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HomeMy WebLinkAbout2013-0130 Special City Commission Meeting • SUMMARY MINUTES Special City Commission Meeting Wednesday, January 30, 2013, 7:30 p.m. City of Sunny Isles Beach, Florida ATTENTION ALL LOBBYISTS: CITY LAW REQUIRES 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 ORDER/ ROLL CALL OF MEMBERS The meeting was called to order by Mayor Edelcup at 7:30 p.m. with the following officials present: Mayor Norman S. Edelcup . City Manager Christopher J. Russo Vice Mayor Isaac Aelion City Attorney Hans Ottinot Commissioner Jeanette Gatto City Clerk Jane A. Hines, CMC Commissioner Jennifer Levin Deputy City Manager Stan Morris Commissioner George `Bud" Scholl Deputy City Attorney Fernando Amuchastegui 2. PLEDGE OF ALLEGIANCE Action: Mayor Edelcup gave opening remarks. 2A. Request to Hear Items: Additional Information: Item 3A. Status Report on Gateway Park Project; Add-On: Item 4A.Change Order 414 to Agreement with Shoreline Foundation for the Pier. Action: Mayor Edelcup noted the above changes to the agenda. Commissioner Scholl moved and Vice Mayor Aelion seconded a motion to approve the above changes to the agenda. The motion was approved by a voice vote of 5-0 in favor. 3. DISCUSSION ITEMS 3A. Status Report of Gateway Park Parking Garage by City Manager Christopher J.Russo and Building Official Clayton L. Parker. 1. A Resolution of the City Commission of the City of Sunny Isles Beach; Florida, Amending the Design/Build Budget for Gateway Park, Parking Garage and Pedestrian Bridge (The "Project") from a Guaranteed Maximum Price of$16.5 Million to an Amount Not to Exceed $20 Million (Inclusive of All Payments Made to Contractor to Date) to Pay for Additional Costs Associated with the Proposed Redesigned Parking Garage as More Specifically Described in the Detailed List Provided by the City Attached Hereto as Exhibit "A"; Authorizing the City Manager and the City Attorney to Do All Things Necessary to Effectuate this Resolution; Providing for an Effective Date. Action: [City Clerk's Note: A Status Report and Resolution was distributed prior to the meeting.] Mayor Edelcup said the reason we are having this meeting tonight is to move the Gateway Park Project along in order to make sure that we keep the program moving on a timely basis. We had requested a revision of the garage to include the shell space at the lower level of that garage. As a result of that particular request we seemed to have reached 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. 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 Summary Minutes:Special City Commission Meeting January 30,2013 Sunny Isles Beach,Florida Commissioner Scholl said that his point is that if we are going to peg a number, we need to peg it with reasonable certainty, he doesn't want a fight, we have got a relationship, we signed a deal, he would rather salvage the deal with a degree of certainty on the outside number. Vice Mayor Aelion said how can you prevent somebody that comes in the middle of the project and the inspector says wait a minute, you have to do this or that, how do you prevent that? Commissioner Scholl said this is a design-build, that is his point. Mayor Edelcup said there is a guaranteed maximum price period,and the contractor can't go above that, and Commissioner Scholl said the contractor takes on all the risks. We contracted to build the Pier, it is different, it is a different relationship on the contractor's part, as well as Heritage Park, it is a different relationship with the Contractor. And so in that we expose ourselves to these issues that come along the way and again, like all professions,contracting has got their own perspective on how to go about things. He feels that it is in our best interest to move forward under the existing agreement given the issues associated with trying to unravel something like that but at the same time he thinks we need to move forward with certainty on the number. City Attorney Ottinot said like the Mayor indicated, I am at$16.5 Million and that is what the contract requires,and with permission to allow the City Manager to increase the budget, we will obviously have to go back and amend the contract. Mayor Edelcup said what we are trying to do here today is, we know we have a contract for S 16.5 Million for a particular facility that we have now made some changes at our request, and we have estimated that cost to be the difference between$16.5 Million and$20 Million. We need to create a guideline for management to start their negotiations, he hears what Commissioner Scholl is saying and we all want to have a firm number, but we need to have a guideline of where we are going because for $20 Million you can build a certain kind of a facility,and for$30 Million or for$10 Million you can build another kind of facility. But we are trying to target in on yes we want this Buick but we don't want the Chevy and we don't want the Rolls Royce. City Manager Russo said we will contemplate the program as stated in here. Commissioner Scholl said the other issue is he thinks that, and he has a lot of respect for Ed Castineira's ability, those plans have got to be clear because he doesn't want to get shorted, all of a sudden there are elements that get watered down because they were not clear in the plans. We need to be very solid in our acceptance of those plans,you know when you finish the next set Ed,and so we are looking for a high degree of authenticity so that we know what we are getting, because if we think we are getting gold plated railings and they end up made out of lead, etc., and Ed Castineira said no problem. Mayor Edelcup said what is important that Commissioner Scholl just said is the fact that we gave them a laundry list which is part of this exhibit,of all the various things that we wanted to make sure were included, to try to address a lot of those specific things. City Manager Russo said we have done as much detail as we possibly could with them and we will continue to monitor them very closely but that is why it was very important to emphasize