C7A - Approve Lincoln Rd Design Amend

Resolutions - C7 A

COMMISSION MEMORANDUM

RECOMMENDATION

The Administration recommends that the Mayor and City Commission (City Commission) adopt the Resolution.

BACKGROUND/HISTORY

On March 9, 2016, the City Commission adopted Resolution No.2016-29319, awarding a contract for Architectural and Engineering Design Services for Lincoln Road District Redevelopment Project to James Corner Field Operations. LLC. (JCFO). The types of improvements proposed along the district include enhancement of pedestrian walkways and café zones, modifications to the existing planters and water features, new landscape and irrigation, cosmetic repairs to historic Lapidus structures, drainage improvements, new lighting and signalization/wayfinding, performance/multipurpose areas in the 500 and 600 Blocks, outdoor furnishings at selected locations, gateway trellis at the 400 Block, replacement of underground infrastructure, crosswalk enhancements, and milling and resurfacing of asphalt paving. The agreement was negotiated and executed on June 23, 2016, in the total amount of $3,861,000.

On July 14, 2016, the City issued Notice to Proceed 1, to commence with Design and Engineering Services.

On February 8, 2017, the City Commission adopted Resolution 2017-29746, approving Amendment No. 1, in the amount of $1,274,000, for additional architectural and engineering services associated with the implementation of the vision of the Lincoln Road Master Plan.

On May 16, 2017, the City Manager administratively executed Amendment No. 2, changing and adjusting the terms of the agreement.

Following the issuance of Amendment No. 2, JCFO proceeded with the design and the preparation of construction documents. Throughout this phase, the Administration, City staff and JCFO encountered challenges associated with estimated construction costs, Covid related closures and impacts to local businesses, high market volatility related to material availability and delivery logistics.

On January 13, 2021, the City Commission adopted Resolution 2021-31552, accepting the recommendation of the Administration to reduce the scope of the project, and authorizing the Administration to amend the agreement with JCFO to revise the drawings to complete the project within the total allocated budget of approximately $52.4 million, equating to a construction budget ranging between $34 million and $36 million, inclusive of $5.2 million for water/sewer and drainage infrastructure work, funded separately from alternate funding sources.

The reduced scope of work includes Meridian Avenue improvements, pedestrianization of Drexel Avenue, restoration of fountains and equipment, restoration of the Lapidus follies, upgrading existing light fixtures, implementation of the Euclid Avenue oval concept, refurbishing the seating areas along the Lincoln Road corridor, refinish the existing piano keys, restore the existing aluminum trench drain grates, Lincoln Road directional and informational signage, Lincoln Road gateway signs at Washington Avenue and Alton Road, and a security barrier system, including planters, bollards, and site furnishings.

On June 22, 2022, the City Commission adopted Resolution 2022-32181 approving Amendment No. 3 in the amount of $2,730,080, to redesign the project, incorporating the reduced construction scope of work. Amendment No. 3 did not reflect a credit in the amount $386,673.29 for work not performed under the terms of the original Agreement.

On March 22, 2024, Amendment No. 4 was executed, reflecting the credit amount of ($386,673.29) for work not performed which would no longer be required.

ANALYSIS

On January 30, 2024, ITB 2024-022-ND was advertised for the Lincoln Road Improvements for Meridian Avenue and Drexel Avenue. On April 2, 2024, a sole response significantly exceeding the construction budget was received and on May 17, 2024, the Administration rejected the bid received, authorized the issuance of a new solicitation, directed staff to complete a review of project requirements, incorporate any changes to the solicitation in an effort to encourage competitive responses and obtain proposals within the allotted budget.

Following the rejection of the bid, City staff held industry meetings with contractors to gain insights into market conditions, understand the reasons for the lack of responses, and identify cost-driving factors that caused the bid to exceed the construction budget. During these meetings, contractors highlighted that one significant cost factor was the requirement to maintain vehicular traffic through Meridian Avenue throughout the construction period. Other factors included increased construction costs across the market and high demand, combined with project backlogs.

In response, the project team devised a strategy of re-packaging the ITB into two distinct projects; one for the Meridian Avenue Improvements and another for the Drexel Avenue Improvements. To achieve additional cost savings, the construction documents were revised to include measures such as easing restrictions on road closures and identifying contractor staging areas. This

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approach aimed to isolate the specific types of work required under each contract, thereby broadening the range of contractors and increasing overall interest.

Concurrently, Florida Power and Light identified a new connection point to the electrical service infrastructure that was not available when the JCFO agreement was initially executed. These updates allowed for a simplified design of the necessary electrical ductbank, leading to reduced construction costs and a shorter project duration.

Additionally, new Miami-Dade County Division of Environmental Resource Management (DERM) requirements for stormwater pre-treatment were implemented in the project.

On June 30, 2025, the City received JCFO’s revised and negotiated proposal. This proposal includes separating the design documents into two packages for Drexel Avenue and Meridian Avenue, re-engineering of the FPL duct bank, and the incorporation of new DERM requirements for stormwater pre-treatment. The total cost for these services was not to exceed $239,449.00.

City staff has prepared Amendment No. 5 (Exhibit A) to the existing Professional Services Agreement, in the amount of $239,449.00, revising the total contract amount to $7,717,855.71.

City staff has reviewed the negotiated proposal for the additional services and found it reasonable for the effort required from the consultant.

FISCAL IMPACT STATEMENT

Amendment No. 5 to JCFO in the amount of $239,449 will be funded with previously appropriated funding.

Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY)

If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/

FINANCIAL INFORMATION

309-0820-061357-00-410-549-00-00-00-29310 $239,449.00

CONCLUSION

The Administration recommends that the City Commission adopt the Resolution.

Applicable Area

South Beach

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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(s)

Co-sponsor(s)

Condensed Title

Execute Amendment 5 to Agmt w/ James Corner Field Operations, Lincoln Rd Improv Proj. CIP

Previous Action (For City Clerk Use Only)

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