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HomeMy WebLinkAboutReso 2013-2036 • RESOLUTION NO. 2013- 203/ A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, APPROVING THE THIRD AMENDMENT TO DESIGN-BUILD AGREEMENT BETWEEN THE CITY OF SUNNY ISLES BEACH AND 4M INVESTORS, LLC., ("CONTRACTOR") IN SUBSTANTIALLY THE SAME FORM ATTACHED HERETO AS EXHIBIT "A"; PROVIDING FOR 15 DAYS ACCEPTANCE PERIOD FOR CONTRACTOR TO ACCEPT THIRD AMENDMENT; AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT; AUTHORIZING THE CITY MANAGER AND CITY ATTORNEY TO DO ALL THINGS NECESSARY TO EFFECTUATE THIS RESOLUTION; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Sunny Isles Beach is the owner of certain real property consisting of approximately 3.7 acres on Sunny Isles Boulevard; and WHEREAS, on July 21, 2011, via Resolution No. 2011-1735, the City Commission entered into an Agreement with 4M Investors, LLC for certain parcels of real property located in the City which the City owns and upon which it intends to have constructed site improvements consisting of a Park and Parking Garage for Gateway Park located in the City of Sunny Isles Beach; and WHEREAS, Section 2.3 of the Agreement allows the Parties to amend the Contract Documents by written amendment; and WHEREAS, the City and Contractor agreed to enter into this Third Amendment to the Agreement. NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS: Section 1. Approval of Third Amendment to the Design-Build Agreement. The Third Amendment to Design Build Agreement between the of City of Sunny Isles Beach and 4M Investors; LLC for a Park and Parking Garage in Gateway Park in substantially the same form attached hereto as Exhibit "A" is hereby approved. Section 2. Acceptance Period. The City Commission provides the Contractor with a 15 day acceptance period to accept the terms of the Third Amendment. The 15 day acceptance period ends 15 days from adoption of this Resolution. Section 3. Authorization of Mayor. The Mayor is hereby authorized to execute said Third Amendment to Agreement. Section 4. Authorization of the City Manager and City Attorney. The City Manager and the City Attorney are hereby authorized to do all things necessary to effectuate the intent of this Resolution. Section 5. Effective Date. This Resolution shall become effective upon adoption. Approving The Third Amend To Design Build Agmt Page I of 2 PASSED AND ADOPTED this 21st day of March 2013. N an S. Edelcup'Mayor ATTEST: Jane A. Hines. CMG, City Clerk rj q - 'V APPROVE I AS TO FORM A D D Ad S„� FICIENCY: �l H.Erittinot, City Attorney Moved by: Vick 1► \Q.t l or Pt l oa Seconded by: cprnhY∎0 :0-Cf∎oA ENO LL Vote: CO Mayor Edelcup t/ (Yes) (No) Vice Mayor Aelion V (Yes) (No) Commissioner Gatto ✓(Yes) (No) Commissioner Levin r/f,Yes) (No) Commissioner Scholl V(Yes) (No) Approving The Third Amend.To Design Build Agmt Page 2 of 2 THIRD AMENDMENT TO DESIGN-BUILD AGREEMENT BETWEEN THE CITY OF SUNNY ISLES BEACH AND 4M INVESTORS, LLC THIS THIRD AMENDMENT ("Amendment") is made as of this of 2013 and shall be effective as of the Effective Date (as defined herein) by and among THE CITY OF SUNNY ISLES BEACH, FLORIDA (hereinafter "CITY") and 4M INVESTORS LLC (hereinafter"CONTRACTOR"), hereinafter collectively referred to as Party or Parties. WITNESSETH WHEREAS, the CITY and CONTRACTOR are parties to Design-Build Agreement ("Agreement") executed on July 21, 2011, a full and complete copy of which is attached hereto and incorporated herein as Exhibit "A"; and WHEREAS, Section 2.3 of the Agreement allows the Parties to amend the Contract Documents by written amendment; and WHEREAS_. the CITY and CONTRACTOR desire to execute a written amendment to the Agreement; and NOW, THEREFORE, in consideration of the terms and conditions contained herein and for other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. The above-referenced recitals are true and correct and are incorporated herein. 2. All other terms of a particular provision in the Agreement not otherwise expressly modified herein shall remain in full force and affect. 