Resolution 2022-32022RESOLUTION NO. 2022-32022
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, PURSUANT TO REQUEST FOR
PROPOSALS NO. 2020 -180 -ND, FOR DESIGN/BUILD SERVICES FOR
THE 72ND STREET COMMUNITY COMPLEX (THE "PROJECT"),
APPROVING THE VARIOUS FUNDING SOURCES FOR THE DESIGN,
CONSTRUCTION AND PERMITTING OF THE PROJECT, AS SET
FORTH IN EXHIBIT "A" TO THIS RESOLUTION; FURTHER,
AUTHORIZING THE CITY MANAGER TO FINALIZE NEGOTIATIONS
WITH THE HASKELL COMPANY ("HASKELL"), THE TOP-RANKED
PROPOSER FOR THE PROJECT, AND AUTHORIZING THE CITY
MANAGER AND CITY CLERK TO EXECUTE A DESIGN -BUILD
CONTRACT WITH HASKELL, WITH A GUARANTEED MAXIMUM PRICE
NOT TO EXCEED $84,871,516; AND FURTHER APPROVING AN
OWNER'S CONTINGENCY FOR THE PROJECT, IN THE TOTAL
AMOUNT OF $4,427,047.
WHEREAS, the City Commission's selection of North Beach as the location for a
transformative capital project as part of the 2018 G.O. Bond Program was an intentional
effort on the part of the City Commission to deploy resources to revitalize and benefit
North Beach; and
WHEREAS, on November 6, 2018, over 69% of Miami Beach voters resoundingly
endorsed the City Commission's vision, and approved a ballot measure, which, in
pertinent part, authorized the issuance of general obligation bonds (G.O. Bonds) for parks
and recreational facility projects in the City, including G.O. Bond funding for the design,
permitting, and construction of the 72nd Street Community Complex (the "72nd Street
Project" or "Project"); and
WHEREAS, the 72nd Street Project programming, as reflected in the Design
Criteria Package (DCP) for the Project, includes a multi-level mixed-use facility, 500
space parking garage, roof -top 50 -meter competition pool with support amenities, 25 -
meter multi-purpose pool, 7,500 sq. ft. public library, 5,000 sq. ft. of commercial/retail
space, a 7,500 sq. ft. fitness center, a 5,000 sq. ft. community center, 60,000 sq. ft. of
active green space, and a jogging path; and
WHEREAS, among all of the parks and recreational projects proposed as part of
the 2018 G.O. Bond Program, the 72nd Street Project was by far the single largest project
approved by the voters in terms of dollar amounts, reflecting a clear intent of the City's
voters for the City to proceed with a transformative parks and recreation project in North
Beach; and
WHEREAS, the 72nd Street project is intended to complement the City's other
planning efforts undertaken in recent years for the benefit of North Beach, including
adoption of the North Beach Master Plan and approval of the North Beach Community
Redevelopment Agency and North Beach Redevelopment Plan; and
1
WHEREAS, notwithstanding the City Commission's planning efforts, to date the
City has not proceeded with any significant capital project to implement any of those plans
for North Beach, other than perhaps the Beachwalk project, an enormously popular
project that demonstrates the value of the City's investment in recreational projects for
the benefit of residents and tourists alike; and
WHEREAS, in addition to the G.O. Bond funding allocation for the Project, which
is intended to provide baseline funding for the parks and recreational elements of the
Project, the Project includes other important components, including a significant 500
space parking garage which adds over $30 million to the overall cost of the Project,
thereby requiring the City to identify parking funds and other funding sources to
supplement the overall Project budget; and
WHEREAS, on June 24, 2020, the Mayor and City Commission authorized the
issuance of Request for Proposals (RFP) 2020 -180 -ND for Design/Build Services for the
72nd Street Project; and
WHEREAS, on March 17, 2021, the Mayor and City Commission adopted
Resolution No. 2021-31648, authorizing the Administration to enter into negotiations with
the top ranked proposer, The Haskell Company, with the final negotiated agreement
subject to the prior approval of the Mayor and City Commission; and
WHEREAS, in addition, the City Commission also referred the Project to the
Finance and Economic Resiliency Committee (FERC) to look for options to bond the
parking garage or other options to increase available funding, especially considering the
significant additional costs attributable to the parking garage and other elements of the
Project; and
WHEREAS, on April 12, 2021, City staff entered into negotiations with Haskell,
and the City hired a cost estimator to assist in the process and identity opportunities for
reducing Haskell's original cost proposal, in the amount of $94,200,025; and
WHEREAS, on June 18, 2021, the item was' presented at the FERC Budget
Briefing and the Administration discussed potential funding options to help close the
anticipated funding gap; and
