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Resolution 2025-33557 RESOLUTION NO. 2025-33557 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE CHANGE ORDER NO. 1 TO THE AGREEMENT BETWEEN THE CITY OF MIAMI BEACH, FLORIDA AND AVR CONTRACTORS, CORP., PURSUANT TO ITB-2023-299-ND, FOR CONSTRUCTION SERVICES AT FLAMINGO PARK LODGE; SAID CHANGE ORDER WILL INCREASE CONTRACT TIME BY 272 CALENDAR DAYS FOR UNFORESEEN SCOPE AND REPLENISH THE PROJECT CONTINGENCY IN THE AMOUNT OF$65,000 TO ADDRESS FUTURE UNFORESEEN SCOPE OF WORK, UTILIZING PREVIOUSLY APPROPRIATED PROJECT FUNDING. WHEREAS, on December 13, 2023, the City Commission approved the award of a contract for the construction services for the renovation of the Flamingo Park Lodge (Project) in the amount of$1,019,639.30 inclusive of a 10% contingency in the amount of$92,694.41 to AVR Contracting Corp. (AVR); and WHEREAS, on April 10, 2024, the City issued Notice to Proceed (NTP) for construction to AVR and during the course of the renovation, AVR found evidence of live termite infestation and significant deterioration and damage to the existing wood roof rafters, sheathing, wooden floor structural members and flooring; and WHEREAS, AVR submitted a request for information (RFI) advising the City of the existing damage and requested direction; and WHEREAS, after assessing the existing damage, the consultant, Wolfberg Alvarez and Partners, Inc. (WAP), determined there was a need to retain a structural engineer to conduct a structural inspection of the Lodge and provide a written report which would provide direction and resolution; and WHEREAS, structural engineer, Bliss and Nyitray, Inc. (BNI), visited the site to conduct a site observation of the existing structure and provided a report of their findings (Report) which showed that both the existing roof and floor structural members had significant termite damage that degraded the structural integrity of both the existing roof and flooring and recommended the complete replacement of both the wooden roof structure and wood flooring; and WHEREAS, WAP provided revised architectural and new structural drawings showing complete and full replacement of both the roof and floor assemblies; and WHEREAS, City staff requested a proposal from AVR and held discussions with AVR to determine the scope and cost of the additional work; and WHEREAS, AVR provided a negotiated proposal for the additional scope in the amount of $89,231.77 and a Contingency Draw was issued, utilizing the previously approved Owner's Contingency; and WHEREAS, use of contingency funds is always subject to multilevel review and approval by the project's architectural and engineering consultants and the City's staff as to the appropriateness of the request and use of the funds; and WHEREAS, addressing the additional scope of work has reduced the Owners Contingency to $3,462.64, and as a result of the extensive termite damage, the Project has expended more than ninety-six percent (96%) of the Owner's Contingency, with only 17% of the project completed; and WHEREAS, a majority of the contingency funds have been allocated to address the unforeseen structural deficiencies; and WHEREAS, in addition to the cost, the unforeseen conditions have led to significant delays to the Project requiring a time extension in order to analyze the issues, determine the best course of action, revise the construction drawings, negotiate with AVR and resubmit the drawings for permit, resulting in an additional 272 calendar days to complete the Project; and WHEREAS, City staff hereby requests a change order to the contract with AVR, to replenish the Project's Owner's Contingency and increase the contract duration to allow for the performance of the additional scope and the delays associated with its resolution, ensuring that sufficient funding is available to address future unforeseen circumstances that require changes in the project scope in a timely manner; and WHEREAS,the requested amount of$65,000, will increase the available project contingency balance to $68,462.64, resulting in forty-three percent (43%) of the total Owner's Contingency available for the remaining eighty-three percent (83%) of construction; and WHEREAS, Change Order No. 1, in the amount of $65,000 and 272 calendar days, will revise the total contract amount to $1,084,639.30, including a revised total Owner's Contingency of $157,694.41, and a total construction time of 542 calendar days, revising the contractual substantial completion date to September 5, 2025. 