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2018-30176 ResolutionRESOLUTION NO. 2018 -30176 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, IN SUBSTANTIAL FORM, AMENDMENT NO. 3 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 TO: (1) PRIORITIZE THE REMEDIATION OF THE FLOORING FOR THE MOST NEEDED UNITS IN THE PROJECT, AS DETERMINED BY THE ADMINISTRATION, INCLUDING POTENTIALLY EXCHANGING THE REHABILITATION OF UNIT 108 FOR UNIT 106, AND (2) INSTALL A PERIMETER FENCE AND EXTENSION OF THE SIDEWALK CONCRETE SLAB; AND FURTHER AUTHORIZING THE CITY MANAGER 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 facade of the nine -unit Lottie Apartment Building (the Building), located at 530 75th Street, 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, 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 Building; and WHEREAS, on September 22, 2017, the Mayor and Commission approved Amendment No. 2, authorizing repairs which resulted from the impacts of Hurricane Irma, including replacement of the damaged interior drywall and ceiling on the first and second floors of Units 106 and 107; and WHEREAS, the interior rehabilitation of the units in the Building required removal of all existing ceramic tile floor due to the presence of lead in the composition of the ceramic tiles; and WHEREAS, after all the tiles were removed from Unit 107, it was found that the wood deck supporting the floor is rotted and requires total replacement and a new moisture barrier underneath the wood structure; and WHEREAS, the Administration foresees that Units 101 and 102 are in the same condition and seeks authority, if necessary, to add this additional remediation to the scope of work; and WHEREAS, in order to comply with HUD's safe, decent and sanitary housing guidelines, the unit must be rehabilitated to habitable standards and this required work can be added to the Project's scope and budget limits; 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 of nine (9) feet (NGVD), which would not be feasible; and WHEREAS, the Administration is requesting authority to possibly exchange the rehabilitation of second floor unit 108 for first floor unit 106, while staying within the 50% FEMA regulation for the entire project budget; and WHEREAS, the Administration recommends the installation of a perimeter fence to the rear east side of the Building, as the adjoining property owner, Temple Menorah, will also be erecting a connecting fence, in order to provide a more secure access to the Project and the Temple; and WHEREAS, in order to comply with life safety code, the ADA concrete slab will be extended along the west side of the property; and WHEREAS, the City has the funds available to cover the additional expense without exceeding the funding budget; and WHEREAS, based upon this change in the scope of the Project, the Project's budget of $680,926.00 will be increased to $731,223; and WHEREAS, the Administration recommends approving, in substantial form, Amendment No. 3 to the Contract, incorporated herein by reference and attached as Exhibit "1" to the City 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. 3 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 to: (1) prioritize the remediation of the flooring for the most needed units in the project, as determined by the Administration, including potentially exchanging the rehabilitation of Unit 108 for Unit 106; and (2) install a perimeter fence and extension of the sidewalk concrete slap on the west side of the property; and increase the project budget from $680,926 to $731,223; and further authorize the City Manager to execute the final negotiated amendment. PASSED AND ADOPTED this /9 day of Febnieiry , 2018. ATTEST: APPROVED AS TO 4,IGUAGE )5ECUTION lty Attorney NI AMI BEACH Resolutions - C7 Q COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: February 14, 2018 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, IN SUBSTANTIAL FORM, AMENDMENT NO. 3 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 TO: (1) PRIORITIZE THE REMEDIATION OF THE FLOORING FOR THE MOST NEEDED UNITS IN THE PROJECT, AS DETERMINED BY THE ADMINISTRATION, INCLUDING POTENTIALLY EXCHANGING THE REHABILITATION OF UNIT 108 FOR UNIT 106, AND (2) INSTALL A PERIMETER FENCE AND EXTENSION OF THE SIDEWALK CONCRETE SLAB; AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE THE FINAL NEGOTIATED AMENDMENT. RECOMMENDATION Adopt the resolution, ANALYSIS On February 8, 2017, the Mayor and 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 July 26, 2017, the Mayor and Commission approved Amendment No. 1 reducing the project budget from $819,585.00 to $669,926.00 due to a reduction in the scope of work. On September 22, 2017, the Mayor and Commission approved Amendment No. 2 to make