | | | BACKGROUND/HISTORY
| On March 9, 2016, pursuant to the development and approval of the Lincoln Road Master Plan, the City Commission adopted Resolution No.2016-29319, awarding the contract for Architectural and Engineering Design Services for the Lincoln Road Redevelopment Project to James Corner Field Operations (JCFO).
On June 8, 2016, City Commission, pursuant to RFQ 2016-073-KB, adopted Resolution 2016-29447 awarding a Construction Manager At Risk (CMAR) contract for pre-construction services, to Burkhardt Construction, Inc.
On October 28, 2016, following the completion of the Schematic Design Phase and Value Engineering efforts, the project team presented the design and estimated costs to the Finance and Citywide Projects Committee, who gave direction to the project team to forgo the value engineering options and design to the Master Plan recommendations.
The overall project construction cost for the proposed improvements, as prepared by Burkhardt Construction at 50% Construction Document submittal included, without limitation, costs of construction, labor, materials and contractor fee and contingency. City staff included in the total project cost, the cost of plans, specifications and surveys, architecture and engineering, legal expenses, permit fees and owner's contingency. The total project cost was projected to be approximately $77.4 million for the Lincoln Road Redevelopment Project, including Lincoln Road from Lenox Avenue to Washington Avenue, Lincoln Road from Washington Avenue to Collins Avenue, Meridian Avenue from Lincoln Road to 17th Street, Pennsylvania Avenue from Lincoln Road to Lincoln Lane North, and Drexel Avenue from 16th Street to Lincoln Lane North.
The types of improvements which were proposed within the Lincoln Road District included enhancement of pedestrian walkways and cafe zones, modifications to the existing planters and water features, new landscape and irrigation, cosmetic repairs to historic Lapidus structures, drainage improvements, lighting, signalization/wayfinding, performance/multipurpose areas in the 500 and 600 Blocks, outdoor furnishings at selected locations, gateway trellis at the 400 Block, replacement of underground infrastructure, crosswalk enhancements, and milling and resurfacing of asphalt paving.
On July 3, 2019, the Board of Directors of the Lincoln Road Business Improvement District (LRBID) adopted Resolution 18-19-11, in support of the full implementation of Phase I of the Lincoln Road District Master Plan, and further expressing support for the creation of an expanded Business Improvement District. The LRBID Board of Directors further expressed its desire to (a) expand the term of the LRBID for an additional five years; (ii) increase the area covered by the LRBID to include, at a minimum, Lincoln Road from Collins Avenue to West Avenue and to include the side streets; and (iii) increase the assessments to current LRBID members by approximately twenty-five percent (25%) and to consider alternative methods of assessment.
On July 31, 2019, the Administration presented the project and budget concerns to the City Commission. The full scope of the project was estimated to result in a total project cost of approximately $77.4 million, approximately $27 million over budget. During that meeting, the Administration recommended proceeding with the project by reducing the project scope and augmenting the funding. The reduced scope included the omission of the gateway trellis located at the Washington Avenue entrance to Lincoln Road. Additionally, the recommendation omitted the Washington Avenue to Collins Avenue (Lincoln Road 200-300 Blocks) scope. The recommendation further conditioned that the expanded budget be made available upon the successful extension and expansion of the LRBID. This would generate additional revenue to be used for arts, culture and performance programming, as well as the necessary promotional, marketing and advertising campaigns. The City Commission accepted the recommendation of the Administration, and directing staff to proceed with a version of the Lincoln Road Plan which included the reduced scope and an augmented project budget, for a total project cost of approximately $67 million. To date, the LRBID has not expanded the district or generated any additional revenue.
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| | | | | | | | ANALYSIS
| On March 12, 2020, the City of Miami Beach declared a State of Emergency in response to the Coronavirus Disease 2019 (COVID-19) and announced various emergency measures to mitigate the spread of COVID-19, including the immediate closure of non-essential retail businesses which impacted the commercial businesses along the Lincoln Road corridor.
Simultaneously, market conditions and uncertainty within the construction industry, resulted in the CMAR advising the City to delay the BID/GMP process, in order to ensure greater participation by potential bidders. The project team evaluated the recommendation and agreed that postponing the bid process was in the best interest of the project.
The Administration, in recognition of the impacts of the pandemic on the Lincoln Road businesses, felt that the continued business interruption generated by a construction project of this magnitude would be excessive. On April 16, 2020 City staff met with representatives of the LRBID to discuss options that would reduce the scope of work, with the intent of minimizing impacts to those businesses. The LRBID was supportive of the effort and made recommendations on which elements could be removed from the scope. They also informed city staff that as a result of the pandemic, they would not be able to meet the commitment to expand and extend the LRBID.