3. Project Definition. Sections 1.8, 1.17, and 1.20 of the Agreement are amended to reflect the term "Project" or "Work" includes a (a) 374 space Parking Garage Building with approximately a sixteen thousand (16000) square feet multi-purpose shell on the first floor of the Parking Garage; (b) Park; (c) Performance Stage; and (d) Pedestrian Bridge connecting the north side of the Park to the north side of 826 West (subject to obtaining all necessary approvals set forth in Section 5 below). The Project is generally described in the schematic proposal attached hereto as Exhibit"B" and the Shopping List provided by the City which is attached hereto as Exhibit"C". 4. Revised GMP. This Paragraph amends Sections 1.13, and 5.1, of the Agreement. Except for the construction costs for the Pedestrian Bridge, the revised Guaranteed Maximum Price (`'GMP") for this Project shall be Eighteen Million Eight Hundred Six Thousand Four Hundred Eighty Four Dollars Seventy Cents ($18,806,484.70). This GMP shall include design fees and costs associated with the construction of the following: (a) the 374 space Parking Garage Building with the multi-purpose shell; (b) Park; and (c) Performance Stage. This GMP shall also include design costs for the Pedestrian Bridge. The construction costs of the Pedestrian Bridge shall be governed by Section 6 below. The GMP prior to this Amendment was Sixteen Million Five Hundred Thousand Dollars ($16,500,000.00). (a) This Paragraph amends Section 5.1.2 of the Agreement. The CITY shall receive a credit against the revised GMP in the amount of One Million Three Hundred Sixty Six Thousand Four Hundred Eighty Four Dollars and Seventy Cents ($1,366,484.70) for payments made for pay applications submitted for design services. As of the result of the credit, the revised GMP shall be reduced to Seventeen Million Four Hundred Forty Thousand Dollars ($17,440,000.00). The CITY agrees to provide the CONTRACTOR a remaining balance payment of Seventy Nine Thousand Three Hundred Thirty Five Dollars and Thirty Cents ($79,335.30) to complete the design plans for the Pedestrian Bridge based on applications for payment submitted to the City. The sum total of One Million Two Hundred Seventy Nine Thousand Three Hundred Thirty Five Dollars and Thirty Cents (51,279,335.30) shall be attributed to the design phase of the Project. Ownership in the signed and sealed 100% "Issued for Construction" set of Plans and Specifications shall vest in the CITY once a permit is issued to commence construction. (b) This Paragraph deletes the text of Section 5.1.3 of the Agreement in its entirety. Section 5.1.3 relates to the selection of a restaurant operator by the Contractor. This is no longer a requirement of the Agreement. 5. Design of Pedestrian Bridge and Required Approvals. The CONTRACTOR agrees to provide the CITY within five (5) days after this Third Amendment is executed by both Parties a written list of those items it claims it needs from the CITY in order to finish the design of the Pedestrian Bridge. The CITY agrees to provide the CONTRACTOR the information requested (to the extent the information is available and within the care, custody or control of the CITY) no later than thirty (30) days of the request in order to assist the CONTRACTOR's Architect with completing the design of the Pedestrian Bridge. The CONTRACTOR agrees and understands that a complete set of design plans for the Pedestrian Bridge are necessary for the CITY to secure approvals ("Approvals") from Florida Power & Light ("FPL"), the Florida Department of Transportation ("FDOT") and the Plaza of Americas. The CITY agrees to secure the Approvals within ninety (90)days from the date that construction commences on the Parking Garage Building and the Park or by January I, 2014, whichever occurs first. If the CITY fails to secure the Approvals within the time prescribed, then the CONTRACTOR shall donate to the CITY One Hundred Thousand Dollars ($100,000.00) to be used by the CITY to pay another contractor to