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HomeMy WebLinkAbout2001-24494 RESO RESOLUTION NO. 2001-24494 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECT COMMITTEE, AUTHORIZING AN AMENDMENT IN THE AMOUNT OF $61,436 TO THE PROFESSIONAL SERVICES AGREEMENT ENTERED INTO BY AND BETWEEN THE CITY OF MIAMI BEACH AND THE STATE OF FLORIDA DEPARTMENT OF MANAGEMENT SERVICES, DATED OCTOBER 6, 1999, FOR CONSTRUCTION MANAGEMENT OF THE COLONY THEATER RENOVATION PROJECT, FOR A TOTAL REVISED CONTRACT AMOUNT OF $111,336. WHEREAS, 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 (DMS), for construction management of the Colony Theater, in the amount of $49,900; and WHEREAS, on March 6, 2000, DMS authorized RJ. Heisenbottle (Architect), to proceed with programming and conceptualladvanced schematic design phases for the expansion and renovation of the Colony Theater; .and WHEREAS, the programming phase involved an extensive process, during which input was received from the operator and users of the Colony Theater; the City's Historic Preservation Officer; Property Management; and the Planning and Zoning Department; and WHEREAS, based on the information gathered, the Architect presented a two alternative design concepts to address expansion of backstage areas, ADA requirements and other identified improvements; and WHEREAS, since the proposed design alternatives exceeded the available budget by a minimum of $1,614,514, the Administration worked with DMS and the Architect to value engineer the design; and WHEREAS, on December 15,2000, the Architect presented two options involving a new design scheme; and WHEREAS, according to the Architect, the design cannot undergo further value engineering without adversely impacting the scope and purpose of the Project; and WHEREAS, the Administration concurs with this assessment and recommends proceeding with the first of the two options (Option "A"), involving the addition of 7,950 square feet to the Colony Theater, for a total estimated cost of $4,615,000; and WHEREAS, the Project has secured financing through a combination of sources, totaling $2,200,000; and WHEREAS, the total anticipated cost of the Project exceeds available funding by $2,424,711; and WHEREAS, in Fiscal Years 2001-02 and 2002-03, the Administration stands to receive an additional $1,000,000 in funds from the Florida Department of State, Cultural Facilities Grant Program, which is contingent upon a 2-for-l match from the City, which may include other grant funds; and WHEREAS, the Administration intends to use the National Park Service Award, in the amount of $700,000, as a portion of the match, and recommends appropriating $1,415,000 from available 1998B Tax Increment Revenue Bond funds to make up the difference and cover the cost ofthe Project; and WHEREAS, on April 18,2001, the RDA Board referred The Administration's request for funding to the City's Finance and Citywide Project Committee (Committee) for consideration; and WHEREAS, the Committee met on May 14, and voted in favor of appropriating the funds, subject to reaching a settlement on the acquisition of the American Riviera Real Estate Company (nAblonn) property as part ofthe Library site assemblage; and WHEREAS, on May 30, a settlement on the Ablon parcel was reached, resulting in the Committee reaffirming its decision to recommend the requested funding for the Colony Theater; and WHEREAS, at the time DMS was engaged by the City to manage the design and construction ofthe Colony Theater, the total estimated cost of the Project was $1,750,000, which was a rough estimate based on an earlier conceptual design by Zeidler Roberts, Inc.; and WHEREAS, the Agreement between DMS and the City provides for DMS to receive a fee equivalent to 2.85% of the total budget, or $49,900, which was based on this early estimate; and WHEREAS, the Agreement also provides that if the Project budget increased in excess of $250,000, the fee to DMS would increase by 2.5% of the revised budget in excess of $1,750,000; and WHEREAS, based upon the difference between the original and current estimated Project cost, DMS's fees will increase by $61,436, for a total of $111,336.; and WHEREAS, the Finance and Citywide Project Committee recommended to amend the Agreement with DMS to administer the project. 