During the summer, city staff and representatives of the LRBID met numerous times to explore and discuss options and potential budget impacts. The Administration, in light of the economic impact of the pandemic on the City, advised the project team and the LRBID, that the project budget would be limited to the funding already available to the project, which amounted to $40 million for Lincoln Road from Lenox Avenue to Washington Avenue, $10 million for Meridian Avenue from Lincoln Road to 17th Street, Pennsylvania Avenue from Lincoln Road to Lincoln Lane North, Drexel Avenue from 16th Street to Lincoln Lane North, and related underground infrastructure, and $2.4 million for security bollards (GOB), for a total of $52.4 million.
On August 19, 2020 City staff provided the representatives of the LR BID an itemized scope of work detailing the proposed scope changes and reduction. In order to reduce the scope and cost, city staff proposes elimination or reduction of the following:
• Eliminate, to the extent possible, all removal and replacement of concrete paving within the pedestrian areas of Lincoln Road
• Omit the gateway trellis at Washington Avenue
• Reduced landscaping & irrigation improvements
• Reduced site furnishings
• Eliminate proposed light pole and fixture upgrades
• Eliminate electrical upgrades, specifically at electrical rooms
• Eliminate traffic signalization and crosswalk improvements
• Omit security camera infrastructure
• Omit, to the extent possible, any under-pavement work, so as to preserve the existing pavement
Items which the team would endeavor to maintain within the project scope include:
• Meridian Avenue improvements
• Pedestrianization of Drexel Avenue
• Infrastructure improvements at Meridian and Drexel Avenues
• Restoration/repair of fountains and repair of associated equipment
• Restoration of the Lapidus follies
• Upgrade existing light fixtures at existing locations
• Implementation of the concept for the Euclid Avenue oval
• Refurbishing the seating areas along the Lincoln Road corridor
• Refinish the existing piano keys using a more durable traffic coating
• Restoration of aluminum grates of at existing trench drains
• Lincoln Road directional and informational signage package
• A more significant “Lincoln Road” gateway sign at Washington Avenue, which also serves as a component of the security barrier system
• A matching “Lincoln Road” gateway sign at Alton Road, which also serves as a component of the security barrier system - this location and scope falls outside the original limits of the project
• Design and installation of a playground
• Security barrier system including planters, bollards, furnishings, etc…
On August 20, 2020, the LRBID adopted Resolution 19-20-10. This resolution urged the City of Miami Beach to promptly enter into an agreement with James Corner Field Operations to modify the Lincoln Road Master Plan in a manner that: (1) eliminates the most disruptive element of the plan, the replacement of the sidewalks; (2) retains as many of the other design elements of the Master Plan as possible, including the Gateway Trellis; (3) minimizes the number of modifications to existing plans in order to expedite the permitting and construction process; ( 4) makes the installation of the designed bollards a paramount priority; and (5) stays within a budget approved by the City Commission. Additionally, the resolution urged the City of Miami Beach to authorize construction of a Modified Lincoln Road Master Plan with Burkhardt Construction in the manner described above so that final permitting and construction can commence at the earliest possible date.
It is anticipated that the revised scope of work, as proposed by city staff, can be completed with the allocated total budget of approximately $52.4 million, equating to a construction budget of $34 million to $36 million. This includes construction costs, labor, materials, contractor fee and contingency, the cost of plans, specifications and surveys, architecture and engineering, legal expenses, permit and City fees and Owner's Contingency. Of this total $52.4 million project budget, the City has already expended $5.6 million.
In order to implement the changes detailed above, and maintain the design character of the project, the City has requested a proposal from James Corner Field Operations to revise the drawings. An amendment to their contract will be brought to the City Commission for approval in January 2021.
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| | | | | | | | CONCLUSION
| | The Administration recommends that the City Commission adopt the scope of work as presented to the LRBID by the City on August 19, 2020. In lieu of a trellis, the City has proffered that a permanent Art in Public Places installation could be placed at the east end of Lincoln Road during the construction of the MBCC headquarter hotel as part of their AIPP requirement. |
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| | | | | | | | Applicable Area
| | South Beach |
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| | | | | | | | | 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 | |
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| | | | | | | | Strategic Connection
| | Prosperity - Revitalize targeted areas and increase investment. |
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| | | | | | | | Legislative Tracking
Capital Improvement Projects |
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