Loading...
HomeMy WebLinkAbout2002 0404 Special City Commission Meeting SUMMARY MINUTES Special City Commission Meeting Thursday, April 4, 2002, 7:30 p.m. CITY OF SUNNY ISLES BEACH, FLORIDA A TTENTION ALL LOBBYISTS: CITY LAW REOUIRES YOUR REGISTRATION PRIOR TO ENGAGING IN LOBBYING ACTIVITIES BEFORE CITY STAFF, BOARDS, COMMITTEES OR THE CITY COMMISSION. PLEASE CONTACT THE CITY CLERK FOR FORMS AND ADDITIONAL INFORMATION. AGENDA 1. CALL TO ORDERlROLL CALL OF MEMBERS The meeting was called to order by Mayor Samson at 7 :31 p.m., with the following officials present: Mayor David Samson Vice Mayor Danny Iglesias Commissioner Norman S. Edelcup Commissioner Gerry Goodman Commissioner Lila Kauffman City Manager Christopher J. Russo City Attorney Lynn M. Dannheisser City Clerk Richard Brown-Morilla 2. PLEDGE OF ALLEGIANCE AND INVOCATION Action: Mayor Samson called upon Richard Schulman who then led the Pledge of Allegiance to the flag. 3. RESOLUTIONS 3A. A Resolution of the City Commission of the City of Sunny Isles Beach, Florida, Approving the Proposed Construction Agreement between Owner-Contractor on a Cost of the Work Plus a Fee with the Negotiated Guaranteed Maximum Price by and between the City of Sunny Isles Beach and The Weitz Company, L.L.c., Approving a Construction Budget and Granting the City Manager the Authority to Increase the Budget as Necessary in an Amount Not to Exceed Ten Percent (10%) Over the Proposed Budget Contained Within the Construction Agreement; Authorizing the City Manager and City Attorney to Undertake All Things Necessary to Effectuate the Agreement; Providing an Effective Date. (Scheduled on 3/19/02) Action: City Clerk Brown-Morilla read the title and City Manager Russo reported. Public Speakers: none Special City Commission Meeting Summary Minutes April 4, 2002 City of Sunny Isles Beach, Florida Commissioner Kauffman moved and Commissioner Edelcup seconded a motion to approve the resolution [for discussion purposes]. City Manager Russo suggested that if there were questions from the Commission, that the contract be reviewed page by page. Commissioner Edelcup noted that on page 3 regarding the preconstruction fee, we need to clarify if the start date is March 15,2002 or current date, and City Manager Russo confirmed we were using March 15, since they had begun work. Commissioner Edelcup noted that terms for completion and final date needed to be completed on page 4 of the contract. Mayor Samson asked when we would be able to move into City Hall and Len Martling, President of the Weitz Company, said it would take about six (6) months to build the Tony Roma Restaurant Building and then 12 to 14 months from start of construction for the City Hall and parking garage. If we begin in October, we could meet the goal of completion by the middle of 2004. City Attorney Dannheisser said the terms were 806 days for completion, with completion no later than December 30,2004. Commissioner Edelcup said that terms for "price" in Section 5.2.1 must be filled-in and City Attorney Dannheisser said that it is now filled-in to be $10 million. Commissioner Edelcup also noted that terms for "warranty reserve" in Section 5.2.5 needed to be filled-in, and City Attorney Dannheisser said the paragraph is out. Commissioner Edelcup noted that Section 6.1 and 6.2 make reference to an "AlA document," which is not included in the packet. City Manager Russo said that it is within the "General Terms and Conditions," which would be provided. Commissioner Edelcup noted that in Section 7.2.2, there are additional costs that the City pays for: supervision, engineering, etc., and there are dollar amounts delineated. He asked if there is any dollar cap. City Manager Russo said that all the charges that are incurred under Article 7 are part of the guaranteed maximum price. Vice Mayor Iglesias asked the price per square foot. City Manager Russo stated that they are estimating around $170. Vice Mayor Iglesias asked if there would be a front-end pricing and Mr. Martling replied yes. Vice Mayor Iglesias asked the City Manager to provide him with copies of the detail reports from the contractor for his review, when they are submitted. Commissioner Goodman asked about sharing of savings, and Martling explained. Mayor Samson asked who would be purchasing the materials, and Mr. Martling reported that they would, but the Mayor noted there could be significant savings by not having to pay sales tax if the City made the purchases. Mr. Martling said that it was addressed in one of the forms as an exhibit. City Manager Russo explained that the City would be purchasing the materials. Mr. Martling clarified that they would make the arrangements to buy the materials, but the City would write the checks for payment, which would be consistent with State law. Commissioner Edelcup said that he had asked City Manager Russo to look into the labor burden of 45% across the board, in Section 7.2.4, which seemed high. The City Manager said they eliminated it and put what it actually is for their benefits (Workers Compensation Insurance, unemployment, etc.). 