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 authorize an Amendment, in the amount of $61,436, to the Professional Services Agreement between the City and the State of Florida, Department of Management Services, for Construction Management of the Colony Theater Renovation Project, in accordance with the provisions set forth in the original Agreement executed on October 6, 1999. PASSED and ADOPTED this 27th day of June, 2001. AYOR ATTEST: ~}f~ CITY CLERK APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION Ail IAIJOJ IJ~ G -/ Po; ~gaw F:\CMGJ{\AGENDAI:ZOOl\j!lntZ1\t:OIlael!.t\coklllyns.doc: CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\ci.miami-beach.f1.u5 COMMISSION MEMORANDUM NO. If :;'0-0 I TO: Mayor Neisen O. Kasdin and Members of the City Commission Jorge M. GOnZaleZ~/L. City Manager DATE: June 27, 2001 FROM: SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECT COMMITTEE, AUTHORIZING AN AMENDMENT IN THE AMOUNT OF $61,436 TO THE PROFESSIONAL SERVICES AGREEMENT BY AND BETWEEN THE CITY OF MIAMI BEACH AND THE STATE OF FLORIDA, DEPARTMENT OF MANAGEMENT SERVICES, DATED OCTOBER 6, 1999, FOR CONSTRUCTION MANAGEMENT OF THE COLONY THEATER RENOVATION PROJECT, FOR A TOTAL REVISED CONTRACT AMOUNT OF $111,336. ADMINISTRATION RECOMMENDATION Adopt the Resolution. ANALYSIS 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 (DMS) for construction management ofthe Colony Theater. On March 6, 2000, DMS authorized R.J. Heisenbottle (Architect), to proceed with programming and conceptual/advanced schematic design phases for the expansion and renovation of the Colony Theater. The programming phase involved an extensive process, during which input was received from the operator and users of the Colony Theater, the City's Historic Preservation Officer, Property Management and the Planning Department. Based on the information gathered, the Architect presented three alternative design concepts to address expansion of backstage areas, ADA requirements and other identified improvements. The alternatives involved expanding the Colony into and over the alley on the south side of the building, expanding below grade (basement), or expanding to the east by incorporating a portion ofthe adjacent privately owned property. Since the adjacent property was not for sale, the Architect focused on developing advanced schematics and related cost estimates for the two former alternatives, involving the basement scheme and the alley scheme. Given the extent of the improvements/enhancements identified during the programming Agenda Item R7 C Date ~-.:Z7-C'J/ phase, including but not limited to ADA and other code required modifications, performance and storage needs and the historic preservation scope, and given the size limitation of the existing structure, the Architect had to exercise significant creativity in developing the two designs. The Administration's position has always been that the project must be designed and built within the available budget, which as of the date of this report, comprises the following funding sources: County Cultural Arts GranVPACT: ADA Improvements (Bond Fund 351) Florida Dept of State Cultural Facilities Grant: Cultural Arts Council Loan Nat'l Park Service - Save America's Treasures Grant: Total Budget: $ 775,000 $ 60,000 $ 500,000 $ 165,000 $ 700,000 $2,200,000 Less: Dept of Management Services Fees R.J. Heisenbottle (Architect) Fees Total Expenses to Date: $ 49,900 $ 47,930 $ 97,830 Total Remaining Budget: $2,102,170 On September 21, the Architect presented the two schemes to City staff and DMS. The cost estimates (hard costs alone) were $3,924,949 for the basement scheme and $3,815,914 for the alley scheme, both of which exceeded the remaining budget by a minimum of $1,614,514. Both schemes involved approximately $800,000 in additional soft costs, and in the case of the alley scheme, an estimated additional $1.4 million to relocate utilities in the alley. Since this time, a number of additional meetings have been held with the operator of the Colony Theater, the City's Historic Preservation Officer, the Planning and Zoning, Property