2010-27341 ResoRESOLUTION No. 2010-27341
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING
THE TRANSFER OF $157,000 IN UNUSED FUNDS FROM ACCOUNT
NUMBER 480-2448-061357 FOR DESIGN, TO ACCOUNT NUMBER
480-2448-069357 FOR CONSTRUCTION, TO FUND CONSTRUCTION
ACTIVITIES FOR THE INTERIOR BUILD-OUT OF THE CITY OWNED
30,000 SF OF TENANT SPACE IN THE MULTI-PURPOSE PARKING
FACILITY (CITY HALL GARAGE) PURSUANT TO THE
CONSTRUCTION CONTRACT BETWEEN THE CITY AND LINK
CONSTRUCTION GROUP INC., WITH FUNDING FROM PREVIOUSLY
APPROPRIATED FUNDS FROM FY 06/07 CAPITAL BUDGET IN THE
PARKING OPERATING FUND 480.
WHEREAS, pursuant to Invitation to Bid (ITB) No. 40-08/09, for the Multi-
purpose Municipal Parking Facility Bid Package 4: Tenant Build-Out for Specific Tenant
Improvements, the City Commission awarded a construction contract to Link
Construction Group, Inc. (Link) on July 15, 2009, in the amount of $1,165,607.60, with a
ten percent (10%) construction contingency, in the amount of $116,560.76; and
WHEREAS, the CIP Office authorized Change Order No. 1 on February 2010, in
the amount of $114,167.97, which depleted the construction contingency amount by
98%, thereby leaving $2,392.82 in construction contingency; and
WHEREAS, the Administration requests that the City Commission hereby
approve a transfer of funds in the amount of $157,000 from Account No. 480-2448-
061357 for Design, to Account No. 480-2448-069357 for Construction to fund the
aforestated Construction Contingency; and
WHEREAS, funding is available from previously appropriated un-used funds
originally allocated for design in the Fiscal Year 06/07 Capital Budget from Parking
Operating Fund 480.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA that the Mayor and City
Commission hereby approve and the transfer of $157,000 in unused funds from Account
number 480-2448-061357 for Design, to Account number 480-2448-069357 for
Construction, to fund construction activities for the interior build-out of the City owned
30,000 SF of tenant space in the Multi-Purpose Parking Facility (City Hall Garage)
pursuant to the Construction Contract between the City and Link Construction Group
Inc., with funding from previously appropriated funds from FY 06/07 Capital Budget in
the Parking Operating Fund 480.
PASSED AND ADOPTED this ~ day of l~a~~~ 2010
M I HERR BOWER, MA OR
ATTEST: APPROVED AS TO
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'vP vu'i-U I (,(,lil & F SCUT
ROBERT ff. PARCHER, CITY CLERK CITY RN ~~
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T:IAGENDA\2010\March 10\Consent\Link Change orders RESO-.doc
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COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Of The Mayor And City Commission Of The City Of Miami Beach, Florida, authorizing the
transfer of unused funds from account number 480-2448-061357 for Design to account number 480-2448-
069357 for Construction to fund construction activities for the interior build-out of the city owned 30,000 sf
of tenant space in the city hall garage to Link Construction Group Inc., in the amount of $157,000; funding
from reviousl a ro riated funds in FY 06/07 Ca ital Bud et in the Parkin O eration Fund 480.
Ke Intended Outcome Su orted:
Ensure well-desi ned uali ca ital ro'ects
Supporting Data (Surveys, Environmental Scan, etc.): NA
Issue:
Shall the Commission Adopt the Resolution?
Item summaryrltecommenaa~lon:
The recently opened City Hall Garage contains approximately 30,000 SF of tenant space fronting Meridian
Avenue. This tenant space will be used to house certain City Departments among five (5) floors of the
building. The departments to be located in this space shall be as follows:
Level 1: Parking and Finance Departments
Level 2: Parking Department -Administration
Level 3: City Training Rooms: Information Technology (IT) and Office of Budget and Performance
Improvement (OBPI)
Level 4: Information Technology
Level 5: Tourism and Cultural Development and Information Technology
At this time the Administration requests additional procurement authority to incorporate the tenant build out
requirement which total $107,000, as well as an additional $50,000 in procurement authority to allow for
unexpected changes as they arise to address regulatory requirements, punch items, etc. in the future. The
original cost per square foot of the build out improvements approximated $36 / SF. Increasing the
construction activities by an overall amount of $157,000 yields a build out cost per foot of $45 / SF.
