477-2004 RDA Reso
RESOLUTION NO.
477....2004
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY APPROPRIATING FUNDS, IN AN
AMOUNT NOT TO EXCEED $54,125, FROM CITY CENTER
REDEVELOPMENT AREA TAX INCREMENT FUNDS AND RATIFY AN
AMENDMENT TO THE CITY'S AGREEMENT WITH URS CORPORATION-
SOUTHERN FOR PROGRAM MANAGEMENT SERVICES, DATED JUNE
27, 2001; SAID AMENDMENT IN THE AMOUNT OF $54,125, TO PROVIDE
ADDITIONAL INSPECTION SERVICES FOR THE COLONY THEATRE
CONSTRUCTION PROJECT.
WHEREAS the Colony Theatre Renovation Project ("project") began as a $1.75
million concept project in early 1999, and a series of cultural facilities grants were pieced
together during the balance of that year; and
WHEREAS, in October 1999, the City executed a Professional Services Agreement
with the State of Florida Oepartment of Management Services (OMS) to provide design,
pre-construction, and construction management at risk services for the Project
("Agreement"); and
WHEREAS, at the current time, the Project is funded at $6,985,462, which includes
five (5) amendments valued at $ 5,235,462; and
WHEREAS, through its Agreement, OMS provides a practically full service
operation and many of the normal duties of the City are fully delegated by agreement to
OMS as the City's Agent; and
WHEREAS, the Agreement calls for OMS to hire both the project architect and the
construction manager/contractor through its own competitive bid process, and the
respective agreements with each party are executed and administered by OMS; and
WHEREAS, the City's obligations under the Agreement are primarily to provide
funding and to pay timely upon OMS' approval of proper payment applications; and
WHEREAS, the architect of record hired by OMS is R.J. Heisenbottle Architects
("RJHA"), and the construction manager/contractor is McCartney Construction Company
("McCartney"); and
WHEREAS, the total fee paid by the City to the OMS/RJHAlMcCartney team for
Project pre-construction services is $313,872, which includes the design fee for RJHA, the
constructability review by McCartney, and the management fee by OMS; and
WHEREAS, the final deliverable of the pre-construction process is by a Guaranteed
Maximum Price ("GMP"); and
WHEREAS, a gross price for the City's budgeting purposes was provided by the
Project team in July 2002 of $6,365,000, which served as the basis for the final Project
appropriation by the City; and
WHEREAS, this amount was inclusive of DMS, RJHA, and McCartney's fees,
including Project contingency; and
WHEREAS, in this Project, a formal GMP that is essentially in line with this final
budget amount was executed by DMS on behalf of the City in February 2003; and
WHEREAS, it should be noted that City staff was not permitted to review the GMP
prior to DMS' acceptance and execution of the GMP, despite several requests to do so;
and
WHEREAS, the City finally received a copy of the executed GMP in April 2003;
and
WHEREAS, McCartney's GMP for construction was $5,568,002; and
WHEREAS, for reasons of apparent expediency (according to DMS correspondence
to the City), DMS authorized construction activities to commence in November 2002, prior
to the execution of the GMP document, and over the objections of City staff; and
WHEREAS, City staff objections stemmed primarily from the fact that the
construction documents for the Project had not yet been permitted by the Building
Department; and
WHEREAS, Project specifications were not complete, and a draft GMP had not
been provided for the City to consider; and
WHEREAS, six (6) Amendments to the Agreement have been presented to date;
and
WHEREAS, five (5) of them, totaling $5,235,462, have been approved by the City;
and
WHEREAS, the current GMP is $6,985,462; and
WHEREAS, based upon the latest contractor pay application, the construction ofthe
Project currently stands at approximately 66% completion; and
WHEREAS, DMS has been paid 100% of it's fee, up to and including Amendment
#6, of which only a portion of the construction has been completed; and
WHEREAS, RJHA and McCartney have been paid 100% of their invoices; and
WHEREAS, the remaining time to substantial completion of the Project is
approximately 6-7 months; and
WHEREAS, two agreement change orders are currently in negotiation, totaling
$144,768; and
WHEREAS, the City has determined that it is in it's best interest to provide full time
inspection oversight for the Project; and
WHEREAS, the construction of the Project is significantly behind the originally
scheduled construction completion date of June 2003; and
WHEREAS, during the inspection services, which have been provided during
August, several issues have been documented which substantiate the reasons for
providing full time inspection; and
WHEREAS, the inspector has documented problems with construction quality,
safety issues, remedial work issues with cement pours and tie beam installation, problems
with placement of roof vents and drains, and the installation of substandard or damaged
equipment; and
WHEREAS, the City entered into an Agreement with URS Corporation-Southern
(URS) on June 27, 2001 for Program Management Services to Manage Construction
Projects for Facilities and Parks; and
WHEREAS, the Colony Theatre was not one of the Projects included in that
Agreement; and
WHEREAS, in August 2004 the City amended its Agreement with URS to have
URS perform inspection services at the Colony Theatre for a short time to monitor the
work of McCartney; and.
