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2002-24949 Reso RESOLUTION NO. 2002-24949 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AFFIRMING THE CERTIFICATION OF DEFAULT BY THE CITY AND, PURSUANT TO ARTICLE 8.8 OF THE CONTRACT WITH CAPRICORN CONSTRUCTION CORPORATION (CONTRACTOR), HEREBY REMOVING THE PROSECUTION OF WORK FROM THE HANDS OF THE CONTRACTOR AND, PURSUANT TO THE AUTHORITY GRANTED WITHIN THE CONSTRUCTION CONTRACT FOR THE THEATER OF THE PERFORMING ARTS (TOPA) PORTECOCHERE PROJECT (PROJECT), AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO TAKE ANY AND ALL NECESSARY ACTIONS TO EXECUTE THE PROSECUTION OF THE REMAINING WORK, AS NECESSARY, AT THE RECOMMENDATION OF THE CITY'S CONSULTANT, IRA GILLER, AlA, RELATIVE TO THE PURCHASE OF THE NECESSARY GOODS AND SERVICES REQUIRED FOR THE PROSECUTION OF THE REMAINING WORK FOR THE COMPLl!.TION OF THE PROJECT, PROVIDED THAT SUCH CONTRACTS, PURCHASE ORDERS, CHANGE ORDERS AND OTHER DOCUMENTS SHALL BE IN SUBSTANTIAL ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE CURRENT CONSTRUCTION CONTRACT WITH THE CONTRACTOR, AND SHALL NOT EXCEED THE CURRENT AMOUNT PREVIOUSLY APPROPRIATED BY THE MAYOR AND CITY COMMISSION FOR THIS PROJECT. WHEREAS, Invitation to Bid No. 13-00/01, for the construction of an extension to the Portecochere at the Jackie Gleason Theater of the Performing Arts (Project), was issued on February 6, 2001, with an opening date of March 13. 2001; and WHEREAS, pursuant to this Bid. a construction contract (Contract) was awarded to Capricorn Construction Corporation (Contractor), as the lowest and best bidder, in the amount of $137.777; and WHEREAS, work on the Project is presently more than 90% complete; however. the Contractor has abandoned the prosecution of the work; and WHEREAS, pursuant to Article 8,8 of the Contract. the Administration finds that the Contractor is in default pursuant to the terms of the Contract. and recommends that the prosecution of the work be removed from the Contractor, and that the City Manager or his designee be empowered to take any and all actions necessary for the prosecution of the work, at the recommendation of Ira Giller, AlA, the City's Consultant; and WHEREAS. the previously appropriated Project retainage is available to fund the remaining work. NOW, THEREFORE BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Certification of Default by the City. pursuant to Article 8,8 of the Contract with Capricorn Construction Corporation (Contractor) is affirmed; the further prosecution of work is hereby removed from the Contractor and, pursuant to the authority granted within the Construction Contract between the City of Miami Beach and Capricorn Construction Corporation for the Theater of the Performing Arts (TOP A) Portecochere Project (Project), the City Manager or his designee is hereby authorized to take any and all actions necessary for the prosecution of the remaining work, at the recommendation of the City's Consultant. Ira Giller, AlA. relative to the purchase of the goods and services required for the prosecution of the remaining work for the completion of the Project, provided that such contracts, purchase orders. change orders and other documents shall be in substantial accordance with the terms and conditions of the current Construction Contract with the Contractor, and shall not exceed the current amount previously appropriated by the Mayor and City Commission for the Project. ~ APPROVED /IS TO MAYOR FORM & LANGUAGE & FOR CUTION PASSED and ADOPTED this 31st day of July .2002. ATTEST: ~aP~ CITY CLERK T'IAgendaI2OO211u131\Regular\TOPAPonSUMM.DOC ~2Ck~,,~~?- CITY OF MIAMI BEACH 1700 Convention Center DrIve, Miami Beach, FL 33139 http://cl,mlaml-beach.ft,U$ Capital Improvement Projects Telephone (305) 673-7071 Facsimile (305) 673-7073 July 19, 2002 Mr. Hector Castro President Capricom Construction Corp. 2883 SW 69th Ct. Miami, FL 33155 -VII FacsImIe end CeItfIfed Mall RE: Contract No, 13-00/01 Theater of Performing Arts (TOPA) Project NOTICE OF DEFAULT Dear Mr. Castro: Based upon the attached letter from Mr. Ira Giller, Giller & Giller, Inc. (Architect), The City of Miami Beach has declared Capricom Construction Corporation in Default of the above referenced Contract for failure to comply with said contract in a timely manner. To date, the Work has not been substantially completed nor has the project obtained final approvals from the City's Building Department. Your substantial completion date through Change Order No.2 was February 11, 2002. The work was not completed by that date. The first punchlist inspection occurred on May 12, 2002 resulting in many incomplete items. A second punchlist was developed on June 7, 2002, which has yet to be resolved. Additionally, Capricom's response letter dated July 15, 2002 to Mr. Ira Giller, does not provide any assurances that the project will be fully