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Resolution 2023-32812RESOLUTION NO 2023-32812 A RESOLUTION OF THE MAYOR AND CITY COMMISION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING A CHANGE ORDER TO THE CONTRACT BETWEEN THE CITY AND THE STOUT GROUP, LLC, PURSUANT TO ITB 2021-012-WG, FOR RESTORATION AND MAINTENANCE SERVICES TO THE 20-INCH NORTH AND SOUTH WATER MAINS ALONG THE MACARTHUR CAUSEWAY EAST BRIDGE (THE "PROJECT"); SAID CHANGE ORDER PROVIDING FOR ADDITIONAL, CRITICAL RESTORATION WORK TO THE WATER MAINS ALONG THE MACARTHUR CAUSEWAY IN THE AMOUNT NOT TO EXCEED $640,622.00, WHICH SUM, AFTER APPLYING THE REMAINING PROJECT CONTINGENCY OF $297,054.22, WILL INCREASE THE CONTRACT AMOUNT BY $343,567.78, FOR A TOTAL CONTRACT AMOUNT NOT TO EXCEED $5,312,412.72. WHEREAS, on October 20, 2020, the City issued Invitation to Bid (ITB) 2021-012-WG for Routine and Emergency Services Pool of Prequalified Contractors to receive applications for prequalification from contractors; and WHEREAS, at the February 10, 2021 Commission meeting, the Mayor and City Commission approved Invitation to Bid (ITB) 2021-012-WG (the "ITB") for Routine and Emergency Services Pool of Prequalified Contractors to receive applications for prequalification from contractors; and WHEREAS, at the December 08, 2021 Commission meeting, the Mayor and City Commission approved the task order for The Stout Group, LLC ("Contractor") pursuant to the ITB for rehabilitation of the 20-inch north and south water mains along the MacArthur Causeway Bridge (the "Contract"), in the total contract amount of $4,517,230.00, plus a 10% contingency, in the amount of $451,723.00, for a total contract amount of $4,968,953; and WHEREAS, the Contract amount was further reduced by $108.06 pursuant to a subsequent change order; and WHEREAS, as the pipe replacement segments from the original scope of work were being executed, the Contractor, identified the need for additional replacement of pipe segments along the south water main adjacent to the west end; and further discovered that the mechanical joints (hardware and glands) along the south water main were in an extremely deteriorated condition, primarily due to excessive corrosion; and WHEREAS, the Contractor was able to make this discovery through an inspection conducted by a snooper truck, a method distinct from the original drone footage employed to develop the initial scope of work; and WHEREAS, the Contractor has submitted a negotiated cost proposal, in the amount not - to -exceed $640,622.00, for the additional services, such as the replacement of 139 feet of pipe and a total of 78 mechanical joint rehabilitation, including hardware and/or gland replacements, along the south water main; and WHEREAS, the Contract contains a contingency balance of $297,054.22, which may be applied to the cost of the additional work and services, reducing the total cost to $343,567.78 and thereby increasing the contract amount from $4,968,844.94 to $5,312,412.72; and WHEREAS, the Public Works Department has reviewed the cost proposal and has determined it to be fair and reasonable, as such, the City Manager recommends approving the proposed change order, a copy of which is attached to the City Commission Memorandum accompanying this Resolution as Attachment B, in order to expeditiously complete this critical infrastructure restoration work. 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 a change order to the Contract between the City and The Stout Group, LLC, pursuant to ITB 2021-012-WG, for restoration and maintenance services to the 20-inch north and south water mains along the Macarthur Causeway east bridge (the "Project"); said change order providing for additional, critical restoration work to the water mains along the Macarthur Causeway in the amount not to exceed $640,622.00, which sum, after applying the remaining Project contingency of $297,054.22, will increase the contract amount by $343,567.78, for a total contract amount not to exceed $5,312,412.72. PASSED and ADOPTED this // day of October, 2023. ATTEST: OCT 2 D 2023 zre Rafael E. Granado, City Clerk Dan Gelber, Mayor APPROVED AS TO FORM & LAN CLIACE & FOR EXECUTION I -a� -�-3 City Atc©r.ncy W Date Resolutions - C7 S /\AIA/01-BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Alina T. Hudak, City Manager DATE: October 18, 2023 SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING A CHANGE ORDER TO THE CONTRACT BETWEEN THE CITY AND THE STOUT GROUP, LLC, PURSUANT TO ITB 2021-012-WG, FOR RESTORATION AND MAINTENANCE SERVICES TO THE 20-INCH NORTH AND SOUTH WATERMAINS ALONG THE MACARTHUR CAUSEWAY EAST BRIDGE (THE "PROJECT"); SAID CHANGE ORDER PROVIDING FOR ADDITIONAL, CRITICAL RESTORATION WORK TO THE WATER MAINS ALONG THE MACARTHUR CAUSEWAY IN THE AMOUNT NOT TO EXCEED $640,622.00, WHICH SUM, AFTER APPLYING THE REMAINING PROJECT CONTINGENCY OF $297,054.22, WILL INCREASE THE CONTRACT AMOUNT BY $343,567.78, FOR A TOTAL CONTRACT AMOUNT