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 approve and authorize the City Manager to execute Change Order No. 1 to the Agreement between the City of Miami Beach, Florida and AVR Contractors, Corp., pursuant to ITB-2023-299-ND, for construction services at Flamingo Park Lodge; said change order will increase contract time by 272 calendar days for unforeseen scope and replenish the project contingency in the amount of$65,000 to address future unforeseen scope of work, utilizing previously appropriated project funding. PASSED and ADOPTED this �4 day of mG�ti , 2025. ATTEST: ��/�x� �f Steven Meiner, Mayor MAR 2 0 2025 APPROVED AS TO FORM & LANGUAGE Rafael e. Granado, City Clerk & FO CUTION -a E.a''Ny -5) 1i )zczc 'V` 40, City o ey '�, Date b tis(OAP OGWED) f Resolutions -C7 C MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Eric Carpenter, City Manager DATE: March 19, 2025 TITLE A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE CHANGE ORDER NO. 1 TO THE AGREEMENT BETWEEN THE CITY OF MIAMI BEACH, FLORIDA AND AVR CONTRACTORS, CORP., PURSUANT TO ITB-2023-299-ND, FOR CONSTRUCTION SERVICES AT FLAMINGO PARK LODGE; SAID CHANGE ORDER WILL INCREASE CONTRACT TIME BY 272 CALENDAR DAYS FOR UNFORESEEN SCOPE AND REPLENISH THE PROJECT CONTINGENCY IN THE AMOUNT OF $65,000 TO ADDRESS FUTURE UNFORESEEN SCOPE OF WORK, UTILIZING PREVIOUSLY APPROPRIATED PROJECT FUNDING. RECOMMENDATION The Administration recommends that the Mayor and City Commission (City Commission) adopt the Resolution. BACKGROUND/HISTORY Flamingo Park is a 36.53-acre park located within the boundaries of the Historic Flamingo Park neighborhood in South Beach. Inside the park is a small building referred to as the Lodge, which historically was the residence of the park's groundskeeper. Construction is currently underway to renovate the Lodge (Project) for public activities use such as community support spaces, meetings, recreational use, and a possible future concession space. The scope of work includes selective demolition, a new interior layout, mechanical, electrical, and ADA upgrades, new interior and exterior finishes,stucco repairs (including patching and painting), new exterior glazing and doors, new roofing, new exterior concrete walkways, new pedestrian LED lighting, landscaping, and irrigation improvements. On December 13, 2023, the City Commission approved the award of a contract for the construction services for the Project in the amount of $1,019,639.30 inclusive of a 10% contingency in the amount of$92,694.41 to AVR Contracting Corp. (AVR). ANALYSIS On April 10, 2024, the City issued Notice to Proceed (NTP)for construction to AVR. During the course of the renovation, AVR found evidence of live termite infestation and significant deterioration and damage to the existing wood roof rafters, sheathing, wooden floor structural members and flooring. AVR submitted a request for information (RFI) advising the City of the existing damage and requested direction. After assessing the existing damage, the consultant, Wolfberg Alvarez and Partners, Inc. (WAP), determined there was a need to retain a structural engineer to conduct a structural inspection of the Lodge and provide a written report which would provide direction and resolution. The structural engineer, Bliss and Nyitray, Inc. (BNI), visited the Page 151 of 1157 site to conduct a site observation of the existing structure and provided a report of their findings (Report) which showed that both the existing roof and floor structural members had significant termite damage that degraded the structural integrity of both the existing roof and flooring. The Report recommended complete replacement of both the wooden roof structure and wood flooring (Exhibit A). WAP provided revised architectural and new structural drawings showing complete and full replacement of both the roof and floor assemblies (Exhibit B). Multiple rounds of discussions on scope and pricing were held. After five rounds of negotiations, a scope and cost was finally agreed upon between the City and AVR. City staff requested a proposal from AVR for the additional scope described above.AVR provided a negotiated proposal for the additional