WHEREAS, this has resulted in the determination that full time inspection is
warranted for the duration of the Project to ensure that construction progresses in a timely
manner and that the City doe not get charged for re-work of rejected workmanship; and
WHEREAS, the City recommends executing the Amendment in the amount of
$54,125, to provide continued full time inspection services.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRMAN AND
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY to appropriate funds, in
an amount not to exceed $54,125, from City Center Redevelopment area tax increment
funds and ratify an Amendment to the City's Agreement with URS Corporation-Southern for
program management services, dated June 27,2001; said Amendment, in the amount of
$54,125, to provide additional inspection services for the Colony Theatre Construction
Project.
PASSED and ADOPTED this 8thday of Septembe ,2
A~
i tfON~
CITY CLERK
APPROVED AS TO
GUAGE
FOR EXECUTION
/
'- 9-7-0 Lf
opmentAg~ ON
Genei'81 CounieI - '1f "
" ,
CITY OF MIAMI BEACH
REDEVELOPMENT AGENCY SUMMARY
m
Condensed Title:
A RESOLUTION OF THE CHAIRMAN AND THE MEMBERS OF THE MIAMI BEACH REDEVELOPMENT
AGENCY APPROPRIATING FUNDS IN AN AMOUNT NOT TO EXCEED $ 54,125 FROM CITY CENTER
REDEVELOPMENT AREA TAX INCREMENT FUNDS TO EXECUTE AN AMENDMENT TO THE CITYS
AGREEMENT WITH URS, CORPORATION-SOUTHERN FOR PROGRAM MANAGEMENT SERVICES
TO PROVIDE ADDITIONAL INSPECTION SERVICES FOR THE COLONY THEATRE CONSTRUCTION
PROJECT.
Issue:
Should the Redevelopment Agency appropriate funds in the amount of $54,125 to execute an amendment
with URS, Corporation to provide additional inspection services at the Colony Theatre?
Item Summary/Recommendation:
The Colony Theatre Renovation project began as a $1.75 million concept project in early 1999. A series of
cultural facilities grants were pieced together during the balance of that year and in October 1999, the City
executed a Professional Services Agreement with the State of Florida Department of Management
Services (DMS) to provide design, preconstruction, and construction management at risk services. At the
current time the project is funded at $6,985,462 which includes 5 amendments valued at $ 5,235,462. It
has been determined that the current GMP will not be sufficient to cover all expected costs associated with
the construction of the project. Due to several issues that City Staff have identified with the quality of the
work by McCartney Construction, The CIP office recommends that the City provide full time inspection
oversight for the construction project. The construction of the project is significantly behind the originally
scheduled construction completion date of June 2003.
Advisory Board Recommendation:
I N/A
Financial Information:
Finance Dept.
Source of
Funds:
RDA City Center
D
City Clerk's Office Legislative Tracking:
I Diana Trettin ;Jf7
Si n-Ofts:
"17m ~r
AGENDA ITEM :3 f3
DATE 9-1-01
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.miamibeachfl.gov
REDEVELOPMENT AGENCY MEMORANDUM
From:
Chairman David Dermer and Date: September 8, 2004
Members of Miami Beach Redevelopment Agency
Jorge M. Gonzalez ). ~~.