construct the Pedestrian Bridge. If for whatever reason, the CITY fails to secure the Approvals and the Pedestrian Bridge must be built by another contractor, the CITY shall not be liable to the CONTRACTOR for any direct, indirect, special and/or consequential losses or damages whether arising in agreement, warranty, tort (including negligence) strict liability or any other cause of action at law or inequity, including but not limited to losses of use, profits, business, reputation or financing associated with the Pedestrian Bridge or this Project in any way. If the CITY is required to secure the services of another contractor to construct the Pedestrian Bridge, then the CITY shall be entitled to use the design plans prepared by the CON FRACTOR without any additional costs. 6. Construction of Pedestrian Bridge. The CONTRACTOR agrees to construct the Pedestrian Bridge at cost plus ten percent (10%) of overhead. Pursuant to the Second Amendment to the Agreement the total cost attributed to the Pedestrian Bridge by the CONTRACTOR was One Million Nine Hundred and Seven Thousand Four Hundred Nine Dollars and Eighty Four Cents (51.907,409.84). This cost figure included overhead and profit. As such, the parties agree to amend the revised GMP to include a new price for the Pedestrian Bridge upon the securing of the Approvals listed in Section 5 above. 7. Contract Time. Section 4.1 of the Agreement shall be amended to extend the Contract Time. Time is of the essence. The CONTRACTOR agrees to complete the design and construction of the entire Project no later than Three Hundred Sixty Five (365) days from the date of issuance of a building permit for the Project, exclusive of the construction of the Pedestrian Bridge. The CONTRACTOR agrees to apply for a building permit for the Project, except for the Pedestrian Bridge, with the Building Department of the City of Sunny Isles Beach no later than October 1, 2013. The CITY shall issue a Notice to Proceed for the construction of the Project, except for the Pedestrian Bridge, upon the issuance of a building permit or no later than sixty (60) days from the date of filing an application for building permit for the Project, whichever occurs first. 8. Payment and Performance Bonds. Except for amendments herein, Article 10 shall remain in full force and effect and nothing herein in this Amendment shall be deemed to modify or change the duties and responsibilities of the CONTRACTOR as it relates to securing a payment bond and performance bond. Each bond must be for the full cost of the Project, excluding the design costs, as required under Section 10.1.2. The performance bond includes the performance of the CONTRACTOR with respect to the design of the plans as well as the subsequent construction of the Project. This is a design build Project and has been since its inception when the CONTRACTOR signed the Agreement on July 21, 2011. The CITY does not waive and has not waived the CON I RACTOR's obligations to secure these necessary bonds. The payment bond is likewise necessary for the design professionals who are performing services for the CONTRACTOR on a subcontract basis as well as the subcontractors, material men, and other laborers who perform services for the CONTRACTOR during the construction of the Project. Section 10.1 of the Agreement requires the CONTRACTOR to secure these two bonds within fifteen (15) days after the issuance of the Notice to Award which in this instance was in 2011, but in any event prior to commencing the work on the Project which includes the design phase of the Project. Section 10.1 of the Agreement is amended to require the CONTRACTOR to submit payment and performance bonds, each in the amount of Sixteen Million Two Hundred Forty Thousand Dollars (S16,240,000.000), upon the request of the CITY within five (5) days of issuance of the building permit for the Project, exclusive of the Pedestrian Bridge. A separate performance and payment bond shall be required for the Pedestrian Bridge. The CITY reserves all of its rights under Article 