2008-26836 ResoRESOLUTION NO. 2008-26836
A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF
MIAMI BEACH, FLORIDA, AUTHORIZING THE APPROPRIATION OF
$563,624 FROM THE CAPITAL RESERVE FUND 304 AS CONTINGENCY
CHANGE, ORDERS AND TO REPLACE ANTICIPATED AND
UNREALIZED REVENUE FUNDING FOR THE COMPLETION OF THE
CONSTRUCTION OF THE NORTH BEACH RECREATIONAL CORRIDOR
PROJECT.
WHEREAS, the City is developing a series of bicycle/pedestrian/greenway
projects called the Atlantic Greenway Network, made up of two main trail systems: the
Beach Corridors, which extend in a northbound/southbound direction, running between
the erosion control line and the dune system; and the Neighborhood Traits, which extend
in east/west as well as north/south directions through the South, Middle, and North
Beach neighborhoods; and
WHEREAS, the North Beach Recreational Corridor Project (Project) will create a
northbound/southbound multi-purpose public access corridor, within a public easement,
which traverses along the western edge (upland side) of the dune; and
WHEREAS, the Project will be located in the North Beach District, and will run
immediately east of the oceanfront properties, and serve to energize the coastal
development areas between 64th Street and 79th Street; and
WHEREAS, the Project will also connect to planned greenways along Indian
Creek to promote alternative transportation, via bicycling or walking, and will serve as a
connection to businesses, residential areas, schools, parks, and beaches; and
WHEREAS, on March 14th, 2007, the City Commission authorized the
Administration to enter into negotiations with the top ranked firm of Horizon Contractors,
Inc., pursuant to Invitation to Bid (ITB) No. 27-06/07, for construction of the Project
Phases 1, 2 & 3; and
WHEREAS, September 5th, 2007, the City approved the construction contract in
the amount of $6,299,755 with Horizon Contractors, Inc.; and
WHEREAS, the Fiscal Year (FY) 2007/08 appropriations for the Project were in
the amount of $3,406,300, yielding a total available amount of $6,489,456; and
WHEREAS, the estimated Project budget of $6,489,456 included a contribution
of $300,000, and a possible $200,000 in-kind contribution from Canyon Ranch; and
WHEREAS, the final negotiated contribution from the Canyon Ranch was
$300,000.00 in cash, no in-kind contribution, which reduced the Project budget by
$200,000, to $6,289,456; and
WHEREAS, the remaining value on the construction contract is $1,744,628, and
a ten (10%) percent contingency upon the remaining value of the construction contract,
in the amount of $174,463, would provide funding for the construction contingency; and
WHEREAS, the City incurred $171,193 of unforeseen consultant expenses for
services related to litigation, legal fees, construction administration, re-design and permit
modifications that resulted from community input; and
WHEREAS, an additional sea turtle replica, in the amount of $7,800, is required
to complete the original, permitted Eco-Walk design approved by the Florida Department
of Environmental Protection; and
WHEREAS, the installation of bollards, in the amount of $10,168, is required to
restrict vehicular access and to provide increased safety for pedestrians and to the
beachwalk infrastructure and was not included in the original design cost for materials
and labor; and
WHEREAS, $563,624 of funding from the Capital Reserve Fund 304 is required
now to compensate for the aforestated unforeseen costs and to satisfy the construction
contingency deficit that was previously not funded.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby authorize the appropriation of $563,624 from the Capital Reserve
fund 304 as contingency, change orders and to replace anticipated and unrealized
revenue funding for the completion of construction of the North Beach Recreational
Corridor Project.
PASSED and ADOPTED this 25thday of June , 2008.
ATTEST:
CITY CLERK
Robert Parcher
Matti Herrera Bower
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Condensed Title:
COMMISSION ITEM SUMMARY
A Resolution of the Mayor and the City Commission of Miami Beach, Florida, authorizing the appropriation
of $563,624 from the Capital Reserve Fund 304 as contingency, change orders and to replace anticipated
and unrealized revenue funding for the completion of the construction of the North Beach Recreational
Corridor Project (NBRC).