City Manager ( U
,
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY APPROPRIATING FUNDS IN AN
AMOUNT NOT TO EXCEED $ 54,125 FROM CITY
CENTER REDEVELOPMENT AREA TAX INCREMENT FUNDS TO
EXECUTE AN AMENDMENT TO THE CITY'S AGREEMENT
WITH URS CORPORATION-SOUTHERN FOR PROGRAM MANAGEMENT
SERVICES TO PROVIDE ADDITIONAL INSPECTION SERVICES FOR
THE COLONY THEATRE CONSTRUCTION PROJECT.
To:
Subject:
ADMINISTRATIVE RECOMMENDATION:
Adopt the Resolution.
FUNDING:
Funding is available from the City Center Redevelopment Agency (ROA) Tax Increment
Financing (TIF) Funds.
ANALYSIS:
The Colony Theatre Renovation project began as a $1.75 million concept project in early
1999. A series of cultural facilities grants were pieced together during the balance of that
year and in October 1999, the City executed a Professional Services Agreement with the
State of Florida Department of Management Services (OMS) to provide design,
preconstruction, and construction management at risk services. A detailed history of the
project was previously provided as a Status Report in September 2003 and appears as
Attachment 1 to this memorandum. At the current time the project is funded at $6,985,462
which includes five (5) amendments valued at $5,235,462.
Through its Agreement with the City, OMS provides a practically full service operation and
many of the normal duties of the City are fully delegated by agreement to OMS as the
City's Agent. The Agreement calls for OMS to hire both the Architect and the Construction
Manager/Contractor through its own competitive bid process and the respective
agreements with each party are executed and administered by OMS. The City's
obligations under its Agreement with OMS are primarily to provide funding and to pay
timely upon OMS' approval of proper payment applications.
Redevelopment Agency Memorandum
September 8, 2004
Colony Theater Inspection Services
Page 2 of 3
The DMS Agreement calls for a number of deliverables during the design and pre-
construction stages. The deliverables are consistent with a standard construction manager
at risk process where a general contractor is brought into the design process at an early
stage to work with the Architect of Record in both developing the design documents and in
pricing the project. In this project, the Architect of Record hired by DMS is R.J.
Heisenbottle Architects ("RJHA") and the Construction Manager/Contractor hired by DMS
is McCartney Construction Company ("McCartney"). The total fee paid by the City to the
DMS/RJHAlMcCartney team for pre-construction services was $313,872, which included
the design fee for RJHA, the constructability review by McCartney, and the management
fee by DMS.
A gross price for the City's budgeting purposes was provided by the project team in July
2002 of $6,365,000 which served as the basis for the final appropriation by the City. This
amount was inclusive of DMS, RJHA, and McCartney's fees, including project contingency.
In this project, a formal GMP that is essentially in line with this final budget amount was
executed by DMS on behalf of the City in February 2003. It should be noted that contrary
to the language above, City staff was not permitted to review the GMP prior to DMS'
acceptance and execution of the GMP, despite several requests to do so. The City finally
received a copy of the executed GMP in April 2003. McCartney's GMP for construction
was $5,568,002.
For reasons of apparent expediency (according to DMS correspondence to the City), DMS
authorized construction activities to commence in November 2002, prior to the execution of
the GMP document and over the objections of City staff. City staff objections stemmed
primarily from the fact that the Construction Documents for the project had not yet been
permitted by the Building Department, project specifications were not complete, and a draft
GMP had not been provided for the City to consider.
Six (6) Amendments to the original contract have been presented to date. Five (5) ofthem
totaling $5,235,462 have been approved. The following is a breakdown of the
Amendments:
. In June 2001, an Amendment was approved in the amount of $2,814,711.
. In September 2002, an Amendment was approved in the amount of $1,750,000.
. In April 2004, an Amendment was approved in the amount of $ 553,409.