Management Directors and DMS Staff and the project's Architect to value engineer the design and attempt to scale back the project within budget. On December 15,2000, the Architect presented a new scheme, which calls 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 to its original historic appearance and modifying the interior lobby, office and concession area to be more consistent with the building's original design. The Architect presented an A and B option for this scheme, involving different size additions to the facility. The "A" option involves the addition of 7,950 square feet and is the least costliest ofthe two, at approximately $3.6 Million. The "B" option comprises a 9,520 square foot addition, for a total construction/hard cost of $4.5 Million. Plans reflecting these options are included with this report. According to the Architect, the design cannot undergo further value engineering without adversely impacting the scope and purpose of the project. The Administration concurs with this assessment and recommends proceeding with Option "A". According to DMS, the total estimated cost of the project, inclusive of soft costs, would be approximately $4,615,000. This amount reflects revised fees for DMS, pursuant to the provisions of its Contract Agreement with the City. At the time DMS was engaged by the City to manage the design and construction of the Colony Theater, the total estimated cost of the project was $1,750,000. This figure was at best, a rough estimate based on an earlier conceptual design by Zeidler Roberts, Inc. The Contract Agreement between DMS and the City provides for DMS to receive a fee equivalent to 2.85% of the total budget, or $49,900, which was based on this early estimate. The Agreement also provides that if the project budget increased in excess of $250,000, the fee to DMS would increase by 2.5% of the revised budget in excess of $1,750,000. As such, based upon the difference between the original and current estimated project cost, DMS's fees will increase by $61,436, for a total of $111,336. As indicated earlier, the project has secured financing through a combination of sources, totaling $2,200,000. Ninety (90%) percent of the funding comprises County, State and Federal Grant monies. The total anticipated cost of the project exceeds available funding by $2,424,711. In Fiscal Years 01-02 and 02-03, the Administration stands to receive an additional $1,000,000 in funds from the Florida Department of State, Cultural Facilities Grant Program. This funding however is contingent upon a 2-for-l match from the City, which may include other grant funds. As such, the Administration intends to use the National Park Service Award, in the amount of $700,000 as a portion of the match, and recommends appropriating $1,415,000 from available 1998B City Center Tax Increment Revenue Bond funds to make up the difference and cover the cost of the project. As a City-owned facility in the City Center Redevelopment Area, the Colony Theater qualifies for tax- exempt TIF financing. Project Cost Funding $2,200,000 Total Funding as of3/28/0l Less: Actual + Anticipated Soft Costs Est Hard Costs Est Total Project Cost: ($2,414,711) Proposed Additional Funding: FY 01/02-02/03 Florida Dept of State Cultural Facilities Grant: 1998B Tax Increment Revenue Bonds $ 958,544 $3.656.167 $4,614,711 $ 1,000,000 $ 1.414.711 Total: $4,614,711 $4,614,711 On April 18,2001, the RDA Board referred The Administration's request for funding to the City's Finance and Citywide Project Committee (Committee) for consideration. The Committee met on May 14, and voted in favor of appropriating the funds, subject to reaching a settlement on the acquisition of the American Riviera Real Estate Company ("Ablon") property as part of the Library site assemblage. On May 30, a settlement was reached. The Committee reconvened on May 30, the same day a settlement was reached on the Ablon parcel. The Commitee reaffirmed its earlier decision to recommend the funding requested for the Colony Theater. The Committee also recommended to amend the Agreement with DMS to administer the project. A separate Resolution adopting the Committee's recommendation to appropriate City Center TIF