10 to demand that the CONTRACTOR execute and furnish to the CITY a performance and payment bond in a form acceptable to the CITY at any time. (a) This Paragraph amends Section 10.2 of the Agreement. Payment and performance bonds shall continue in effect for one (1) year after final payment becomes due except as otherwise provided by law or regulation or by the Contract Documents with the final sum of said bonds reduced after final payment to an amount equal to fifteen percent (15%) of the Guaranteed Maximum Price: 9. Site Investigation. Section 13.8 of the Agreement is deleted in its entirety and replaced with the following: 3 CONTRACTOR understands and agrees that any information provided to it by the CITY, at any time, as to any aspect of the Project is not guaranteed. The CONTRACTOR acknowledges that it has satisfied itself as to the nature and location of the Work, the general and local conditions, particularly those bearing upon availability of transportation, disposal, handling and storage of materials, availability of labor, water, electric power, and roads, the conformation and conditions at the ground and all other matters which in any way affect the Work or the Guaranteed Maximum Price. The CONTRACTOR further acknowledges that it has satisfied itself as to the character, quality, and quantity of surface and subsurface materials to be encountered from evaluating information included in the Contract Documents. Any failure by the CONTRACTOR to acquaint itself with all the provided information will not relieve CONTRACTOR from responsibility for properly estimating the difficulty or cost thereof under the Contract Documents. 10. Construction Hours. The CITY agrees to allow the CONTRACTOR to work on Saturdays, if required. 11. Obligations. The Parties expressly agree that the CONTRACTOR shall not be released from any and all duties, obligations and/or liabilities arising under or related to the Agreement. 12. Conflict of Law. This Assignment shall be governed by and construed in accordance with the laws of the State of Florida; without giving effect to the conflicts of law or choice of law provisions thereof. 13. Signature. The Parties agree that a facsimile signature may substitute for and have the same legal effect as the original signature. 14. Amendment. This Amendment shall be deemed fully executed on the date that the last Party signs it. SIGNATURES ON NEXT PAGE 4 IN WITNESS WHEREOF, CITY and CONTRACTOR agree to the above terms. ATTEST: CITY OF SUNNY ISLES BEACH, FLORIDA Jane A. Hines, CMC, City Clerk Norman S. Edelcup, Mayor APPROVED AS TO FORM: Hans Ottinot, City Attorney 4M Investors, LLC, a Florida limited liability company ("CONTRACTOR") Jose Milton Print Title 4M INVESTORS Signed and dated this day of , 2013. STATE OF FLORIDA ) COUNTY OF MIAMI-DADE ) The foregoing instrument was acknowledged before me this day of , 2013, by who is personally known to me or who has produced as identification. (Signature of Notary Public - State of Florida) (Print, Type or Stamp Commissioned Name of Notary Public, Commission Number and Expiration Date of Commission.) 5 ec r •-r i' -.-,_nX-w s , r - h r.,tiz. r M 7.r '. WV" rf i Ur r4�it ITC LLhr'{' - .' y- ' �' -. Y- j .-. . \'? r C�y.'r ) � iT :n& t ig t °� t""�, �gt. x. s rf� aNln ve' ,> Fe c� I Flffra,x ,7 f fr I yW %..< 'w F+�- �P��.a ;a q .c.r lF .ci•' r .4-11,1; �.;. t k {RS. t-r ' s kl'�:.1>�:3_`2fsnE4...�1._ c✓ ., r #r✓ rr-�R y7�t L rte'. K yam; 'i` �i ✓!' vi`ra �J['� rr ��r~ � e� A, « .:�'_'�p aiFi•.'Y'tit"'E�tlf �� nttZ U �I \Z ♦y..