. In May 2004, an Amendment was approved in the amount of $30,924.
. In June 2004, an Amendment was approved in the amount of $86,418.
The current GMP is $6,985,462. Based upon the latest Contractor pay application, the
construction of the project currently stands at approximately 66% completion. DMS has
been paid 100% of their fee up to and including Amendment #6 of which only a portion of
the construction has been completed. The remaining time to substantial completion of the
project is approximately 6-7 months. Two contract change orders are currently in
negotiation totaling $144,768.
Redevelopment Agency Memorandum
September 8,2004
Colony Theater Inspection Services
Page 3 of 3
Due to several issues, many arising from the submittal of questionable change orders by
McCartney Construction, the Administration determined that it was in the City's best interest
to provide full time inspection oversight for the construction project. The construction of the
project is significantly behind the originally scheduled construction completion date of June
2003. During the inspection services which have been provided during August several
issues have been documented which substantiate the reasons for providing the full time
inspection. The inspector has documented problems with construction quality, safety
issues, remedial work issues with cement pours and tie beam installation, problems with
placement of roof vents and drains, and the installation of substandard or damaged
equipment. The result of having an observer onsite daily is to ensure that construction
progresses in a reasonable timeframe and that the City does not get charged for re-work of
rejected construction or the construction of substandard work.
The City's Agreement with DMS provides for inspection services at a frequency of one (1)
visit every two (2) weeks. Additionally, the AlE of Record's structural engineer also serves
as the threshold inspector pursuant to the Florida Building Code, and conducts regular
inspections on structural items. However, neither of these services are frequent enough to
meet the City's needs vis-a-vis a contractor that has demonstrated Quality Control
problems, as well as a general reluctance to reject non-conforming work of its
subcontractors. The City's experience with daily inspections has shown that this type of
frequency is necessary to document the course of construction. DMS has also indicated
reluctance in increasing the frequency of its field observation/inspection services, as its staff
is located in Tampa, Jacksonville and Tallahassee, respectively.
The City entered into an agreement with URS Corporation-Southern (URS) on June 27,
2001 for Program Management Services to manage construction projects for Facilities and
Parks. The Colony Theater was not one of the projects included in that agreement. URS
has performed inspection services similar to those outlined here for other projects, with a
positive result.
In August 2004, the City amended its agreement with URS to have URS perform inspection
services at the Colony Theater for a short time period to monitor the work of McCartney.
This has resulted in the determination that full time inspection is warranted for the duration
of the project to ensure that construction progresses in a timely manner and that the City
does not get charged for re-work of rejected workmanship. In order for URS to continue
providing these services, additional funding is required.
CONCLUSION:
The Administration recommends that the necessary funding be appropriated to enter into
this Amendment.
T:\AGENDA\2004\Sep0804\Regular\Colony theatre Inspection RDA.doc
f-\~~ ,
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.miamibeachfl.gov
COMMISSION MEMORANDUM
Subject:
Mayor Dermer and Members of Date: September 10, 2003
the Miami Beach Redevelopment Agency
Jorge M. Gonzalez '\ f/"~
City Manager 0- U
STATUS REPORT ON THE COLONY THEATER RENOVATION PROJECT
To:
From:
BACKGROUND
The Greater Miami Concert Association, on behalf of the City of Miami Beach, initiated a process
to procure grant funding for the renovation and repair of the Colony Theater. With the efforts of
the Concert Association, in early 1999, Miami-Dade County Cultural Affairs Department engaged,
on a pro-bono basis, the Zeidler Roberts Partnership, Inc., to develop conceptual plans and cost
estimates for the expansion and renovation of the Colony Theater. In September 1999, the City
was awarded a $775,000 Miami-Dade County Cultural Affairs Grant; but the Plan failed to address
many important elements and contained a preliminary cost estimate of $1.5 Million to undertake
the Project.
