2017-29930 Resolution RESOLUTION NO. 2017-29930
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING, IN SUBSTANTIAL FORM,
AMENDMENT NO. 1 TO THE CONTRACT BETWEEN THE CITY AND
AZULEJO, INC, RELATING TO THE REHABILITATION OF THE CITY'S
AFFORDABLE HOUSING PROJECT KNOWN AS THE LOTTIE
APARTMENTS, LOCATED AT 530 75th STREET, SAID AMENDMENT
MODIFYING THE SCOPE OF WORK FOR THE PROJECT, BY
ELIMINATING FIVE (5) OUT OF THE TOTAL NINE (9) APARTMENT UNITS
FROM THE SCOPE AND ADDING THE REPLACEMENT OF THE HVAC
UNITS FOR ALL OF THE APARTMENT UNITS TO THE SCOPE;
REDUCING THE PROJECT BUDGET FROM $819,585 TO $669,926,
MAKING THE EXCESS FUNDS, IN THE AMOUNT OF $149,659,
AVAILABLE FOR A FUTURE PROJECT OR FUTURE PHASES OF THIS
PROJECT; AND FURTHER AUTHORIZING THE CITY MANAGER AND
CITY CLERK TO EXECUTE THE FINAL NEGOTIATED AMENDMENT,
SUBJECT TO REVIEW AND FORM APPROVAL BY THE CITY
ATTORNEY.
WHEREAS, ITB 2017-027-ZD for the Lottie Apartments Rehabilitation Project was issued in
November 30, 2016; and
WHEREAS, on February 8, 2017, the Mayor and Commission awarded the contract for the
rehabilitation of the Lottie Apartments (the Project) to Azulejo, Inc. (Contractor), the general
contractor that submitted the lowest, responsive bid for ITB 2017-027-ZD; and
WHEREAS, on April 24, 2017, the City and Contractor executed the construction
contract (the Contract) in connection with the Project, which scope of work (the Scope) includes
the rehabilitation of the interior and exterior façade of the nine units contained in the Lottie
Apartments Building (the property), using environmentally friendly materials; and
WHEREAS, the Lottie Apartments rehabilitation project (the Project) is funded by the
Department of Housing and Urban Development (HUD); and
WHEREAS, the City requested a new elevation survey of the property and the results
showed that the building elevation was 6.9 National Geodetic Vertical Datum (NGVD) and not
8.6 ft., as previously established; and
WHEREAS, because of its true elevation, a substantial rehabilitation of the property would
have triggered code requirements to raise the first floor habitat level above the flood elevation of
nine (9) feet (NGVD); and
WHEREAS, it is structurally unfeasible to raise the property to the required flood elevation;
and
WHEREAS, the Administration is recommending a reduction to the Project's scope of work
(the Scope) to address crucial health and safety deficiencies of the property, as required by
HUD, while still complying with code and budgetary constraints; and
WHEREAS, the Administration recommends reducing the Scope of the Project by
eliminating the rehabilitation of five units; and
WHEREAS, the Administration recommends increasing the original Scope of the Project to
include the replacement of all the outdated HVAC units for the nine apartments, while
maintaining the Project below the substantial remodeling and flood elevation requirements; and
WHEREAS, in order to comply with HUD funding guidelines, the balance of funds, in the
amount of $149,659, would be removed from the Scope of this Project and reallocated to
another project or a future phase of this Project; and
WHEREAS, based upon this change in the Scope of the Project, the Project's budget of
$819,585 will be reduced to $669,926;
WHEREAS, the Administration recommends approving, in substantial form, Amendment No.
1 to the Contract, incorporated herein by reference and attached as Exhibit "1" hereto.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve,
in substantial form, Amendment No. 1 to the Contract between the City and Azulejo, Inc.,
relating to the rehabilitation of the City's affordable housing project known as the Lottie
Apartments, located at 530 75th Street, said amendment modifying the scope of work for the
Project, by eliminating five (5) out of the total nine (9) apartment units from the Scope and
adding the replacement of the HVAC units for all of the apartment units to the Scope; reducing
the Project budget from $819,585 to $669,926, making the excess funds, in the amount of
$149,659, available for a future project or future phases of this Project; and further authorize
the City Manager and City Clerk to execute the final negotiated amendment, subject to review
and form approval by the City Attorney.
PASSED AND ADOPTED this fir; day of f5 , 2017.