scope in the amount of $89,231.77 and a Contingency Draw was issued, utilizing the previously approved Owner's Contingency. Use of contingency funds is always subject to multilevel review and approval by the projects architectural and engineering consultants and the City's staff as to the appropriateness of the request and use of the funds. Addressing the additional scope of work has reduced the Owner's Contingency to$3,462.64. As a result of the extensive termite damage, the Project has expended more than ninety-six percent (96%) of the Owner's Contingency, whereas the Project is seventeen percent (17%) completed. A majority of the contingency funds have been allocated to address the unforeseen structural deficiencies. In addition to the cost, the unforeseen condition has resulted in significant delays to the Project requiring a time extension. The time required to analyze the issues, determine the best course of action, revise the construction drawings, negotiate with the contractor and resubmit the drawings for permit has resulted in an additional 272 calendar days to complete the Project. City staff hereby requests a change order to the contract with AVR, to replenish the Project's Owner's Contingency and increase the contractual duration to allow for the performance of the additional scope and the delays associated with its resolution. This will ensure that sufficient funding is available to address future unforeseen, required changes in the project scope in a timely manner. The requested amount of$65,000, will increase the available project contingency balance to $68,462.64, resulting in forty-three percent (43%) of the total Owner's Contingency available for the remaining eighty-three percent(83%)of construction. Any unused contingency funds available at the end of the project, will be returned to the City via a change order. Change Order No. 1, in the amount of$65,000 and 272 calendar days,will revise the total contract amount to $1,084,639.30, including a revised total Owner's Contingency of$157,694.41, and a total construction time of 542 calendar days, revising the contractual substantial completion date to September 5, 2025 (Exhibit C). FISCAL IMPACT STATEMENT The total amount of the Change Order is $65,000.00 utilizing previously appropriated project funding. Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY) Page 152 of 1157 If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: httpsa/www.miamibeachfl.gov/city-hall/city-Clerk/meeting-notices/ FINANCIAL INFORMATION 391-0820-069357-26-410-546-00-000-00-21518 $65,000 CONCLUSION The Administration recommends that the City Commission approve the resolution. Applicable Area South Beach Is this a `Residents Right to Know" item Is this item related to a G.O. Bond pursuant to City Code Section 2-17? Project? Yes Yes Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481 includes a principal engaged in lobbying? No If so, specify the name of lobbyist(s) and principal(s): Department Capital Improvement Projects Sponsor(sl Co-sponsor(sl Condensed Title Change Order 1 w/AVR Contractors (ITB-2023-299-ND), Construction Services at Flamingo Park Lodge. CIP Previous Action (For City Clerk Use Only( Page 153 of 1157 Exhibit A •buildingstrength June 11,2024 Wolfberg Alvarez&Partners 5757 Waterford District Drive Suite 300 EL/SS a NY.;TRAY. lHC Miami,Florida,33126 STRUCTURAL Attention: Mr.Rafael Labrada Reference: Flamingo Park 1200 Meridian Ave. Miami Beach,Florida,33139 Site Observation of Existing Structure Dear Mr.Rafael, At the request of Wolfberg Alvarez&Partners,a site visit was performed by a BNI engineer, Abhilash Singh, to review the existing condition of wood roof rafters and woof floor joists. The visit was conducted on June 5, 2024. Mr. Bryan Niedelson and Mr. Ralph Viola,City project managers,were present at the site. The site inspection was done based on visual examination of the exposed portion of the structure only.See below list of deficiencies found in the inspection: 1. The bottom plate and strap connections of roof rafters'bearing ends are damaged.The strap connections are missing on many roof rafters.Refer Figures 1 to 3. 2. The roof planking is deteriorated and doesn't qualify as roof sheathing per Florida Building Code.Refer Figure 4. 3. The roof rafters are damaged.Refer Figures 5 and 6. 