2 Special City Commission Meeting Summary Minutes April 4, 2002 City of Sunny Isles Beach, Florida Commissioner Edelcup said that Section 7.5.4 needs some words of "reasonableness", and City Manager Russo said that it would be put in. Commissioner Edelcup said that in Section 7.6.1 there is another "TBD" under miscellaneous costs. The City Manager said that they are going to change that whole section to say "reimbursed at the prevailing industry rate." City Attorney Dannheisser said that the Workers Comp, etc., would be reimbursed at the prevailing rate, and then the cost of the Contractor's subguard insurance would also be reimbursed at the prevailing industry rate, and that is the bond basically. Commissioner Edelcup asked for clarification regarding Section 7.6.8 where we are being asked to perhaps pay for some legal mediation or arbitration costs and Mr. Martling explained. City Attorney Dannheisser said that this is all within Article 7, which is part of the GMP. Commissioner Edelcup asked if the retainage of 10%, on page 10, was on everything (materials, labor, overhead, etc.). He said that could amount to 10% of the $10 Million. Mr. Martling explained that the only thing that the 10% is not on, is their general condition costs which they expend monthly. Mayor Samson asked if all of these clarifications were being written down. City Attorney Dannheisser said she has it all written, and City Manager Russo said the document the Commission would receive will be ready for the next meeting. Commissioner Edelcup asked about the bonus for completion. City Manager Russo said he put in the General Conditions a section which will read as follows: The Contractor acknowledges that failure to complete the project within the construction time set forth in the approved schedule may result in substantial damages to the Owner, for all of which damages the Contractor shall be liable within Contractor's scope of responsibilities. He said this language gives the City a 10% retainage, a deadline, and a provision for damages. He suggested that the Contractor wants to get in and get out of this project. There is no bonus, only penalty and Contractors liability. Commissioner Edelcup suggested to raise the liability to $5 million. Vice Mayor Iglesias asked what stage the plans were in, and City Manager Russo said City staff had reviewed the proposed space allotments, and there is a schematic drawing that the Commissioners could review after the meeting. Vice Mayor Iglesias asked if environmental studies had been done to test the site for any contamination. City Manager Russo said yes, and there was minimal contamination; and the geo-technical test is being done now. Commissioner Goodman asked when will the construction of Tony Roma Restaurant begin and Mr. Martling responded that October 15, 2002 is the target date. Mr. Martling again said that it would take about 6 months to complete construction of the restaurant building. Commissioner Edelcup asked that the City obtain a guarantee that Roma would rapidly complete their build-out so the new City Hall construction could begin. City Manager Russo said there would be a guarantee for Roma to sign. 3 Special City Commission Meeting Summary Minutes April 4, 2002 City of Sunny Isles Beach, Florida Commissioner Kauffman withdrew her original motion, and no further action was taken on this agenda item; however a revised agreement will be presented to the City Commission for consideration with the changes on April 18, 2002. [City Clerk's note: see related add-on item 3B below.) 3B. Add-on: Alternate Resolution: A Resolution of the City Commission of the City of Sunny Isles Beach, Florida, Authorizing the City Manager to Pay the Weitz Company LLC ("Contractor") a Contractor's Fee for *Preconstruction Services During the Preconstruction Phase of the Development of the City Government Center Located at 18050 Collins Avenue, in an Amount Not to Exceed $12,500.00 *per month from no longer than March 15,2002 through October 15, 2002 excluding any delays outside the control of the Contractor, to be Billed on a Monthly Basis and Pending Approval of a Construction Budget and Standard Form of Agreement between Owner and Contractor for a Negotiated Guaranteed Maximum Price; Providing an Effective Date [City Clerk's note: the alternate resolution was distributed at the start of the meeting. *During the meeting the City Attorney read revisions to the Resolution title.] Action: City Clerk Brown-Morilla read the title and City Manager Russo reported. Public Speakers: none Mayor Samson passed the gavel and moved and Commissioner Edelcup seconded a motion to approve the alternative resolution 3B as written with the understanding that $12,500.00 be corrected and that it is on a monthly basis for a maximum of 7 months for the construction of the Roma restaurant, and with all of the modified terms that were discussed during the meeting to be included in the Weitz contract on the April 18, 2002 City Commission meeting agenda. City Attorney Dannheisser read corrections to the title. Resolution No. 2002-432 was adopted by a voice vote of 5-0 in favor. 