ATTEST:
RAFAEL E. GRANA'0, CITY CLER. ` I4`,�� , MAYOR
INCORP ORATED: *4
•
C 26 �,:.
APPROVED AS TO
FORM & LANGUA
& FOR EXECUTE!
ity Attorney 414, r Dote
AMENDMENT NO. 1 TO THE CONTRACT
This Amendment No. 1 (Amendment) to the Contract, dated April 24, 2017, by
and between the City of Miami Beach, Florida, a municipal corporation organized and
existing under the laws of the State of Florida, having its principal place of business at
1700 Convention Center Drive, Miami Beach, Florida 33139 (the City), and Azulejo, Inc.,
a Florida for profit company, having its principal place of business at 307 NW 10
Terrace, Hallandale, FL 33009 (Contractor), is entered into this day of
2017 (Effective Date).
RECITALS
WHEREAS, on February 8, 2017, the Mayor and City Commission approved the
award of Invitation to Bid No. 2017-027-ZD (ITB) for the Lottie Apartments Rehabilitation
Project (the Project), in the lump sum amount of $819,585.00, to Azulejo, Inc.
(Contractor), the general contractor that submitted the lowest, responsive bid; and
WHEREAS, on April 24, 2017, the City and Contractor executed a construction
contract (the Contract) with respect to the Project, which scope of work (the Scope)
includes the rehabilitation of the interior and exterior facade of the of the nine unit Lottie
Apartments Building (the property), using environmentally friendly materials, as set forth
in Article 1 of the Contract; and
WHEREAS, the Project is funded by the Department of Housing and Urban
Development (HUD); and
WHEREAS, based upon the current scope, a substantial rehabilitation of the
property would have triggered code requirements to raise the first floor habitat level
above flood elevation of nine (9)feet (NGV ); and
WHEREAS, it is structurally unfeasible to raise the property to the required flood
elevation and therefor the City has requested a reduction to the Project's Scope; and
WHEREAS, on July 26, 2017, the Mayor and City Commission adopted Resolution
No. , approving a change in Scope, by eliminating five (5) out of the total
nine (9) apartment units from the original Scope of work, and adding the replacement of
the HVAC units for all of the apartment units at the property.
NOW THEREFORE, in consideration of the mutual promises and conditions
contained herein, and other good and valuable consideration, the sufficiency of which is
hereby acknowledged, the City and Consultant hereby agree to amend the Contract as
follows:
1. ABOVE RECITALS.
The above recitals are true and correct and are incorporated as part of this
Amendment.
2. MODIFICATIONS.
The Agreement is hereby modified (deleted items etruck through and inserted
items underlined) as follows:
(a) Subsection 3.2 of Article 3 (THE CONTRACT SUM) of the Contract is hereby
modified to read as follows: EXHIBIT
1
3.2 The Contract Price shall be at a lump sum amount of$7397600 $613,869
along with an Owner's Contingency in the amount of$79,585 $56,057, for
a total amount of$819,585.00$669,926.00. The lump sum Contract Price
shall cover all labor, materials, equipment, costs, and expenses, including
overhead and profit, associated with completion of all the Work in
accordance with the requirements of the Contract Documents, including
all Work reasonably inferable therefrom. The cost of any item of work not
covered by a definite Contract lump sum should be included in the lump
sum price to which the item is most applicable.
*Note: Some projects include both unit prices and lump sums in which
case both sections shall apply to the Work identified for each type of
Contract.
(b) Schedules A, B, C and D are hereby deleted in their entirely and replaced
with the attached schedules.
3. RATIFICATION.
Except as amended herein, all other terms and conditions of the Contract shall
remain unchanged and in full force and effect. In the event there is a conflict
between the provisions of this Amendment and the Contract, the provisions of
this Amendment shall govern
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their appropriate officials, as of the date first entered above.
FOR CITY: CITY OF MIAMI BEACH, FLORIDA
ATTEST:
By:
Rafael E. Granado, City Clerk Jimmy L. Morales
Date
FOR CONTRACTOR: Azulejo, Inc.
