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RESOLUTION APPROVING CHANGE ORDER NO. 1 TO CONTRACT NO. S-958 BETWEEN MIAMI-DADE COUNTY AND LANZO CONSTRUCTION CO., FLORIDA FOR D2-C2, PROPOSED 16-INCH, 12-INCH, AND 8-INCH DI WATER MAIN AND 10-INCH AND 8-INCH DI GRAVITY SEWER ALONG NW 22ND AVENUE FROM NW 79TH STREET TO NW 90TH STREET AND AN 8- INCH DI FORCE MAIN ALONG NW 87TH STREET, WHICH GRANTS A TIME EXTENSION OF 1,000 CALENDAR DAYS AND INCREASES THE CONTRACT AMOUNT BY $5,411,816.28, THEREBY BRINGING THE TOTAL CONTRACT AWARD UP FROM $7,253,128.25 TO $12,664,944.53; AUTHORIZING THE USE OF FUNDS FROM THE BUILDING BETTER COMMUNITIES GENERAL OBLIGATION BOND (GOB) PROGRAM PROJECT NO. 17-COUNTYWIDE WATER AND SEWER SYSTEM ENHANCEMENTS� TO PAY IN PART FOR THE EXTENSION OF WASTEWATER SERVICES ALONG NW 22ND AVENUE; AND AUTHORIZING THE COUNTY MAYOR OR COUNTY MAYOR�S DESIGNEE TO EXECUTE CHANGE ORDER NO. 1 AND TO EXERCISE THE PROVISIONS CONTAINED THEREIN

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WHEREAS, this Board desires to accomplish the purposes outlined in the accompanying memorandum, a copy of which is incorporated herein by reference,

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board approves Change Order No. 1 to Contract No. S-958 for D2-C2, Proposed 16-inch, 12-inch, and 8-inch DI Water Main and 10-inch and 8-inch DI Gravity Sewer along NW 22nd Avenue from NW 79th Street to NW 90th Street and an 8-inch DI Force Main along NW 87th Street, between Miami-Dade County and Lanzo Construction Co., Florida. Change Order No. 1 grants a time extension of 1,000 calendar days and increases the Contract amount by $5,411,816.28, thereby bringing the total award up from $7,253,128.25 to $12,664,944.53. The Board authorizes the County Mayor or County Mayor�s designee to use funds from the Building Better Communities General Obligation Bond (GOB) Program Project No. 17�Countywide Water and Sewer System Enhancements�to pay in part for the extension of wastewater service to the area. The Board also authorizes the County Mayor or County Mayor�s designee to execute Change Order No. 1 and to exercise the provisions contained therein. A copy of Change Order No. 1 is attached to the accompanying memorandum as Exhibit A.

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Date:

To: Honorable Chairman Anthony Rodriguez
and Members, Board of County Commissioners

From: Daniella Levine Cava
Mayor

Subject: Resolution Authorizing Change Order No. 1 to Contract No. S-958 for D2-C2, Proposed 16-inch, 12-inch, 8-inch DI Water Main and 10-inch and 8-inch DI Gravity Sewer along NW 22nd Avenue from NW 79th Street to NW 90th Street and an 8-inch DI Force Main along NW 87th Street, with Lanzo Construction Co., Florida

STAFF RECOMMENDATION
Executive Summary
This item seeks approval from the Board of County Commissioners (the Board) to authorize Change Order No. 1 to Contract No S-958 (the Contract) between Miami-Dade County (the County) and Lanzo Construction Co., Florida (the Contractor) for the D2-C2, Proposed 16-inch, 12-inch, 8-inch and DI Water Main and 10-inch and 8-inch DI Gravity Sewer along NW 22nd Avenue from NW 79th Street to NW 90th Street and an 8-inch DI Force Main along NW 87th Street (the Project). Change Order No. 1 will increase the Contract amount by $5,411,816.28 and add a 1,000-calendar day non-compensable time extension due to differing subsurface conditions that resulted in larger trenching requirements and additional restoration, as well as unforeseen conflicts with communication and electrical duct banks. Change Order No. 1 also includes a credit for the substitution of concrete manholes and replenishes the Contract�s Contingency Allowance.

