North Miami council increases Cagney Park Phase 1 contingency to 10% after lengthy debate

The North Miami City Council voted 5-0 to raise the contingency for the Cagney Park North Phase 1 project from 5% to 10%, authorizing an additional amount not to exceed $767,846 to ensure the city can address time-sensitive change orders required for construction.

Council members and city staff told the council the request grew out of differences between the contractor’s bid documents and the final permitted construction plans. City staff said those permit-driven changes and other time-sensitive adjustments risked project delays and additional costs if the contingency were not increased.

City Manager Teresa Turellas and project staff said the city originally budgeted roughly $17.5 million for Phase 1. Staff explained that the contractor bid against design documents that were not yet fully permitted; when plans were finalized the scope and some construction details changed, producing expected change orders. “The reason why we’re asking for the 10% is because most of the change orders are time sensitive, meaning that if we don’t do it, there could be a penalty for the day or it could delay the project,” the manager said.

Council members pressed staff for more detail on the origin and types of change orders, where contingency funds would come from and whether the increase was likely to be the project’s final exposure. Councilman Pierre Franz Charles asked whether contingency overruns were budgeted; staff said the additional money was not originally budgeted but that the city’s capital plan had set aside funds. Council members asked staff to return with a clear accounting of change-order categories and amounts as they are negotiated.

Several members expressed frustration that permitting and design sequencing had led to unexpected costs. “We need to stop,” Mayor Alix Desoumet said, adding he wanted staff to confirm whether design-permit sequencing decisions had been adequately disclosed earlier in the project timeline. Councilwoman Mary Estime Irvin, whose district contains the park, urged moving forward because residents have waited years for the project. Staff said they had negotiated credits in prior change orders and that not all change orders increase cost — some have produced credits to the city.

The motion to approve the contingency increase was made, seconded and carried 5-0. Council members and staff agreed to provide a follow-up report showing a line‑by‑line update of change orders, the reasons they arose (site conditions, design changes, or contractor claims), and the remaining contingency balance.

Council members stressed Phase 1 will deliver tangible amenities to the community even as they seek greater fiscal transparency on future phases and total program costs.