WHEREAS, on July 13, 2021, Haskell submitted its revised Guaranteed Maximum
Price proposal in the amount of $84,871,516, and this amount assumes the current scope
in the Design Criteria Package; and
WHEREAS, the cost reductions achieved during negotiations and value
engineering discussions between the City and Haskell are significant, as those
negotiations occurred in a context involving major supply chain disruptions and price
escalations in the construction industry, in particular; and
WHEREAS, in addition to the design and construction costs of approximately
$85,000,000, the City must also budget for its own additional Project costs, including
permitting, CIP project management, GOB and Inspector General oversight, Art in Public
Places, FP&L relocation work, and a 5% Owner's contingency, the costs of which are
summarized in Sections 1 through 5 of Exhibit "A" to this Resolution and would bring the
total Project budget to $101,742,327; and
WHEREAS, on June 11, 2021, the item was heard at the FERC meeting to discuss
the Project budget and potential funding options, in view of a funding gap for the Project;
and
WHEREAS, the current amount budgeted for the Project as part of the FY2022
Capital Budget is $64.4 million, consisting of the Baseline funding from General Obligation
Bonds, in the amount of $53,800,000 and Excess Parking System fund balances, in the
amount of $10,600,000; and
WHEREAS, as reflected in Section 7 of Exhibit "A" to this Resolution, additional
funding to fully cover the design/build contract for the Project has been identified for a
combined total amount of $85,623,708, consisting of funding from the following sources:
New Parking System Revenue Bonds in the amount of $19,400,000, to be applied to
cover costs for the 500 space parking garage portion of the Project; and
• Dedicated funding in the amount of $1,000,000, to be used solely for the Project,
pursuant to the terms of the Settlement Agreement between the City and Ocean
Terrace Holdings, as approved via Resolution No. 2021-31680; and
• Previously identified (and paid) Feasibility Study and Professional Fees Funding, for
which additional funding -is not required, in the amount of $823,7081; and
WHEREAS, Commissioner David Richardson, the sponsor of this Resolution, has
worked with the Administration and City Attorney's Office to identify a number of proposed
additional funding sources which are legally available to cover the City's remaining Project
costs (most of which are for City's own internal Project costs); and
WHEREAS, as outlined in Section 9 of Exhibit "A" to this Resolution, the City
Commission desires to approve additional funding sources to close the funding gap for
the Project, as follows:
1 The Mayor and City Commission identified the above -referenced funding on September 17, 2021 via
Resolution No. 2021-31900; however, that Resolution identified a funding gap of $17.7 million, when in
actuality the funding gap is $16,118,619 after accounting for the $1 million from the Ocean Terrace
settlement (which is earmarked for the Project per the terms of the settlement, and due in a few months, by
April 1, 2022), and the $823,708 in Feasibility Study and other costs which have already been paid (and for
which additional funds are not required).
• Unrestricted excess fund balances not required for repairs/replacements for the 7th
Street Garage project (a public-private project which was constructed pursuant to a
1994 development agreement), in the amount of $3,800,000;
• Excess Resort Tax funds surpassing City's budgeted projections for third quarter FY
2021 collections, in the amount of $5,900,000;
• Excess General Fund reserves surpassing City's budgeted projections for third
quarter FY 2021, in the amount of $3.5 million;
• Integration of the Art In Public Places requirement within the construction of the
Project itself, to more efficiently use the required $1.8 million Art in Public Places
contribution to support both the construction of the Project and public art elements
incorporated within the Project, with the allocation to construction in the amount of
$1.4 million;
• Excess funds remaining in Construction of Library Fund #372, initially contributed as
part of a 1996 Interlocal Agreement with Miami -Dade County, in the amount of
$961,000, which funds the City Attorney and Chief Financial Officer have confirmed
may be applied to cover costs for the library portion of the Project;
• The remaining $557,619 to be identified via final contract negotiations with Haskell;
and
WHEREAS, to the limited extent the Administration is unable to reduce the final
contract amount by $557,619 as part of its final contract negotiations, or as an alternative
to any of the foregoing funding sources referenced above, additional alternative funding
