Resolution 2021-31753 RESOLUTION NO. 2021-31753
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE
ADMINISTRATION TO FINALIZE CHANGE ORDER NO. 6 TO THE
DESIGN/BUILD AGREEMENT BETWEEN THE CITY OF MIAMI BEACH,
FLORIDA, AND RIC-MAN CONSTRUCTION FLORIDA, INC., FOR THE
WEST AVENUE PHASE II IMPROVEMENTS SOUTH OF 14TH STREET
PROJECT, BASED ON THE FOLLOWING TERMS (1) ADDITIONAL
WATER QUALITY TREATMENT WELLS TO THE PROPOSED STORM
WATER TREATMENT SYSTEM AS REQUIRED BY THE COUNTY'S
REGULATORY AND ECONOMIC RESOURCES DEPARTMENT, IN THE
AMOUNT OF $3,592,652, (2) IMPLEMENTATION OF THE NEW 10
YEAR STORM WATER CRITERIA APPROVED BY RESOLUTION 2018-
30652, IN THE AMOUNT OF $1,012,455; (3) CONSTRUCTION
COMMODITIES AND LABOR ESCALATION IN THE AMOUNT OF
$478,075; (4) REDUCTION OF PREVIOUSLY AUTHORIZED OWNER'S
CONTINGENCY IN THE AMOUNT OF $733,144 AND (5) AN
EXTENSION TO THE CONTRACT TIME OF 1,588 DAYS, WITH SAID
CHANGE ORDER NO. 6 FOR A TOTAL AMOUNT OF $4,350,038, AND
REVISING THE TOTAL CONTRACT AMOUNT TO $25,938,237, WHICH
CHANGE ORDER NO. 6 SHALL BE PARTIALLY FUNDED WITH
PREVIOUSLY APPROPRIATED FUNDS AND SHALL ALSO BE
SUBJECT TO AND CONTINGENT UPON AN APPROPRIATION OF
FUNDS AT THE CITY COMMISSION'S SOLE DISCRETION, VIA FY
2021 5TH CAPITAL BUDGET AMENDMENT; AND FURTHER, IF SUCH
BUDGET AMENDMENT IS APPROVED, AUTHORIZING THE CITY
MANAGER TO EXECUTE CHANGE ORDER NO. 6.
WHEREAS, the West Avenue Improvements, Phase II project represents a
comprehensive Neighborhood Improvement program, focused on resolving challenges
associated with climate impacts and aged infrastructure; and
WHEREAS, the proposed improvements within the West Avenue neighborhood include
the raising of the paved roadway, harmonization to the adjacent properties, installation of a new
robust stormwater drainage collection and pumping system, replacement of the existing water
distribution/transmission systems and gravity sanitary sewers, installation of new street lighting,
pedestrian lighting, replacing existing and installing a new signalized intersection with mast arms,
new landscaping, irrigation and construction of a new baywalk and the limits of the improvements
are West Avenue between 8 Street and Lincoln Road, including side streets, and Bay Road
between 14 Street and Collins Canal;and
WHEREAS, due to the size of the neighborhood, the project was divided into two
contracts, North and South, with 14th Street being the dividing line; and
WHEREAS, on March 22, 2017, the Mayor and City Commission adopted Resolution No.
