A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE CITY MANAGER TO NEGOTIATE AMENDMENT NO. 1 (WORK ORDER NO. 043715.03) TO THE INDIAN CREEK STORM WATER IMPROVEMENTS PROJECT, FROM 25TH TO 41ST STREET, UTILIZING THE COMPETITIVELY BID NATIONAL JOINT POWER ALLIANCE (NJPA) COOPERATIVE CONTRACT FOR CONSTRUCTION SERVICES WITH THE GORDIAN GROUP, APPROVED PURSUANT TO RESOLUTION NO. 2016-29521; AND SAID AMENDMENT WILL PERMIT, AT A COST OF $9,000,000.00 TO THE CITY, TO CONTINUE DRAINAGE IMPROVEMENTS ALONG INDIAN CREEK DRIVE.

At its March 9, 2016 meeting, the City Commission approved Resolution No. 2016-29332, approving a Department Funded Agreement with the Florida Department of Transportation (FDOT) for the cost sharing of a construction project on Indian Creek Drive, from 26th to 41st Streets. The respective proportionate share percentages for the cost are 78.7% for FDOT and 21.3% for the City, with a total project cost estimate of 25 million dollars, in which the City is capable of procuring the construction of the entire drainage system portion through the competitively bid National Joint Powers Alliance (NJPA). The estimated drainage cost was 11 million dollars which was based on FDOT average prices and conceptual plans generated by FDOT’s consultant Ribbeck Engineering, Inc.

At its July 20, 2016 meeting, the City Commission approved Resolution No. 2016-29521, the Indian Creek Drive storm water improvements from 26th to 41st Street (Project), having an initial estimated construction cost of $3,000,000, including a ten percent (10%) contingency, and further authorizing the City Manager to procure Project construction services utilizing the competitively bid National Joint Powers Alliance (NJPA) Cooperative contract for construction services with the Gordian Group. At the time, it was stated that the 3,000,000 was only a portion of the entire drainage system and additional funding was going to be necessary to complete the drainage work.

Due to complexity and urgency of this Project, the Administration recommended engaging David Mancini and Sons, Inc. (DMSI) as the NJPA approved construction firm responsible in building the storm water drainage system which included a trunk line plus the drainage structures with the intention of providing the first line of defense against high tides. Currently, Indian Creek Drive serves as a major evacuation route during an emergency event. DMSI was chosen based on previous good work completed on time and on budget through out the entire city.

On April, 26, 2017, the City Commission approved Resolution No. 2017-29839, approving Ribbeck Engineering, Inc. to prepare a set of Interim construction plans from 25th to 26th Street and 26th to 41st Street including side streets along the entire project limits. The interim construction plans were required in order to construct a 72 inch diameter main trunk along Indian Creek Drive as well as to provide drainage improvements along the aforementioned side streets by upsizing the existing drainage lines to 24 inches. The design of pump station structure was to be part of the interim plans as well. The interim construction plans were to follow FDOT design criteria as well as City of Miami Beach contract requirements.

As a result of the latest drainage and roadway plans for the entire project, a new total cost estimate has been generated for 33.1 million dollars of which 17.7 million dollars is the cost for completing the drainage work. This escalation in cost includes the addition of a drainage push button project at 26th Street and Collins requested by FDOT, 140 additional drainage structures, one additional pollution control structure, and 2400 additional linear feet of drainage pipes ranging in size from 18 to 72 inches in diameter. As mentioned before, the original cost estimate was based on conceptual plans which did not account for utility conflicts, pump station design changes due to requirements from the County Department of Environmental Resources Management, and harmonization for each property along Indian Creek Drive and some of the side streets.

As the City continues with the acquisition of properties along Indian Creek, has been determined that the cost to build a continuous seawall is approximately 8 million dollars which will need to be funded independently of the DFA agreement. The seawall construction cost was not included as part of the original DFA cost estimate; however the State was willing to allow the City to use the seawall cost toward our $5M contribution if the project was completed within the $25M budget. The DFA cost estimate did include a barrier wall which would enable the roadway to be elevated. During the conceptual design the idea was to have either a seawall or the barrier wall based upon the property ownership. FDOT has informed the City that the barrier wall will need to be continuous along the project removing funding that could have been used for the seawall.

Currently, the Administration is in conversations with FDOT trying to agree to the same cost share percentages for the additional cost in which FDOT will pay for 78.7% and the City for 21.3%. In an effort to continue with the drainage work and avoid project delays, staff is requesting the Commission authorize the City Manager to negotiate amendment No. 1 to the Indian Creek Storm Water Improvements from 25th to 41st Street project utilizing the competitively bid NJPA cooperative contract for construction services with the Gordian Group, approved pursuant to Resolution No. 2016-29521 for the Project; said amendment in the amount of $9,000,000 which will only cover part of the drainage work based on the latest cost estimate.

By approving this $9,000,000 amendment, the City will stay within the original cost estimate and at the same time staff will continue the negotiations with FDOT. In the event that any of the proposed business terms change, then the City Manager will bring those changes back to the City Commission for further approval.

Based on the City Engineer’s and Design Engineer (Engineer of Record) opinion of probable construction cost the cost for this next phase of the project is in the amount of $9,000,000 and it is considered reasonable for the type of work that is included.