completed immediately. In light of the above, the City has no other option than to declare you in Default. Failure to fully complete the remaining items of said project and obtain required approvals from the City's Building Department, including substantial and final completion certification by the Architect, by the end of business on July 29, 2002, will cause the City to act under section 8.8 of your contract. Demand is hereby imposed upon you to respond immediately. Attachment c: Jorge Gonzalez, CIty Manager Munay Dubbln, City Attorney Bob Middaugh, AssIstant City Manager .........._~.....CGonItllItor Carl Hastings, Construction Manager John J, Barry, Mld-State Surety Company Ira Giller, Giller & Giller F:'CAP~AZOSJ\TOPA ..._.\07-19-02 _loCeprlc:am,cloc Jul 18 02 02:18p Giller.. Giller 305-538-5921 p.l Giller & Giller, Inc. The Giller Building 975 Arthur Godfrey Road Miami Beaoh. Florida 33140 (305) 538-6324 falllmodem (305) 538-5921 Reg, #M C001364 FAXMEMO Project: NEW PORTECOCHERE Theater of the Performing Arts (TOPA) City of Miami Beach To Carl Hastings CMB/CIP From, Ira Giller, A- I. A- ~ Date: 7/18/02 Comm, No: 95203 Pages transmitted including this page: 3 Attached is Capricorn's letter of 7/15/02 and my response today. Capricorn Construction's response does not provide any assurance that the project will be fully completed immediately, A capable contractor should be able to complete the work in 7 -10 days. In light of Capricorn's inability to complete this project on a timely basis (it's 5 months late now), it is my recommendation that the City declare the contract in default pursuant to the terms of the contract. ARCHITECTS INTERIOR DESIGNERS CONSTRUCTION MANAGERS Jul IB 02 02:1Bp Giller" Giller 305-53B-5921 p.2 Giller & Giller, Inc. The Giller Building 975 Arthur Godfrey Road Miami Beach, Florida 33140 (305) 538-6324 fax/modem (305) 538-5921 Reg, #AA C001364 ~002 Mr, Hector Castro President Capricorn Construction Corp. 2883 SW 69th Ct. Miami, FL. 33155 VIA FAX 305-266-3373 Re: NEW PORTECOCHERE Theater of the Performing Arts (TOPA) City of Miami Beach Comm, No. 95203 Dear Mr. Castro: In response to your letter fax of 7/15/02. please be advised as follows: 1. The continuous daily rain you refer to lasted over a two week period from approximately the end of June until July 12, 2002. The comJ.>letion of the work should have been undertaken immediately after our June 7 inspection during the three weeks of good weather. The weather this week has also been good. 2, Pursuant to the terms of the contract with the City, there is no such condition as "de Facto substantially complete", Your Substantial Completion date through C.O. #2 was February 11, 2002. The work was not completed by that date. The first punchlist inspection with Carl Hastings on May 12, 2002 had many incomplete items. As a result, the project was not deemed substantially complete in May. 3. The 6f7/02 punchlist detailed the work still incomplete on that date. It included items from Mr. Hastings inspection as well as new items. 4. A copy of the Certificate of Completion from the Building Department has not been furnished to this office. 5. Items #1 1, 12, and 13 are not completed, I have not received the documents. The Work has not been accepted as Substantially Complete as yet. Your failure to do SO may result in the City declaring your contract in default. The City will then have the work completed by another contractor and backcharge you for the costs and damages as well as seek other remedies. Cc: Carl Hastings/CMB ARCHITECTS INTERIOR DESIGNERS CONSTRUCTION MANAGERS ! .! II Capncorn ConstlUCtion Corp. 2883 SW 69th. CT. Miami, Florida 33155 FAX To: ~----'---_._.- ..,..- , Mr. Ira Giller Projcct Architect TOP A Pone-cochere. fax no: 305-538-5921 I L F..-: Hector A. Castro Date:JuIy 15,2002 Number of pages:l Phone: 305-260-4464 Fall: 305.266.3373 ~.m: I:~ :': m YO. kuc<~ ;wy ,~ ----- ---- I have been sick and in the hospital for some time now. In addition, it has been raining every day fOf' over 1 1/2 months and it is still raining. Also the theater has had functions that made work not possible. lbe punch list items that are left over require at least an uninterrupted week of good weather and work so that they can be done. dtyed and finished. Conttary to your claim, this project has been "de facto" substantially completed before February 11,2002 and a punch list was generated by Mr. Hastings some time ago. We worked on this punch list and covered 95% of the items generated. The second punch list that you generated on 6nl02 was II rt:petition of tile items left over (rom Mr. Hastings' list. (n addition. this project has been finally accepIed as completed by the Building Department as demonstrated by the final (nspection results. Items 11,12 and 13 have been completed. ,I do not know which fax number you are using, however. if you need to communicate with us you should use the 305-266-3313 number whicb has aI:ways been our main fax number. You may have been using a diseon- nected number. Our telephones are rcmpo~ly out of Drder but our fax is working. ( cannot predict a date to complete the punch list items because. ., you well know. it is still raining every day. However, if the City feels that it must deQlare our contract in default and finish those pwu:h list itemS them- selves that is, of course, their prerogative, cc: Mr. Carl Hastings! eM8 -..