3C. Add-on: Discussion item regarding the concept of possible roadway changes to Sunny Isles Boulevard. Action: Vice Mayor Iglesias raised the issue of doing roadway changes to Sunny Isles Boulevard. He noted that the decisions would ultimately be up to Florida Department of Transportation (FDOT), but he encouraged the City Commission to hear a presentation from him on the issues. Commissioner Edelcup suggested that perhaps the City should issue a Request for Proposals (RFP) for the redevelopment of Sunny Isles Boulevard. City Manager Russo said developers had commented to him that to formally respond to an RFP is very expensive and there is no guarantee of getting the award. He said that Arvida recently asserted that they might never respond to a government RFP again due to the expense. He detailed three options: 1.) issue an RFP (which is also expensive for the City), 2.) the City can commit to a road re- configuration, and/or 3.) the Commission can hold workshops and see if any desirable 4 Special City Commission Meeting Summary Minutes April 4, 2002 City of Sunny Isles Beach, Florida proposals might come forward. City Attorney Dannheisser noted that a developer would have at least $100,000 in legal fees to prepare for an RFP. Vice Mayor Iglesias asked why a developer would be willing to disclose their creative ideas in a public forum. Mayor Samson expressed his concern that only the south side of the Boulevard would be developed. Vice Mayor Iglesias said the ultimate, best thing would be to move the bridge, but that would cost the City $20 million. He suggested leaving the roadway as it is, but he proposed reducing each lane-width by one foot (basically by re-striping). He said that by doing this, the City could take the 12-feet and the one-foot from each area, plus the three feet from the outermost lane, resulting in an additional 18-feet; and this would cost about $1 million. Commissioner Edelcup commented that the proposal would solve land needs for the south side of the boulevard, but not the north side. City Manager Russo said the Siemon report said it would cost approximately $32 Million to condemn the land, plus $6 million to move the road, to get approximately 15 acres, with less than that useable. Vice Mayor Iglesias suggested asking FDOT to bless his proposal. Mayor Samson asked if the City could get FDOT's approval, but still leave the Boulevard as it is. Vice Mayor Iglesias noted that perhaps FDOT would say they didn't need every lane, plus they have roadway re-surfacing funds that could possibly be used towards the expense. Mayor Samson noted that FDOT refused to allow lane narrowing on Collins A venue; but Vice Mayor Iglesias said that the east-bound roadway was a service road and so FDOT wouldn't have the same objection. Vice Mayor Iglesias said his proposal could be done for $1 million, and there was $650,000 funding available for re-surfacing. Commissioner Kauffman asked if we could negotiate with FDOT. Mayor Samson suggested that this was not the right time to move on this issue, saying the City needed to have some of the buildings finished on the east side of Collins A venue for the increase to the tax base, before moving forward on additional expenses. Mayor Samson noted that after the LDR' s are approved, a developer might do their own project that might not be consistent with the City's goal. Commissioner Edelcup suggested that once the land was beautified, each landowner would build their own project. Mayor Samson expressed concern about the north side and said he didn't want to see an existing business be driven- out. 3D. Add-on: Report From City Attorney Lynn Dannheisser. City Attorney Dannheisser reported that she spoke with Mr. Katz, an attorneylresident of Oceania ill, who threatened to sue the City to block the Five Seas project (Newport, La Perla), and also threatened to start a recall against the Mayor and Commissioners. She suggested that the Commission hear from their constituents, especially since it seemed that the residents might be mistaken about many facts. After discussion, Mayor Samson said he would call for a neighborhood town hall meeting in one of the Oceania buildings, in one of the Arlen Houses, and also in the north side of the City. City Attorney Dannheisser said she would arrange for an informal town hall 5 Special City Commission Meeting Summary Minutes April 4, 2002 City of Sunny Isles Beach, Florida meeting with the residents in one of the Oceania buildings, with 4/15 or 4/16 as possible dates. [City Clerk's Note: subsequently an informal town meeting was scheduled for Tuesday, April 16, 2002 in Oceania III.] 3E. Add-On: Discussion: Celebration of the City's Anniversary Action: Mayor Samson asked the Commissioners and Charter Officers if they had a preference for a City Anniversary Celebration: a black-tie gala or a big party in the park. The consensus was for a party in the park to celebrate the City's anniversary on June 16, 1997. 4. ADJOURNMENT Commissioner Goodman moved and Commissioner Edelcup seconded a motion to adjourn the meeting. The motion was adopted by a voice vote of 5-0 in favor and the meeting was adjourned at 9:18 p.m. Re~pectfuily~submitted by: .'t' .... . . Approved b t e City Commission on April 18, 2002 J ) ,-, . " .' . . ~~l~~lAA. Richard Brown-Monlla, City Clerk , ':-- 6