Key Intended Outcome Supported:
To Ensure Well Designed Quality Capital Projects
Supporting Data (Surveys, Environmental Scan, etc.): The availability of pedestrian trails and bicycle ''
paths/lanes in North Beach was rated Poor by 33% of respondents and Fair by another 40%.
Issue:
Shall the Ma or and Cit Commission a rove the Resolution?
Item Summa /Recommendation:
The NBRC is part of a series of bicycle/ pedestrian/ greenway projects to be known as the Atlantic
Greenway Network (AGN). A series of future projects are planned and will be constructed as funding
becomes available to create a continuous trail network allowing for alternative transportation and to
improve the quality of life of Miami Beach residents.
The construction contract funding was approved without the typical 10% construction contingency
component. Construction is approximately seventy-five (75%) percent complete. The remaining value on
the construction contract is $1,744,627. It is recommended that a 10% contingency of the remaining value
in the amount of $174,463 be provided to take care of any unforeseen conditions or unplanned work, from
now until the completion of the project, such as installation of additional litter containers, dog bag stations,
additional signage, improvements to the drainage of the beach showers, and some added concrete work
at the beach entrances.
When the project was awarded, the City Administration was still negotiating an in-kind and a cash funding
contribution for the NBRC from the Canyon Ranch developer in the amount of $300,000, and a possible
$200,000 in-kind contribution. Based on the information available at the time, $500,000 was included as
part of the estimated project budget of $6,489,456 and approved by the City Commission in September
2007. The final negotiated contribution from the Canyon Ranch was the $300,000 in cash, no in-kind
contribution, which reduced the project available funding by $200,000 down to $6,289,456. This in-kind
contribution became unfeasible as the cost of work exceeded the developer's expectation and it did not
make sense to have multiple contractors (City and developer) working in the same area.
In addition to the 10% contingency of the remaining value, the project has the following unfunded
requirements: 1) the City incurred $171,193 of unforeseen legal fees, litigation, plus consultant expenses
for services relative to construction administration, re-design and permit modifications that resulted from
community input; 2) $7,800 to build the original Eco-Walk approved by the Florida Department or
Environmental Protection; 3) $10,168 for the installation of bollards to restrict vehicular access on to the
NBRC. The bollards will provide safety to pedestrians and will protect the beachwalk infrastructure.
The Administration recommends the Mayor and City Commission authorize the appropriation of Capital
Reserve funds in the amount of $563,624.00 ($200,000 plus $174,463, plus $171,193, plus $7,800, plus
$10,168).
THE ADMINISTRATION RECOMMENDS APPROVAL OF THE RESOLUTION.
Financial Information:
Source of Amount Account
Funds: 1 $563,624 Capital Reserve Fund 304
2
3
OBPI Total $563,624
Financial Im act Summa
Cit Clerk's Office Le islative Trackin
Fernando A. Vaz uez, P.E.; Ext 6399
Sign-Offs: /~
De artment Dire or Assistan i ana er Ci na er
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City of Miami Beath, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.mi°mibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: June 25, 2008
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AUTHORIZING THE APPROPRIATION OF
$563,624 FROM THE CAPITAL RESERVE FUND 304 AS CONTINGENCY,
CHANGE ORDERS AND TO REPLACE ANTICIPATED AND UNREALIZED
REVENUE FUNDING FOR THE COMPLETION OF THE CONSTRUCTION
OF THE NORTH BEACH RECREATIONAL CORRIDOR PROJECT.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The North Beach Recreational Corridor Project (NBRC) is part of a series of
bicycle/pedestrian/greenway projects to be known as the Atlantic Greenway Network (AGN).
