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2017-30033 Resolution RESOLUTION NO. 2017-30033 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, IN SUBSTANTIAL FORM, AMENDMENT NO. 2 TO THE CONTRACT BETWEEN THE CITY AND AZULEJO, INC, ATTACHED TO THE COMMISSION MEMORANDUM ACCOMPANYING THIS RESOLUTION, 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 ADDING THE REPAIR OF UNIT 106, EXCHANGING THE REHABILITATION OF UNIT 109 FOR UNIT 107, AND INCREASING THE PROJECT BUDGET FROM $669,926 TO $680,926.00; AND FURTHER AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE THE FINAL NEGOTIATED AMENDMENT. WHEREAS, on February 8, 2017, the Mayor and City Commission approved the award of Invitation to Bid ("ITB") No. 2017-027-ZD for the Lottie Apartments Rehabilitation Project (the Project) in the amount of$819,585.00; 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 included the rehabilitation of the interior and exterior fagade of the nine-unit Lottie Apartment Building (the Property), using environmentally friendly materials, as set forth in Article 1 of the Contract; and WHEREAS, on July 26, 2017, the Mayor and City Commission adopted Resolution No. 2017-29930, approving Amendment No. 1 to the Contract, 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 apartment units at the Property; and WHEREAS, Hurricane Irma adversely impacted the interior of Units 106 and 107 with severe water intrusion, resulting in mold conditions, and making it necessary to replace the damaged interior drywall on each unit's first and second floors; and WHEREAS, the Project is funded by the Department of Housing and Urban Development (HUD); and WHEREAS, in order to comply with HUD's safe, decent and sanitary housing guidelines, these units must be rehabilitated to habitable standards and the required work can be added to the Project's original scope and budget limits; and WHEREAS, the units approved for rehabilitation under the original scope of the Contract were 101, 102, 108 and 109; and WHEREAS, if more than 50% of the Property is rehabilitated, FEMA regulations would require that the habitable first floor level of the Property be raised above the flood elevation level of nine (9) feet (NGVD), which would not be feasible; and WHEREAS, the Administration recommends the exchange of unit 109 for Unit 107 and the repair to Unit 106, in order ensure that the Project stays within the 50% threshold; and WHEREAS, based upon this change in the scope of the Project, the Project's budget of $669,926 will be increased to $680,926.00, increasing the rehabilitation costs by $11,000.00; and WHEREAS, the City has the funds available to cover this additional expense without exceeding the budgeted funds; and WHEREAS, the Administration recommends approving, in substantial form, Amendment No.2 to the Contract, incorporated herein by reference and attached as Exhibit "1" to the Commission Memorandum accompanying this Resolution. 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. 2 to the Contract between the City and Azulejo, Inc., attached to the Commission Memorandum accompanying this Resolution, 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 adding the repair of Unit 106, exchanging the rehabilitation of Unit 109 for Unit 107, and increasing the Project budget from $669,926 to $680,926.00; and further authorize the City Manager and City Clerk to execute the final negotiated amendment. PASSED AND ADOPTED this /6 day of C4dQr , 2017. ATTEST: '731 a RAFAEL E. GRANADO,�CI :CL `F\P.� ' r ILIP ( INE, MAYOR �` 9� q 72,:' '-,\, / s � v "'.r h 999 / -1 APPRO LANGUAGE D AS TO FORM & &FOR ELUTION L2 ,'7 itip La ' Dote City Attorney ' ��t Resolutions - C7 F MIAMIBEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: October 18, 2017 SUBJECT A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, IN SUBSTANTIAL FORM, AMENDMENT NO. 2 TO THE CONTRACT BETWEEN THE CITY AND AZULEJO, INC., ATTACHED TO THE COMMISSION MEMORANDUM ACCOMPANYING THIS RESOLUTION, 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 ADDING THE REPAIR OF UNIT 106, EXCHANGING THE REHABILITATION OF UNIT 109 FOR UNIT 107, AND INCREASING THE PROJECT BUDGET FROM $669,926 TO $680,926; AND FURTHER AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE THE FINAL NEGOTIATED AMENDMENT. RECOMMENDATION Adopt the Resolution. ANALYSIS On February 8, 2017, the Mayor and City Commission awarded the rehabilitation of the Lottie Apartments to Azulejo, Inc., a general contractor that submitted the lowest 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. On Sunday, September 10, 2017, Hurricane Irma passed through the City inflicting damages to the Lottie Apartments. Hurricane Irma adversely impacted the interior of units 106 and 107 of the Lottie Apartments with severe water intrusion resulting in mold conditions, making it necessary to replace the damaged interior drywall and ceiling on the unit's first and second floors. In order to comply with the U.S. Department of Housing and Urban Development (HUD) guidelines to maintain safe, decent and sanitary housing, the units must be rehabilitated to habitable standards. This required work can be added to the project's original scope and falls within the project's established budget limits The Administration recommends the exchange of unit 109 for unit 107 in the current work scope (as 107 experienced damage unit as a result of Hurricane Irma which deemed the unit unfit) and the repair to Unit 106, in order to ensure that the Project stays within the 50% project threshold as established by the Federal Emergency Management Agency(FE MA). Page 258 of 1633 The original contract amount was $819, 585 which the Commission reduced to $699,926 on July 26, 2017 via Resolution 2017-29930. The Administration is now requesting Amendment Number 2, an increase of $11,000, to address the repairs made necessary by Hurricane Irma's damages. This increased amount falls within the project's projected budget. CONCLUSION The Administration recommends that the Mayor and City Commission approve the amended scope and budget increase for the Lottie Apartment rehabilitation project to address the repairs necessary after Hurricane Irma to ensure that the property continues to provide safe and sanitary housing to its residential 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 $11,000.00 Account 1 137-4001-000346-00-404-534-00-00-00 Total $11,000 Legislative Tracking Housing and Community Services ATTACHMENTS: Description o Lottie Apartments Attachment 1 D Amendment No 2 o Resolution Page 259 of 1633 o (. %v4, azulejo contractor September 22, 2017 Viviana Alemany,EI, CCC Sr Capital Projects Coordinator OFFICE OF HOUSING& COMMUNITY SERVICES 1700 Convention Center Drive, Miami Beach, FL 33139 Office: 305.673/260 Ext 6421 Subject: Revised Contract Amount for Lottie Apartments Building Rehabilitation Project. Revised Contract Amount as of 09/22/2017 • Amendment to Contract# 1 dated July 12,2017 $669,926 • Owner Requested Changes: o Deduct Unit*109 from Contract ($ 37,011) o Add Unit# 107 Original Scope of Work $ 37,011 o Add Unit# 107 Repairs due to Hurricane Irma $ 9,000 o Add drywall repairs Unit# 106 $ 2,000 Revised Contract Amount $680,926 If you have additional information, do not hesitate to contact us, 9 Res•ectful ly,1) 4410 L.5,., - rR ui tan res dent 307 NW 10th Terrace Hallandale Beach, Florida 33009 (305)895-4110 Fax(954)454-9424 Page 260 of 1633 LOTTIE APARTMENTS BUILDING REHABILITATION DEDUCTION TO ITB BID PRICE TO REFLECT REVISED CONTRACT AMOUNT AS OF 09/22/17 ,,, ITB Bid Price ftee dContractAmount Beet! oc*actAmount Amend��#1Amendment#,2 $ 85,000.00 $ 72,777.78m _ Demolition Concrete $ 26,500.00 $ 26,500 Metals $ 18,600.00 $ 18,600 Rough Carpentry $ 3,000.00 $ 3,000 Interior Wood $ 4,000.00 $ 1,778 Traffic Coating $ 6,000.00 $ 6,000 Roofing&Accessories/Spec $ 54,800.00 $ 54,800 Doors $ 5,900.00 $ 4,567 Window $ 7,500.00 $ 7,500 Stucco $ 50,000.00 $ 50,000 Drywall $ 16,000.00 $ 7,111 Tiling $ 100,500.00 $ 44,667 Painting $ 34 000,00 $ 24,000 Toilet Accre$sories $ 10,000.00 $ 4,444 Poastal $ 2,000.00 $ 2,000 Appliances $ 1,500.00 $ 667 Plumbing $ 21,000.00 $ 9,333 Commn Plumbing $ 1,500.00 $ 1,500 Plumbing Fixtures $ 26,500.00 $ 11,778 Casework $ 36,000.00 $ 16,000 HVAC $ 10,000.00 $ 6,444 Electrical $ 5,000.00 $ 3,333 Interior light $ 6,000.00 $ 2,667 Exterior light $ 5,400.00 $ 5,400 Site Clear $ 1,000.00 $ 1,000 