2010-27300 ResoRESOLUTION NO. 2010-27300
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING THE APPROPRIATION OF
$168,216, FROM THE PREVIOUSLY APPROPRIATED COLLINS AVENUE/
HARDING AVENUE SIDEWALK CAPITAL PROJECT FROM THE FY2006/07
CAPITAL BUDGET, TO FUND CITY REQUESTED AND UNFORESEEN
CHANGE ORDERS FOR THE CONSTRUCTION OF A NEW PEDESTRIAN
MALL ON THE 1100 BLOCK OF LINCOLN ROAD.
WHEREAS, on March 14, 2007, the City Commission adopted Resolution No. 2007-26494,
approving a Development Agreement between the City and UTA Management, for the design,
development, and construction of certain improvements to the 1100 Block of Lincoln Road; the
project included the conversion of the 1100 block of Lincoln Road from atwo-way vehicular
street to a pedestrian mall with waterscape features and large specimen trees; and
WHEREAS, the project costs were funded by the City Center RDA in the amount of
$5,876,710; and
WHEREAS, when the project was funded, there was no allocation made for change orders
due to City requested changes and unforeseen or unknown conditions; and
WHEREAS, during the FY2009/10 budget process UTA Management, LLC estimated that
the City should reserve funding in the amount of $200,000 for change order expenses; and
WHEREAS, when the City Commission approved the Capital Improvement Budget for
FY2009/10, $200,000 was available in the project budget for future change orders; and
WHEREAS, as the project construction proceeded during calendar year 2009, it was
determined that the amount budgeted of $200,000 would not be enough to cover newly
identified change orders due to unforeseen or unknown conditions; and
WHEREAS, in October/ November of 2009, UTA Management identified the need for an
additional $90,757 for miscellaneous change orders; and
WHEREAS, additional funds are coming from Pay-As-You-Go funds to do the final close out
of the 1100 Block of Lincoln Road; the intent is to repay the funds with RDA funds when
available; and
WHEREAS, in December 2009, after most of the Pedra Portuguesa surface stone was
installed, it was determined that to maintain a clean appearance of the stone it would be
necessary to apply a finishing sealer; and
WHEREAS, UTA Management negotiated the change order to seal the Pedra Portuguesa Alton
Lincoln Road and portions of Alton Road and Lenox Avenue in the amount of $57,459; the City
is also reserving an additional $20,000 for contingencies that may occur between substantial
completion and final inspection and acceptance; for a grand total of $168,216.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, hereby authorize the appropriation of $168,216, from
the previously appropriated Collins Avenue/ Harding Avenue Sidewalk Capital Project from the
FY2006/07 Capital Budget, to fund City requested and unforeseen change orders for the
construction of a new pedestrian mall on the 1100 block of Lincoln Road.
PASSED AND ADOPTED this i3 day of /~iha4rr 2010.
ATTEST: ~ ~~ L~
CITY CLERK MA O
APPROVED AS TO
FORM & LANGUAGE
T:WGENDA\2010Wanuary 13\Consent\UTA additional change orders-appropriation RESO.doc
~ R EXECUTION
Cit~CAttorney `. , Date
COMMISSION ITEM SUMMARY
rte Intenaea outcome Supported:
Maintain Miami Beach public areas and Rights-of-Way Citywide
Supporting Data (Surveys, Environmental Scan, etc.): According to the 2009 Miami Beach
Customer Satisfaction Survey, 81 % of businesses and 82.7°~ o` residents rated landscape maintenance
in ri ht-of-wa and ublic areas as either excellent or goo:;.
Issue:
Shall the Mayor and City Commission adopt the Resolution?
Item
On March 14, 2007, the City Commission adopted Resolution No. 2007-26494, approving a Development
Agreement between the City and Manager, for the design, development, and the conversion of the 1100
block of Lincoln Road from atwo-way vehicular street to a pedestrian mall with waterscape features and
large specimen trees. The project costs were funded by the City Center RDA in the amount of $5,876,710.