The Parking Department Administration is currently leasing office space at $57,840 quarterly to the Lessor,
Palm Courts, and the lease terminates on April 30, 2010. The Office of Capital Improvement Projects has
fast tracked the completion of Levels 1 and 2 with Link, in order to meet this deadline. Discussions to
extend the lease beyond the lease termination date of May 1, 2010 with the Lessor have ceased due to
unreasonable terms being presented by the Lessor.
The Administration recommends authorizing additional funding in the amount of $157,000 to fund
construction activities for the interior build out of the City owned 30,000 SF of tenant space in the City
Hall Garage to Link Construction Group Inc., from previously appropriated Multi-Purpose Parking
Facility, FY O6/07 Capital Budget from the Parking Operating Fund 480
Advisory Board Recommendation:
Financial lnfermatierr
Source of Amount Account
Fun 1 $157,000 From account # 480-2448-061357 for Design to
account # 480-2448-069357 for Construction
OB I Total $157,000
Financial Impact Summary:
Clerk's Office
I Hiram Siaba: Extension 6572 I
Sian-Offs'
De hector Assistant Ci Mana er Ci Mana er
COC JGG JMG
T:WGENDA\2010\March 10\Consent\Link Summary.dris~i
~ MIAN11 BEACH
Ar`aEA1DA ITE~LJ7L
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m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: March 10, 2010
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AUTHORIZING THE TRANSFER OF
UNUSED FUNDS FROM ACCOUNT NUMBER 480-2448-061357 FOR
DESIGN TO ACCOUNT NUMBER 480-2448-069357 FOR CONSTRUCTION
TO FUND CONSTRUCTION ACTIVITIES FOR THE INTERIOR BUILD-OUT
OF THE CITY OWNED 30,000 SF OF TENANT SPACE IN THE CITY HALL
GARAGE TO LINK CONSTRUCTION GROUP INC., IN THE AMOUNT OF
$157,000; FUNDING FROM PREVIOUSLY APPROPRIATED FUNDS IN FY
06/07 CAPITAL BUDGET IN THE PARKING OPERATION FUND 480.
ADMINISTRATION RECOMMENDATION
The Administration recommends approval of the Resolution.
FUNDING
From the previously appropriated unused funds originally allocated for Design in the Fiscal Year
06/07 Capital Budget from Parking Operating Fund 480, to be transferred from account number
480-2448-061357 to account number 480-2448-069357 for Construction.
BACKGROUND
The recently opened City Hall Garage contains approximately 30,000 SF of tenant space
fronting Meridian Avenue. This tenant space will be used to house certain City Departments
among five (5) floors of the building. The departments to be located in this space shall be as
follows:
Level 1: Parking and Finance Departments
Level 2: Parking Department -Administration
Level 3: City Training Rooms: Information Technology (IT) and Office of Budget and
Performance Improvement (OBPI)
Level 4: Information Technology
Level 5: Tourism and Cultural Development and Information Technology
The City issued Invitation to Bid (ITB) No. 40-08/09 issued on May 11, 2009 for the Multi-
purpose Municipal Parking Facility Bid Package 4: Tenant Build-Out for specific tenant
improvements for the previously mentioned areas. Link Construction Group, Inc. (Link) was
awarded the construction contract for the tenant improvements on July 15, 2009 in the amount
of $1,165,607.60 and a ten percent construction contingency in the amount of $116,560.76. The
First Notice to Proceed was issued on September 9, 2009 and the Second Notice to Proceed
Commission Memorandum- City Hall Garage Tenant Improvements
March 10, 2010
Page 2 of 3
was issued on December 7, 2009. Link mobilized to the project site on December 14, 2009. The
City was unable to issue the Second Notice to Proceed to Link, until the Tower Group Inc.,
obtained a Temporary Certificate of Occupancy for the tenant space shell. Tower Group, Inc.
obtained a Temporary Certificate of Occupancy on December 4, 2009. The contract duration of
Bid Package 4: Tenant Build-out is 180 calendar days. Substantial completion is anticipated by
June 1, 2010.
