2013-0130 Special City Commission Meeting

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Summary Minutes.Special City Commission Meeting January 30,2013 Sunny Isles Beach,Florida City Manager Russo noted that we did do research because of similarities with the Heritage Park numbers, we spent close to $15.6 Million on Heritage Park and Parking Garage. Public Speakers: Eduardo Castineira, Architect Mayor Edelcup said in looking at the information supplied to you by Nina Gladstone, she indicated the $826,000 number for the design fee is from $450,000 to $460,000 than what has been submitted by our Contractor, that is one point. The second point is in the detailed information she supplied where she basically gave an estimate of the garage costing $7.5 Million and that is on page 1 of the attachment from the State of Florida, Department of Management Services,that is where she is indicating how she is calculating her fees but she also gave us a calculation of an approximation for the build-out of shell space for $2.4 Million. Staff recommended the $20 Million number and he looked at that as being somewhat reasonable because if you took the$16.5 Million number that we currently have, add on the$826,000 number that she is suggesting for redesign fees and the$2.4 Million for the final build-out, you come to a number that is under$20 Million. It comes to about$19.7 Million and so they are rounding it off which seems to be a reasonable request from staff to amend the budget. He would be in favor of going along with staff's recommendation to change the budget number to include the shell build-out and the redesign, in a maximum number not to exceed$20 Million. He also hopes that we can instruct staff to continue their negotiations with the Contractor but to set a deadline for our February meeting of February 21,2013. At that time we would expect the negotiations would be completed and we would have a confirmation of the numbers for the redesign and the complete build-out of the project so that we would be in a position at our February 21, 2013 meeting to move forward and to keep this project somewhat on track. Commissioner Aelion said if by February we come to an impasse,and Mayor Edelcup said if we were at an impasse he thinks the Commission has a right to see whatever other alternatives would be available to ourselves to keep the project moving forward. Hopefully there is not an impasse so that we can move forward, if not the contract does have targets in there that can be called upon to make us move forward. Commissioner Scholl said the contract contemplated the Guaranteed Maximum Price ("GMP") contract, and so basically we would take Architect Ed Castineira's plans and they have got to build Ed's plans whatever number that we decide upon. This is a design-build project and so we really don't have the exposure of change orders like we would have for the Pier for instance. City Attorney Ottinot said only if we change our minds and modify the plans. Commissioner Scholl said right, if we change our minds than we have exposure but arguably if we take Ed's plans and we say we want you to build according to plan than we would arguably not have a cause for a change order. City Attorney Ottinot said that is what the contract provides. Commissioner Scholl asked if there is any language in the contract that would give the Contractor a mechanism for additional payment other than us changing our mind, and City Attorney Ottinot said no, basically any additional payment must go to a change order and the City must sign off on it. Mayor Edelcup said any change order would come from us. Commissioner Scholl said there is a big difference between this kind of project and the other kind of projects that we have done in the past and it is a good thing. 3