On July 21 , 1999, the City Commission authorized the City Administration to apply to the State of
Florida, Division Of Cultural Affairs (SOF), for a $500,000 Cultural Facilities Grant. The City
pledged $1,000,000 in (2-for-1) matching funds, from the following sources:
Miami-Dade County Cultural Affairs Grant
ADA Improvements (Bond Fund 351)
Cultural Arts Council Loan
Total Funding Available:
$775,000
$ 60,000
$165.000
$1,000,000
On October 6, 1999, the Mayor and City Commission adopted Resolution No. 99-23348,
authorizing the City to execute a Professional Services Agreement with the State of Florida,
Department of Management Services (OMS) for construction management of the Colony Theater.
The OMS Program provides construction-management-at-risk and provides municipalities with
project management services from the onset of a project, throughout the design phase, bidding
process (resulting on a guaranteed maximum price), and culminating with construction oversight
and coordination.
On March 6, 2000, OMS authorized R.J. Heisenbottle Architects (RJHA) - the Architect-of-
Records, selected through an RFQ process administered by DMS - to proceed with programming
and conceptual/advanced schematic design phases for the expansion and renovation of the
Colony Theater. The design had to address programmatic requirements, historic preservation
scope, ADA and other code-related deficiencies. It should be noted that the design development
phase was subject to extensive programming with input received from the operator and users of
the Colony Theater, the City's Historic Preservation Office, Property Management and the
Agenda Item f{ D4 - .3 A
Date 9-/0-t:J3
886
"
September 10, 2003
Commission Memorandum
Colony Theater status Reporl
Page 20'7
Planning and Zoning Department.
In September 2000, RJHA presented three alternative design concepts to address expansion of
backstage areas, ADA requirements and other identified improvements. The alternatives involved:
1. expanding the Colony into and over the alley on the south side of the building,
2. expanding below grade (basement), or
3. expanding to the east by incorporating a portion of the adjacent privately owned property.
Given the extent of the improvements/enhancements identified during this process, RJHA
exhausted attempts to design the Colony Theater's renovation within the parameters of the
existing footprint of the building. Because the Colony Theater has never been substantially
altered from its initial use as a cinema, the addition of a fly-space was considered a vital element
to become a true performance theater. The only way to accomplish this was to provide an
"addition" to the structure. At the very least, plans called for demolition of the back of the house,
which was found to have asbestos and other code and fire violations, and to build a vertical
addition, accommodating a fly-space, technical storage and dressing rooms.
On December 15, 2000, RJHA - represented by Richard Heisenbottle, Terry Siegel and Gregory
Saldano - presented to a committee comprised by Jorge Gomez, William Cary, and Tom Mooney
from the City's Planning Department, Brad Judd from Property Management, Kent Bonde from the
Redevelopment Agency, and Eric Fliss from the Colony's Operations Department, a new scheme,
calling for the removal of the rear 45 feet of existing building, construction of a new stage house,
small second and third floor service areas behind the stage, a fourth floor "Backstage" area,
elevator, stairs, and the addition of a new vestibule and exterior access ramp to provide ADA
access to the stage. The historic preservation scope involves removing the existing marquee and
storefront on Lincoln Road and returning this fascia to its original historic appearance and
modifying the interior lobby, office and concession area to be more consistent with the building's
original design. RJHA presented Options "A" and "B" for this scheme, involving different size
add itions to the facility. Option "A" involved the addition of 7 ,950 square feet at a hard construction
cost estimate of approximately $3.6 Million. Option liB" comprised a 9,520 square foot addition, for
a total construction/hard cost of $4.5 Million. According to RJHA, the design could not undergo
further value engineering without adversely impacting the scope and purpose ofthe project. The
Administration concurred with this assessment and recommended proceeding with Option "B".
According to DMS, the total estimated cost of the project, inclusive of soft costs, would be
approximately $4,615,000, significantly exceeding the available budget.
On March 16, 2001, the City was awarded a National Park Service-Save America's Treasures
Grant, in the amount of $835,000, of which $700,000 was appropriated for the Colony Theater
project.