Pursuant to the Commission Memorandum in Resolution # 2007-26706 the Interior Build-Out
was to be funded from the Parking Operating Fund and to be reimbursed by the revenues from
the rent of the various City Departments that will occupy the building.
The Parking Department Administration is currently leasing office space at $57,840 quarterly to
the Lessor, Palm Courts, and the lease terminates on April 30, 2010. The Office of Capital
Improvement Projects has fast tracked the completion of Levels 1 and 2 with Link, in order to
meet this deadline. Discussions to extend the lease beyond the lease termination date of May
1, 2010 with the Lessor have ceased due to unreasonable terms being presented by the Lessor.
ANALYSIS
The City issued Invitation To Bid (ITB) No. 40-08/09 on May 11, 2009 and the City Commission
awarded a construction contract to Link on July 15, 2009. Certain modifications were
incorporated after the construction contract award due to the identification of the end users and
programming of the spaces. The modifications that were requested by the City Departments
and approved by the Administration were not included in the construction document set that
accompanied the ITB No. 40-08/09.
A Building Department permit for the tenant improvements as depicted in the ITB No. 40 -
08/09 was obtained on July 23, 2009. P+W's amendment to design the modified tenant
improvements was approved by the City Administration in August 2009. P+W provided revised
tenant improvement drawings for Building department review on December 10, 2009 and the
Building Department issued a building permit for these revisions on January 26, 2010.
Construction Contingency Spent to Date
Award of the contract to Link on July 15, 2009 provided the Office of Capital Improvement
Projects procurement authority in the amount of $116,560.76. Change Order No.1 in the
amount of $114,167.97 was authorized on February 10t'', 2010. The Change Order was
reviewed by the Architect of Record, Perkins and Will, the Office of Capital Improvement
Projects and the Special Assistant to the City Manager, Emanuel Mayer. Proposed costs were
reduced by $15,822.54 or 12% below the original requested amounts. Authorization of change
order no. 1 depleted the construction contingency amount by 98% thereby leaving $2,392.82 in
construction contingency. Additional funding is required to complete the assignment and
maintain construction on its current schedule.
The following Proposed Change Order's (PCO) consist of work that was known to the City and
is still required to be performed. They are critical in order for Link to maintain their schedule to
accommodate the City's request of phasing the project in order to occupy the first and second
floor of the City Hall garage by April 2010. The balance of the floors would be delivered by the
contractual substantial completion date of June 2010.
Commission Memorandum- City Hall Garage Tenant Improvements
March 10, 2010
Page 3 of 3
Table 1
City Hall Garage
Additional Foreseen Change Orders
Amount
2 e-Builder Reimbursement $1,000
6 Plumbing Modifications: 2nd & 3rd Floors $765
10 Glazing changes on the 4th floor $3,304
12 Door and frame modifications due to hardware changes $6,264
18 HVAC Fire Wrapping $1,233
19 Door and frame modifications to incorporate card readers $4,033
20 HVAC Controls $6,237
21 Plumbing Sanitary Vent Connection $4,960
22 Electric Door Strikes $847
23 First Floor Revisions $10,086
24 Second Floor Revisions $2,444
25 Electric, Data, Fire Alarm devices relocation $20,730
26 Card reader system $45,000
Subtotal Amount Foreseen Change Orders $106,902
Additional Requested Funding $50,000
Requested Funding Increase $157,000
The Office of Capital Improvement Projects has realized a savings of unused funds in the
approximate amount of $1,371,884 in design. At this time the Administration requests additional
procurement authority to incorporate the changes outlined above which total $107,000, as well
as an additional $50,000 in procurement authority to allow for changes as they arise to address
regulatory requirements, punch items, etc. in the future. The original cost per square foot of the
build out improvements approximated $36 / SF. Increasing the construction contingency by an
overall amount of $157,000 yields a build out cost per foot of $45 / SF.
CONCLUSION
The Administration recommends authorizing additional funding in the amount of $157,000 to
fund construction activities for the interior build out of the City owned 30,000 SF of tenant space
in the City Hall Garage to Link Construction Group Inc., from previously appropriated Multi-
purpose Parking Facility, FY 06/07 Capital Budget from the Parking Operating Fund 480.
JMG/COC/GME/hs
T:~,4GENDA\2010\March 10\Consent\Link Change orders MEMO-2-10-2010 COC Revisions.doc