repairs made necessary by Hurricane Irma including replacement of damaged interior drywall and ceiling on the first and second floors of units 106 and 107. As part of the project scope, the interior rehabilitation of the units required removal of all existing ceramic tile floor due to the presence of lead in the composition of the ceramic tiles. After the tiles were removed from unit 107, the wood deck supporting the floor was found to be rotted and requires total replacement and a new moisture barrier underneath the wood structure. We foresee that units 101 and 102 are in the same condition. To accomplish this change and remain within the 50% FEMA regulation, we will value engineer the interior renovation project without compromising the quality of Page 797 of 1270 the final product. 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. The absence of required moisture barrier installation in the first floor of the building is causing high humidity levels inside the apartments. We are proposing to review the project budget and scope by possibly exchanging second floor unit 108 for first floor unit 106, in order to ensure that the Project stays within the 50% FEMA regulation threshold. 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 of nine (9) feet (NGVD), which would not be feasible. The Administration recommends the installation of a perimeter fence to the rear east side of the Building, as the adjoining property owner, Temple Menorah, will also be erecting a connecting fence, in order to provide a more secure access to the Project and the Temple. In order to comply with life safety code, the ADA concrete slab will be extended along the west side of the property. CONCLUSION The Administration recommends that the Mayor and City Commission approve the amended scope and budget increase for the Lottie Apartment rehabilitation project. 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. No additional funds are required at this time. The following is the proposed adjustment to contract amount: Original Contract Amount: $819,585 Revised contract amount amendment 1: $669.926 Revised contract amount amendment 2: $680,926 Proposed increase: $ 50,297 Revised contract amount amendment 3: $731,223 Amount 1 $ 50,297 Account 1 135- 0530 - 000346 -00 -404- 534- 00- 00 -00- 40010 Total $ 60,297 Legislative Tracking Housing and Community Services ATTACHMENTS: Description Page 798 of 1270 D Form approved Reso o Amendment No 3 Page 799 of 1270 AMENDMENT NO. 3 TO THE CONTRACT This Amendment No. 3 (Amendment) to the Contract dated February 14 , 2018, 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 2018 (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 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 (the Scope) includes the rehabilitation of the interior and exterior acade of the nine -unit Lottie Apartments 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, and adding the replacement of the HVAC units for all apartment units at the property (the Contract and Amendment No. 1 to the Contract may be collectively referred to herein as the "Contract "); and WHEREAS,. on September 22, 2017, the Mayor and City Commission adopted Resolution No. ; 2017- 30033, approving Amendment No. 2 to the Contract, said amendment providing for the, proposed change in the Scope of the Contract and increase the total rehabilitation cost of the project by $11,000.00, for a total lump sum Contract price of $680,926.00. WHEREAS, the Project is funded by the Department of Housing and Urban Development (HUD); and WHEREAS, the City and Contractor have agreed to increase the Scope of the Project to prioritize the remediation of the flooring for the most needed units in the project, as determined by the administration; including the potentially exchanging the rehabilitation of unit 108 for unit 106; and the installation of a perimeter fence and extension of the sidewalk concrete slab. WHEREAS, on February 14, 2018, the Mayor and City Commission approved Resolution No. approving Amendment No. 3 to the Contract, said amendment providing for the proposed change in the Scope of the Contract and increase the total rehabilitation cost of the project by $50,297.00, for a total lump sum Contract price of $731,223.00, as more fully set forth herein. Exhibit "1" (1) Page 803 of 1270 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 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 $731,223.00. 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: ATTEST: By: CITY OF MIAMI BEACH, FLORIDA Rafael E. Granado, City Clerk Jimmy L. Morales Date FOR CONTRACTOR: Azulejo, Inc. ATTEST: By: 2 Page 804 of 1270 Secretary President Print Name Print Name Date F: ATTO /TORG \GISELA\ FORMS \AMENDMENTS\AMENDMENTTEMPLATE 3 Page 805 of 1270