At its March 13, 2024 meeting, at the request of the Administration, the Mayor and City Commission approved a referral (Item C4 B) to the April 19, 2024 Finance and Economic Resiliency Committee (FERC) meeting to discuss funding for the construction phase and path forward of the First Street Project.
At its May 15, 2024 meeting, the City Commission approved a referral to this Special Land Use and Sustainability Committee (LUSC) meeting on June 18, 2024 to discuss the path forward of the First Street Project.
The City of Miami Beach is committed to preserving the welfare and safety of its residents, visitors, and businesses. As part of this commitment, the City prioritizes infrastructure needs throughout Miami Beach. The last remaining area of the South of Fifth Neighborhood to receive improvements after the approval of the 1999 General Obligation (G.O.) Bonds is the segment of First Street between Alton Road and Washington Avenue. The City has considered this area’s recurring flooding issues and low elevations and has worked diligently to provide both short and long-term solutions by designing the improvements to the infrastructure.
The City began the process for this project by performing public outreach prior to Commission approval to issue a Request for Qualifications (RFQ) to select a design consultant on October 19, 2016 via Consent Agenda Item C2 C. On February 8, 2017, via Resolution No. 2017-29759, the City selected and awarded the contract for design to civil engineering firm Wade Trim, Inc. Following a significant rainfall event on August 1, 2017, the Commission approved Resolution No. 2017-30039 on October 18, 2017, which directed the City to modify the design criteria for stormwater systems citywide from a 5-year level of service (LOS) to a 10-year LOS. On September 11, 2019 via Resolution No. 2019-30987, the City attempted to resolve the issues at First Street by amending Wade Trim’s contract to allow them to increase the LOS to a 10-year storm, incorporate additional hydraulic modeling, and continue coordination on the selection of a cross section and pump station location.
After nearly two (2) more years of trying to reach consensus regarding the cross section and pump station location, on May 12, 2021, the City Commission adopted Resolution No. 2021-31711, which directed the Administration to select a location for the stormwater treatment system and to negotiate a design task order with a new design team.
On December 8, 2021, the City Commission approved the consultant service order for Jacobs Engineering Group Inc. (Jacobs) for the design of the First Street Neighborhood Improvement Project (the “Project”) for a total of $5,981,000. This task entails the design and permitting for the installation of a new stormwater quality treatment system and pump station at First Street and Washington Avenue; road reconstruction including appropriate elevation and streetscape redesign for First Street between Alton Road and Washington Avenue; and replacing water, sewer and stormwater infrastructure along Alton Road and Washington Avenue from South Pointe Drive to 5th Street and along First Street.
Extensive public outreach efforts took place upon completion of the conceptual design (in June 2022) and the 30% design (in November 2022). The 30% design update included engineering findings and resulting recommended scope changes that received strong community opposition. The proposed scope changes included full reconstruction and elevating Alton Road as well as rerouting drainage on South Point Drive between Washington and Alton. As a result of the community opposition, the proposed scope changes were abandoned and the Public Works Department continued with the 60% design, as originally approved by the City Commission. The 60% design was completed in December 2023.
FINANCIAL INFORMATION
There has been a significant increase in the overall estimated construction cost of the Project. It is important to note that significant market volatility and uncertainty experienced with contractor bids in the past 18 to 24 months due to materials supply shortages, labor shortages, inflation, and other factors following the start of the pandemic is still impacting project budgets citywide and beyond. Unfortunately, this Project’s budget is not an exception.
The construction of this Project was originally estimated and funded for $46 million in early 2021, based on pre-COVID-19 historical bid data. As of the 30% design completion, the consultant estimated the Project construction cost at $129 million ($168 million total budgetary cost, including construction management, design, permitting, inspections, and other administrative fees, that are necessary for the administration of a capital project).
The Administration, in an effort to validate that early design stage construction cost estimate, engaged a third-party independent consultant, Nova Consulting Inc., at 60% design completion to provide a detailed cost estimate and conduct a constructability and phasing analysis. This task was intended to provide a more accurate Project estimate, as well as provide guidance on an implementation plan for this project. The independent estimate, received in February 2024, resulted in a total Project budgetary cost estimate of $178 million.
The Project currently has a total available funding of $81.4 million, which includes Resilient Florida Grant funds of $35 million for construction and G.O. Bond funds of $5 million. The City has already committed $7 million toward planning and design of the project. The total funding gap is estimated at $89.5 million. Additionally, the City submitted a PROTECT grant from the Federal Highway Administration (FHWA) in August of 2023 in the amount of $63,240,000. The Administration expects to hear back from the FHWA in late summer 2024. However, it should be noted there is no guarantee that this grant will be awarded to the City.
At the April 19, 2024 FERC meeting, Public Works presented a First Street Project update including a timeline, design update, project budget and construction schedule update and parking summary. A discussion ensued following the presentation where a motion was made to move forward with Phases 1 and 2, select to modify the approved typical section for First Street and Jefferson Avenue to incorporate diagonal parking, reducing the parking space loss to less than 10% and to reach out to the South of Fifth Neighborhood Association (SoFNA) and businesses before going back to the City Commission. On April 25, 2024, the Administration provided an update to the SoFNA Board. At the conclusion of the presentation, the SoFNA Board unanimously passed a resolution supporting Phases 1 and 2 and revising the typical section to accommodate diagonal parking in lieu of the previously approved parallel parking configuration. The estimated cost for Phases 1 and 2 is $104 million, greatly reducing the funding gap.
At the May 15, 2024 City Commission meeting, the Administration presented the FERC recommendation to Commission members, to move forward with Phases 1 and 2, modify the approved typical section for First Street and Jefferson Avenue and to incorporate diagonal parking. Consensus for the item was not reached, instead, a motion was made to defer the item to a Special LUSC meeting to discuss alternate locations for the stormwater trunkline installation, expand upon community outreach efforts, especially with the impacted businesses and provisions for access during construction, parking configuration, and other key community concerns, such as the relocation of the existing oak trees. The motion also requested to come back to the June 26, 2024 Commission for a final vote.