2002-24851 Reso
RESOLUTION NO. 2002-24851
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE
CITY MANAGER OR HIS DESIGNEE TO EXECUTE A CHANGE
ORDER TO THE AGREEMENT WITH BURKHARDT
CONSTRUCTION, INC., IN THE AMOUNT OF $801,296.22, FOR
THE CONSTRUCTION OF THE BALANCE OF THE SOUTH
POINTE STREETSCAPE PROJECT PHASE 1 (WASHINGTON
AVENUE FROM SOUTH POINTE DRIVE TO FIRST STREET,
AND WASHINGTON AVENUE FROM FOURTH STREET TO
FIFTH STREET); FURTHER RATIFYING THE APPROPRIATION
OF SAID FUNDS FROM THE AVAILABLE SOUTH POINTE TAX
INCREMENT FUNDS.
WHEREAS, on June 28, 2000, the Chairman and Members of the Miami
Beach Redevelopment Agency (RDA) authorized the Chairman and Secretary to
execute a construction contract with Atlantic Civil, Inc. (ACI) (Contractor) for the
construction of the South Pointe Streetscape Improvements -- Phase I (the
Project), pursuant to Invitation to Bid No. 90-99/00, and said action was ratified
by the Mayor and City Commission; and
WHEREAS, on September 5, 2000, ACI commenced the Project
construction, which consists of roadway, drainage, water, sanitary sewer, 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, subsequent to 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 expeditiously resolve conflicts to allow
construction to continue without delays; and
WHEREAS, pursuant to its authority under its construction contract with
ACI, on October 17, 2001, the RDA ratified the omission of work on Washington
Avenue, from South Pointe Drive to First Street, and on Washington Avenue,
from Fourth Street to Fifth Street, from the Agreement with ACI; and
WHEREAS, on November 28, 2001, the RDA authorized the Executive
Director or his designee to omit any remaining work from the construction
contract with ACI and to remove the prosecution of the work from the Contractor
pursuant to the authority granted within the construction contract; and
WHEREAS, on November 28, 2001, the Mayor and City Commission
authorized a waiver of competitive bidding process, and authorized the City
Manager or his designee to take all necessary actions to complete the
prosecution of the remaining work; and
WHEREAS, on March 1, 2001, the City entered into an agreement with
Burkhardt Construction, Inc., for an amount not to exceed $1,697,509.85, for the
construction of the balance of the Project excluding the areas of Washington
Avenue from South Pointe Drive to First Street, and on Washington Avenue, from
Fourth Street to Fifth Street; and
WHEREAS, pursuant to the November 28, 2001 action, the authority of
the City Manger to execute a contract was limited to the parameters of the ACI
contract as it existed on that day; and
WHEREAS, the Administration is now desirous of completing the balance
of the Project as originally intended.
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 authorize the City Manager or his designee to
execute a Change Order to the Agreement with Burkhardt Construction, Inc., in
the amount of $801,296.22, for the construction of the balance of the South
Pointe Streetscape Phase 1 (Washington Avenue, from South Pointe Drive to
First Street and Washington Avenue, from Fourth Street to Fifth Street); further
ratifying the appropriation of said funds, from the available South Pointe Tax
Increment Funds.
PASSED and ADOPTED this 8th day of M
ATTEST:
~t PCUG~
CITY CLERK
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
5-1-(fY'
U81lI
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
~
Condensed Title:
A RESOLUTION AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A CHANGE
ORDER WITH BURKHARDT CONSTRUCTION, INC., IN THE AMOUNT OF $801,296.22 FOR THE
CONSTRUCTION OF THE BALANCE OF THE SOUTH POINTE STREETSCAPE PROJECT PHASE I
(WASHINGTON AVENUE FROM SOUTH POINTE DRIVE TO FIRST STREET AND WASHINGTON
AVENUE FROM FOURTH STREET TO FIFTH STREET); FURTHER RATIFYING THE APPROPRIATION
OF SAID FUNDS FROM THE AVAILABLE SOUTH POINTE TAX INCREMENT FUNDS.
Issue:
Should the City of Miami Beach execute a change order to the agreement with Burkhardt Construction, Inc.
in the amount of $801 ,296.22 for the construction of the balance of the South Pointe Streetscape Project
Phase 1and appropriate said funds from the available South Pointe Tax Increment Funds?
Item Summary/Recommendation:
Following difficulties with the previous contractor Atlantic Civil, Inc. (ACI), the Chairman and Members of
the Redevelopment Agency authorized the omission of the remaining work with ACI and removed the
prosecution of the work from the contractor pursuant to the authority granted in the contract. Subsequently,
a new contractor, Burkhardt Construction, Inc. (BCI) was hired to complete the construction of the project
excluding the areas that had been omitted from ACI's contract. The City is now desirous of completing the
balance of the project as originally intended so as to avoid additional fees for re-design. THE
ADMINISTRATION RECOMMENDS ADOPTION OF THE RESOLUTION.
Advisory Board Recommendation:
IN/A
Financial Information:
Amount to be expended:
[tJ
Fi(1ance Dept.