When the project was funded in the amount of $5,876,710, there was no allocation made for change
orders due to unforeseen or unknown conditions. During the FY2009/10 budget an amount of $200,000
was budgeted for change order expenses. As the project construction proceeded during calendar year
2009, it was determined that the amount budgeted of $200,000 would not be enough to cover newly
identified change orders due to City requested changes and unforeseen or unknown conditions. In
October/ November of 2009, UTA Management identified the need for an additional $90,757 for
miscellaneous change orders. In December 2009, after most of the Pedra Portuguesa surface stone was
installed, it was determined that to maintain a clean appearance of the stone it would be necessary to
apply a finishing sealer. UTA Management negotiated the change order to seal the Pedra Portuguesa Alton
Lincoln Road and portions of Alton Road and Lenox Avenue in the amount of $57,459; therefore, the
additional funding required to complete the project with the additional project change orders is $148,216.
The City is also reserving an additional $20,000 for contingencies that may occur between substantial
completion and final inspection and acceptance; for a grand total of $168,216.
It is important to note that the project will be completed 12 months ahead of the 30 month schedule. The
total amount for change orders of $348,216 is 6.5% of the total project cost; below the 10% the City usually
programs for right-of-way projects.
THE ADMINISTRATION RECOMENDS ADOPTING THE
Board
Financial Information:
Source of Amount .Account
Funds: 1 j $168,216 302-2573-069357 Collins Avenue/ Harding Avenue
Sidewalk Ca ital Pro~ect
2
3
4
O Total $168,216
Financial Im act Summa
City Clerk's Office Legislative Tracking:
Sian-Offs:
Department Direct Assistant Cit anager City Ma ager
FHB j JGG JMG
r:\AGENDA\2010Uahu~ry 13\Consent\UTA additional change orders-appropriation SUMM.doc
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AGE#4tQA ITEM C 76-
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m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager ~
DATE: January 13, 2010
SUBJECT: A RESOLUTION OF THE MAYOR D CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AUTHORIZING THE APPROPRIATION OF
$168,216, FROM THE PREVIOUSLY APPROPRIATED COLLINS AVENUE/
HARDING AVENUE SIDEWALK CAPITAL PROJECT FROM THE
FY2006/07 CAPITAL BUDGET, TO FUND CITY REQUESTED AND
UNFORESEEN CHANGE ORDERS FOR THE CONSTRUCTION OF A
NEW PEDESTRIAN MALL ON THE 1100 BLOCK OF LINCOLN ROAD.
ADMINISTRATION RECOMMENDATION
The Administration recommends approval of the Resolution.
FUNDING
From the previously appropriated Collins Avenue/ Harding Avenue Sidewalk Capital Project
from the FY2006/07 Capital Budget. Because this project is in City Center, the funds will be
replenished by future year City Center funds when available so that the Pay-As-You-Go Fund
302 is not paying for this project.
BACKGROUND
On December 6, 2006, the City Commission adopted Resolution No. 2006-26422, approving a
conceptual plan for the closure of Lincoln Road to vehicles between Lenox Avenue and Alton
Road and construction of a pedestrian mall.
On March 14, 2007, the City Commission adopted Resolution No. 2007-26494, approving a
Development Agreement between the City and Manager, for the design, development, and
construction of certain improvements to the 1100 Block of Lincoln Road, in conjunction with the
project being developed by MBeach1, LLLP ("MBeach1"), an affiliate of Manager, at 1111
Lincoln Road, Miami Beach, Florida (the "MBeach1 Property"). The project included the
conversion of the 1100 block of Lincoln Road from atwo-way vehicular street to a pedestrian
mall with waterscape features and large specimen trees. The project costs were funded by the
City Center RDA in the amount of $5,876,710.
On April 11, 2007, the City and Manager entered into a Development Agreement, recorded in
Official Records Book 25537, Page 1882 of the Public Records of Miami-Dade County, Florida
(the "Original Development Agreement").
On June 3, 2009, the City and Manager entered into a First Amendment to Development
Agreement, recorded in Official Records Book 26911, Page 3252 of the Pubiic Records of
Miami-Dade County, Florida (the "First Amendment", and together with the Original
Development Agreement, the "Agreement").