ATTEST:
By:
Secretary President
Print Name Print Name
Date
F:ATTO/TORG\GISELA\FORMS\AMENDMENTS\AMENDMENTTEMPLATE
Resolutions- C7 V
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: July 26, 2017
SUBJECT A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING, IN SUBSTANTIAL FORM, AMENDMENT
NO. 1 TO THE CONTRACT BETWEEN THE CITY AND AZULEJO, INC.,
RELATING TO THE REHABILITATION OF THE CITY'S AFFORDABLE HOUSING
PROJECT KNOWN AS THE LOTTIE APARTMENTS, LOCATED AT 530 75TH
STREET; SAID AMENDMENT MODIFYING THE SCOPE OF WORK FOR THE
PROJECT, BY ELIMINATING FIVE (5) OUT OF THE TOTAL NINE (9)APARTMENT
UNITS FROM THE SCOPE AND ADDING THE REPLACEMENT OF THE HVAC
UNITS FOR ALL OF THE APARTMENT UNITS TO THE SCOPE; REDUCING THE
PROJECT BUDGET FROM $819,585 TO $669,926, MAKING THE EXCESS
FUNDS, IN THE AMOUNT OF $149,659, AVAILABLE FOR A FUTURE PROJECT
OR FUTURE PHASES OF THIS PROJECT; AND FURTHER AUTHORIZING THE
CITY MANAGER AND CITY CLERK TO EXECUTE THE FINAL NEGOTIATED
AMENDMENT, SUBJECT TO REVIEW AND FORM APPROVAL BY THE CITY
ATTORNEY.
RECOMMENDATION
Adopt the Resolution.
AN ALYS I S
On February 8, 2017, the Mayor and Commission awarded the rehabilitation of the Lottie Apartments to Azulejo,
Inc.,the general contractor that submitted the lowest,responsive bid for ITB No.2017-027-ZD.
The project's original scope of work included the rehabilitation of the interior and exterior facade of the nine-unit
apartment building using environmentally friendly materials. As part of its due diligence, the City requested a new
elevation survey of the property.The survey results showed that the building elevation was 6.9 NVGD and not 8.6 ft.
as previously established. Because of its true elevation, a substantial rehabilitation of the property would have
triggered code requirements to raise the first floor habitat level above flood elevation of 9ft. NVGD. It is structurally
unfeasible to raise the building to the required flood elevation. Therefore, we are proposing a reduction to the
project's scope to address crucial deficiencies of the building while still complying with code and budgetary
constraints and ensuring that the building remain safe, sanitary housing for its tenants as required by the U.S.
Department of Housing and Urban Development(HUD).
In order to maintain this project below the classification of substantial renovation, staff proposes reducing the project
scope by eliminating the rehabilitation of five units. Due to HUD guidelines, activities are considered at risk and
flagged in the system if the activity has had no draws for a year or more. Therefore,to avoid this activity from being
Page 1073 of 2495
flagged by HUD, the balance of funds that would not be used to cover rehabilitation costs will be removed from this
activity.The second phase of this project will start one year after the date of issuance of the Certificate of completion
for the first phase.We are proposing that the second phase be considered a separate project that will be procured at
a latertime as material costs and building conditions may escalate in the interim.
The phasing of this project will allow for the replacement of the outdated HVAC units for each of the nine apartments
while still maintaining the project under budget and below the substantial remodeling and flood elevation
requirements.
The following is the proposed adjustments to the contract amount that has been agreed to byAzulejo, Inc.:
Original Contract Amount: $819,585
Proposed Amount of Reduction:$149,659
Revised Contract Amount: $669,926
CONCLUSION
The Administration recommends that the Mayor and City Commission approve the amended scope and reduced
budget for the Lottie Apartment rehabilitation project to ensure compliance with HUD rules and enable the ongoing
use of this residential building by its tenants.
KEY INTENDED OUTCOMES SUPPORTED
Ensure Workforce Housing For Key Industry Workers Is Available In Suitable Locations
FINANCIAL INFORMATION
This project is fully funded with Community Development Block Grant (CDBG)and HOME (HOME)
Investments Partnership funds awarded to the City by the U.S. Department of Housing and Urban
Development.
Amount 1 $ 148,388.31 Account 1 132-0530-000346-00-404-533
Amount 2 $389,847.76 Account 2 139-0530-000346-00-404-534
Amount 3 $64,606.30 Account 3 151-0530-000349-00-404-554
Amount 4 $64,149.44 Account 4 152-0530-000349-00-404-554
Amount 5 $ 168,555.00 Account 5 174-0530-000349-00-404-554
Total $835,546.81
Legislative Tracking
Housing and Community Services
Page 1074 of 2495