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RESOLUTION 89-19798 RESOLUTION NO. 89-19798 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA AUTHORIZING THE CITY MANAGER TO TRANSFER $489,000 FROM ACCOUNTS ALREADY ESTABLISHED, AND FUNDED, TO THE GEORGE HYMAN CONSTRUCTION COMPANY CONTINGENCY ACCOUNTS IN THE AMOUNT OF $200,000 TO THE PHASE I AND II CONTRACT AND $289,000 TO THE WEST WRAPAROUND CONTRACT, FOR THE PURPOSES OF ACCOMPLISHING ADDITIONAL REQUIRED WORK AND FOR PAYMENT OF THE PREMIUM PORTIONS OF DOUBLE SHIFTING AND OVERTIME; AND TO PERMIT THE PROJECT COORDINATOR TO SHIFT FUNDS BETWEEN THE TWO CONTINGENCY ACCOUNTS AS NECESSARY TO ACCOMPLISH COMPLETION OF THE PROJECT; AND TO AUTHORIZE THE ADMINISTRATION TO NEGOTIATE WITH THE ARCHITECTS FOR A CONTINUATION OF THEIR SERVICES UNTIL THE COMPLETION OF THE PROJECT AND TO REPORT BACK TO THE COMMISSION FOR FORMALIZATION OF THESE NEGOTIATIONS. WHEREAS, the original budget established certain itemized accounts for the purpose of constructing the Convention Center; and, WHEREAS, some certain itemized accounts have surplus; and, WHEREAS, additional monies are necessary to complete the Convention Center and to pay the premium portion of overtime and double shifting; and, WHEREAS, the contract with the architects does not extend services to the currently anticipated project completion date. NOW, THEREFORE, BE IT DULY RESOLVED THAT THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA hereby authorizes the City Manager to transfer the surplus funds as outlined in Exhibit A to this Resolution, to the George Hyman Contingency accounts in the amounts of $200, 000 to Phase I and II and $289 , 000 to the West Wraparound; and authorizes the Project Coordinator to shift funds between the two contingency accounts as necessary to complete this project; and authorizes the administration to negotiate with the architects for a continuation of services until the completion of the project and to report back to the Commission for formalization of these negotiations. PASSED and ADOPTED this 15th day of November , 19 89 . Vice-Mayor Attest: ic_31y41-"/ City Clerk Form Approved: 7R Legal Department Dated: /1/4/j197 j197 VEG:lcd ece /%a I Eead FLORIDA 3 3 1 3 9 14;/.4*iINCORP,ORATED)*s; "VACA TIONLAND U. S. A. - OFFICE . °°OFFICE OF THE CITY MANAGER CITY HALL ROB W.PARKINS 1700 CONVENTION CENTER DRIVE CITY MANAGER TELEPHONE: 673-7010 COMMISSION MEMORANDUM NO DATE: Nov. 15 , 1989 TO: Mayor Alex D•.. • and Members o e City Corn 'ssio, FROM: Rob W. Park 's '4101' City Manager .wiLIA SUBJECT: CONVENTION CM ' ' -- FUND TRANSFER When the Convention Center Project first started, a budget was developed for major expenses . Construction, professional fees , testing and utility relocation are all examples . A similar process was followed when the West Wrap Around was authorized. The total amount established for the project as a result of the original budgets and subsequent changes is $88 , 683 , 000 ; of this amount, the budget for construction is $74 , 142 ,000 which includes $3 , 600 , 000 for contingencies. During the course of construction, it has been necessary to revise the original established figures to accomplish items which were not anticipated by the original contract documents . The most recent revision example was the additional communication conduits which provided greater flexibility, not only in the Convention Center but also interconnected the Convention Center with TOPA. As of this date, we have authorized over 275 Change Orders for Phases I , II and the West Wrap Around. The combination total of the contingency allowance available for these contracts was $3 , 600 , 000 . We have, for all intents and purposes , exhausted these amounts and are still faced with the need for additional changes to complete the project. A complete review of the original budget mentioned indicated that we have an anticipated surplus from all accounts in the amount of $489 , 000 . Attached to this memorandum is a summary of each of the accounts and our recommendation for transfer of these funds . It is the intention that monies in the following amounts be transferred into the contingency accounts for Phases I and II and for the West Wrap Around. The amounts would be $200 , 000 to Phases I and II and $289 , 000 for the West Wrap Around. It should also be understood that the contractor