Commission Memorandum- UTA Additional Change Orders/ Appropriations
January 13, 2010
Page 2 of 3
ANALYSIS
When the project was funded in the amount of $5,876,710, there was no allocation made for
change orders due to unforeseen or unknown conditions. During the FY2009/10 budget process
UTA Management, LLC estimated that the City should reserve funding in the amount of
$200,000 for change order expenses. When the City Commission approved the Capital
Improvement Budget for FY2009/10, $200,000 was available in the project budget for future
change orders. As the project construction proceeded during calendar year 2009, it was
determined that the amount budgeted of $200,000 would not be enough to cover newly
identified change orders due to City requested changes and unforeseen or unknown conditions.
Per Section 8.3 of the Agreement:
"The City shall pay the Cost of the Work, as adjusted by approved Change
Orders. The construction contract shall limit the grounds for approved Change
Orders to City requested Change Orders, Developer requested Change Orders
approved by the City, force majeure events, City Building Department field
inspector requirements, acts or omissions of the City, errors and omissions in
architectural drawings and specifications, material and substantial changes in the
Work not caused by Developer, concealed or unknown conditions, and costs due
to emergencies incurred in taking action to prevent threatened damage, injury or
loss in case of an emergency affecting the safety of persons and property. "
All of the change orders to date have been reviewed and approved by the City and are in full
compliance with the requirements of Section 8.3 of the Agreement.
In October/ November of 2009, UTA Management identified the need for an additional $90,757
for miscellaneous City requested and unforeseen change orders that included: additional design
and inspection services, additional installation of Pedra Portuguesa along Alton Road, furnish
and install black marble chips and side water gardens, furnish and install adapter plates for the
new 35' light poles, furnish and install additional galvanized steel grading, extra cost to cut
Pedra Portuguesa stone on both sides for installation over flood panel supports, cost for
additional storage of large trees (8 Live Oaks, 6 Bald Cypress, 1 Kapok tree), and removal and
reinstallation of spread footers for existing flood panel supports along the south side of Lincoln
Road and Alton Road.
In December 2009, after most of the Pedra Portuguesa surface stone was installed, it was
determined that to maintain a clean appearance of the stone it would be necessary to apply a
finishing sealer. The City requested the change order to seal the Pedra Portuguesa on the
1100 block of Lincoln Road and portions of Alton Road and Lenox Avenue; UTA Management
negotiated it in the amount of $57,459. Therefore, the additional funding required to complete
the project with the additional City requested and unforeseen project change orders is
$148,216.
The City is also reserving an additional $20,000 for contingencies that may occur between
substantial completion and final inspection and acceptance; for a grand total of $168,216.
It is important to highlight that under the Agreement, the Developer agreed to substantially
complete the work in 30 months after the issuance of the Notice to Proceed; the Developer
expects to deliver the project to the City by January 11, 2010, essentially completing all work in
18 months or 12 months ahead of schedule. This is significant since the City will get the benefit
of the use of the new pedestrian mall one year ahead of the required completion and eliminate
the extended overhead and other expenses incurred by projects that are not completed on
schedule.
Commission Memorandum-UTA Additional Change Orders/ Appropriations
January 13, 2010
Page 3 of 3
For most City right-of-way improvement projects, the City budgets ten percent (10%) of the
project budget for contingencies and change orders. Ten percent (10%) of $5,876,710 is
$587,671; the final amount for project change orders is $348,216 which equals to six and a half
percent (6.5%) of the project amount.
CONCLUSION
The Administration recommends authorizing the appropriation of $168,216, from the previously
appropriated Collins Avenue/ Harding Avenue Sidewalk Capital Project from the FY2006/07
Capital Budget, to fund City requested and unforeseen change orders for the construction of a
new pedestrian mall on the 1100 block of Lincoln Road.
JMG/J /FHB
T:WGENDA\2010Uanuary 13\Consent\UTA additional change orders-appropriation MEMO.DOC