Total available funding sources at the time comprised the following:
887
September 10, 2003
Commission Memorandum
Colony 'Theater Status Report
Page 3ot7
County Cultural Arts Grant/PACT:
ADA Improvements (Bond Fund 351)
Florida Dept of State Cultural Facilities Grant -
Phase I:
Cultural Arts Council Loan
National Park Service - Save America's
Treasures Grant:
Total Available Funding:
Estimated Budget:
Estimated Shortfall:
$ 775,000
$ 60,000 - City Match
$ 500,000 - 2 for 1 City Match Required
$ 165,000 - City Match Revised Amount
$ 700.000
$2,200,000
$4.615.000
($2,415,000)
On May 14, 2001, the Administration presented to the City's Finance and Citywide Project
Committee a request for additional funding for the Project, in the amount $1,415,000 from the
Miami Beach Redevelopment Agency (RDA). The Committee voted in favor of recommending the
appropriation. Based on the Committee's recommendation, the RDA appropriated the funds on
June 27, 2001. The remaining $1,000,000 shortfall was expected to be funded from future
applications to the SOF- Cultural Facilities Grant Program (Phases II and III).
On July 10, 2001, Design Development Plans received formal approval by the Design Review and
Historic Preservation Boards. Design and Construction Documents proceeded with anticipated
completion by March, 2002.
In August, 2001 , the City applied for a second Cultural Facilities Grant in the amount of $500,000
from the SOF - Division Of Cultural Affairs. The City identified the additional appropriation from the
RDA and the National Parks Service Grant, as fulfilling the matching funds requirements. SOF
Funds from the second application were appropriated by the State in May, 2002.
The revised funding status at the time comprised the following:
Total Available Funding:
Estimated Budget:
Estimated Shortfall:
RDA Appropriation on June 27, 2001
Florida Dept of State Cultural Facilities
Grant - Phase II:
Revised Estimated Shortfall (at the time):
$2,200,000
54.615.000
($2,415,000)
$1,415,000 - City Match to the SOF Grant
$ 500.000 - 2 for 1 City Match Required
($ 500,000)
A third application in the amount of $500,000 was submitted in August, 2002, which was intended
to bridge the projected shortfall. Due to the recent budgetary issues at the State of Florida, the
funding process has been delayed. The Project has been ranked favorably and is included in a
priority list for the FY2004 application period.
Using RJHA preliminary Design Documents and cost estimates, in October, 2001, following a
bidding and selection process administered by OMS, a Contract was awarded to McCartney
Construction, for the Construction phase of the Project. At the time, the Contractor reviewed the
existing Construction Documentation and submitted a total Construction Budget Amount of
$3,100,000.
888
September 10, 2003
Commission Memorandum
Colony Theater Status Report
Page 4 of7
In January 2002, Florida Power and Light mandated the placement of an 18 sq.ft. transformer
vault within the confines of the Colony Theater property, to handle the facility's anticipated
electrical load. Since there was virtually no room inside the Colony to place the vault, RJHA
presented a proposal to pad mount the vault in the public-right-of way, just north of the 9 ft
easement area, on the west side of the Colony. The proposal required the approval of the City's
Historic Preservation and Design Review staff as well as a right-of-way easement from the City in
order to proceed. The easement was contingent upon certain plans and specifications to be
provided by FP&L.
On February 8, 2002, Design and Construction Documents underwent preliminary review by
building trade, accessibility/ADA and fire inspectors, which triggered the need to apply for certain
regulatory waivers due to hardships encountered in dealing with certain code-related issues,
including, but not limited to:
. Flood plain elevation - in order to preserve the historically significant interior portions of
the building (terrazzo flooring, walls, etc.), a variance application to the City's Flood
Variance Board was submitted and approved on April 5, 2002.
. Wind-load criteria - the existing elements of the building that do not comply with the
technical requirements of the Code required an application for a waiver. The Project was
set to go before the Board of Rules and Appeals (BORA) for a waiver on April 25, 2002,
however due to changes to the Building Code, jurisdiction over waiving certain technical
codes for historic buildings, including but not limited to, the alteration, repair and restoration
thereof, was shifted from BORA to the local Building Official. As such, the Colony Theater
became the first waiver application to be reviewed by the City's Building Official and
Structural Plans Examiner. The wind load requirements in the historic portion of the
building, required extensive coordination with the City's Historic Preservation Office to
determine the impacts to the project. A mutually acceptable solution was reached in
September, 2002.