sources may be available to the City Commission to close the gap, including, if necessary,
from a combination of (1) savings achieved from other projects in the Parks category of
the G.O. Bond program, currently estimated at $956,000; (2) modest reductions to the
$6.9 million CIP and/or GOB oversight budget; (3) excess Resort Tax funds surpassing
first quarter FY2022 budgeted projections; (4) general fund reserves; or (5) other funding
sources; and
WHEREAS, the proposed funding plan in Exhibit "A" would not only fully fund the
design -build contract, but includes all of the funding required for the Project, plus Owner's
contingency, for a total Project budget of $101,742,327; and
WHEREAS, approval of the above -referenced funding sources for the Project
would permit the City Commission to make good on its promises to North Beach, deliver
a world-class facility for North Beach, and fully fund the Project without requiring the City
to sell any City property or other assets whatsoever; and
WHEREAS, if the City Commission desires to move forward with this Project for
the benefit of North Beach, the Administration has reviewed the proposed funding
4
sources, and has confirmed, along with the City Attorney, that the funding sources are
legally available to fund the Project; and
WHEREAS, on January 11, 2022, the North Beach CRA Advisory Committee
reviewed the proposed funding plan attached as Exhibit "A", and adopted a motion
endorsing the Project Funding Plan; and
WHEREAS, for the foregoing reasons, the Mayor and City Commission desire to
approve the funding for the Project, as outlined herein and in Exhibit "A" to this Resolution,
and further authorize the City Manager and City Clerk to finalize negotiations and execute
the Design -Build agreement for the Project, with a Guaranteed Maximum Price not to
exceed $84,871,516, and an Owner's Contingency in the total amount of $4,427,047.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission, pursuant to Request for Proposals No. 2020 -180 -ND, for Design/Build
Services for the 72nd Street Community Complex (the "Project"), hereby approve the
various funding sources for the design, construction and permitting of the Project, as set
forth in Exhibit "A" to this Resolution; further, authorize the City Manager to finalize
negotiations with the Haskell Company ("Haskell"), the top-ranked proposer for the
Project, and authorize the City Manager and City Clerk to execute a design -build contract
with Haskell, with a guaranteed maximum price not to exceed $84,871,516; and further
approving an owner's contingency for the project, in the total amount of $4,427,047.
PASSED AND ADOPTED this -20
ATTEST:
731 JAN 2 5 2022
Rafael E. Granado, City Clerk
day of �4nua r , 2022.
(Sponsored by Vice -Mayor David Richardson)
Dan Gelber, Mayor
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
r'�� I _� - ZZ
c' "m PA -Z. Date
Exhibit A
Analysis of 72nd Community Complex Costs and Potential Funding Sources
Section 1: CONSTRUCTION CONTRACT
Construction Contract
Section 2: ADDITIONAL CONSTRUCTION COSTS
FP&L Relocation Costs
Permitting Costs
84,900,000
1,333,945
948,573
TOTAL CONSTRUCTION COSTS 87,182,518
Section 3: NON -CONSTRUCTION BUDGET
Professional Fees
Feasibilty Study
843,250
484,268
Survey and Testing 232,832
TOTAL NON -CONSTRUCTION 1,560,350
Section 4: PROJECT CONTINGENCY 5% 4,427;047
Section 5: OTHER/CITY ALLOCATIONS
Art in Public Places (AIPP)
1,605,040
Capital Improvement Projects 6,160,372
GO Bond Management 807,000
TOTAL OTHER/CITY ALLOCATIONS 8,572,412
Section 6: PROJECT GRAND TOTAL 101,742,327
Section 7: IDENTIFIED FUNDING
GO Bond
Parking Funding Previously Allocated
Ocean Terrace Settlement
New Parking Bond.
Feasibility Study and Professional Fees Funded Previously
FUNDED or FUNDING IDENTIFIED
53, 800,000
10, 600,000
1,000,000
19,400,000
823,708
85,623,708
Section 8: FUNDING GAP 16,118,619
Section 9: POTENTIAL SOURCES OF FUNDING GAP
7th Street Garage Funds
3,800,000
Resort Tax -Reserve Over Q3
5,900,000
Old County Library Fund
961,000
Apply AIPP to Construction
1,400,000
General Fund -Reserve Over Q3
3,500,000
Final Contract Negotiations/Other
557,619
TOTAL POTENTIAL SOURCES OF FUNDING GAP
16,118,619
PLANNING PHASE Date: 1113121
72nd Community Revised GMP 5%
PROJECT NAME: Complex Retaiange PROJECT NO: 22150-21719 GOB
Construction Duration
A. CONSTRUCTION COST
A.1 New Const.including design (Analysis for July 16th Budget Mtg) $ 84,900,000.00
A.2 FP &L Relocation of Transmission Lines $ 1,003,945.00
A.2.1 FP&L Relocation of Distribution Lines $ 330,000.00
A.3 Demolition:............................:...:............................ _ $ -
A.4 Built In Equipment- Escalators, Elevators, Moving Walks, etc.