Earth Work $ 2,500.00 $ 2,500 Concrete Paving $ 5,300.00 $ 5,300 Site Improvements $ 2,000.00 $ 2,000 Irrigation $ 7,500.00 $ 7,500 Plantation $ 27,800.00 $ 27,800 HVAC Replacement-9 Units $ 53,300.00 $ 53,300 Deduct Unit#109froKncontract; $ (37,011) Add Unit#107 Original Scope of Work $ 37,011 Add Unit#:1Q7 repairs due to Hurricane Irma $ 9,000 Add drywall repairs Unit#106 $ 2,000 $ 636,100.00 $ 484,267 $ - 11,000 Bond $ 12,800.00 $ 9,578 Insurance $ 7,000.00 $ 5,333 Overhead $ 42,000.00 $ 35,333 Supervision $ 36,000.00 $ 29,333 Profit $ 59,000.00 $ 44,000 Subtotal $ 792,900.00 ° .; 607,844 $ ,x,11,000.. Total Bid $ 792,900.00 $ 607,844 $ 11,000 Owner's Contingency $ 73,960.00 $ 56,057 Allowance for City Indemnification $ 25.00 $ 25 Permit Allowance $ 6,000.00 $ 6,000 Total Base Bid $ 872,885.00 $ 669,926.00 $ 680,926.00 T:\AZULEJO\PROJECT FILES\1-PROJECTS ACTIVE\MIAMI BEACH-PROJEC 'ia �tPc/pRJ TS\REVISED CONTRACT AMOUNT\Revision Adding Unit 107\Credit to procurement to revise contract amount 9-22-2017 s fi T O a, 4 ~O h U YU (n H o G •D O N ro a) cd ',DO a) Q C7a to a°)) a6) b O N � 17 w c ° O 0 y W On C❑ y p Q S •.. C L) z o s CO Q W ca as c s ?F., C 3 cua ~ � m° OQU a 3 a) cp ',_, CS — iO y v • 0 > O C . a� nN 0, a t,nX n 3 y ¢ ° as y o ^ c Q • O O U Q p0 la ,. A= — O F), Ore 0 ,- U fi ° 0 wUIL O wa R. Lo p 0 U p 0 O .. Q cr, 0 -0 �O y ti c o •Um 0 "c E' g r 0 Q ° a � 5 Ub W 003 00 v 8 0 d p N p Q F t 2 ,,, d U W o 11! 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M 0 H O Q O N 6 4 _ O N vs N m \v a N t/� L K co W T0\ e . C V ❑ N o L c E u c , a ' 0 m `m .. AMENDMENT NO. 2 TO THE CONTRACT This Amendment No. 2 (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 (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 ("ITB") No. 2017-027-ZD for i.the Lottie Apartments Rehabilitation Project (the Project) in the amount of$819,585.00, 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 includes the rehabilitation of the interior and.. exterior facade of the nine-unit Lottie.;Apartments Building (the Property), using eriVironmentally friendly materials, as set forth in Article 1 of the Contract; and WHEREAS, on July 26, 2017, the Mayor and City Commission adopted Resolution No. 2017-29930, approving,Amendment,No. 1 to:tt e Contract, 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 apartment units at the property (the Contract and Amendment No. I to the Con tract may:be collectively referred to herein as the "Contract"); and WHEREAS] the Project is funded Lby the Department of Housing and Urban Development (HUO)., and WHEtREAS, Hurricane._Irma adversely impacted the interior of Units 106 and 107 with severe water intrusion,.:resulting:in mold conditions, and making it necessary to replace the damaged interior`drywall on the unit's first and second floors; and WHEREAS, th"e units currently approved for rehabilitation are 101, 102, 108 and 109; and WHEREAS, the City and Contractor have agreed to increase the scope of the Contract to include the repair of Unit 106 and the exchange of Unit 109 for Unit 107; and WHEREAS, the proposed change to the scope of the Project will increase the total rehabilitation cost of the Contract by $11,000.00. 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: Exhibit"1" (1) Page 272 of 1633 1. ABOVE RECITALS, The above recitals are true and correct and are incorporated as part of this Amendment. 2. MODIFICATIONS. The Contract is hereby modified as follows: (a) Section 3.2 of the Contract is hereby deleted in its entirely and replaced with the following: 3.2 The Contract Price shall be at a lump sum amount of $680,926.00. 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. (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 Page 2i'3 of 1633 1. ABOVE RECITALS. The above recitals are true and correct and are incorporated as part of this Amendment. 2. MODIFICATIONS. The Contract is hereby modified as follows: (a) Section 3.2 of the Contract is hereby deleted in its entirely and replaced with the following: 3.2 The Contract Price shall be at a lump sum amount of $680,926.00. 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. (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 Page 23'4 of 1633