funds is included on the RDA Board's Agenda for today's meeting. Pursuant to the Committee's recommendation and subject to the approval of the RDA Board, the Architect will proceed with design development and construction drawings, which collectively should take approximately nine months to finalize, barring any delays with the Historic Preservation and/or Design Review process. Permitting, cost estimating and contractor bidding and selection, are anticipated to take an additional four to five months, extending the planning, design and pre-construction phases through May 2002. This timeframe coincides with the Colony Theater's desire to commence construction during the Summer months. It is anticipated that construction will take approximately a year to complete. The anticipated schedule as follows: Preliminary Schedule: Colony Theater Renovation Architectural: (inclusive of DRB & HPB review process) Design Development (DD) Construction Documents (CD) 2002 Pre-Construction: Contractor bidding and selection Contractor Estimate D.D.s Contractor GMP @ 75% CDs Permitting (CMB/County) Construction: Notice to Proceed: Substantial completion Completion Start End April 19, 2001 June 19,2001 June 19,2001 January 14, April 19, 2001 June 19,2001 July 3, 2001 Dee 10,2001 May 2002 May 2002 May 2003 June 2003 Subject to the appropriation of the necessary TIF funds by the RDA Board, the Administration recommends amending the Professional Services Agreement with the State of Florida, Department of Management Services for construction management of the Colony Theater. JMG/c9!it:KOB Attachments T:\agenda\200 I \June27\colonydms.doc STATE OF FLORIDA DEPARTMENT OF MANAGEMENT SERVICES BUILDING CONSTRUCTION (BC) 4050 ESPLANADE WAY, SUITE 135 TALLAHASSEE, FLORIDA 32399.0950 AMENDMENT TO AGREEMENT BETWEEN CLIENT AND AGENT BC PROJECT NUMBER: COMB-99042000 PROJECT NAME AND LOCATION: Renovations and Restoration The Colony Theatre City of Miami Beach, Florida CLIENT: City of Miami Beach Miami Beach Redevelopment Agency 1700 Convention Center Drive Miami Beach, Florida 33139 Jeb Bush Governor Cynthia A. Henderson Secretary 99042000cOMB_AMD I.DOC THIS AMENDMENT made this 71h day of June in the year Two Thousand and One BY AND BETWEEN BUILDING CONSTRUCTION (BC), DEPARTMENT OF MANAGEMENT SERVICES, ST ATE OF FLORIDA, hereinafter called the AGENT or BC, and City of Miami Beach Miami Beach Redevelopment Agency 1700 Convention Center Drive Miami Beach, Florida 33139 herinafter called the CLIENT or OWNER. WITNESSETH, that whereas the Client entered into Agreement with the Agent on the 20th day of October, 1999 for the purpose of implementing this project; that whereas the Client and Agent now wishes to amend the Agreement to add additional funding in the amount of $2.814,711.00 and to increase the Agent's fees; that whereas these are the reasons for this Amendment. NOW THEREFORE, BCand the Client, for the considerations hereinafter set forth, agree as follows: GENERAL: All Articles and Exhibits not specifically addressed in this Amendment shall remain in full force. 1. Article 2. The Project Budget is as shown in the attached Exhibit II, which Exhibit II by reference and attachment hereto forms a part of this Agreement. 2. Article 3. The Proposed Schedule is as shown in the attached Exhibit ill, which Exhibit ill by reference and attachment hereto forms a part of this Agreement. 3. Article 7. BC's administrative fees for the various project management services are based on services as shown in Exhibit II and shall be as follows: ONE HUNDRED ELEVEN THOUSAND THREE HUNDRED THIRTY SIX DOLLARS ($111,336.00) If the Project Budget is increased in excess of $4.314.711.00. BC's fee may be increased by 2.5% of the revised budget in excess of $4.314.711.00. 