The AGN is made up of two main trail systems; the Beach Corridors running between the
erosion control line (ECL) and the dune system; and the Neighborhood Trails, which creates
east-west and north-south connections throughout south, middle, and north beach
neighborhoods. A series of future projects are planned, and as funding becomes available
individual projects will be constructed to create a continuous trail network allowing for
alternative transportation and community enhancement.
The NBRC will create amulti-purpose public access corridor, which traverses along the
western edge (upland side) of the sand dunes. The NBRC will be located immediately east
of the oceanfront properties between 64th Street and 79th Street in the City. NBRC is a
natural progression of pathways connecting beachfront parks and beachfront streetends.
This corridorwill serve as a connection to businesses, residential areas, schools, parks, and
beaches to promote alternative transportation via bicycling or walking.
On September 5th, 2007 the City Commission approved a contract with Horizon Contractors,
Inc., for the construction of the NBRC for a negotiated contract price of $6,299,755.
Construction began in December 2007 with a projected completion in December of 2008.
The construction is ahead of schedule and the NBRC is expected to be officially open for
use by the general public in August 2008.
The construction contract funding was approved without the typical 10 percent construction
contingency component. Construction is approximately seventy-five (75%) percent complete,
with a remaining value on the construction contract of $1,744,628.
North Beach Recreational Corridor Project
June 25, 2008
Page 2 of 2
The City Administration recommends that a 10% contingency of this remaining value in the
amount of $174,463 be provided to take care of any unforeseen conditions or unplanned
work, from now until the completion of the project, such as installation of additional litter
containers, dog bag stations, additional signage, improvements to the drainage of the beach
showers, and some added concrete work at the beach entrances.
The 10% contingency funding was not appropriated as both a federal funding source and an
in-kind donation had not yet been finalized.
In order to expedite the award and the start project, the item was presented to City
Commission pending approval of federal funding sources in the amount of $2,000,000. After
the award of the contract, federal funds were approved by the state and have been allocated
to the project.
Also when the project was awarded, the City Administration was still negotiating an in-kind
and a cash funding contribution for the NBRC from the Canyon Ranch developer in the
amount of $300,000, and a possible $200,000 in-kind contribution. Based on the information
available at the time, $500,000 was included as part of the estimated project budget of
$6,489,456 and approved by the City Commission in September 2007. The final negotiated
contribution from the Canyon Ranch was only $300,000 in cash, no in-kind contribution,
which reduced the project available funding by $200,000 down to $6,289,456. This in-kind
contribution became unfeasible as the cost of work exceeded the developer's expectation
and it did not make sense to have multiple contractors (City and developer) working in the
same area.
In addition to the requested 10% contingency allocation of the remaining construction value,
the project has the following unfunded requirements:
1) To date, the City has incurred $171,193 of unforeseen consultant expenses for
services relative to litigation, legal fees, construction administration, re-design and
permit modifications that resulted from community input.
2) The City requested $27,617 from the Sea Turtle License Plate Grant to fund the
Allison Park Eco-Walk, which is part of the permitted NBRC design. The purpose of
the grant was to create an interpretive educational display in Allison Park that would
include endangered sea turtle replicas and ADA-accessible signage about the beach
environment. The City received only partial funding of $15,417. The additional
funding request of $7,800 is needed to build the original Eco-Walk through the
procurement of an additional sea turtle replica, which was approved by the Florida
Department of Environmental Protection (FDEP).
3) The installation of bollards which were not included in the original design would
restrict vehicular access onto the NBRC. The bollards will provide increased safety
for pedestrians and other users of the NBRC and will also protect the beachwalk
infrastructure. The bollards will cost $10,168 for materials and labor associated with
their installation.
CONCLUSION
The Administration recommends the Mayor and City Commission authorize the appropriation
of Capital Reserve Fund 304 as additional funding for the completion of the construction of
the North each Recreational Corridor in the amount of $563,624.
JMG B/FV/LB/ew
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