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Resolution 2025-33781 202533781 RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE SETTLEMENT OF A CLAIM, IN THE AMOUNT OF$150,000.00, TO BE PAID TO GOLDWATER REALTY II, INC, OWNER OF THE PROPERTY LOCATED AT 1741 ALTON ROAD (PRIVATE PROPERTI�; AND FURTHER, AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A SETTLEMENT AGREEMENT AND ANY OTHER DOCUMENTS RELATED TO THE SETTLEMENT, SAID SETTLEMENT AGREEMENT AUTHORIZING THE PRIVATE PROPERTY OWNER TO UTILIZE THE SETTLEMENT PROCEEDS TO REPLACE THE CITY'S SEAWALL AT LENOX COURT, LOCATED ALONG THE COLLINS CANAL AND ADJACENT TO THE PRIVATE PROPERTY. WHEREAS, on March 30, 2025, the City received notification that a seawall, located at 1741 Alton Road, Miami Beach ("Private Property"), had collapsed into the adjoining waterbody, the Collins Canal, during a heavy rainfall event; and WHEREAS, the Miami-Dade County Department of Environmental Resource Management ("DERM") inspected the site and an inspection notice and waste dumping violation were issued to the Private Property owner, Goldwater Realty II, Inc ("Goldwater'); and WHEREAS, based upon the City's investigation, it was determined that approximately 23 feet of the 194foot segment of seawall corresponded to Lenox Court and are within City right-of- way, and the remaining 171 feet corresponded to the adjacent Private Property; and WHEREAS, on or around May �5, 2025, Goldwater notifed the City that it intended to make a claim against the City, alleging that the City-owned seawall along Lenox Court had not been repaired, and that during the March 30, 2025 "rain bomb," canal water may have entered upon the Private Property from that point in the seawall opening, causing the Private Property seawall to collapse; and WHEREAS, on or around June 6, 2025, City staff met with Rabbi Zalman Fellig, a principal of Goldwa[er, where he formally presented his claim (the "Claim"); and WHEREAS, the City denied any liability but requested that Goldwater provide an engineering report substantiating the Claim; and WHEREAS, Goldwater engaged an engineering and construction company, to provide a report and quote for the permitting and replacement work of 181 feet of seawall, including the 23 feet owned by the City and the structural reinforcement of the remaining 13 feet, which quote came in at $377,200.00; and WHEREAS, Goldwater requested that the City pay 50% of the estimated cost based on its claim that the City's failure to repair the Lenox Court seawall had caused Goldwater's seawall to collapse; and WHEREAS, the City Administration denies any liability on the City's part or that a 50% contribution is required; however, in order to avoid the cost and uncertainty of litigatioq the City Administration believes it is in the City's best interest to reach an amicable resolution; and WHEREAS, the City Administration has offered to settle all claims associated with the Claim for the sum of $150,000, subject to approval by the Mayor and City Commission, and Goldwater has indicated its willingness to settle all claims related to the Claim for this amount; and WHEREAS, the City-owned 23-foot Lenox Court seawall has undergone multiple procurement processes, beginning with an existing push button contract ITB 2020-125-AY, which used pre-priced line items for seawall construction, however the lowest priced contractor and all subsequent contractors rejected the project; and WHEREAS, the lowest priced contractor rejected the project due to scope complexity and the wall's deteriorated condition, and further advised that pre-covid pricing would not be honored given increased construction and material costs; and WHEREAS, in 2024 the City attempted competitive solicitation under ITB 2024-056-JP (the "2024 ITB"), which process resulted in a single bid of$899,525.00 for Lenox Court's 23 linear feet of seawall, or approximately$39,110.00 per linear foot; and WHEREAS, the 2024 ITB bid was deemed excessive when compared to other seawall projects across the City, which have typically ranged behveen $2,700.00 and $5,900.00 per linear foot, and was therefore rejected; and WHEREAS, following the 2024 ITB,the City solicited pricing at two different times through its Job Order Contracting (JOC) program and (1)the first solicitation, prior to the collapse of the seawall, resulted in only a single contractor submitting a quote of approximately $1.3 Million Dollars, significantly higher than the 2024 ITB bid; and (2) after the seawall collapsed, the same contractor was contacted again to determine whether the altered site conditions might improve constructability and pricing; however, at that time, the contractor declined to proceed with construction under the existing permitted plans, further highlighting the elevated risk and complexity associated with the site constraints; and WHEREAS, the site constraints include the following factors: (1) Lenox Court is situated within a narrow 20-foot-wide public right-of-way, bounded by two private properties and an adjoining seawall that was also identified as being in poor condition and at risk of collapse at the time of the original bid; (2)there is no viable access to the site from the water side due to existing bridges along the canal,that limit the ability to barge in equipment; (3)the adjacent private parcels preclude cornentional land-side mobilization and staging; and (4)overhead FPL utility lines along Lenox Court, across the canal and near the seawall's end, introduce further safety and logistical complications; and WHEREAS, these factors make standard construction methods infeasible, and wntractors have indicated that if access remains restricted to the City's narrow right-of-way, work, if completed by the City, would need to be staged from Dade Boulevard, across the canal, dramaticalty increasing