I
$801,296.22
Source of
Funds:
AGENDA ITEM
DATE
R7C-
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH. FLORIDA 33139
www.ci.miami-beach.ll.us
COMMISSION MEMORANDUM
To:
Mayor David Dermer and
Members of the City Commission
Date: May 8, 2002
From:
Jorge M. Gonzalez ~ tfl~
City Manager () U
Subject:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER OR
HIS DESIGNEE TO EXECUTE A CHANGE ORDER TO THE AGREEMENT
WITH BURKHARDT CONSTRUCTION, INC., IN THE AMOUNT OF
$801,296.22, FOR THE CONSTRUCTION OF THE BALANCE OF THE
SOUTH POINTE STREETSCAPE PROJECT PHASE 1 (WASHINGTON
AVENUE FROM SOUTH POINTE DRIVE TO FIRST STREET, AND
WASHINGTON AVENUE FROM FOURTH STREET TO FIFTH STREET);
FURTHER RATIFYING THE APPROPRIATION OF SAID FUNDS FROM
THE AVAILABLE SOUTH POINTE TAX INCREMENT FUNDS.
ADMINISTRATION RECOMMENDATION
Adopt the resolution.
ANALYSIS
On September 5, 2000, the City of Miami Beach Redevelopment Agency (RDA) entered
into a contract with the firm of Atlantic Civil, Inc. (ACI) for the construction of the South
Pointe Streetscape Project Phase 1 (the "Project"), which consists of roadway, drainage,
water line, sanitary sewer, sidewalks, lighting, landscaping, and irrigation improvements
along Third Street, from Michigan Avenue to Ocean Drive, and along Washington Avenue,
from South Pointe Park to Fifth Street, including a portion of the parking lot at the South
Pointe Park.
During project construction with ACI, several site development issues arose related to
unforeseen conditions; omissions and deletions of work; and ACl's refusal to expeditiously
resolve conflicts to allow construction to continue without delays.
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.
May 8, 2002
Miami Beach Redevelopment Agency
Change Order for Burkhardt Construction, Inc.
Page 2
Therefore, pursuant to Section 9.5 - Omitted Items of the Contract, the City/RDA omitted
the work north of Fourth Street along Washington Avenue.
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. ACI
forwarded a change order request, in the amount of $588,480.74, which 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 October 17,
2001, the Chairman and the Members of the Miami Beach Redevelopment Agency ratified
the omission of work on Washington Avenue, from South Pointe Drive to First Street, and
on Washington Avenue, from Fourth Street to Fifth Street, from the agreement with ACI.
Following further difficulties with ACI, on November 28, 2001, the Chairman and the
Members of the Miami Beach Redevelopment Agency authorized the Executive Director
or his Designee to omit any remaining work from the construction contract with ACI for the
South Pointe Streetscape improvements and remove the prosecution of the work from the
Contractor pursuant to the authority granted within the Contract. Additionally, the Mayor
and the City Commission authorized to waive the formal competitive bidding process and
allow the City Manager or his Designee to take any and all necessary actions to execute
an agreement for the completion of the remainder of the Project, provided that such
contracts, purchase orders, change orders, and other documents were substantially in
accordance with the terms of the contract with ACI and would not exceed the current
amount appropriated by the RDA for the Project.
On March 1, 2002, the City of Miami Beach entered into a contract with the firm of
Burkhardt Construction, Inc. (BCI), for an amount not to exceed $1,697,509.85, for the
balance of the Project, excluding the areas of Washington Avenue, from South Pointe
Drive to First Street, and Washington Avenue, from Fourth Street to Fifth Street. On March
18, 2002, a Notice to Proceed was issued to BCI with a completion date of August 25,
2002. Construction is now underway on Washington Avenue, from First Street to Third
Street, with the installation of drainage structures; removal and replacement of sidewalks,
curbs and gutters; repavement of roadways; and installation of lighting, landscaping, and
irrigation. The Contractor has been working effectively with the residents and merchants
in the area by informing them of road closures and maintaining access to their buildings
via temporary sidewalks. Currently, the Contractor is two weeks ahead of his projected
schedule.
May 8, 2002
Miami Beach Redevelopment Agency
Change Order for Burkhardt Construction, Inc.
Page 3
As noted above, the authority of the City Manager to execute a contract was limited to the
parameters of the ACI contract, as it existed on November 28, 2001.
Since portions of the original scope of work, specifically Washington Avenue, between
Fourth and Fifth Streets, and Washington Avenue, from South Pointe Drive to First Street,
had already been deleted, these areas could not be included in the contract executed by
the City Manager. However, these areas were part of ACI's contract originally and are still
in need of the proposed improvements.
The City's experience with Burkhardt Construction, Inc., has been very positive. BCI has
proven to be capable, competent and sensitive to the issues faced by the area residents
due to construction. Since the previously omitted areas are directly adjacent to BCl's
existing work, the work can easily be absorbed. Also, construction documents for the work
already exists, so there is no appreciable cost in design fees to add this scope of work.
Should the work not proceed at this time, additional fees for re-design would be necessary
at a future date. These fees are estimated to be $100,000. Finally, if the change order is
approved, the work can proceed during the summer months so as not to interfere with the
tourist season. If the work is put into a future phase, this cannot be guaranteed.
Subsequent to the re-start of construction, City staff has communicated with the owners
of Joe's Stonecrab restaurant to determine the most opportune time to commence
construction in this immediate area, should a change order be granted to the Contractor.
Joe's Stonecrab restaurant has indicated that construction could commence anytime after
May 19, 2002, as the restaurant will be closed for the summer season.
RECOMMENDATIONS
The Administration recommends that a Change Order to the Contract between the City of
Miami Beach and Burkhardt Construction, Inc., be executed in the amount of $801 ,296.22,
for the completion of the remainder of the South Pointe Streetscape Phase 1, on
Washington Avenue, from South Pointe Drive to First Street, and on Washington Avenue,
from Fourth Street to Fifth Street, to allow for the completion of the entire Project as
originally contemplated.
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F:\CMGR\AGENDA\2002\MAYOS02\REGULAR\South Pointe CommMemo.doc