2013-0130 Special City Commission Meeting

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Summary Minutes:Special City Commission Meeting January 30,2013 Sunny Isles Beach,Florida somewhat of a disagreement as to the cost of the new redesign fee that has been proposed to move forward on that garage. In addition we do not have the cost being given to us for the entire build-out of the Project and then to even more complicate this we really need to go back and revise the budget to include the fact that we are now building this shell space at the base of the garage and to reevaluate the dollar amount that we had budgeted before at$16.5 Million to a higher number to include the shell space that is being included. We need to get all this information together and hopefully before we meet again at our February Commission Meeting [February 21, 2013] to keep everything on track. We need to get all this information so that we can evaluate as Commissioners of what is being proposed to us and what cost is being proposed to us. Because we do have a duty to spend our tax dollars wisely and we really can't move forward unless we know with some sort of a certainty as to how much money this whole project is going to cost rather than to walk into a project without having all the facts before us, and then be faced with an unknown cost that could possibly escalate in the future. He thinks the time now is to stand back for a minute or two, get all the facts,and come to a more proper conclusion. He is hoping tonight that we can at least get the budget process going to where we can basically give staff the latitude of knowing how far they can negotiate when they are talking to the Contractor. City Clerk Hines read the title, and City Manager Russo reported noting that he did ask 4M Investors. LLC(the"Contractor")to redesign the parking garage including as the Mayor said, the multi-purpose shell on the first floor which was a substantial change to add that shell to be built into it. We received a letter which was forwarded on to the Commission dated January 16. 2013 from the Contractor submitting a redesign fee in the amount of $1,290,000.00 to redesign the parking garage structure with the shell. The Contractor stated the design plans submitted thus far to the City cannot be used for the redesign project even though the City had paid the Contractor for those plans already. After some deliberations and discussions internally we decided to contact Architect Nina Gladstone who had worked on this from the former design group of Spillis. Candela and Partners,which is now AECOM Design, who had designed both the Government Center and the Heritage Park Garage, to provide a review of the original proposal. That review was based on a request and that letter was included also dated January 25,2013 requesting her firm do a review of the contract cost proposal in the context of the design-build project. Based upon her review of the proposal their opinion was that the drawings can be used except for the drawings related to the parking garage and surrounding area issues. She stated that the modifications to the parking garage will have little affect on the drawings of the Park and will be mostly coordinating entrances and site re-grading. Their number which is also broken down in her response for the new design of the parking garage and the shell space was slightly over $826,000. considerably less than the price submitted by the Contractor. Initially the City Commission's opinion was that the City should obtain a total cost, you can't take the design cost without taking it in conjunction with the entire construction cost. As the Mayor just mentioned, it is a design- build project which requires us to have both those numbers before we can move forward. That brings us up to the point where we are now, staff cannot go forward without having our bottom line. We need to know what is the maximum total budget for the program that the Commission wants. Our recommendation is that we stick with the specified program that the Commission already directed us to do for a maximum budget price. The Resolution is suggesting $20 Million maximum total cost inclusive of all expenses thus far, and that is what we have worked from.