mobilization costs, equipment needs, and community impacts through closure of travel lanes; and WHEREAS, given the foregoing site constraints, which are contributing to the increases in the cost to replace the Lenox Court seawall and creating a challenge to securing a contractor for the work; the fact that the replacement cost of the seawall to the City would be equal to or greater than the proposed settlement amount; and that this approach will result in immediate attention to the matter, which would otherwise be delayed if following the City's standard Procurement process, the City Administration finds it to be in the City's best interest to pay $150,000.00 (the "Sefllement AmounY') in settlement of all claims associated with the Claim, with the understanding that the City's contribution will be applied towards the full reconstruction of the Lenox Court seawall; and WHEREAS, as a conditions to the Citys contribution to the shared cost, the new seawall will indude a structural separation joint at the right-of-way line to ensure structural independence between the City-owned and privately owned segments, allowing for separate maintenance responsibilities; and the City will require the inclusion of a "knock ouY' panel that is required for future drainage improvements in the area. NOW, THEREFORE BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,thatthe Mayor and City Commission hereby approve the settlement of a claim, in the amount of$150,000.00, to be paid to Goldwater Realry II, Inc, owner of the property located at 1741 Alton Road (Private Property); and further, authorize the Ciry Manager to negotiate and execute a settlement agreement and any other documents related to the settlement, said settlement agreement authorizing the Private Property owner to utilize the settlement proceeds to replace the City's seawall at Lenox Court, located along the Collins canal and adjacent to the Private Property. PASSED and ADOPTED this dS day of �uhG 2025. ATTEST � � .iiiftl j (J iG2�j even Meiner, Mayor �t �B�,, �� �ael . ranado, City Clerk �� e�., ir'' L',, REGIS BARBOU ; ���yyy `, ; �.IXi0P9COPAiEO; � '',�"_ A h: 4.. yte ,.;�^; ,,' R�H,Zy ._. APPROVED AS TO PORM & LANGUAGE &FOR FXECUTION � �/z31zo'ZS_ CiryPltomey py� Resolutions - C7 BT MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Eric Carpenter, City Manager DATE: June 25, 2025 TITLE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE SETTLEMENT OF A CLAIM, IN THE AMOUNT OF $150,000.00, TO BE PAID TO GOLDWATER REALTY II, INC, OWNER OF THE PROPERTY LOCATED AT 1741 ALTON ROAD (PRIVATE PROPERTY); AND FURTHER, AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A SETTLEMENT AGREEMENT AND ANY OTHER DOCUMENTS RELATED TO THE SETTLEMENT, SAID SETTLEMENT AGREEMENT AUTHORIZING THE PRIVATE PROPERTY OWNER TO UTILIZE THE SETTLEMENT PROCEEDS TO REPLACE THE CITY'S SEAWALL AT LENOX COURT, ALONG THE COLLINS CANAL, ADJACENT TO THE PRNATE PROPERTY. RECOMMENDATION The Administration recommends approving the Resolution. BACKGROUNDIHISTORY On March 3q 2025, the City received notification that a seawall, located at 1741 Alton Road, Miami Beach ("Private Property"), had collapsed into the adjoining waterbody, the Collins Canal, during a heavy rainfall event. Public Works dispatched a crew to secure the site and conduct an assessment of the damage. The Miami-Dade County Department of Environmental Resource Management ("DERM") inspected the site and an inspection notice and waste dumping violation were issued to the Private Property owner, Goldwater Realty II, Inc. ("Goldwater"). Based upon the City's invesligation, it was determined that approximately 23 feet of the 194-foot segment of seawall correspond to Lenox Court and are within City right-of-way, and the remaining 171 feet correspond to the adjacent Private Property. On or around May 15, 2025, Goldwater notifed the City that it intended to make a claim against the City alleging that the Lenox Court seawall, owned by ihe City, had not been repaired and that during the March 3Q 2025 "rain bomb," canal water may have entered upon Ihe Private Property from lhat point in the seawall opening, causing the Private Property seawall to collapse. On or around June 6, 2025, City staff met with Rabbi Zalman Fellig, a principal of Goldwater, where he formally presented his claim (the "Claim"). The City denied any liability but requested that Goldwater provide an engineering report substantiating the Claim. Goldwater engaged an engineering and construction company, to provide a report and quote for the permitting and replacement of 194 feet of seawall, including the 23 feet owned by the City and the slructural reinforcement of remaining 13 feet. The cost proposal presented, which includes all work necessary to perform all work including the 23-foo� segment belonging to the City, was for $377,200.00. Goldwater requested that the City pay 50% of the cost based on its claim that the City's failure to repair the Lenox Court seawall had caused Goldwater's seawall to collapse. The City Administration denies any liability on the City's part or that a 50% contribution is required. 