The Administration recommends approving the Resolution.

The Florida Department of Transportation (“FDOT”) is planning to perform major roadway and drainage improvements along Alton Road/State Road (“SR”) 907, from Michigan Avenue to 43^rd Street (“Project”).  Construction is scheduled to begin in the spring of 2025, with an  estimated construction duration of 36 months.  The Project consists of pavement reconstruction; installation of a major drainage system, comprised of two new stormwater pump stations and large stormwater pipes; sidewalk reconstruction; new lighting; signalization; signage; and pavement markings, etc.  In addition, the City of Miami Beach (the “City”) requested that FDOT implement the following enhancements as part of the scope of the Project:

• Construction of new separated pedestrian and bicycle facilities along the east side of Alton Road, from Michigan Avenue to Chase Avenue, abutting the Miami Beach Golf Course, requiring modifications to the golf course irrigation system and Miami Beach Golf Club parking lot configuration.
• Replacement of the City’s old and substandard water and sewer systems along Alton Road, from Michigan Avenue to Chase Avenue; and
• Installation of St. Augustine sod and its respective irrigation system along the median of Alton Road, from Michigan Avenue to Chase Avenue.

FDOT has agreed to include the above City-requested enhancements as part of the scope of the Project; however, these improvements require the execution of various agreements (“Agreement” or “Agreements”) listed below and attached herewith, between FDOT and the City:  

A.      Memorandum of Agreement (MOA)

B.      Utility Work by Highway Contractor Agreement (UWHCA)

C.     Locally Funded Agreement (LFA)

D.     Off-System Construction and Maintenance Agreement.

E.      Three Party Escrow Agreement

Additional FDOT Agreements related to the maintenance of the two (2) proposed stormwater pump stations; lighting; and landscaping will be presented to the City Commission for consideration at a future date.

Alton Road is a primary north-south arterial and important arterial roadway and an important gateway corridor, serving the mobility needs of residents and visitors.  As such, the City has requested FDOT to include enhancements in the Project scope, which are considered over and above the standard FDOT roadway improvements normally included in the scope of FDOT projects.  

FDOT typically does not include non-standard roadway improvements and enhancements¸ such as the placement of Saint Augustine sod, replacement of water and sewer improvements, and separated pedestrian and bicycle facilities in the scope of a normal roadway project, unless specifically requested by the municipality wherein the project is located.  When such request is made, the municipality is typically responsible for the construction and maintenance costs associated with the implementation of the non-standard roadway improvements and enhancements as part of the FDOT project.  Further, the Memorandum of Agreement (MOA), Locally Funded Agreement (LFA) and Utility Work by Highway Contractor Agreement (UWHCA) are required to implement the non-standard roadway improvements on behalf of the City as part of this FDOT Project.   

Memorandum of Agreement (MOA). On October 26, 2022, the City Commission adopted Resolution No. 2022-32358, authorizing the City to execute a Memorandum of Agreement (MOA) with FDOT and for the design and construction of the City requested improvements as part of the Project, which MOA has been executed by FDOT and the City, a copy of which is attached hereto as Exhibit A.  

Locally Funded Agreement (LFA). This Agreement a draft copy of which is attached hereto as Exhibit B, is required to fund the construction of a separated bicycle and pedestrian shared-use path (SUP) and associated facilities along the east side of Alton Road abutting the Miami Beach golf course as part of the scope of the Project. In order to accommodate the bicycle and pedestrian path in front of the Miami Beach Golf Club, reconfiguration of the existing parking lot is required. It is important to note that no loss of parking spaces is expected as part of the reconfiguration. Due to a difference in the elevation of the parking lot with respect to the proposed elevation of the Alton Road pavement, construction of a new drainage system is required to effectively manage the parking lot’s stormwater run-off. The estimated construction cost for the foregoing shared use path (SUP”) facilities to date is $2,115,808.64. The City also requested the installation of St. Augustine sod including its respective irrigation system on the median and east swale areas along Alton Road, between Michigan Avenue and Chase Avenue, with a total construction cost of $200,000.00 to date. The total estimated construction costs for the foregoing enhancements to date is $2,315,808.64 to be paid by the City to FDOT in two installments: a 15% down payment no later than December 1, 2023, and the remaining 85% to be paid no later than April 1, 2024.