4. Article 8. The balance of BC's administrative fees prescribed in Article 7 hereinabove, will be invoiced once for the total amount due and the CLIENT will issue a Purchase Order to Be:. The Purchase Order will identify a Fiscal Contact Representative to be responsible for all payments under this Agreement. Payments are to be made in Q. quarterly payments against the invoicelPurchase Order based on a 26 month final completion date. The Client agrees to pay the Agent a total administrative fee of $111.336.00 for its services prescribed in Article 7. As of this date, BC has already invoiced the CLIENT for $49.900.00 based on the original agreement. As of March 13,2001, $39.912.00 has been received, with a balance due of $9.988.00 (two monthly payments of $3.326.00 and one final payment of $3.336.00). BC will invoice the CLIENT for the balance of its fee in the amount of $61.436.00 upon execution of this Agreement and the CLIENT agrees to pay BC in ~ quarterly payments of $10.239.00 each and one final quarterly payment of $10.241.00. $61,436.00 + 6 Quarters = $10,239.33 5 Equal Quarterly Payments of $10,239.00 I Final Quarterly Payment of $10,241.00 2 IN WITNESS WHEREOF, the parties herelo have executed this Agreement the day and year fIrst written above. CLIENT CITY OF MIAMI BEACH As Witnessed: APPROVED: BY~} ~ By B~~~,'/1:4~ V I (E- J--{ Pr YDfU APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION ~-d"-ol DlIIe AGENT BUILDING CONSTRUCTION DEPARTMENT OF MANAGEMENT SERVICES STATE OF FLORIDA As Witnessed: APPROVED: BY~<Mu~ ))O~ By t1e!fltQ Chief of Staff Approved As To Form and Legality: By of General Counsel t of Management Services State of Florida 3 EXHIBIT II OWNER'S PROJECT BUDGET CONSTRUCI10N BUDGET PROGRAMMING ARCHITECT-ENGINEER BASIC SERVICES AUTHORIZATION #1 - MEASURED DRAWING AUTHORIZATION #2 - ESTIMATING AUTHORIZATION #3 - SCHEMATIC DESIGN & CONSTRUCI10N ESTIMA1E AUTHORIZATION #4 - COST ESTIMA'TES AUTHORIZATION #5 - TSG DESIGN SOLUIlONS AUTHORIZATION #6 - MEASURED DRAWINGS AUTHORIZATION #7 - LANDSCAPE DESIGN AUTHORIZATION #8 - COST ESTIMA1ES FOR DD & CD INDEMNIFICATION MISCELLANEOUS ADS & REPRODUCI10N COSTS ALLOWANCE SOIL BORING ALLOWANCE 'TESTING OF CONCRE1E ALLOWANCE 'TEST & BALANCE ALLOWANCE CONNECI10N FEE ALLOWANCE ASBESTOS SURVEY ALLOWANCE FF&E ALLOWANCE COMMUNICATION ALLOWANCE INSPECI10N FEES ALLOWANCE FIRE MARSHAL FEES ALLOWANCE CONTINGENCY ALLOWANCE FOR OTIlER ITEMS DMSFEE TOTAL $3,356,167.00 3,500.00 313,690.00 3,000.00 3,000.00 7,840.00 3,000.00 16,765.00 8,000.00 4.000.00 8.500.00 10.00 2,500.00 8.000.00 20.000.00 15,000.00 25.000.00 5.000.00 100.000.00 75.000.00 22.000.00 7.500.00 195.903.00 111.336.00 $4.314.711.00 4 ~ ~ i ~ ~ ~ ~ 8 " ~ Bl ~ If ~ ~ ~ ~ ~ o z o ~ ~ ~~ ~ ~ ~ ~ o z o ~ ~ ~- .- ~i ;;; ~ " ~ ;;; ::; 'i ~ ~ e: ~ .....~~ ~ ~ ~ ~ ~ ~ 2 ~ ~ ~ ~ i i ~ ~ S ~ ~ ~ ~ CIl ~ ; g 11 'R .. v.J tIl :3: ~ ~ ~ ~ e - - <" " '" ~ ~ ;;; - ~. ~ .,. ~ ~ ~ ~ 111"8 ~ 1l <3 ..... c::! c::! :3: '"" :3: if g ~ ;; ~ ~ ~ 5~ ! ~ ~ 1! & :<: ;;: 0 a - ~ .., ;;; ;; - - :: ~ ~ ~ ~ l?J "" ~~;;;s-"'~ 11 0: 0: Oi........ 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III ~ RESOLUTION NO. 2001-24494 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECT COMMITTEE, AUTHORIZING AN AMENDMENT IN THE AMOUNT OF $61,436 TO THE PROFESSIONAL SERVICES AGREEMENT ENTERED INTO BY AND BETWEEN THE CITY OF MIAMI BEACH AND THE STATE OF FLORIDA DEPARTMENT OF MANAGEMENT SERVICES, DATED OCTOBER 6, 1999, FOR CONSTRUCTION MANAGEMENT OF THE COLONY THEATER RENOVATION PROJECT, FOR A TOTAL REVISED CONTRACT AMOUNT OF $111,336. WHEREAS, 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 (DMS), for construction management of the Colony Theater, in the amount of $49,900; and WHEREAS, on March 6, 2000, DMS authorized R.I. Heisenbottle (Architect), to proceed with programming and conceptual/advanced schematic design phases for the expansion and renovation of the Colony Theater; and WHEREAS, the programming phase involved an extensive process, during which input was received from the operator and users of the Colony Theater; the City's Historic Preservation Officer; Property Management; and the Planning and Zoning Department; and WHEREAS, based on the information gathered, the Architect presented a two alternative design concepts to address expansion of backstage areas, ADA requirements and other identified improvements; and WHEREAS, since the proposed design alternatives exceeded the available budget by a minimum of $1,614,514, the Administration worked with DMS and the Architect to value engineer the design; and WHEREAS, on December 15, 2000, the Architect presented two options involving a new design