This Project, approved by the Board via Resolution No. R-259-22, will extend critical wastewater infrastructure and replace undersized water mains serving one of the largest clusters of industrial and commercial properties along NW 22nd Avenue. The improvements include the installation of approximately 9,246 linear feet (LF) of sanitary sewer mains and 9,851 LF of ductile iron water main service lines. Change Order No. 1 addresses unforeseen construction conditions and necessary design adjustments required to resolve unanticipated communication and electrical duct bank conflicts, as well as unstable subsurface soils that necessitated significant redesign and expanded roadway restoration. Due to the extent of unstable soils and roadway sections that required removal and replacement, this Change Order is primarily driven by the increased quantities applied under existing unit prices. These costs are based on unit prices that were competitively solicited and established in the original contract, helping to ensure fair, market-based pricing while protecting the County�s financial interests. The Change Order will also further replenish the Contingency Allowance to address potential future unforeseen conditions and maintain project continuity.

The Project originated from the adoption of Resolution No. R-597-13, which directed the County Mayor or the County Mayor�s designee to develop a plan to extend sanitary sewer service to commercial and industrial parcels within the area designated as the Miami-Dade Green Technology Corridor (GTC). In response, the Miami-Dade Water and Sewer Department (WASD) created the Connect 2 Protect Program to expand access to reliable sanitary sewer service for properties currently reliant on septic systems, as further detailed on Exhibit D. Through strategic investment in critical infrastructure improvements within the GTC, this Project enhances system reliability and resiliency, positions WASD to accommodate future growth, and ensures the capacity necessary to support fire protection requirements.

Recommendation
It is recommended that the Board approve Change Order No. 1 to the Contract. Change Order No. 1 increases the Contract amount by $5,411,816.28, thereby increasing the total Contract amount from $7,253,128.25 to $12,664,944.53. Change Order No. 1 further extends the Contract duration by a 1,000-calendar day non-compensable time extension. A copy the Change Order No. 1 is attached hereto as Exhibit A. Basic details are set forth on Exhibit B attached hereto.

Scope
The Project is being performed primarily along NW 22nd Avenue from NW 79th Street to NW 90th Street, located in Commission District 2, which is represented by Commissioner Marleine Bastien.

Delegation of Authority
This item authorizes the County Mayor or County Mayor�s designee to execute Change Order No. 1 to the Contract
and to exercise any and all rights conferred herein.

Fiscal Impact/Funding Source
The additional fiscal impact of Change Order No. 1 to the County is an increase of $5,411,816.28 to the Contract and will be funded out of WASD Revenue Bonds Sold, Water Connection Charges, and Future WASD Revenue Bonds, BBC GOB Financing, and Florida Department of Environmental Protection Grant. There is no impact to the General Fund.

The Project is in WASD�s Fiscal Year 2025-2026 Adopted Budget and Multi-Year Capital Plan under Water Reset Program� Small Diameter Water Mains Replacement, Program #2000000072, Volume #3, Page #123 and Commercial and Industrial Corridors� Extension of Sewer System (Connect to Protect), Program #967090, Volume #3, Page #103.

Track Record/Monitoring
WASD�s Deputy Director of Planning, Regulatory Compliance and Capital Infrastructure, Marisela Aranguiz-Cueto, P.E., will oversee the implementation of Change Order No. 1 to the Contract.

Background
The Contract was awarded to the Contractor on November 22, 2021 and was ratified by the Board on March 15, 2022 via Resolution No. R-259-22. The total Contract award was for $7,253,128.25, with a Contract duration of 750 calendar days and a Contingency Time Allowance of 75 days. The Notice to Proceed was issued on June 1, 2022, which established May 21, 2024 as the Substantial Completion Date and June 20, 2024 as the Final Completion Date. This Change Order extends the Contract duration by a 1,000-calendar day non-compensable time extension. As a result, the Substantial Completion Date will be revised from May 21, 2024 to February 15, 2027, and the Final Completion Date will be revised from June 20, 2024 to March 17, 2027.

