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LTC 169-2022 UPDATE OF THE WEST AVENUE PHASE II IMPROVEMENTS PROJECT169-2022 MIAMIBEAC NO . LTC# COMMISSION OFFICE OF THE CITY MANAGER LETTER TO TO: FROM : DATE: Honorable Mayor Dan Gelber and Members of the City Commission Alina T. Hudak, City Manag ~ April 28, 2022 SUBJECT: UPDATE OF THE WEST AVENUE PHASE II IMPROVEMENTS PROJECT The purpose of this Letter to Commission is to provide an update on the West Avenue Phase II Improvement Project. My administration has made significant progress in resolving the concerns and challenges that have been raised by governmental agencies, regulatory agencies, residents, businesses and City Commissioners. I thank all of you for your support and valuable input during these past months. However, in spite of this progress, please be advised that we have received a letter from Ric-Man Construction Florida, the Design Builder for this project, seeking to terminate the Design Build Agreement. The letter is attached for your review. Prior to the receipt of this letter, we believed that recent progress, described below, laid the groundwork for continued success in addressing the challenges facing the commencement of the construction phase of this project. For example, the Administration has met and walked the project area with neighborhood interest groups on multiple occasions, including representatives from the West Avenue Neighborhood Association (WAvNA) and the North of Fifth Neighborhood Association (NOFNA). These meetings and site visits have been very fruitful and have yielded measurable advancements in project communication. Our City Attorney's Office has led the conversation with the South Florida Water Management District (SFWMD), regarding their permitting concerns. We are pleased to advise the Commission that it appears that the agency is now amenable to the project and has indicated agreement to the eventual issuance of the necessary permits. These discussions led to a wholesale revision of the language of the Harmonization Agreement, approved by SFWMD, in order to satisfy concerns. The project team also addressed issues raised by representatives of the two neighborhood organizations, WAvNA and NOFNA, and the current form of the Harmonization Agreement resolves their concerns and incorporates their suggestions and comments. We are pleased that our residents took an active part in revising the agreement to better address valid concerns. The Administration, with input from the residents and several of you, expanded and updated the project related outreach. Our Communications Department has revamped and updated the project's informational web page, providing residents with the latest project updates. The project team has worked diligently to repackage and streamline the project information packages, including the harmonization agreements, which will be delivered to property owners. We believe this will make the information more comprehensive and easily understood. In an effort to resolve ongoing neighborhood concerns regarding parking loss, the Administration directed Ric-Man to perform and provide an analysis of how and where the project could recoup some of the projected parking space loss. Additionally, to determine the potential impact of harmonization to private properties, the Administration directed Ric-Man to prepare and provide cost estimates identifying the potential costs for private properties. Of particular note, the project team has obtained ORB approval for both the Right-of-Way project as well as the pump station improvements in the parking lot. Despite these positive advancements in the project, the City received communication from Ric-Man, asking that both contracts be terminated . During recent meetings, where I personally met with Ric-Man, they expressed a concern with ongoing delays, continued cost escalations and the eventual success of the project. We are meeting with the City Attorney's Office to prepare a response in accordance with our contract and to consider any viable options that would not entail a termination. I, together with our team , will have to analyze and understand the legal implications, options and cost associated with this termination request. I will provide additional information as it becomes available. ATTACHMENTS: Attachment 1 -Letter from Ric-Man Construction Florida, dated April 27, 2022 ATH/LS/DM 2 3100 SW 15 th Street Deerfield Beach, Florida 33442 Office:(954)426-1221 Fax:(954)426-1226 City of Miami Beach 1700 Convention Center Drive Miami Beach, FL 33139 Attn: Mr. Lester Sola, Assistant City Manager Re : West Ave Neighborhood Improvements 090-South, 091-North Subj: Termination for Convenience Dear Mr. Sola: April 27, 2022 Sent Via Email & Certified Mail Pursuant to Article 16 "Termination" Ric-Man-Construction Florida, Inc (RMCF) has instructed its counsel to prepare a Declaratory Relie f Action (DEC) requesting termination of the above referenced contracts. RMCF's counsel will contact and provide a draft of the Complaint to the City Attorney for discussion, if any, on paths forward in the event the City decides to negotiate RMCF's Termination for Convenience. Please contact my office w ith any questions you may have . Sincere lyo . J1_ ____ _ ~-Fischer.JOO I Ric-Man Construction Florida, Inc. CC: Danny Mancini Frank Hild -Martin/Hild Greg Martin -Martin Hild David Martinez RI C-MAN CONST R UCTION F LORIDA . \ 11 I q ,1 I t l p I' , r 1 11 11 , 1 , I 1.1 11 I I N C ..