2017-29799, awarding design/build services ("Agreement") to Ric-Man Construction Florida, Inc
("Ric-Man"), for West Avenue Improvements Phase II South of 14th Street(the "Project")with the
guaranteed maximum price of$12,809,754, including a 10% contingency; and
WHEREAS, on January 11, 2018, Change Order No. 1 was executed for a 30-day non-
compensatory time extension due to the impact of Hurricane Irma; and
WHEREAS, on March 16, 2018, Change Order No. 2 was executed in the amount of
$1,468,359 for funding of the above-ground improvements to the Project, with no additional time
extension, increasing the cost of the Agreement to $14,278,113; and
WHEREAS, on December 12, 2018, City Commission adopted Resolution No. 2018-
30653 authorizing the City Manager to negotiate Change Order No. 3 for additional design and
construction changes associated with the recommendations made by the Columbia University
Resiliency Accelerator Program, the ULI and for additional scope for a total of $6,567,000,
including contingency; and
WHEREAS, on April 30, 2019, Change Order No. 3A was executed in the amount of
$353,094, as the first partial request from the Ric-Man for the costs incurred in support of the
Columbia University Resiliency Accelerator Workshop, re-start impacts and 10-year storm
drainage modeling, to allow for further design in order to be able to negotiate the price of the
remaining change order scope; and
WHEREAS, this change order increased the cost of the Agreement to $14,631,207; and
WHEREAS, on June 16, 2019, Change Order No. 3B was executed in the amount of
$6,213,895 as the second partial request from Ric-Man of the previously approved Change Order
No. 3 and includes emergency generator sets, street end enhancements, additional street
improvements; and
WHEREAS, this Change Order No. 3A increased the cost of the Agreement to
$20,845,102, including a 10% Contingency; and
WHEREAS, on September 17, 2019, Change Order No. 4 was executed in the amount of
$146,836 to account for the 10% contingency for the above-ground improvements, which were
previously added to the Agreement as Change Order No. 2, increasing the cost of the Agreement
to $20,991,938; and
WHEREAS, on April 4, 2020, City Commission adopted Resolution No. 2020-31243
authorizing the City Manager to negotiate Change Order No. 5 for design services associated
with additional water quality treatment, as required by Miami Dade County Regulatory and
Economic Resources Department ("RER") for a total not-to-exceed of $639,314, including
contingency; and
WHEREAS, the City negotiated a final change order of $596,261 increasing the cost of
the agreement to $21,588,199; and
WHEREAS, the purpose of the West Avenue Phase II Improvements Project was to
address flooding conditions and upgrade aging infrastructure and one of the requirements to
obtain a permit from RER to discharge stormwater into the Biscayne Bay (Class II permit) is the
inclusion of sufficient water treatment capacity; and
WHEREAS, the Project team has held multiple discussions and meetings with RER to
discuss the project approach and proposed water quality treatment components and RER has
emphasized that although projects were previously permitted using mechanical treatment, future
projects would not be permitted without retaining the first inch and a half of rainfall runoff; and
WHEREAS, this involves additional design and construction effort, beyond what was
identified in the Design Criteria Package ("DCP"); and
WHEREAS, Ric-Man proceeded with the design efforts as described on Change Order
No. 5 and has identified the construction costs related to the additional water quality system; and
WHEREAS, on October 18, 2017, City Commission adopted Resolution No. 2017-30039,
increasing the drainage design criteria from a 5-year storm to a 10-year storm event; and
WHEREAS, during the review of all drainage projects in 2018, the ULI, in conjunction with
the Columbia University Resilience Accelerator Program, recommended that the design of the
West Avenue Projects be upgraded to a 10-year storm event and as part of the scope included
in Change Order No.3, referenced above, Ric-Man and its design team performed new 10-year
storm drainage modeling, resulting in a change to the drainage system, increasing pipe and
structure sizes to accommodate the new water flow design levels; and
WHEREAS, this change results in additional cost for material, labor, equipment and time;
and
WHEREAS, on October 28, 2020, the City Commission adopted Resolution No. 2020-
31472, relocating the above ground and below ground components of the Storm Water Treatment
System (SWTS), from the Lincoln Road street-end to 1671 West Avenue (City Parking Lot P24)
with the discharge outfall at 17th Street and Collins Canal and this involves additional design and
construction effort beyond what was identified in the DCP: and
WHEREAS, Ric-Man submitted a proposal and other documentation, as set forth in
Exhibit "B" to the Memorandum accompanying this Resolution, for the following additional scope
requested by the City for additional items:
1- Construction cost associated with the additional water quality treatment components in
the amount of$3,592,652. This is associated to the recommendations provided by RER
for additional water quality treatment that will address the first inch and a half of run-off
from the stormwater system prior to discharging to the canal; and
2- Construction cost associated with the revision of the storm water criteria from a 5-year
to a 10-year storm event in the amount of$1,012,455. This includes increased pipe and
drainage structure sizes to accommodate the new water flow design levels as indicated
in the new 10-year Storm Drainage Model, not included in the original DCP. This item
also includes additional costs related to the increased difficulty associated with the
installation of larger pipes and structures; and
3- Cost associated with construction commodities and labor escalation in the amount of
$478,075. Construction commodities have increased 3.6% from December 2019
through February 2021 according to the Producer Price Index sponsored by the U.S.