Utility Work by Highway Contractor Agreement (UWHCA). This Agreement, a draft copy of which is attached hereto as Exhibit C, is required for the replacement and upgrades to the City-owned water and sewer systems along Alton Road, between Michigan Avenue and Chase Avenue, including the installation of a new sanitary sewer pump station in the vicinity of Alton Road and 27 Street. The estimated construction cost of these improvements to date is $9,267,312.70, to be paid by the City to FDOT in two installments: a 15% down payment, in the amount of $1,390,096.90, and the remaining 85%, in the amount of $7,877,215.80, shall be due when the official estimate for the utility work is available.

Off-System Construction and Maintenance Agreement. This Agreement, a draft copy of which is attached hereto as Exhibit D, is necessary to allow FDOT to conduct the design, construction, construction inspection, maintenance, and other tasks needed to implement the proposed improvements on non-FDOT roads (e.g., local streets under the jurisdiction of the City). 

Three Party Escrow Agreement.  This Agreement among FDOT, the City, and the State of Florida Department of Financial Services (Escrow Agent), a draft copy of which is attached hereto as Exhibit E, is required to establish an escrow account for the Project. All proceeds required by the LFA and UWHCA to be made by the City to FDOT shall be deposited into an interest-bearing escrow account until such time when FDOT withdraws the funds to pay for the incurred costs related to the City’s requested enhancements.

This is a future FDOT project with construction beginning in the Spring of 2025 having a total construction cost related to the City requested work in the amount of $11,583,121.34, as described in the following agreements: (1) UWHCA, the Public Works Department utility work improvements, in the amount of $9,267,312.70; and (2) LFA, Transportation and Mobility Department SUP facilities’ improvements, in the amount of $2,115,808.64, and the Public Works Department improvements relating to the installation of the St. Augustine sod and related irrigation system, in the amount of $200,000.00, for a total of $2,315,808.64, and payable as described below:

• UWHCA Agreement, Public Works Budget of $9,267,312.70: this budget amount includes $6,915,905.00 for the construction of the water and sewer systems to be paid to FDOT and $2,351,407.70 for contingency and project management. The payment to FDOT will in two installments as follows:
• 15% down payment, in the amount of $1,390,096.90, and the remaining 85%, in the amount of $7,877,215.80, shall be due when the official estimate for the utility work is available.
• LFA Agreement, Transportation and Mobility / Public Works $2,315,808.64 for the construction of the SUP facilities and Saint Augustine sod improvements, to be paid to FDOT in two installments:
• 15%, $   347,371.30 on or before December 1, 2023
•  85%, $1,968,437.34 on or before April 1, 2024

$1,390,096.90 20527 -CONSTRUCT -UTILITIES -419 / 419-0815-069357-29-418-000-00-00-00-20527. (Public Works)

$   347,371.30 106-9615-069357-00-410-530-00-00-00-21014. (Transportation and Mobility)

The Administration has determined that incorporating the City improvements as part of the proposed FDOT Alton Road Improvement Project, from Michigan Avenue to Chase Avenue, is in the best interest of the City, as it will addresses resiliency by elevating the roadway; improves safety and mobility for motorists, pedestrians, and bicyclists through safety improvements and the construction of separated bicycle and pedestrian facilities; enhances quality-of-life for area residents through flood mitigation; and implements needed improvements to the City’s underground infrastructure in an efficient manner. As such, the Administration recommends approving and authorizing the City Manager to finalize and execute the required agreements with FDOT.