. Accessibility - Waivers were sought from the State of Florida's Historic Preservation
Office to avoid a required enlargement of the lobby area to meet accessibility requirements.
If implemented, the enlargement would have adversely impacted its historic characteristics
and reduce adjacent circulation space needed to comply with NFPA egress requirements.
A waiver was also sought from the Florida Building Commission because vertical
accessibility is not possible to all levels of the facility. The waivers have been granted,
subject to certain conditions involving the provision of handicapped accessible seating with
specific sight-line requirements, which have since been addressed in the final Documents.
On March 26, 2002, McCartney Construction presented the design development cost estimates,
which exceeded the available construction budget of $3.1 million by $577,140. The most
significant line item differences from the budget approved in March 2001 were concrete work, life-
safety/fire sprinkler systems, HVAC, Equipment and Finishes. Additional cost overruns not
contemplated in the estimate, included certain interior finishes, required for Historic Preservation,
including but not limited to, the creation of a free-standing ticket booth in the entrance lobby.
889
September 10, 2003
Commission Memorandum
Colony Theater Status Report
Page 5 of 7
[lI
On May 31,2002, Staff met with the Design Team, McCartney Construction (Contractor) and the
State of Florida's Department of Management Services (OMS), to review the 100% construction
document cost estimates. The total projected cost of the Project stood at $6,335,000 or
$1,720,000 over the Project Budget of $4,615,000. The increase in cost included, but was not
limited to, an estimated $405,000 in requested enhancements that were necessary to make the
Project operational, including rigging, lighting, new seating, acoustical fabric panels and railings in
the auditorium.
On June 2, 2002, the Administration again went before the City's Finance and Citywide Project
Committee (Committee) to request the additional funding to bridge the shortfall. The Committee
voted in favor of appropriating $1,750,000 towards the Project. The RDA subsequently
appropriated the funding at its meeting on July 10, 2002.
At that time, the total funding dedicated towards the Project was as follows:
Source
City Center RDA TIF funds
. ADA Improvements (Bond Fund 351)
Cultural Arts Council Loan
Miami-Dade County Cultural Affairs
National Park Service
State of Florida - Cultural Facilities Ph I
State of Florida - Cultural Facilities Ph II
State of Florida - Cultural Facilities Ph III
Total:
Funding
$ 3,165,000
60,000
165,000
775,000
700,000
500,000
500,000
500.000
$6,365,000
% of Total
50%
1%
3%
12%
10%
08%
08%
08% (PendinQ)
100%
On September 18, 2002, the 100% Construction Drawings were re-submitted to the City for final
review and approval for permitting. The plans reflected changes and comments requested by the
various building trade Plan Reviewers, the Fire Department, Miami-Dade County, and all other
applicable local and state regulatory entities.
On November 5, 2002, the Documents received final approval, allowing the Permit to be issued
for the Project. Contract administration of the OMS Construction Administration Agreement
Project was officially handed over to the Capital Improvements Projects Office.
On February 25, 2003, the Construction Manager contractwas amended to reflect a Guaranteed
Maximum Price (GMP) of $5,568,002 for construction. The Total Project Cost, including RJHA's
and OMS' professional fees, is $6,314,610. The balanceofthefunding in the amount of $50,390
remains unallocated.
CURRENT PROJECT STATUS
Despite objections from the CIP Office to OMS to release the Project without a completed GMP
amount, ground breaking occurred during the first week of December, 2002, with extensive
asbestos abatement throughout the structure. DMS communicated to the City its authority to start
the construction process, pursuant to the conditions of its Contract with the City. In mid-
December demolition of the main stage house and the non-historic elements of the lobby began.
890
.'