in his memo that we are not changing the program, and it is very complete. The laundry list was made an addendum to the Resolution and it is very clear. Mayor Edelcup said we also have to recognize when we finally approve the redesign plans that has to be very specific as possible because once we approve that, there are no more changes. Commissioner Scholl said he is in favor of giving staff the $20 Million maximum and it sounds reasonable, he is 4 Summary Minutes:Special City Commission Meeting January 30.2013 Sunny Isles Beach,Florida sure they are going to negotiate but they have got to realize that the Commission has conviction of that number, and that we have already seen some anomalies but he thinks in the spirit that he would be inclined to make a motion to tell our staff to negotiate that level. Commissioner Levin said she has not been involved from the very beginning but she has been coming to meetings and hearing things, and she remembers hearing a discussion that they were going to do the garage but not the pedestrian bridge and she asked whether the $16.5 Million contract includes the bridge. The Commission said yes. Commissioner Scholl said it was $14 Million before the bridge, and the bridge is about $2.5 Million. City Manager Russo said the only change they did with the bridge since he has been here is we agreed because of the complexity of the permitting for this bridge over the highway that we took it out of the timeframe, because the only deduction to the bridge was the time schedule. Mayor Edelcup said it has a separate timeline. Commissioner Scholl said what we talked about at one point was the construction on top and the bridge, and at that point we scrapped the structure on top but at the time we wanted to keep the bridge. And so that is what rolled the price back a little, we are now back to a structure on the bottom, and so we are kind of back to where we started price wise but we moved the structure from the top to the bottom. Vice Mayor Aelion said right, and with the structure from top to the bottom then we had to change the whole set up of the elevator system. Commissioner Levin asked what had happened to the columns because she was looking at the original contract and there were no columns at that point and then all of a sudden there were drawings of columns. Mayor Edelcup said that is one of the changes that we are expecting, no columns. City Attorney Ottinot said we need a motion to approve the deadline that the Mayor set,and Commissioner Scholl said right,the motion is that we wrap it up by,and Mayor Edelcup said by February 21, 2013 our next Commission Meeting. Commissioner Scholl said then to wrap it up by February 18, 2013. He said the motion would be to empower staff to go back and negotiate a$20 Million maximum price and that we reach an agreement by February 18, 2013 or basically we will then have to take action. City Attorney Ottinot noted that we do have a Resolution and we will amend it to include February 18, 2013 as the outside date for staff to complete the negotiations for an amount not to exceed $20 Million, inclusive of all payments and that includes the design fee. Commissioner Scholl moved and Vice Mayor Aelion seconded a motion to approve the resolution, as amended. Resolution No. 2013-2020 was adopted by a roll-call vote of 5-0 in favor. Vote: Commissioner Gatto yes Commissioner Levin yes Commissioner Scholl yes Vice Mayor Aelion yes Mayor Edelcup yes Eduardo Castineira, Architect President/CEO of Axioma3Architects, thanked the Commission. 5 Summary Minutes:Special City Commission Meeting. January 30,2013 Sunny Isles Beach,Florida 4. RESOLUTIONS 4A. Add-On: A Resolution of the City Commission of the City of Sunny Isles Beach, Florida, Approving Change Order No. 14 to Agreement with Shoreline Foundation, Inc. for the Newport Fishing Pier Demolition and Construction Project, in an Amount Not to Exceed $38,102.08; Authorizing the City Manager to Do All Things Necessary to Effectuate this Resolution; Providing for an Effective Date. Action: [City Clerk's Note: Item was distributed prior to the meeting.] City Clerk Hines read the title, and City Manager Russo reported that we had done a change order to paint the Pier because we didn't want there to be a color on it just cement. In his concern about going over budget, he thought we could get away without painting the piles themselves. The change order for $134,000 plus that we approved some time ago was to paint the pile caps which is the rectangular piece on top;and then the entire Pier itself with what is called suede. It looks tan and brown that is on it now, and it looks great, the top coat is not on yet. In spending time looking at this and going out there, even at high tide there is just too much of the white piles exposed and he remembers back then the number was like $60,000 to paint them but through the efforts of Assistant City Manager Bill Evans we were able to negotiate that price down to$38,000, and if we moved on it quickly because where we were at it didn't effect the time schedule, it wouldn't delay it at all. Public Speakers: None Commissioner Scholl moved and Vice Mayor Aelion seconded a motion to approve the resolution. Resolution No. 2013-2021 was adopted by a voice vote of 5-0 in favor. 5. ADJOURNMENT Mayor Edelcup adjourned the meeting at 8:10 p.m. Respectfully submitted by: Approved by the City Commission on Feb. 21, 2013 :4, " Jane A. Hines, CMC. City Clerk N tan S. Edelcup, Mayor ' 6 Preview Page 1 of I so""Y'rie City of Sunny Isles Beach A 18070 Collins Avenue 1 = Sunny Isles Beach, Florida 33160 aP yy' (305)947-0606 City Hall "f?' o. sus "`� (305)949-3113 Fax MEMORANDUM TO: The Honorable Mayor and City Commission FROM: Jane A. Hines, CMC, City Clerk DATE: 2/21/2013 RE: Summary Minutes for the January 30, 2013 City Commission Meeting RECOMMENDATION: Attached for your consideration are the Summary Minutes for the January 30, 2013 Special City Commission Meeting. REASONS: N/A ATTACHMENTS: Summary Minutes http://sibagenda.sibfl.net/Agenda/Preview.aspx?1temlD=969&Meetingl D=0&MeetingDate... 2/11/2013