NOT TO EXCEED $5,312,412.72. RECOMMENDATION The Administration recommends approving the Resolution. BACKGROUND/HISTORY On October 20, 2020, the City issued Invitation to Bid (ITB) 2021-012-WG for Routine and Emergency Services Pool of Prequalified Contractors to receive applications for prequalification from contractors. At the February 10, 2021 Commission meeting, the Mayor and City Commission approved Invitation to Bid (ITB) 2021-012-WG (the "ITB") for Routine and Emergency Services Pool of Prequalified Contractors to receive applications for prequalification from contractors. At the December 8, 2021 Commission meeting, the Mayor and City Commission approved the award of a contract to the Stout Group, LLC ("Contractor") pursuant to the ITB for rehabilitation of the 20-inch north and south water mains along the MacArthur Causeway Bridge (the "Contract), in the total contract amount of $4,517,230.00, plus a 10% contingency, in the amount of $451,723.00, for a total contract amount of $4,968,953.00. As the pipe replacement segments from the original scope of work were being executed, the Contractor, identified the need for additional replacement of pipe segments along the south Page 651 of 2240 water main adjacent to the west end; and further discovered that the mechanical joints (hardware and glands) along the south water main were in an extremely deteriorated condition, primarily due to excessive corrosion. The Contractor was able to make this discovery through an inspection conducted by a snooper truck, a method distinct from the original drone footage employed to develop the initial scope of work. The Contractor has submitted a negotiated cost proposal, in the amount not -to -exceed $640,622.00, for the additional services, such as the replacement of 139 feet of pipe and a total of 78 mechanical joint rehabilitation, including hardware and/or gland replacements, along the south water main. The Contract contains a contingency balance of $297,054.22, which may be applied to the cost of the additional work and services, reducing the total cost to $343,567.78 and thereby increasing the contract amount from $4,968,844.94 to $5,312,412.72. The Public Works Department has reviewed the cost proposal and has determined it to be fair and reasonable, as such, the City Manager recommends approving the proposed change order, a copy of which is attached to the City Commission Memorandum accompanying this Resolution as Attachment B, in order to expeditiously complete this critical infrastructure restoration work. SUPPORTING SURVEY DATA Results from the 2022 Resident Survey related to the City's perception and satisfaction show an overall approval of 67.4%, and rated the City as a good place to live. FINANCIAL INFORMATION 419-0815-069357-29-418-000-00-00-00-28520 $343,567.78 The Administration recommends approving the Resolution. Applicable Area South Beach Is this a "Residents Right to Know" item. pursuant to City Code Section 2-14? Yes Does this item utilize G.O. Bond Funds? No Strategic Connection Prosperity - Market and promote Miami Beach as a world class arts, culture, and quality entertainment destination. Legislative Tracking Public Works ATTACHMENTS: Description Page 652 of 2240 Attachment A— EAC Consulting, Corrosion Damage Report Attachment B - Stout Group Change Order Resolution Page 653 of 2240 EAC Consulting, Inc. DAMAGES DUE TO CORROSION BEYOND PROJECT SCOPE FINDINGS AS OF 08/16/2023 DURING REMOVAL OF THE EASTBOUND LINE 20" DIP WATER MAIN REHABILITATION PROJECT CITY OF MIAMI BEACH Prepared by: Jenner M. Alfaro, PE 09/ 11/ 2023 Page 654 of 2240 SUMMARY The project consists of the replacement and rehabilitation of the existing Ductile Iron Pipe (DIP) 20-inch watermain installed along the Mac Arthur Causeway East Bridge. The project includes the rehabiltation of the two aerial watermains installed on each side of the bridge. The eastbound watermain includes the removal and replacement of 80' between Piers 29 and 32, and 220' between Piers 4 and 9. These waterlines are composed of 20' long, 20" diameter and %" thick sections connected to each other through mechanical joints, and supported by hangers anchored to the bridge slab. These lines start and end at each side of the bridge and are located approximately 8' above seawater at the lowest point, more than 30' at the highest point. They are exposed to the sun and heat, wind, ultraviolet radiation, salinity, humidity, condensation, and biological waste from the local flora and fauna, among others. With these conditions, the site should be classified as highly corrosive by industry standards. Observations in the field show that there are dissimilar metals touching each other, namely the stainless steel hangers supporting the iron pipe. Three hangers have been found broken, and a possible cause of this failure is the galvanic corrosion due to this field condition. During the preparation phase for the replacement of the designated pipe, the