~ _'~2JJfXJ
~ Commission Memorandum
Colony Theater Status Report
Page 60'7
Ouring this process, certain alleged unforeseen conditions have come to light, which in turn have
contributed to delays and additional cost requests from the Contractor. Contractor identified
conditions include, but are not limited to, weakened/corroded concrete ceiling support beams over
the lobby area, additional asbestos material uncovered in the marquis, a determination by the
structural engineer that specifications for the structural bracing required extensive modification in
order to adequately shore the remaining structure, unanticipated dewatering, and a complete
replacement of a corroded plumbing system beneath the building.
Additionally, it should be noted that at the time of the last appropriation (July 10, 2002), many of
the line items, particularly for interior furnishings, fixtures and equipment, including certain
mechanical and HVAC components, were identified as allowances in the GMP, based on current
unit pricing. Since then, as RJHA has developed specifications and drafted details and final
designs, many ofthese items have been priced higher than originally estimated. The CIP office is
in the process of performing a cursory review of the Construction Oocuments to evaluate the
extent of the issues affecting the Project Cost.
Collectively, these issues, if not contested by the City, will deplete the Project's Contingency,
which represents less than 2.3% of the Project's Budget.
At the request of the CIP Office, OMS and McCartney Construction have been asked to provide a
breakdown of McCartney's additional costs for which they have requested additional funds. The
estimate, in the amount of $557,769, was submitted on August 12, 2003 and is being evaluated
by the CIP Office. This amount also includes RJHA additional services in the amount of $40,000
and an adjustment to OMS' Construction Administration fee of $13,605.
Additionally, in order to operate the theater, phone lines and a genie lift need to be installed. This
cost is estimated at $10,000 and is not currently included in the GMP amount.
It should also be noted that certain additional administrative costs associated with this Project
have not been included in the original Budget, but need to be factored in now. These include the
CIP Project Management fee of 4.8% of the total Project's cost and the Art In Public Places
(AIPP) allocation of 1.5% of the new construction cost (AIPP applies only to 40% of the
Construction Budget).
Based upon the current information available, the CIP office is not in agreement with OMS that the
full amount of additional funds are warranted. CIP is requesting additional information to support
OMS' findings before any further action is taken, or an increase to the Project is recommended for
Commission/Board consideration. It is still premature to determine what the final recommendation
of staff will be. We will provide regular updates as the Project progresses.
As noted above, this Project is officially and legally managed by the Florida Department of
Management Services (OMS). Within this structure, both the Project Architect (RJHA) and the
Contractor (McCartney) have agreements with OMS and not with the City. However, through
OMS' Contract, the City is required to pay each entity upon approval by OMS.
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September 10, 2003
Commission Memorandum
Colony Theater status Report
Page 70f7
~
CURRENT COST STATUS
Project Costs to Date as of August 6, 2003
Construction (Hard) Costs:
Architectural & Engineering (Soft) Costs:
OMS Management:
Total Project Cost:
Budget:
$5,568,002
$ 585,272
$ 161.336
$6,314,610
Payments
To Date:
$1,121,995
$ 508,184
$ 101.095
$1,731,274
Cost To
Complete:
$4,446,007
$ 77,088
$ 60.241
$4,583,336
It should also be noted that even though the Project has been ranked favorably by the Cultural
Facilities Committee, the City's Phase III Cultural Facilities funding application to the State of
Florida, in the amount of $500,000, was not funded this year due to funding shortfalls at the State
level. As such, the City or ROA may have to front these funds until funding is approved, if ever.
PROJECT SCHEDULE
Even though the Project has experienced certain delays due primarily to conditions not
uncharacteristic of many historic structures in the City, work has been proceeding at a steady pace.
All grade beams and the concession and stage slabs have been poured, electrical under grounding
has been completed up to the south west comer of the building, the fire alarm rough-in conduits at
the front lobby and under seating areas are underway, clipping and strapping of the Auditorium
framing (wind-load related code requirements) is almost complete, and HVAC air return duct
fabrication is underway. The current critical path schedule reflects substantial completion of the
Project mi ay, 2004, approximately 6 months behind the original schedule.
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