The Administration recommends adopting the Resolution.

The Neptune Apartments (“the Neptune”) is a 3-story, 35-unit multifamily apartment building located at 1632 Meridian Avenue in the Flamingo Park neighborhood of the City of Miami Beach. The Neptune was constructed in 1925 and most recently renovated in 2021. It is situated on a 0.17-acre, residential multifamily-zoned site. The building is a contributing structure within the Flamingo Park Historic District. It has been substantially renovated in accordance with the Florida Department of State and the National Register of Historic Places. The City of Miami Beach Office of Housing & Community Services has operated the Neptune as affordable housing since 2015. The renovation project was divided into two (2) phases. The first phase of the project was completed on June 25, 2021 and included roof replacement, HVAC replacements, exterior concrete and stucco repair, paint, new exterior entrance doors and high efficiency lighting.   

On December 8, 2021, the City Commission awarded the contract for ITB-2022-067-DF to AVR Contractors, Corp. (AVR) for the Neptune Apartments Rehabilitation Phase II in the amount of $890,782.00, including a 10% contingency. The project is currently funded by Community Development Block Grant (CDBG), State Housing Initiative Partnership (SHIP), Federal Emergency Management Agency (FEMA), and Residential Housing Operating funds.

 On January 27, 2022, the contract between the City of Miami Beach and AVR Contractors, Corp. was executed.

On November 15, 2022, the City of Miami Beach Building Department issued the permit for the renovations. A delay in permit issuance was caused, in part, due to the fire prevention requirement to vacate the entire building of tenants prior to the commencement of work. Modifications to construction documents and work schedules allowed the contractor to meet the safety requirements while maintaining the occupancy of two-thirds of the building.

On November 15, 2022, a Notice to Proceed was issued to AVR, directing the contractor to commence construction activities. The second phase of renovation is in progress and includes the installation of new impact-resistant windows, interior flooring, bathroom rehabilitation, kitchen rehabilitation, high-efficiency plumbing and energy-efficient lighting fixtures, laundry room, lobby and corridor remodeling, interior patching and paint, and other miscellaneous repairs.

The second phase of the Neptune Apartments Rehabilitation project represents a comprehensive building renovation focused on preserving this historic, City-owned, affordable housing property. The scope of work has been carefully designed to be implemented while the building is occupied and minimize the disruption to the tenants. The rehabilitation will meet the goal of improving the overall quality of life for the residents and also help maintain and further enhance the historic architectural integrity of the property.

During the progress of the project, AVR encountered unforeseen conditions which required additional work to correct and mitigate.  These items affect the facility’s safety and structural integrity and must be addressed.  At the City’s request, AVR submitted proposals and other documentation (Exhibit A) for the following additional scope:

1. Upon removal of the damaged and improperly installed ceramic tile flooring, the flooring substrate elevation was determined to be below the required elevation needed for the safe transition to the corridors. The most efficient and economical resolution to eliminate potential trip hazards while strengthening the flooring structure is to add a full layer of sheathing to raise the subflooring to the appropriate height at a total cost of $21,000.00.
2. After the removal of the flooring in specific apartments, significant water damage was discovered, especially in bathroom and kitchen areas, where hidden water leaks compromised the flooring substrate, including the underlying structure. After further investigation, it has been determined that approximately sixteen (16) additional apartments will require these repairs to prevent damage to the building’s structural integrity at a cost of $33,600.00.
3. After the removal of some of the existing windows, water-damaged structural window framing, including severely damaged king studs, were discovered. This damage was caused by the improperly installed and poorly sealed windows. After many years of invisible water intrusion, the damage to the wooden studs and support structure was significant. These necessary repairs will be completed in nine (9) apartments at a cost of $16,200.00.
4. As flooring was removed, kitchen cabinets that appeared unharmed and were not included for rehabilitation in the current scope were discovered to be significantly damaged by humidity and water intrusion. The cabinet replacements must include countertops, backsplashes, and reinstallation of existing plumbing fixtures in three (3) additional apartments in the amount of $15,900.00.
5. Incorrectly installed and substandard toilet flanges have caused additional water damage. The replacement of the toilet flanges will prevent further water damage at a cost of $6,475.00.
6. As the blinds and window treatments were removed for the installation of the windows, it was determined that the condition of the existing blinds had deteriorated and could not be reinstalled. The installation of new blinds for all windows throughout the building will enhance energy savings and the building’s appearance at the cost of $25,920.00.
7. The installation of new door sweeps and thresholds is required for fifteen (15) apartments in the amount of $2,175.00
8. As construction work is underway, the new proposed scope is anticipated to impact the project schedule by an additional thirty (30) days.
   
   

The requested Change Order No. 1 will increase the contract amount by $121,270.00, revising the total contract amount to $1,012,052.00 and extending the contract duration by approximately thirty (30) days to achieve substantial completion.

The nature of this project is not unlike any other project, which includes remodeling, refurbishing, and rehabilitation. It is common to encounter unforeseen conditions requiring added scope and effort. Further complicating projects of this nature is the fact that as work is ongoing, many residential units are occupied, and delays impact more than just the completion date. In order to mitigate those impacts, the Administration has endeavored to balance the project scope and corrective measures for those unforeseen conditions. To reduce the impact on the building residents, construction has continued including some of the scope listed above.

The proposed change order will be covered by residential housing operating funds and SHIP funds previously allocated to the project.

$62,609.56 SHIP Program funds

$58,660.44 Neptune Apartments - Residential Housing Operating funds

The Administration recommends that the Mayor and City Commission adopt the resolution approving and authorizing the City Manager to execute Change Order No. 1 with AVR for the Neptune Apartments Rehabilitation Phase II in the amount of $121,270.00, to be funded by previously appropriated SHIP grant funding, residential housing operating funds, and extending the contract duration by approximately thirty (30) days to substantial completion.