scheme; and WHEREAS, according to the Architect, the design cannot undergo further value engineering without adversely impacting the scope and purpose ofthe Project; and WHEREAS, the Administration concurs with this assessment and recommends proceeding with the first of the two options (Option "A"), involving the addition of 7,950 square feet to the Colony Theater, for a total estimated cost of $4,615,000; and WHEREAS, the Project has secured financing through a combination of sources, totaling $2,200,000; and WHEREAS, the total anticipated cost of the Project exceeds available funding by $2,424,711; and WHEREAS, in Fiscal Years 2001-02 and 2002-03, the Administration stands to receive an additional $1,000,000 in funds from the Florida Department of State, Cultural Facilities Grant Program, which is contingent upon a 2-for-l match from the City, which may include other grant funds; and WHEREAS, the Administration intends to use the National Park Service Award, in the amount of $700,000, as a portion of the match, and recommends appropriating $1,415,000 from available 1998B Tax Increment Revenue Bond funds to make up the difference and cover the cost of the Project; and WHEREAS, on April 18, 2001, the RDA Board referred The Administration's request for funding to the City's Finance and Citywide Project Committee (Committee) for consideration; and WHEREAS, the Committee met on May 14, and voted in favor of appropriating the funds, subject to reaching a settlement on the acquisition of the American Riviera Real Estate Company ("Ablon") property as part of the Library site assemblage; and WHEREAS, on May 30, a settlement on the Ablon parcel was reached, resulting in the Committee reaffirming its decision to recornmend the requested funding for the Colony Theater; and WHEREAS, at the time DMS was engaged by the City to manage the design and construction ofthe Colony Theater, the total estimated cost of the Project was $1,750,000, which was a rough estimate based on an earlier conceptual design by Zeidler Roberts, Inc.; and WHEREAS, the Agreement between DMS and the City provides for DMS to receive a fee equivalent to 2.85% of the total budget, or $49,900, which was based on this early estimate; and WHEREAS, the Agreement also provides that if the Project budget increased in excess of $250,000, the fee to DMS would increase by 2.5% of the revised budget in excess of $1,750,000; and WHEREAS, based upon the difference between the original and current estimated Project cost, DMS's fees will increase by $61,436, for a total of $111,336.; and WHEREAS, the Finance and Citywide Project Committee recommended to amend the Agreement with DMS to administer the project. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor aod City Cornmission authorize an Amendment, in the amount of $61,436, to the Professional Services Agreement between the City and the State of Florida, Department of Management Services, for Construction Management of the Colony Theater Renovation Project, in accordance with the provisions set forth in the original Agreement executed on October 6, 1999. PASSED and ADOPTED this 27th day of June, 2001. w AYOR ATTEST: ~~f~ CITY CLERK APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION F:\CMCR\AGENDA\2001\III.e17\eoueDtleoJOIIyres.doc: , G-IFo; mey!r ua18 ~ CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\ci.miami-beach.f1.us COMMISSION MEMORANDUM NO. </ JO-o \ TO: Mayor Neisen O. Kasdin and Members of the City Commission Jorge M. GOnZaleZ~iL- City Manager DATE: June 27, 2001 FROM: SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECT COMMITTEE, AUTHORIZING AN AMENDMENT IN THE AMOUNT OF $61,436 TO THE PROFESSIONAL SERVICES AGREEMENT BY AND BETWEEN THE CITY OF MIAMI BEACH AND THE STATE OF FLORIDA, DEPARTMENT OF MANAGEMENT SERVICES, DATED OCTOBER 6, 1999, FOR CONSTRUCTION MANAGEMENT OF THE COLONY THEATER RENOVATION PROJECT, FOR A TOTAL REVISED CONTRACT AMOUNT OF $111,336. ADMINISTRATION RECOMMENDATION Adopt the Resolution. ANALYSIS 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 ofthe Colony Theater. On March 6, 2000, DMS authorized R.J. Heisenbottle (Architect), to proceed with programming and conceptual/advanced schematic