Bureau of Labor Statistics. Lumber and steel are experiencing large swings upward in
pricing, as much as 17% and 6%, respectively. The additional cost being requested for
commodities and labor escalation accommodates the anticipated material and labor
price increases associated with anticipated market conditions throughout the project
schedule to its new anticipated completion date of July 2023; and
4- Reduction to previously authorized Owner's Contingency in the amount of $733,144.
The previously authorized 10% Owner's Contingency is being reduced to
approximately 5% to make funding available for Change Order No.6. Considering that
this is a Design/Build agreement and the risks assumed by the Design/Builder a 5%
contingency is sufficient to accommodate anticipated conditions that may be
encountered during construction; and
5- This Change Order No.6 shall extend the contract time 1,588 calendar days. This
extension is related to the additional scope described above, as well as delays
experienced during the development of the project. Delays to the project include, but
are not limited to, obtaining final direction on the siting of the SWTS and increased
construction time associated with the segmented approach; and
WHEREAS, the total amount for Change Order No. 6 including the reduction in owner's
contingency for the section south of 14 Street is $4,350,038; and
WHEREAS, this Change Order will increase the existing contract with Ric-Man from
$21,588,199 to $25,938,237, for West Avenue Phase II Improvements South of 14th Street,
including an approximate 5% owner's contingency; and
WHEREAS, Ric-Man, the City and the City's CEI consultant reviewed, analyzed, and
negotiated the additional costs proposals and these were determined to be consistent with market
conditions, complex logistics of construction and reflect the scope changes, identified in Exhibit
"C" to the Memorandum accompanying this Resolution; and
WHEREAS, on January 22, 2021, a request to provide additional funding for this change
order utilizing a portion of the Resiliency Fund for City Stormwater projects was presented to the
Finance and Economic Resiliency Committee ("FERC") and was favorably recommended to be
presented to the City Commission for their consideration and approval; and
WHEREAS, on February 10, 2021 City Commission adopted Resolution No.2021-31571
accepting the recommendation of the FERC to provide additional funding from the City's
Resiliency Fund for City stormwater projects in the amount of $15 Million for the West Avenue
Phase II Improvements projects; and
WHEREAS, this change order shall be subject to the approval of the FY21 5th Capital
Budget Amendment; and
WHEREAS, the Administration recommends that the Mayor and City Commission adopt
the Resolution approving and authorizing the Administration to finalize Change Order No. 6 based
on the terms set forth in this Resolution, and authorize the City Manager to execute Change Order
No. 6 with Ric-Man Construction Florida, Inc., for the West Avenue Phase II Improvements South
of 14th Street in the amount of$4,350,038 subject to the approval of the FY21 5th Capital Budget
Amendment.
NOW, THEREFORE, BE IT DULY RESOLVED . BY THE MAYOR AND CITY
COMMISSION.OF THE CITY OF MIAMI BEACH, FLORIDA, hereby approve and authorize the
Administration to finalize Change Order No. 6 to the Design/Build Agreement between the City of
Miami Beach, Florida, and Ric-Man Construction Florida, Inc., for the West Avenue Phase II
Improvements South of 14th Street Project, based on the following terms (1) additional water
quality treatment wells to the proposed storm water treatment system as required by the County's
Regulatory And Economic Resources Department, in the amount of $3,592,652, (2)
implementation of the new 10 year storm water criteria approved by Resolution 2018-30652, in
the amount of $1,012,455, (3) construction commodities and labor escalation in the amount of
$478,075; (4) reduction of previously authorized owner's contingency in the amount of$733,144
and (5) an extension to the contract time of 1,588 days, with said Change Order No. 6 fora total
amount of $4,350,038, and revising the total contract amount to $25,938,237, which Change
Order No. 6 shall be partially funded with previously appropriated funds and shall also be subject
to and contingent upon an appropriation of funds at the City Commission's sole discretion, via FY
2021 5th Capital budget amendment; and further, if such budget amendment is approved,
authorizing the City Manager to execute Change Order No. 6.
PASSED and ADOPTED this 423 day of 7tI n¢; , 2021.
Dan Gelber, Mayor
ATTEST: :r_v CphiS/W
Rafael E. ranado, City Clerk
APPROVED AS TO
FORM& LANGUAGE . .
I FOR EXECUTION
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City Attorney bate