- {� •��n 0.r :�A Cily Commission „ t . Norman S.Edelcup March 6, 2013 Isaac Aelion Via Email Only Vice Mayor Jeanette Golfo Mr. Jose Milton Commissioner 3211 Ponce De Leon Blvd., Suite 301 Jennifer Levin Coral Gables, FL 33.134 Commissioner George"Bud"Scholl RE: Executed llemorandum Col nmissim ier Dear Jose: Christopher J. Russo ly Mati ger Please find attached the Memorandum executed by the undersigned that reiterates our Hans Oi linol verbal agreement as it relates to the amendment to the contract with 4M Investors to build City-:Atlorney the Park, Parking Garage, and Pedestrian Bridge: Jane A. Hines city clerk.cmc I have instructed the City Attorney and the City Manager to work with your attorney and your son to draft the appropriate amendment to the contract, which is subject to the approval of the City Commission. Sincerely, rman S. Edelcup 'Mayor /Memorandum cc: Hans Ottinot, City Attorney Christopher J. Russo, City Manager Joe Milton, 4MInvestors Stephen J. Helfinan, Esq. Weiss Serota Helfman&Pastoriza PL • March 6, 2013 Memorandum Verbal agreement between-Jose Milton (4M-investors) and Honorable Mayor Norman Edelcup (City Mayor). Jose Milton agrees in a reduction of the total price.of the new.contract-of $1,225,000.00 for a total including the new design fees of the new project for a total of $17,440,000:00. The $440,000.00.over $17;000,000.00 is the additional cost for the metal panels of the garage $423,813.70 submitted to the City on February 20, 2013 plus 4% increase, It makes'$440;000.00. Additional donation made when the. City ordered Breaking Grotind Of project, 800 lineal feet of decorative fence cost of$120,000.00 previously requested by theCity. Previous reduction requested by Hon. Mayor Edelcup (2nd Amendment) for stage park and garage 5% total cost. This reduction now of $1,225,000.00 is approximately 6.5% of total cost make a total reduetion for the project of 11.5%. Second donation that will be made to. the City by Jose Milton is the Pedestrian Bridge at cost if the City gives to the Architect the information - et t. start design Of the Pedestrian Bridge. The City needs to have FPL, k h4 FDOT, and Plaza of America negotiations completed within 90 days after the r1�d construction commences on the park/garage or by January '1,. 2014, whichever comes first. Definition of cost: Purchase cost of labor or material plus 10% overhead cost which.is the minimum in the industry. Nobody charges less than 10%. It will be zero profit to.Contractor. • I If the City fails to give.Milton Architect the required:information within,the requested time, Mr. Milton will donate to the City $100,000.00 to be used by the City to pay another contractor for the cost Pedestrian Bridge, Time Is of the essence. Schedule of time. contract and schedule of payments must be signed within 30 days (1 month) Estimated new project design 5 Months Construction time after permit (bonded with penalty to $2,000 daily for anytime to exceed) 12 Months Total Time 18 Months City agreed to let Contractor work on Saturdays, If required. Performance bond by the Contractor will be issued within 5 days of issuance of permit for the time needed to start construction to complete contract in the total amount of$16;240,000.00. The schedule of payments will be submitted to the City for approval and it will be made in the basis-of completed parts of the work.. This memo is to help the Attorneys to write the agreement. Any other clarification must be requested from Honorable Mayor Norman Edelcup or Jose Milton that both will sign this memo. Accepted as correct: Jose Milt , Architet y•norabie Mayor'Norman Ed- cup Contract r /ity of Sunny isles Beach Preview Page 1 of 2 oES°""Y 'st City of Sunny Isles Beach u = 18070 Collins Avenue Sunny Isles Beach, Florida 33160 \--< �r so' � sioa�° s.' (305)947-0606Cih Hall °?.° un .a° (305)949-3113 Fax MEMORANDUM TO: • The Honorable Mayor and City Commission FROM: Hans Ottinot, City Attorney DATE: 3/21/2013 RE: Third Amendment to Design Build Agreement with 4M Investors, LLC RECOMMENDATION: This Resolution is presented for your consideration. REASONS: The City of Sunny Isles Beach ("City") wishes to enter into a Third Amendment to the Design- Build Agreement with 4M Investors. LLC ("Contractor"). By way of background, the City of Sunny Isles Beach is the owner of certain real property consisting of approximately 3.7 acres on Sunny Isles Boulevard. On July 21, 2011, via Resolution No. 2011-1735, the City Commission entered into an agreement with Contractor for certain parcels of real property