design phases for the expansion and renovation of the Colony Theater. The programming phase involved an extensive process, during which input was received from the operator and users of the Colony Theater, the City's Historic Preservation Officer, Property Management and the Planning Department. Based on the information gathered, the Architect presented three alternative design concepts to address expansion of backstage areas, ADA requirements and other identified improvements. The alternatives involved expanding the Colony into and over the alley on the south side of the building, expanding below grade (basement), or expanding to the east by incorporating a portion of the adjacent privately owned property. Since the adjacent property was not for sale, the Architect focused on developing advanced schematics and related cost estimates for the two former alternatives, involving the basement scheme and the alley scheme. Given the extent of the improvements/enhancements identified during the programming Agenda Item R7 C Date ~-e27-o/ phase, including but not limited to ADA and other code required modifications, performance and storage needs and the historic preservation scope, and given the size limitation of the existing structure, the Architect had to exercise significant creativity in developing the two designs. The Administration's position has always been that the project must be designed and built within the available budget, which as of the date of this report, comprises the following funding sources: County Cultural Arts GrantlPACT: $ ADA Improvements (Bond Fund 351) $ Florida Dept of State Cultural Facilities Grant: $ Cultural Arts Council Loan $ Nat'l Park Service - Save America's Treasures Grant: Total Budget: 775,000 60,000 500,000 165,000 $ 700.000 $2,200,000 Less: Dept of Management Services Fees R.J. Heisenbottle (Architect) Fees Total Expenses to Date: $ 49,900 $ 47.930 $ 97,830 Total Remaining Budget: $2,102,170 On September 21, the Architect presented the two schemes to City staff and DMS. The cost estimates (hard costs alone) were $3,924,949 for the basement scheme and $3,815,914 for the alley scheme, both of which exceeded the remaining budget by a minimum of $1,614,514. Both schemes involved approximately $800,000 in additional soft costs, and in the case of the alley scheme, an estimated additional $1.4 million to relocate utilities in the alley. Since this time, a number of additional meetings have been held with the operator of the Colony Theater, the City's Historic Preservation Officer, the Planning and Zoning, Property Management Directors and DMS Staff and the project's Architect to value engineer the design and attempt to scale back the project within budget. On December 15, 2000, the Architect presented a new scheme, which calls 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 to its original historic appearance and modifying the interior lobby, office and concession area to be more consistent with the building's original design. The Architect presented an A and B option for this scheme, involving different size additions to the facility. The "A" option involves the addition of 7,950 square feet and is the least costliest of the two, at approximately $3.6 Million. The "B" option comprises a 9,520 square foot addition, for a total construction/hard cost of $4.5 Million. Plans reflecting these options are included with this report. According to the Architect, the design cannot undergo further value engineering without adversely impacting the scope and purpose of the project. The Administration concurs with this assessment and recommends proceeding with Option "A". According to DMS, the total estimated cost of the project, inclusive of soft costs, would be approximately $4,615,000. This amount reflects revised fees for DMS, pursuant to the provisions of its Contract Agreement with the City. At the time DMS was engaged by the City to manage the design and construction of the Colony Theater, the total estimated cost of the project was $1,750,000. This figure was at best, a rough estimate based on an earlier conceptual design by Zeidler Roberts, Inc. The Contract Agreement between DMS and the City provides for DMS to receive