existing eastbound watermain was observerd in more detailed from Pier 4 to the west end of the bridge. This segment was partially covered with vegetation. The project team found the waterline west of Pier 4 in the condition depicted in the pictures attached. Considering the high level of deterioration found beyond Pier 4 to the west, and the fact that the original scope did not include the replacement of this segment; proceeding with the original scope could originate system failures of the line in the future, a recommendation to replace 135' of additional pipe was presented to the City. IA Page 655 of 2240 Cutting line West end East bound line. Start 135' of additional replacement top surface of pipe corroded. Severe corrosion on the inside surface of the pipe. Pipe flanges at joint with severe corrosion. 3 Page 656 of 2240 Joint flanges underneath with severe corrosion. Uniform and peeling corrosion. Page 657 of 2240 Internal corrosion at the joint. Scamming corrosion on the top surface of the pipe. Page 658 of 2240 3N Not .-.,ork, Au^22,2023 3,13.45 PM EDT Ir N i V Auy 2:2. U'-, 3 3 l 4. C) 1 1 M L Ld I "T"1 _ High degradation of pipe and loss of thickness at top. Uniform rounded holes corrosion. Page 660 of 2240 Stress corrosion caused cracking failure of the flange at joint. Pitting and crevice corrosion at joint. Page 661 of 2240 Pitting corrosion on pipe. Joint flange and bolts with severe corrosion. Surface corrosion and thickness tapping. 1r9 Page 662 of 2240 40% of thickness loss. Tapping showing variable thickness loss. 10 Page 663 of 2240 25% of thickness loss. Tapping showing internal corrosion of pipe. 30% of thickness loss. 11 Page 664 of 2240 Tk Air r 41 s ti 125" SE Network:'Auy 25, 2023 a: 1:52 PM ED1 'BEACH CHANGE ORDER NO.: 2 DATE: 9/14/2023 PROJECT NAME: Rehabilitation of 20-inch North and South Wail AIE CONSULTANT: N/A CONTRACTOR: The Stout Group, LLC RPR/CEI: EAC Consulting, Inc. You are hereby directed to make the followinq changes to the Contract Documents: DESCRIPTION OF Additional 20" Watermain Pipe, remove and replace existing hardware on pipe joints and remove and replace CHANGE: - -- - -• �- -- - - o REASON FOR Discover with up close visual inspection that there are more pipe lengths, joints gland & hardware that need to be CHANGE: replaced rather than just repaired and repainted then the original drone inspection provided. CLASSIFICATION: IF OTHER: ATTACHMENTS: Inspection Report from CEI and proposal from Stout with additional scope. CHANGE IN CONTRACT SUM CHANGE IN CONTRACT TIME Original Contract Sum: $4,968,953.00 Original Contract Time to Substantial 300 DAYS Completion Net change by previously -108.06 Net change from previous Change 0 DAYS authorized Change Orders: Orders: Contract Sum prior to this Contract Time to'Substantial Change Order: $4,968,844.94 Completion prior to this Change 300 DAYS Order is: Contract Sum will be $640,622.00 Contract Time will be increased/decreased by this Change Order in the amount increased/decreased by the 60 DAYS of: following calendar days: New Contract Sum including this $5,312,412.72 New Contract Time to Substantial 360 DAYS ,Change Order is: Completion is: I I NV AUJUJ I MCN I JIJMAUt. IrItLUN I KALI AMVUNI KtMA1NJUNLHANUt0. ADJUSTMENTS TO TIME FOR PERFORMANCE: In connection with the change(s) noted in this document, CONTRACTOR'S TIME FOR PERFORMANCE REMAINS UNCHANGED unless specifically noted herein. This Change Order is an amendment to the Agreement between the Contractor and City. The amount and time change designated herein are the maximum agreed to by both the City and Contractor for this Change Order. Contractor attests that the Contract adjustment provided herein is reasonable, and constitutes compensation in full for all costs, claims, markup, and expenses, director indirect, attributable to this or any other prior Change Orders, including but not limited to compensation in full for any delays, acceleration, or loss of efficiency encountered by Contractor in the performance of the Work through the date of this Change Order, and for the performance of this and any prior Change Orders by or before the date of Substantial Completion. In consideration of the compensation and time, if any, in this Change Order, the Contractor hereby releases the City from all Claims, demands, or causes of action arising out of the transactions, events and occurrences giving rise to this Change Order. This written Change Order is the entire agreement between the City and Contractor with respect to this Change Order. No other agreements or modifications shall apply to this contract amendment unless expressly provided herein. EXCEPT AS EXPRESSLY MODIFIED HEREIN. THE TERMS AND CONDITIONS OFTHF CONTRACT nnrT 1MFNTs REM AIN I rNr`NANnFn Approved by Construction Manager:, Approved by Assistant City Engineer: Approved by City Engineer: Date Date Date Approved by Public Works Director: Approved by ACM: Approved by City Manager: Date Date Date