4. The roof rafter bearing supports/braces are discontinued or left unsupported due to removal of walls below.Refer Figures 7 to 9. 5. The floor system is severely damaged throughout.Refer Figures 10 and 11. 6. In several locations the existing 2x 10 floor joists are supported on top of a flat 2x4 spanning between masonry piers. This is blatantly inadequate for the required floor loads.Refer Figure 12. 7. Further roof rafters on the west building are found substantially damaged.Refer Figures 13 and 14. In summary, Deficiencies I thru 4, and 7 above are significant and widespread. BNI would recommend complete removal of the existing wood roof framing system and replace with prefabricated roof trusses,plywood sheathed roof and proper Simpson tie-downs. Deficiencies 5 and 6, pertain to the the damaged floor joists and some noticeable structural inadequacies. However,we believe all these conditions can be restored with structural repairs details such as the following:provide additional intermediate blocking in between the floor joists, scab or replace damaged floor joists, add additional or new support beams between existing masonry piers to ensure structurally sound load path for floor loading, and install completely new plywood flooring over repaired/replaced floor joists. If owner elects to proceed with structural repairs,BM can provide a proposal for structural design services including permit drawings and construction administration. Sincerely, BLISS&NYITRAY,INC. Gabriel J.Leitz,P.E.,S.E. Prepared by: Florida P.E.No.81348 Abhilash Singh 5835 Waterford District Drive, Suite 400 , Miami, Florida 33126 I PHONE 305-442.7086 www.bniengineers.tom Mrame 1 Tallahassee + West Palm Beach I Jampa J Dallas Page 154 of 1157 Exhibit A •buildingstrength • ..._ _ ;110 - ION ,- _ �...4 : 41110010111111.11NUP- , 11111111111.11111111W t t t . • J F igure 1 Pr .r' .. ^ '-' a te,. • 414 1.'''' • lit: ' (i afR Figure 2 www.bnieng,neers.com Miami i Tallahassee I West Palm Beach I Tampa I Dallas Page 155 of 1157 Exhibit A •buildingstrength , y 1 ma r `- a.. • �� " ...., N • 4*. •, .. y > =-•;ice . \.... • • Fi„urr 3 _.__11 I .. .-..-7--_ rta -.z L _ _ ZI" % ; : -•,. --1111&k. 4"14 Nwr --Air— Figure 4 www.bnien9ineers.com Miami I Tallahassee I West Palm Beach I Tampa I Dallas Page 156 of 1157 Exhibit A •buildingstrength .ii --7;::.1.--- •E- a. -i. • '•t ''' "+....ter - Y; Figure .' w Y- 2 ' J r t/ P . , +,f . f, t ` �\ / . It' ' Fiure 6 Mtam, I Tallahassee I West Palm Beach I Tampa I Dallas Page 157 of 1157 •buildingstrength Exhibit A Ilikki. ,. . .i_. ... - ..._ . 4, . ----- ., .. _ :- _.---. 4'. 'ate,„,, . ' ". - -Is :" * "`y I. AI ----: -\leill Sh I ! II s ` , : E Figure 7 # III` • -...„ s.. • r.o. . ,` r TTi/ , -si, !IV, . i i . ' - , ,, li t 1 ----....ad i Ir .11 Figure 8 Miami I Tallahassee I West Palm Beach I Tampa I Dallas Page 158 of 1157 Exhibit A •buildingstrength d'. PPP. J11111111‘ ; '4. ./-fr' t ,, • ........4 iii, - ).. t es'#' re deal _______ ' A.' . i. ' f .,....-- -iSi thda- I ' \ Figure 9 A-1 M i i . . i I tl .....t A , :. I ,< i 't.41 I -•e\.. ,ak l ? 7 , i • - 4'`� • ) f11 ,• . a't. , J fe Figure 10 Miami i Tallahassee I West Palm Beach I am Da Dallas Page 159 of 1157 Exhibit A •buildingstrength 1/2 t• eeRl4r'T� 1 t rye` .\ v ,t=/ ' ,..I•1':NI":?'114111 it. Alit _'. .1. ..114 1r. $• r;. Y/ qt, /. i' ' . . • .. tJ tinL111r,, ? i• 1 � `` . �: 11 I. f• f ... . .9, ., '{' s s. .. 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S a I . i I!, ' •I to k 11 $1 Fi hi \ I t:3 . ii —— : i Pill \ t iiiiii \ gb2 i ion • \ j 1 ';•t.›. • ' : . i ! I ; 1 hi! i i 1 • ?. I lit t __I di,- ,. . ..•..I.•• i ---- ,, t" \ I ,i , t I Ilk. •••... . :. •....I 111 I ii 7 DE \ -i., ,,--- . 41,,,,,, : ... 1 id 'IM I 1......,..,... , 7.. !!! t . 1 ,., i 1 \ 1 li Itirci. t--. 1 $1 i :74. , '--- i , , • • - q If-, ' • ---- 1. e , .,..., I 0 t-- . • - - 1, 1 -; 1! t t ; -1,• hi / ;____ i, t - :".,:, ,; k • •• , h Ig I 19 H. - lit Aill fill 1 il We e -0 MI li PI , 2"------- .t i g 1 g Page 175 of 1157 EXHIBIT C + ' BEACH PROJECT NAME: FLAMINGO PARK LODGE A/E CONSULTANT: Wolfberg,Alvarez&Partners,Inc. CONTRACTOR: AVR Contractors Corp. RPR/CEI: CHANGE ORDER NO. 1 DATE: 03/03/2025 You are hereby directed to make the following changes to the Contract Documents: DESCRIPTION OF INCREASE CONTRACT TIME BY 272 CALENDAR DAYS FOR UNFORESEEN SCOPE AND REPLENISH THE CHANGE: PROJECT CONTINGENCY IN THE AMOUNT OF S65,000 TO ADDRESS FUTURE UNFORESEEN SCOPE OF WORK REASON FOR During the course of the renovation,AVR found evidence of live termite infestation and significant deterioration CHANGE: and damage to the existing wood roe`rafters,sheathing,wooden floor structural members and flooring.The structural engineer.Bliss and Nyitray.Inc.