a fee equivalent to 2.85% of the total budget, or $49,900, which was based on this early estimate. The Agreement also provides that if the project budget increased in excess of $250,000, the fee to DMS would increase by 2.5% of the revised budget in excess of $1,750,000. As such, based upon the difference between the original and current estimated project cost, DMS's fees will increase by $61,436, for a total of $111,336, As indicated earlier, the project has secured financing through a combination of sources, totaling $2,200,000. Ninety (90%) percent of the funding comprises County, State and Federal Grant monies. The total anticipated cost of the project exceeds available funding by $2,424,711, In Fiscal Years 01-02 and 02-03, the Administration stands to receive an additional $1,000,000 in funds from the Florida Department of State, Cultural Facilities Grant Program. This funding however is contingent upon a 2-for-l match from the City, which may include other grant funds. As such, the Administration intends to use the National Park Service Award, in the amount of $700,000 as a portion of the match, and recommends appropriating $1,415,000 from available 1998B City Center Tax Increment Revenue Bond funds to make up the difference and cover the cost of the project. As a City-owned facility in the City Center Redevelopment Area, the Colony Theater qualifies for tax- exempt TIF financing. Project Cost Funding $2,200,000 Total Funding as 00/28/01 Less: Actual + Anticipated Soft Costs Est Hard Costs Est Total Proj ect Cost: ($2,414,711) Proposed Additional Funding: FY 01/02-02/03 Florida Dept of State Cultural Facilities Grant: 1998B Tax Increment Revenue Bonds $ 958,544 $3,656,167 $4,614,711 $ 1,000,000 $ 1.414,711 Total: $4,614,711 $4,614,711 On April 18,2001, the RDA Board referred The Administration's request for funding to the City's Finance and Citywide Project Committee (Committee) for consideration. The Committee met on May 14, and voted in favor of appropriating the funds, subject to reaching a settlement on the acquisition of the American Riviera Real Estate Company ("Ablon") property as part of the Library site assemblage. On May 30, a settlement was reached. The Committee reconvened on May 30, the same day a settlement was reached on the Ablon parcel. The Commitee reaffirmed its earlier decision to recommend the funding requested for the Colony Theater. The Committee also recommended to amend the Agreement with DMS to administer the project. A separate Resolution adopting the Committee's recommendation to appropriate City Center TIF funds is included on the RDA Board's Agenda for today's meeting, Pursuant to the Committee's recommendation and subject to the approval of the RDA Board, the Architect will proceed with design development and construction drawings, which collectively should take approximately nine months to finalize, barring any delays with the Historic Preservation and/or Design Review process, Permitting, cost estimating and contractor bidding and selection, are anticipated to take an additional four to five months, extending the planning, design and pre-construction phases through May 2002. This timeframe coincides with the Colony Theater's desire to commence construction during the Summer months. It is anticipated that construction will take approximately a year to complete. The anticipated schedule as follows: Preliminary Schedule: Colony Theater Renovation Architectural: (inclusive of DRB & HPB review process) Design Development (DD) Construction Documents (CD) 2002 Pre-Construction: Contractor bidding and selection Contractor Estimate D.D.s Contractor GMP @ 75% CDs Permitting (CMB/County) Construction: Notice to Proceed: Substantial completion Completion Start End April 19, 2001 June 19,2001 June 19,2001 January 14, April 19, 2001 June 19,2001 July 3, 2001 Dee 10,2001 May 2002 May 2002 May 2003 June 2003 Subject to the appropriation of the necessary TIF funds by the RDA Board, the Administration recommends amending the Professional Services Agreement with the State of Florida, Department of Management Services for construction management ofthe Colony Theater. JMG/Cllt:KOB Attachments T:\agenda\200l Vune27\colonydms.doc