Change Order No. 1 incorporates additional costs and time associated with differing subsurface conditions that resulted in larger trenching requirements and additional restoration, as well as unforeseen conflicts with communication and electrical duct banks. The Change Order also includes a credit for the use of concrete manholes in lieu of fiberglass and replenishes the Contract�s Contingency Allowance, as detailed below.

Differing Sub-Surface Conditions � $4,680,600.00, 908-Calendar Day Non-Compensable Time Extension
During construction, the Contractor encountered latent sandy soils that were not identified in the Contract Documents. These unstable soils reacted unpredictably to excavation and trenching, which resulted in settlement and lateral movement beyond trench limits, despite shoring installed in compliance with Occupational Safety and Health Administration (OSHA) standards. As a result, the Miami-Dade County Department of Transportation and Public Works (DTPW) required full roadway restoration to ensure structural integrity and long-term performance along both directions of NW 22nd Avenue and applicable side streets. The cost of $4,680,600.00 covers additional roadway preparation, asphalt paving, curb and sidewalk reconstruction, and all associated work required to meet DTPW and Florida Department of Transportation (FDOT) standards. An additional 908 calendar days are required to complete the significantly expanded scope of work resulting from unforeseen subsurface conditions that caused widespread pavement instability.


Contingency Replenishment � $595,409.58
Given the inherent unpredictability of underground utility conditions, replenishing the Contract�s Contingency Allowance in the amount of $595,409.58 will allow WASD to address additional unforeseen issues that may arise during construction, minimize costly disruptions, and avoid potential delays.

Duct Bank Conflicts � $167,731.70, 92-Calendar Day Non-Compensable Time Extension
During construction, the Contractor encountered two communication and electrical duct banks not shown on the Contract Documents, which prevented installation of the gravity sewer main along NW 22nd Avenue. To avoid the conflict, the Engineer of Record (EOR) redesigned and realigned the gravity sewer main. The cost associated with the revised alignment is $167,731.70. To resolve the duct bank conflicts, the Contractor requires 92 calendar days to install the realigned gravity sewer main.

Concrete Manhole Substitution� Contract Savings of $31,925.00
The Contractor requested approval to use standard concrete manholes instead of fiberglass manholes due to manufacturing shortages, delivery delays, and cost increases associated with fiberglass materials. Standard concrete manholes have a shorter lead time and lower unit cost. This substitution results in a cost savings of $31,925.00 that will be applied to this Change Order.

Small Business Enterprise Measures
The Contract was awarded with an eight (8) percent Small Business Enterprise (SBE) � Goods (SBE-Goods) goal and an 18 percent SBE � Construction (SBE-Con) goal. The Prime Contractor, Lanzo Construction Co., Florida (Lanzo), has exceeded the SBE-Goods goal. The SBE-Con goal was to be met through the performance of: (1) poured concrete foundation and structure work, and (2) highway street and bridge construction work. After award, the SBE-Con firms reported they were unable to perform at their original bid prices. As required by the SBE-Con program, the Contractor solicited bids from SBE-Con firms to substitute for the unavailable SBE-Con firms and submitted documentation to the County indicating that it was unable to secure a substitute SBE-Con firm.

Resolution No. R-1001-15 requires County contracts with small business measures to meet at least 85 percent of
the small business measures applicable to the portion of the contract work performed to date before a change order
or contract amendment is considered for Board approval. WASD is recommending the SBE-Con goal be removed from the Project due to the restrictive nature of the Project funding and the fixed budget available. WASD also indicated that the Contractor will be self-performing this portion of the work and that the SBE-Con measure is no longer applicable to this Project. Based on the justifications provided above, the Project is in compliance.

See the SPD memorandum attached hereto as Exhibit C.

Attachments



______________________________________
Roy Coley
Chief Utilities and Regulatory Services Officer