will be entitled to a mark-up of 10 percent for work performed by his forces , and a mark-up of 5 percent for work performed by his sub-contractors . The sub-contractors will be entitled to a mark-up of 10 percent. Since these funds have already been established, there is no need at this time for any additional funding, but formal Commission action is required to increase the scope of the contract. In addition to the amounts necessary for construction, some amount is also necessary for continued professional services . The original contract for professional services terminated in conjunction with the original contract for construction which was 1 AGENDA _ ._ ITEM DATE Fund Transfer Page Two November 15 , 1989 Commission Memorandum September 1, 1989 for Phases I and II . The West Wrap Around professional services contract did not change this date. The interpretation of the Professional Agreement is that the contract recognized that the construction schedule may not be met and that an extension of these services beyond dates established in the contract was expected. We did not expect, however, that the contract time would extend as long as it has and it is necessary that we negotiate with the architects for continuation of their services until the completion of the project. ADMINISTRATION RECOMMENDATION It is the recommendation of the Administration that funds in the amount of $200 , 000 for Phase I and II and $289 , 000 for the West Wrap Around be transferred from .the existing already formally established budget accounts to the construction contract contingency allowances for the Convention Center, and further to authorize adjustments between these two accounts as necessary. Further, it is recommended that the Administration be authorized to negotiate with the architects for additional services until completion of the Convention Center Project and, at a later date, report back to Commission for formalization of these negotiations. RWP:VEG: jmg R873 Attachment F.UND1. A 'PROVED anagement and Budget 2 2 CONVENTION CENTER EXPANSION PROJECT BUDGET REVIEW AS OF OCTOBER 26, 1989 ITEM ANTICIPATED SURPLUS HYMAN CONSTRUCTION CREDITS TO CONTRACT (CHANGE ORDERS, OVERTIME, $ 370 , 000 DRESSING ROOMS, CONDUIT) ARCHITECTS SERVICES (ENGINEERING, THRESHOLD INSPECTION, CONSTRUCTION ADMINISTRATION) 380, 000 UTILITY RELOCATION 210, 000 CONVENTION CENTER FF & E 188 , 000 KITCHEN FF & E (SERVICE AMERICA REIMBURSEMENT) 140, 000 MATERIALS TESTING 22 , 000 NON--SPECIFIC APPROPRIATED FUNDS 577 , 000 KAISER ENGINEERING (93 , 000) CITY REIMBURSABLES (455, 000) MISCELLANEOUS (850, 000) TOTAL $ 489 , 000 ITEM IMMEDIATE TRANSFERS MECHANICAL CHANGE ORDERS 189 , 000 ELECTRICAL CHANGE ORDERS 100, 000 CHANGE ORDERS-ALL OTHERS 100, 000 DOUBLE SHIFT & OVERTIME 100, 000 TOTAL $ 489 ,000 Although this solves our immediate financial problem, it does not solve what is anticipated for additional costs to the Project. Specific examples of additional costs are: Issuance of Completion Bonds (approximately $500,000) , additional Change Orders ($400,000) , sound system for Hall D (approximately $400, 000) , new Sound Baffles in Hall D ($300,000) , miscellaneous additional FF & E and additional architectural fees (estimated at $250,000) . The total of these items is approximately $1,850 ,000 . At the present time, we feel that there are unappropriated funds which will cover the items listed above. It is possible, that some of the amounts listed, will have to be adjusted to meet our first priority which is the completion of the Project. EXHIBIT A MIGINAL RESOLUITON NO. 89'Y-19798 a Authorizing the City Manager to transfer $489,000 from accounts already established and funded, to the George Hyman Construc- tion onstruc_.tion Company contingency accounts in the amount of $200,000 to the Phase I and II contract and $289,000 to the west wrap- around contract, for the purposes of ac- complishing additional required work and for payment of the premium portions of double shifting and overtime; and to per- mit the project coordinator to shift funds between the two contingency accounts as necessary to accomplish completion of thf, project; and to authorize the administra- tion to negotiate with the architects for a continuation of their services until the completion of the project and to re- port back to the Commission for formali- zation of these negotiations.