3 Nevertheless, to avoid the cost and uncertainty of litigation, the City Administration believes it is in the City's best interest to reach an amicable resolution. The City Administration has offered to settle all claims associated with the qaim for the sum of $150,OOQ subject to approval by the Mayor and City Commission, and Goldwater has indicated its willingness to settle all daims related to the qaim for this amount. ANALYSIS The City of Miami Beach has approximately 55 miles of seawalls, of which approximately 50 miles are privately owned, and 5 miles are City-owned. To optimize the benefits of the seawall program, the Public Works Department developed a methodology to prioritize the reconstruction of approximately 2.8 miles of City-owned seawalls within the next 10 years. Factors such as elevation, location, and condition of each seawall were used to develop the initial ranking of each seawall. The Lenox Court seawall is included in the Public Works Department's seawall reconstruction initiative and was recently in the process of being procured. Lenox Court Seawall The City-owned 23-foot Lenox Court seawall has undergone multiple procurement efforts, beginning with an existing push button contract ITB 2020-125-AY. This contrect uses pre-priced line items for seawall construction. The project is awarded to the lowest contractor once all line items and quantities and unit prices are wnsidered. The lowest priced contractor rejected the project due to scope complexity and the walls deteriorated condition, they also advised pre-covid pricing could not be honored given increased construction and materials costs. All subsequent contrectors on the contract rejected the project with similar concems. In 2024 the City attempted competitive solicitation under ITB 2024-O56-JP. That process resulted in a single bid of$899,525.00 for 23 linear feet, or approximately $39,110.00 per linear foot. This bid was deemed excessive when compared to other seawall projects across the Ciry, which have typically ranged between $2,700.00 and $5,900.OD per linear foot, and was therefore rejected. Following the ITB, the City pursued pricing through its Job Order Con[racting (JOC) program. Pricing was solicited at two different times. The first solicitation prior to the collapse of the seawall resulted in only a single contractor submitting a quote of approzimately$1.3 million—significantly higher than the original ITB bid. After the seawall collapsed, the same contrector was contacted again to determine whether the altered site conditions might improve constructability and pricing. However, at that time, the contractor declined to proceed with construction under the existing permitted plans, further highlighting the elevated risk and complexiry associated with the site. The high cost of this project is largely due[o severe site constreints. Lenox Court is situated within a narrow 20-foot-wide public right-of-way, bounded by two private properties and an adjoining seawall that was also identified as being in poor condition and at risk of collapse at the time of the original bid. There is no viable access to the site from the waler side due to existing bridges along the canal, that limit the ability to barge in equipment; and the adjacent private parcels preclude conventional land-side mobilization and staging. Additionally, overhead FPL utility lines along Lenox Court, across the canal and near the seawalfs end introduce further safety and logistical complications. These cumulative factors make standard construction methods infeasible, and contrectors have indicated that if access remains restricted to the City's narrow righ4of-way,work, if completed by the City, would need to be staged from Dade Boulevard, across the canal— dramatically increasing mobilization costs, equipment needs, and community impacts lhrough closure of travel lanes. Given the extreme circumstances stated above, limited access for seawall repairs at Lenox Court, and excessive cost for a seawall repair, the Administration fnds it to be in the City's best interest 4 to pay $15Q000.00 (the "Settlement AmounY') in settlement of all claims associated with the Claim, with the understanding that the City's contribution will be applied towards the full reconstruction of the Lenox Court seawall. The cost of replacement of the seawall to the City would be equal to or greater than the proposed Settlement Amount, so this will be a cost-effective solution. Additionally, this approach will resul[ in immediate attention to the matter which would otherwise be delayed if following the City's standard Procurement process. As a conditions to ihe City's contribution to the shared cost, the new seawall will include a structural separation joint at the right-of-way line to ensure structural independence between the City-owned and privalely owned segments, allowing for separate maintenance responsibilities. Additionally, the city will require the indusion of a "knock ouY' panel that is required for future drainage improvements in the area. The City will coordinate with the design and construction team to make sure this modification is incorporated. FISCAL IMPACT STATEMENT $150,000.00 Does this Ordinance reauire a Business Imoact Estimate� (FOR ORDINANCES ONLY) If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: httos://www.miamibeachfl qovlcitv-hall/citv-clerk/meetina-notices/ FINANCIAL INFORMATION Funded from the G.O. Bond accoun( #396-0815-069357-29-410-576-00-00-00-27823 (Capital Contrects). CONCLUSION Based upon the substantial cost savings to the City and the need to address the current conditions at the Lenox Court seawall, the City Manager recommends approving the settlement of the claim, in the amount of$150,0OO.OQ to be paid to Goldwater; and further, authorizing the City Manager to negotiate and exewte a Settlement Agreement and any other documents related to the settlement, so that Goldwater may replace the City's seawall in connection with the replacement of its adjoining seawall. APPlicable Area South Beach Is this a "Residents Riqht to Know" item Is this item related to a G.O. Bond Qursuant to Citv Code Section 2-177 Proiect7 No Was this Aaenda Item initiallv reauested bv a lobbvist which as defined in Code Sec 2-481 includes a orincinal enqaned in lobbvina� No If so, speci(y the name of lobbyist(s) and principal(s): S Deoartment Public Works Sponsor(s) Co-soonsorlsl Condensed Title Accept Agreement w/City and Zalman Fellig, Replace the Lenox Court Seawall. 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