A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE AMENDED FUNDING AGREEMENT BETWEEN THE FLORIDA DEPARTMENT OF TRANSPORTATION ("FDOT") AND THE CITY OF MIAMI BEACH, WHICH ESTABLISHES NEW COST SHARING AMOUNTS FOR THE CONSTRUCTION PROJECT LOCATED ON INDIAN CREEK DRIVE, BETWEEN 25TH AND 41ST STREETS; AND WHICH SPECIFICALLY INCLUDES THOSE COSTS FOR THE CONSTRUCTION OF A SEAWALL BARRIER WALL, IMPROVING STREET DRAINAGE AND RAISING THE ROADWAY ELEVATION, AND WHICH SHALL OBLIGATE THE CITY TO PAY $7 MILLION OF THE TOTAL PROJECT COST IN THE AMOUNT OF $33 MILLION.

Indian Creek Drive is considered one of the City’s main corridors, forming a southbound artery between North/Mid Beach and South Beach. It provides emergency services and serves as a hurricane evacuation route. During extreme high tide events during spring and fall, Indian Creek Drive would consistently flood between 26th and 34th Streets.

Since Indian Creek falls within the Florida Department of Transportation (FDOT) jurisdiction, on March 9, 2016, the City Commission approved entering into an agreement between FDOT and the City for the cost sharing of a construction project between 26th and 41st Streets, for the construction of a seawall barrier wall, improving street drainage and raising the roadway elevation in the amount of $5.5 million dollars (of a total $25.5 million dollar project).

On September 30, 2016, FDOT and the City entered into a Department Funded Agreement (DFA) for Financial Project 439228-2-58-01, for roadway and drainage improvements on S.R. A1A/Indian Creek Drive from 41st Street to 26th Street (M.P. 1.034 to M.P. 0.232). Since the City owns approximately 30% of land along Indian Creek Drive and 20% of the roadway drainage area, the City agreed to accept part of the cost. The City agreed to a maximum participation cost of $5.5 million and FDOT agreed to a maximum participation cost of $20 million.

The original DFA stipulated the project shall be implemented in two (2) construction phases. The Interim Phase included the underground drainage construction component which included the 72 inch diameter pipe trunkline, the pump station structure and the roadway drainage system; construction to be executed by the National Joint Powers Alliance (NJPA). The Ultimate Phase included the roadway reconstruction component including raising the roadway to final grade which is to be competitively procured through a Design-Build maximum bid contract.

In addition to the two construction phases, FDOT requested the City to include a Push Button Project, consisting of drainage improvements at 26th Street as part of the Interim Phase, after the DFA contract was executed by both parties. This increased the original cost estimate of the project by $546,385.

The Interim Phase has been under construction for almost two years due to unique conditions.  The City and FDOT have agreed to competitively procure the Ultimate Phase through an Invitation to Bid (ITB) process instead Design-Build maximum bid contract.

An amendment to the DFA is required to be able to reflect the changes in the procurement process and price escalation due to field conditions, increase in scope of work and permitting requirements.

FDOT agreed to a maximum participation for actual eligible costs in the project, including a contingency amount, of $26 million. The City is proposing a maximum participation in the project, including a contingency amount, of $7 million. These amounts are base costs in the agreed proportionate share percentage of 78.7% for the Department and 21.3% for the City, bringing the total amount participation to $33 million. It is important to note that the initial DFA only contemplated a portion of the seawall and FDOT has capped the total seawall contribution at $5million.

In the event that the ITB Contract price exceeds the official cost estimate for the portion of the project corresponding to the scope of the ITB Contract, the parties recognize and acknowledge that the scope and/or cost shall be negotiated with the prospective contractor in order to bring the total cost of the scope to be performed in alignment with the total available funding. Should those negotiations with the prospective contractor be unsuccessful, either party is authorized to reject the ITB bid(s), and the parties acknowledge that there must be a rebidding of the ITB package until an acceptable price or scope modification is reached. If the parties reach an agreement on the revised scope, the City may proceed with the ITB Contract.

FDOT and the City are currently working on the final draft agreement to this project.  The draft is attached.