BACKGROUND
On October 21, 2015, the Mayor and City Commission approved Resolution 2015-29188 approving a Construction Manager at Risk agreement between the City and Clark Construction Group, LLC (“Clark”) for the Miami Beach Convention Center Renovation and Expansion project (“MBCC”) with a Guaranteed Maximum Price (“GMP”) for the project in the amount of $515,458,058. The Resolution also established a project contingency in the amount of $35,000,000 and delegated, to the City Manager, the authority to use the contingency to execute any project-related agreements or contract amendments as may be necessary for the successful delivery of the project.
On September 30, 2015, the Mayor and City Commission approved Resolution 2015-29144, adopting the final capital improvement plan for fiscal years 2015/16 – 2019/20 and adopting the City of Miami Beach final Capital Budget for FY 2015/16. The Capital Budget included a new project for replacement of a section of the Convention Center roof with an estimated cost of $2,500,000 to be paid from Convention Center Fund 440.
On April 26, 2017 the Mayor and City Commission approved Resolution 2017-29829, adopting the third amendment to the Capital Budget for fiscal year 2016/17. The Capital Budget included funding in the amount of $3,381,241 for construction of the stormwater culvert along Convention Center Drive and 19th Street, and raising of the roads to 3.7 NAVD.
ANALYSIS
Although the following projects for the stormwater culvert and roof repairs for the MBCC were previously budgeted and appropriated by the City Commission, in an abundance of caution the Administration requests ratification of the contract authority for including such amounts within Clark’s contract, thereby replenishing the existing Owner’s Contingency for the Project, to be used in accordance with Resolution 2015-29188, with no additional funding required.
Roof Replacement Funding
A substantial portion of the roof area of the MBCC, specifically above the Exhibit Halls and East Concourse, was retained and a new roofing membrane was installed over the existing roof. On September 30, 2015, Resolution 2015-29144 awarded $2,500,000 of funding to be used for the purpose of re-roofing a portion of the MBCC. This work was performed by Clark during construction of the MBCC project. The funds were expended in the manner approved under the resolution.
Stormwater Culvert & Sidewalk Raising Funding
A stormwater culvert along Convention Center Drive was designed to be connected to a pump station on 19th Street constructed by the City’s Public Works and CIP Departments. The culvert needed to be designed to include additional future stormwater to be collected from the adjacent City Center Commercial district, which includes Lincoln Road to 16th Street. Raising of the roadways to 3.7 NAVD was required after the initial MBCC Guaranteed Maximum Price contract (GMP) was issued and this affected Convention Center Drive, 19th Street, and 18th Street. On April 26, 2017, Resolution 2017-29829 awarded $3,381,241 of additional funding to the City Center 9B Project for this purpose. Additional funding of $882,268, previously approved for City Center 9B, was also utilized for a total of $4,263,509. This work was performed by the MBCC Construction Manager, (Clark) during construction of the project. The funds were expended in the manner approved under the resolution. For a summary of the ratified amounts see Chart 1 below:
Chart 1
For a current overall summary budget for the project, refer to Exhibit A attached.