(BNI),determined that both the existing roof and floor structural members had significant termite damage that degraded the structural integrity of both the existing roof and flooring.The report recommended complete replacement of both the wooden roof structure and wood flooring. Addressing the additional scope of work has reduced the Owner's Contingency to$3,462.64.The project has expended more than ninety-six percent(96%)of the Owner's Contingency,whereas the project is seventeen percent(17%)completed. In addition to the cost,the unforeseen condition has resulted in significant delays to the project requiring a time extension.The time required to analyze the issues determine the best course of action,revise the construction drawings.negotiate with the contractor and resubmit the drawings for permit nas resulted in an additional 272 calendar days to complete the project. A change order to the contract with AVR Contractors.Corp..is required to replenish the Project's Owner's Contingency and increase the contractual duration to allow for the performance of the additional scope and the delays associated with its resolution.The requested amount of$65,000,will increase the avai able project contingency balance to$68,462.64. CLASSIFICATION: Unforeseen Situation IF OTHER: na ATTACHMENTS: CHANGE IN CONTRACT SUM CHANGE IN CONTRACT TIME Original Contract Sum: $1 019,639.30 Orig nal Contract Time to Substantial 240 DAYS Completion: Net change by previously Net change from previous Change authorized Change Orders: $0.00 Orders: 0 DAYS Contract Sum prior to this ICon:ract Time to Substantial Change Order: $1,019,639.30 Completion prior to this Change 240 DAYS Order is: Contract Sum will be Contract Time will be increased/decreased by this $65,000.00 Increased/decreasecl by the 272 DAYS Change Order In the amount following calendar days: or: New Contract Sum including this ! $1,084,639.30 New Contract Time to Substantial 512 DAYS Change Order is. Completion is: LINO ADJUSTMENTS IS MADE.THE CONTRACT AMOUNT REMAINS UNCHANGED ADJUSTMENTS 10 ITME FOR PERTOR AhCE:In connection with the changdst noted inthi document.CONTRACTOR'S TIME FOR PERFORMANCE REMAINS UNCHANGED unless speciftcaEy noted herein. This Change Cinder is an amendment to the Agreement between the Contractor and City The anotmi and tine change designated herein arc the muuoum agreed to by both the City and Contractor for this Change Order.Contractor meats that the Contract adjustment provided herein is reasonable.and constitutes compensation in Fall for all costs.claims.markup.and expenses.direct or indirect,attributable to this or any other prior Change Orders.inducting but riot hoisted a compensanoc in full for any dr.uys.a:ceteratioo,or loss of ef5cien:y encountered by Contractor in the per forrnance of the Work thro.tgh the date of this Change Order and for the performance of this and any prior Change Orders by of before the date of Substantial Completion. In coruideranor of the compensation and ume.tinny,m the Change Order.the Contractor hereby releases the City Sum all Claims.demands.or causes of action arising out it the transacaons,menu and occurrences giving rise to this Change Order This written Change Order is the ochre eiar enl borw=the City and Contractor with respect to this Change Order. No other agreements or modifications shall apply to this twetract arnendtnenr 0111,tii expressly provided herein EXCEPT AS EXPRESSLY MODIFIED HEREIN.THE TERMS AND CONDITIONS OF THE CONTRACT DOCUMENTS REMAIN UNCHANGED. Approved by RPR/CEI: 'Approved by CIP Project Manager: Approved by CIP Division Director: 1 Page 1 of 2 Page 176 of 1157 EXHIBIT C Date Ralph Viola Date Arid Gutian Date Approved by Engineer of Record: Approved by Senior Project Manager: Approved by CIP Director: Wdfberg,Alvarez&Partners,Inc. Date Bryan Niedelson Date David A.Gomez Date Approved by Contractor: Other:Assistant City Manager Other:City Manager Date , David Martinez Date Eric Carpenter Date Pagc 2 of 2 Page 177 of 1157