397-2001 Reso
RESOLUTION
397-2001
A RESOLUTION OF THE CHAIRMAN AND THE MEMBERS OF THE
MIAMI BEACH REDEVELOPMENT AGENCY RATIFYING THE OMISSION
OF WORK (WASHINGTON AVENUE FROM SOUTH POINTE DRIVE TO
FIRST STREET AND FROM FOURTH STREET TO FIFTH STREET) FROM
THE AGREEMENT WITH ATLANTIC CIVIL, INC., FOR THE SOUTH
POINTE STREETSCAPE IMPROVEMENTS - PHASE I CONSTRUCTION.
WHEREAS, on September 5, 2000, Atlantic Civil, Inc. (ACI) commenced the South
Pointe Streetscape Phase I construction (the "Project"), which consists of roadway,
drainage, water, sanitary, lighting and landscaping improvements along Third Street from
Michigan Avenue to Ocean Drive and along Washington Avenue from South Pointe Park
to Fifth Street; a roadway and associated parking was also constructed to connect the
South Pointe Park and the Park's existing parking lot; and
WHEREAS, since the commencement of construction, several site development
issues related to coordination of unforeseen conditions, omissions and deletions have
arisen; and
WHEREAS, ACI has refused to proceed with disputed work without first receiving an
approved change order; and
WHEREAS, on September 26, 2001, the City/RDA omitted the work along
Washington Avenue from South Pointe Drive to First Street pursuant to Section 9.5 -
Omitted Items of the Contract since the proposed work could not be completed by October
4, 2001, the date required by the City; and
WHEREAS, on September 7,2001, pursuant to Section 9.5 - Omitted Items of the
Contract, the City/RDA omitted the work along Washington Avenue from Fourth to Fifth
Streets as ACI refused the reasonable and responsible requests of the City/RDA to provide
certain assurances that ACI would address the construction in this area in a manner that
minimizes potential impacts to the residents and businesses.
NOW, THEREFORE BE IT DULY RESOLVED BY THE CHAIRMAN AND
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairman and
Members of the RDA ratify the omission of work (Washington Avenue from South Pointe
Drive to First Street and from Fourth to Fifth Streets) from the Agreement with Atlantic Civil,
Inc., for the South Pointe Streetscape Improvements - Phase I construction.
PASSED and ADOPTED this 17th day of October, 2001.
~I!
CHAIRMA~ASTO
FORM & LANGUAGI
& FOR EXECUTION
ATTEST:
SECRETARY
AJ;jJ..d../1 < fO -/ f~(Jf
~/J,./~D.-
GInIlW ~ IJ'V-
MIAMI BEACH REDEVELOPMENT AGENCY
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miami-beach.f1.us
m
REDEVELOPMENT AGENCY MEMORANDUM
From:
Mayor Neisen O. Kasdin and
Members of the City Commission
Jorge M. Gonzalez \~I\'lV
City Manager ~~
A RESOLUTION OF THE CHAIRMAN AND THE MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY RATIFYING THE OMISSION OF
WORK (WASHINGTON AVENUE FROM SOUTH POINTE DRIVE TO
FIRST STREET AND FROM FOURTH STREET TO FIFTH STREET) FROM
THE AGREEMENT WITH ATLANTIC CIVIL, INC., FOR THE SOUTH
POINTE STREETSCAPE IMPROVEMENTS - PHASE I CONSTRUCTION.
Date: October 17, 2001
To:
Subject:
On September 5, 2000, Atlantic Civil, Inc. (ACI) commenced the South Pointe Streetscape
Phase I construction (the "Project"), which consists of roadway, drainage, water, sanitary,
lighting and landscaping improvements along Third Street from Michigan Avenue to Ocean
Drive and along Washington Avenue from South Pointe Park to Fifth Street; a roadway and
associated parking was also constructed to connect the South Pointe Park and the Park's
existing parking lot.
Since the commencement of construction, several site development issues related to
coordination of unforeseen conditions, omissions and deletions have arisen, On January
31, 2001, as a result of staff concems, a status report was provided to the Redevelopment
Agency advising that these conditions have contributed to time delays and additional costs.
On May 16, 2001,staff reported to the Redevelopment Agency that the contractor
submitted a Request for Equitable Adjustment (REA) in excess of $1.3 million, representing
the increased costs the contractor attributes to delays associated with the issues
referenced above. Repeated City requests for the Contractor to submit certain
documentation to support the City's review of the REA have been denied unless the City
agrees to binding arbitration. Not agreeing with these conditions, on August 10, 2001, the
City advised ACl's counsel that the REA was rejected until such time that ACI forwarded
the requested information.
The Project team has been attempting to address design and unforeseen site condition
issues to expeditiously resolve conflicts, and allow ACI to proceed with construction without
further delays. However, some design and unforeseen site condition issues continue to
occur and consequently, have contributed to the delays. Additionally, ACI has refused to
proceed with disputed work without first receiving an approved change order. The
anticipated time of completion for the project is projected by the Project team to occur at
the end of the first quarter of 2002.
AGENDA ITEM ,~f}
DATE /()-!7-0/
The City has contracted with Steve Siegfried, Esq., an expert in construction litigation, who
is evaluating the REA submitted by ACI and advising the City on legal matters as they
relate to the contract.
Since construction progress was proceeding in an untimely fashion, the City/RDA
requested an acceleration schedule and cost proposal to perform the work along
Washington Avenue from South Pointe Drive to First Street by October 4, 2001. In order
to accomplish this task by the stated milestone date, it was acknowledged that ACI would
have to work additional hours during the workweek. ACI forwarded a change order request
in the amount of $588,480.74 for the City's/RDA's review. The change order request also
included exclusionary language contrary to the contract documents and an anticipated
completion date of October 12, 2001, with no guarantees that the work would be
completed on schedule. The additional compensation amount was in addition to the value
of the work to be performed. Hazen and Sawyer and Kimley-Horn & Associates estimated
the value of the Contractor's acceleration costs to range between $100,000 to $120,000,
On September 26, 2001, the City/RDA omitted the work along Washington Avenue from
South Pointe Drive to First Street pursuant to Section 9.5 - Omitted Items of the Contract
since the proposed work could not be completed by October 4, 2001.
On September 7, 2001, the City/RDA omitted the work along Washington Avenue from
Fourth to Fifth Streets. ACI refused the reasonable and responsible requests of the
City/RDA to provide certain assurances that ACI would address the construction in this
area in a manner that minimizes potential impacts to the residents and businesses.
Therefore, pursuant to Section 9.5 - Omitted Items of the Contract, the City/RDA omitted
the work north of Fourth Street along Washington Avenue.
Therefore, the Administration recommends that the Chairman and the Members of the
Miami Beach Redevelopment Agency ratify the omission of work (Washington Avenue
from South Pointe Drive to First Street and from Fourth to Fifth Streets) from the
Agreement with Atlantic Civil, Inc., for the South Pointe Streetscape Improvements - Phase
I construction.