Item Coversheet

Resolutions - C7  D




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Jimmy L. Morales, City Manager 
DATE:April  22, 2020
 



SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE CHANGE ORDER NO. 2 TO THE CONSTRUCTION CONTRACT BETWEEN THE CITY OF MIAMI BEACH, FLORIDA AND H.G. CONSTRUCTION DEVELOPMENT AND INVESTING, INC., FOR THE FLAMINGO PARK HANDBALL COURTS RENOVATION PROJECT, WHICH CHANGE ORDER NO. 2 INCLUDES ADDITIONAL CONSTRUCTION SERVICES ASSOCIATED WITH THE PHASING OF CONSTRUCTION AND THE REMEDIATION OF DEFICIENT STUCCO, WITH AN ASSOCIATED CONTRACT TIME EXTENSION OF 150 CALENDAR DAYS, IN THE NOT-TO-EXCEED AMOUNT OF $191,724.79, PLUS AN OWNER'S CONTINGENCY IN THE AMOUNT OF $60,000, FOR A TOTAL AMOUNT OF $251,724.79, FOR A NEW CONTRACT VALUE OF $2,131,948.31, SUBJECT TO THE CITY COMMISSION'S APPROPRIATION OF FUNDS WITH THE THIRD CAPITAL BUDGET AMENDMENT FOR FY 19/20 CAPITAL BUDGET.

RECOMMENDATION

The Administration recommends adopting the Resolution.

ANALYSIS

On July 25th, 2018, the City Commission awarded the contract for construction services to HG Construction Development & Investment, Inc. pursuant to ITB2018-223-ZD, in the amount of $1,783,973.52 including owner’s contingency, related to the renovation of the Joe Rubin and Robert C. Hass handball courts at Flamingo Park.

 

The Joe Rubin and Robert C. Hass handball courts are comprised of six, four-walled courts, and four single-walled courts.  The scope of work for this project includes various electrical upgrades including the addition of sports lighting, new general lighting, stucco repairs, court resurfacing, new frameless windows and doors, new fencing, connection of existing seating area to flat roof to improve drainage, site and court drainage, painting and removal of staircase.  The courts will also include seating areas and water drinking fountains for players and spectators.

 

Commission and staff received many requests from residents and users of the handball courts expressing concerns regarding the complete closure of the handball courts for the duration of construction activities.  In response to those requests, and in an effort to accommodate the users of the facility, the project proceeded to phase the construction activities so that one of the two buildings would be open and accessible throughout the renovation (Phases I and II).

 

During the paint removal process of the Joe Rubin building (Phase I), it was discovered that the existing stucco presented extensive fractures and, in some areas, delamination. This was a hidden condition, as the existing walls had multiple layers of paint that covered the actual state of the stucco. This type of unforeseen condition is one of the downfalls of renovation projects, as there was no way of knowing the poor condition of the stucco without significant exploratory work which would have made the courts unusable.

 

This finding triggered several investigations to determine the extent and severity of the failing stucco. Selective areas of stucco were removed to verify and confirm the condition of the substrate. This investigative process included the hiring of a specialty consultant to evaluate the stucco and determine the extent of failures. In addition, the Robert C. Haas building (Phase 2) was also examined. The stucco was found to be similarly deficient.

 

In July 2019, the contractor submitted a proposal to remediate the deficient stucco at both buildings. Upon review and exhaustive negotiations by the engineer of record and city staff, the proposal was found to be inconsistent with the work effort and the value of work, exceeding available funding in the owner's contingency. Frequently, renovation projects like this one end up costing more than new, ground up construction, and take longer to complete.

 

The project team, as a result of the impasse with the contractor, evaluated several systems to determine the most effective and efficient system that will deliver the correct finished product and useful life for this use and budget. Following this extensive evaluation, the consultant has recommended the option which involves the complete removal of the existing stucco which is not properly adhered and the application of a new three coat stucco system to both Joe Rubin and Robert C. Hass buildings (Exhibit A).

 

A proposal was submitted at the City’s request by HG Construction Development & Investment, Inc. (Exhibit B) to provide additional construction services associated with the removal of the existing cracked and/or delaminated stucco and installation of a new three coat stucco system at all the surface walls and ceilings of the Joe Rubin and  Robert C. Hass buildings.  The Engineer of Record (Wolfberg Alvarez and Partners) reviewed the proposal for scope and price and found the scope of work consistent with recommended remediation option and recommends acceptance of the proposal.

 

The cost for the removal of the stucco at the Joe Rubin building (Phase I), in the amount of $88,242.70, is being covered by the project contingency and the cost for the application of the stucco will be covered through a separate Change Order No. 1 under the City Manager’s authority, in the amount of $96,250.00 including a 365 calendar day time extension.

 

Change Order No. 2

This Change Order No. 2 includes the stucco remediation at the Robert C. Hass building (Phase II) in the amount of $107,804.60, including a 60 calendar day time extension.

 

This change order also includes the additional costs and contract time associated with the multiple mobilizations and phasing of the project. At the request of the City, the contractor submitted a proposal in the amount of $83,920.19 including a 90 calendar day time extension (Exhibit C), which was found to be fair and reasonable.

 

Finally, this change order shall also increase the Owner’s Contingency in the amount of $60,000.

 

Change Order No. 2 will increase the contract value for this project by $251,724.79 to a new contract total of $2,131,948.31.  Contract time will also be increased by a total of 150 calendar days.

Account(s)304-0820-069357-26-410-546-00-00-00-23200Amount(s)$251,724.79

CONCLUSION

The Administration recommends that the City Commission approve the resolution.

Applicable Area

South Beach
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 

Strategic Connection

Neighborhoods - Evolve parks and green spaces to meet the changing needs of the community.
Legislative Tracking
Office of Capital Improvement Projects

ATTACHMENTS:
Description
Exhibit A
Exhibit B
Exhibit C
Resolution