A.5 Civil Work - Roads, Aprons, Utilities, etc.
A.5.1 Stormwater..........................................................= $ -
A.5.2 Water................................................................= $
A.5.3 Above Ground.......................................................= $ -
A.6 Environmental Remediation ............................................= $ -
A.7 SUBTOTAL A.1 Thru A.6 ..............................................= $ 86
Cost Source (i.e. Est. resource book, A/E Est., Past Project or other)
Supporting Documents Must be Attached if Available
A.8 Permitting Allowance 1.1% of A.7 ............................. 7 ........ $
A.9 TOTAL CONSTRUCTION: A.7 + A.8 + A.9 ........... $ _ _ 87
B. FURNISHINGS, FIXTURES AND EQUIPMENT (MOVEABLE) ............
$__
- 1;660;3_49:65.
C. ART IN PUBLIC PLACES (APP) -
$
(A.1 + A.4) X 100% X 2% .................................... ............... ..._
E. PROJECT CONTINGENCY @ 5% .................................................
(Applies Only to New Building Construction or Large Renovations)
D. OTHER COSTS
_ 4;427;047.49
- CIP Fee @6.5% of Project Cost ..........................................
Professional Fees (DCP) (actual) including services during construction ._
$
843,250.00
Design(12%)....................................................................—
0
Feasibility Study .....................:........... ............
$
484,268.00
LEED Commissioning Agent 3% of Design Fee (A/E Consultant).=
$
-
Constructability, Cost, Value Engineering 2.5% (If applicable)
$
-
Surveys and testing .2.7% of A.7 .........................................................
$
232,831.65
967 372.1'1
Public Information Officer Services
$
-
(ROW Projects $6,000/month) - (Vertical Projects $31000/month)
RPR Services or CE&I Services (1 FTE) .................................
(ROW Projects $16,700/month)
TOTAL OTHER COSTS ......................................................
$__
- 1;660;3_49:65.
PROJECT COST SUBTOTAL
$
90,347,908.05
E. PROJECT CONTINGENCY @ 5% .................................................
$
_ 4;427;047.49
- CIP Fee @6.5% of Project Cost ..........................................
$
6,160,372.11
- GOB CM 1.5% charges based on total amount of $53.8M
$
807,000.00
- Inspector General 0.5% of covered City Contracts (IF the total contract amount
$
-
(Estimated Cost based on Construction + Total Other Costs)
TOTAL FEES...............................................................:=
I$
967 372.1'1
GRAND TOTAL =
1 $
101,742,327.65
F. REMARKS:
Note to Project Manager:
Please be advised that each line item must be evaluated to determine if the cost is applicable to the project. If the cost is not
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Resolutions - R7 P
MIAMIBEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Rafael A. Paz, City Attorney
DATE: January 20, 2022
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, PURSUANT TO REQUEST FOR
PROPOSALS NO. 2020 -180 -ND, FOR DESIGN/BUILD SERVICES FOR
THE 72ND STREET COMMUNITY COMPLEX (THE "PROJECT"),
APPROVING THE VARIOUS FUNDING SOURCES FOR THE DESIGN,
CONSTRUCTION AND PERMITTING OF THE PROJECT, AS SET FORTH
IN EXHIBIT "A" TO THIS RESOLUTION; FURTHER, AUTHORIZING THE
CITY MANAGER TO FINALIZE NEGOTIATIONS WITH THE HASKELL
COMPANY ("HASKELL"), THE TOP-RANKED PROPOSER FOR THE
PROJECT, AND AUTHORIZING THE CITY MANAGER AND CITY CLERK
TO EXECUTE A DESIGN -BUILD CONTRACT WITH HASKELL, WITH A
GUARANTEED MAXIMUM PRICE NOT TO EXCEED $84,871,516; AND
FURTHER APPROVING AN OWNER'S CONTINGENCY FOR THE
PROJECT, IN THE TOTAL AMOUNT OF $4,427,047.
ANALYSIS
Pursuant to the request of Vice -Mayor David Richardson, the above -referenced Resolution is
submitted for consideration by the Mayor and City Commission at the January 20, 2022
Commission meeting.
SUPPORTING SURVEY DATA
N/A
Is this a "Residents Right
to Know" item, pursuant to
City Code Section 2-14?
Yes
Legislative Tracking
Office of the City Attorney
Sponsor
Vice -Mayor David Richardson
Does this item utilize G.O.
Bond Funds?
Yes
Page 877 of 1313
ATTACHMENTS-.
Description
❑ Resolution
Page 878 of 1313