2013-0221 Regular City Commission Meeting

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Summary Minutes:Regular City Commission Meeting February 21,2013 City of Sunny Isles Beach,Florida weeks and he doesn't want to get into a cure period yet. If we do break the agreement with the Contractor, we won't necessarily have a design/build agreement which leads us to additional exposure based on change orders and other unforeseen circumstances that happen when we go to a competitive bid process. Steven Helfman said that the bridge seems to be an issue and it was part of the original agreement. One of the things that became apparent very early on in the process is that there were certain critical aspects of getting that bridge built. Including the fact that certain right- of-way needs to be acquired before the building of the bridge, land where the people are going to get off, the relocation of utilities, air rights agreements, etc. We have no control over that and, while we can come up with the design,we are unable to build the bridge. You don't have the ability to build a bridge and you need to secure for us these various rights. The reason we are not including the bridge is for convenience to try to get to your number but primarily because we don't want to be contractually obligated to build a bridge for you that we know today that we will not be able to deliver. We are not going to be able to build it, and depending on what you do between now and when you pick the next contractor they might not be able to build you a bridge either. The reason we are not including the bridge is because to some extent we wanted to come within your budget,and to a great extent we don't want to contract to do something that we know we can't perform. Vice Mayor Aelion noted that the bridge was in the original contract and your people knew about these same issues you are raising now, those issues were addressed, and you were comfortable in signing that agreement. Mr. Hellman said in their disclosure it says the price of this bridge including the ability to build it is dependent on the acquisition of right-of-way. Vice Mayor Aelion said which our City Attorney made it clear time and time again that that issue would not be a problem, and Mr. Hellman said well, it is a problem. Mr. Hellman said on the issue of cure, he is not sure what is going on here because this concept of cure sounds like you are going to give us a chance to cure what? Mayor Edelcup said that the contract says when we terminate you have 14 days to cure whatever the cause to claim as the termination reason. Mr. Helfman said he thought the termination reason was in the resolution, and so you are demanding if we don't build this project you will put us in default and give us a chance to do it. City Attorney Ottinot said the contract provides the City with the right to terminate and we provide the required notice, your client has a right to cure. We are just following the procedure, and you will receive a formal letter from the City Manager. Mr. Helfman said you need to get the project done, don't wait the 14 days. Commissioner Levin asked if the bid was part of the contract, and Steve Helfman said yes. City Attorney Ottinot said to make it clear, there was an original price of$10.7 Million Dollars, and the Commission added new amenities which included the bridge and the price of the bridge came from the Contractor. The Commission agreed to the price in the contract currently of$2.1 Million Dollars. Steve Helfman said we knew these conditions and we made this City aware of them and they have been persistent since the first day but we are prepared to go forward and have been since July. The only reason this project has slowed down is because since July there have been numerous requests to change the project. You don't need to try to put us in default,we are willing to negotiate a separation agreement and then we are done. We want to see you move forward with this project, if we can't build it for you for the price that you want, get 11