located in the City which the City owns and plans to construct site improvements consisting of a Park and Parking Garage for Gateway Park located in the City. Section 2.3 of the Design-Build Agreement allows the parties to amend the agreement through written amendment. Accordingly, the parties desire to enter into a Third Amendment to the Design-Build Agreement to reflect a revised scope of project and new Guaranteed Maximum Price. More precisely, the parties desire to revise the scope of the project to include (a) a 375 space parking garage building with approximately a sixteen thousand (16,000) square foot multi- purpose shell on the first floor of the building; (b) Park; (c) Performance Stage; and (d) Pedestrian Bridge. The parties also desire to revise the Guaranteed Maximum Price ("GMP") to Seventeen Million Four Hundred and Forty Thousand Dollars ($17,440,000.00) which includes design fees and costs associated with the construction of the following: (a) 375 space Parking Garage Building with the multi-purpose shell; (b) Park; and (c) Performance Stage. This new GMP shall also http://sibagenda.sibfl.net/Agenda/Preview.aspx?ItemID=1001&MeetinglD=O&MeetingDa... 3/13/2013 Preview Page 2 of 2 include design costs for the Pedestrian Bridge. The GMP prior to this Third Amendment was Sixteen Million Five Hundred Thousand Dollars ($16,500,000.00). Please see attached, executed Memorandum re-iterating the parties verbal agreement regarding this Third Amendment. ATTACHMENTS: • Approving the Third Amend. to Design Build Agmt Approving the Third Amend. to Design Build Agmt http://sibagenda.sibf .net/Agenda/Preview.asps?ItemID=1001&MeetingDD=0&MeetingDa... 3/13/2013 SUNNY iStE City of Sunny Isles Beach S.E Commission of tr -,_�se Norman S.Edelcup.Mayor a - s 18070 Collins Avenue, Suite 250 Isaac Action. Vice Mawr ti - — , Sunny Isles Beach, Florida 33160 Jeanette Gatto. Commissioner Jennifer Levin,Commissioner - (305)947-0606 City Hall George-Bud-Scholl.Commissioner •� '5., (305)949-3113 Fax sy erid R\ 'yce (305)947-2150 Building Department ChristopherJ.Russo City Manager ejrr of SUM O (305)947-5107 Fax Jane A.Hinnes.CMC'C,�Clerk MEMORANDUM TO: The Honorable City Commission FROM: Christopher J. Russo, City M gere'1 Hans Ottinot, City Attorney DATE: March 21. 2013 RE: Revised Third Amendment to the Design-Build Agreement between the City of Sunny Isles Beach and 4M Investors, LLC As you may know, we met with representatives of 4M Investors, LLC ("Contractor") to discuss pending issues relating to the Gateway Project. At the meeting, representatives of the Contractor informed us there were four critical issues that they are requesting revisions from the original contract. These critical issues are: (1) design cost for the Pedestrian Bridge; and (2) payment and performance bond after completion of the Project; and (3) termination for convenience clause; and (4) liability for unknown conditions on the site. It is important to note that the Contractor is seeking to change provisions that it had agreed to in the original contract. As a result of the meeting, the City agreed to modify its Third Amendment to reduce the bonds amount from 50% of the GMP to 15% of the GMP after completion of the Project. The City has agreed to pay the additional costs associated with the bonds after the completion of the Project. Further, the City has modified the site conditions liability exposure from a cost standpoint. However, the City is rejecting the Contractor's request to eliminate the termination for convenience clause and request for additional fees for the design of the Pedestrian Bridge. The City has agreed to pay $79,335.30 to finish the design of the Pedestrian Bridge. As a point of information, it is critical that all remaining terms of the original agreement stays intact. The original agreement provides the City with the ability to manage the Project. If the City's ability to manage the project is diminished by revisions requested by the Contractor, the Project will be more expensive. _ Q___ _ Agenda Item to J Date