~.._,.. -~ ,. .._.....~.__.._.._.._..__._..._-_..._--_. .-...---. ..-.---- J f~;I:<r '<~<PGiII~';~~~'n~~" .., The Giller Building 975 Arthur Godfrey Road Miami Beach, Florida 33140 I (305) 538-6324 fax/modem (305) 538-5921 " Reg. #AA C001364 f ,..... Jl:) " July 2, 2002 Mr, Hector Castro President Capricorn Construction Corp, 2663 SW 69th Ct. Miami, FL. 33155 Re: NEW PORTECOCHERE Theater of the Performing Arts (TOPA) City of Miami Beach Comm, No, 95203 Dear Mr. Castro: Enclosed is my Field Report of June 7,2002 which I have attempted to fax to you at least 6 times, None have gone through, It has been over three weeks since the list of incomplete work was prepared, At this date, the work is still not complete, Your attention is also directed to the liquidated damages clause of your contract and your liabilities thereunder, The Work has not been accepted as Substantially Complete as yet. Your completion date through C.O. #2 was February 11, 2002. At the request of the City through Carl Hastings, Project Manager, you are directed to complete the work as set forth in the above Field Report no later than July 15, 2002. Failure to do so will result in the City declaring your contract in default. The City will then have the work completed by another contractor and backcharge you for the costs and damages as well as seek other remedies, I have attempted to contact you by telephone as well. Both your office and cell phones , ring with no answer. Ira . Giller, A.IA President Cc: Carl Hastings/eMB ARCHITECTS INTERIOR DESIGNERS CONSTRUCTION MANAGERS CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY m - Condensed Title: A Resolution affirming the certification of default by the City and pursuant to article 8.8 of the contract with Capricorn Construction Corporation (Contractor), hereby removing the prosecution of work from the hands of the Contractor for the Theater of the Performing Arts (TOPA) Portecochere Project (Project), authorizing the City Manager or his designee to take all necessary actions to execute the prosecution of the remaining work, relative to the purchase of the necessary goods and services required for the completion of the project. Issue: Shall the Mayor and City Commission permit the Administration to take control of the TOPA Portecochere Project and complete the work. Item Summary/Recommendation: The Contract to construct a new canopy over the TOPA driveway was to be completed by April 14, 2002. The contractor, Capricorn Construction Corp. has brought the work to over 90% completion, and has stopped working. Parts of the work completed are of poor workmanship. The Architect, Ira Giller, AlA, has recommended that the City declare the contract in default, and complete the work using other resources. The City holds $16,651 from the project retainage; this amount is believed sufficient to complete the remaining work. The Administration recommends that the Mayor and City Commission approve the attached Resolution to take the prosecution of the work out of the hands of Capricorn Construction Corporation, and permit the Administration to take the necessary action to complete the remaining work. This action will permit the City to see this project to completion. Advisory Board Recommendation: I N/A Financial Information: Source of Amount " Account APProved Funds: 1 $1 6,651 8.0. 16033 ( 10 2 3 l ." 4 Fin nce Dept. Total $1 6,651 City Clerk's Office Legislative Tracking: I Carl Hastings Sign-Offs: Department Director AGENDA ITEM DATE !(7:r 7-3/..(),- CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.cLmiami-beach.fl.us To: From: Subject: COMMISSION MEMORANDUM Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez \..~ City Manager r-' U Date: July 31, 2002 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AFFIRMING THE CERTIFICATION OF DEFAULT BY THE CITY AND PURSUANT TO ARTICLE 8.8 OF THE CONTRACT WITH CAPRICORN CONSTRUCTION CORPORATION (CONTRACTOR), HEREBY REMOVING THE PROSECUTION OF WORK FROM THE HANDS OF THE CONTRACTOR AND PURSUANT TO THE AUTHORITY GRANTED WITHIN THE CONSTRUCTION CONTRACT FOR THE THEATER OF THE PERFORMING ARTS (TOPA) PORTECOCHERE PROJECT (PROJECT), AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO TAKE ANY AND ALL NECESSARY ACTIONS TO EXECUTE THE PROSECUTION OF THE REMAINING WORK, AS NECESSARY, AT THE RECOMMENDATION OF THE CONSULTANT, RELATIVE TO THE PURCHASE OF THE NECESSARY GOODS AND SERVICES REQUIRED FOR THE PROSECUTION OF THE REMAINING WORK FOR THE COMPLETION OF THE PROJECT, PROVIDED THAT SUCH CONTRACTS, PURCHASE ORDERS, CHANGE ORDERS AND OTHER DOCUMENTS SHALL BE IN SUBSTANTIAL ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE CURRENT CONSTRUCTION CONTRACT WITH THE CONTRACTOR, AND SHALL NOT EXCEED THE CURRENT AMOUNT PREVIOUSLY APPROPRIATED BY THE MAYOR AND CITY COMMISSION FOR THIS PROJECT. ANALYSIS The Portecochere at the Jackie Gleason Theater of the Performing Arts (TOPA) is designed to be an extension of the existing canopy covering the front entrance and the sidewalk area in front of TOPA. The old canopy sheltered only one vehicle, while the new canopy covers the driveway sufficiently to shelter three vehicle lanes with three vehicles in each lane. Invitation to Bid No. 13-00/01 for the Construction of a New Portecochere for the Theater of the Performing Arts (TOPA) was issued on February 6, 2001, with an opening date of March 13, 2001. A contract for the work was awarded on April 18, 2001, pursuant to Commission Memorandum No. 194-01 to Capricorn Construction Corporation (Capricorn). A Notice to Proceed was issued to Capricorn on May 31,2001, with a starting date of June 7, 2001. The starting date was delayed at the request of TOPA management due to the pending Microsoft Show in July, and the Source Awards event in August. City Commission Memorandum July 31,2002 TOPA Porte-Cochere Page 2 of 3 The Contractor was given permission to begin work on August 20, 2001, with a 90-day contract term for completion of the work. Due to supplier delays for the delivery of the structural steel for the roof deck (53 days), the fabrication of letters for the facade sign and neon backlights (48 days) as part of a change order, additional time for roofing (5 days), and time to gain approval of change orders 1 and 2 (30 days), as well as time added due to TOPA scheduled events, including the Boat Show, which prevented work for a number of days, the project completion date was extended until April 14, 2002. On March 20, 2002, the Mayor and City Commission passed a resolution approving the addition of a project contingency for the contract Standing Order. The additional funds were used for the purpose of re-roofing the old canopy area to create a unified roof over the entire Portecochere, and for new letters and backlighting for an identity sign on the facade of TOPA. Subsequent to the approval of the additional funding, the roofing work was completed, and the sign letters were procured and installed. The total project budget after this addition of the contingency allowance is $166,514. The Contractor ceased work on the job in May. Repeated telephone calls and fax communications went unanswered until recently. The Owner and President of the Contractor sent a fax on July 15, 2002, reporting that he had been too ill to complete the work, and that the recent rainy weather would have prevented work in any case. The Contractor offered no assurance of whether he intends to finish the work, or of when the City might expect it to be completed. Both the Architect and the Administration are of the opinion that the contractor has failed to pursue the completion of the work. There are coming events at TOPA, which require that the work on the front entrance area be completed soon to maintain the appearance of TOPA properly. Copies of correspondence with the contractor are attached. Inspection of the work reveals that some ofthe work is of poor workmanship, and needs to be re-done or touched up to be acceptable. The consulting Architect, Ira Giller, AlA, has prepared a "punch list" of remaining items of work needed to finish the project. The City currently retains $16,651 in funding, which if the attached resolution is approved, will be available for completion of the project. The Administration is now proposing to remove further prosecution of the work from the contractor, and arrange for the remaining elements of the work to be completed by others as allowed under the Contract. It is estimated that the retained funds should be sufficient to complete the work, and to compensate the Consultant for any additional Construction Administration services required. City Commission Memorandum July 31, 2002 TOPA Porte-Cochere Page 3 of 3 RECOMMENDATION: The Administration recommends that the Mayor and City Commission approve the attached Resolution to take the prosecution of the work out of the hands of Capricorn Construction Corporation, and permit the Administration to take the necessary action to complete the remaining work. It is anticipated that Property Management will complete the remaining work. However, it may be necessary to utilize a contractor for some portions. This action will permit the City to see this project to completion. JMG/RCMITH/JDP/CH T:\AGENDA\2002\JUL3102IREGULARITOPAPortMEM2.doc