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96-21877 RESO RESOLUTION NO. 96-21877 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROPRIATING $1,262,835, ITEMIZED AS FOLLOWS: CONSTRUCTION (CHANGE ORDERS) $169,409; SALES TAX, $125,000; DEBT SERVICE, $881,441; AND, OTHER DEVELOPMENT RELATED COSTS, $86,985; INTO WORK ORDER 2109, BALLET VALET GARAGE, WITH FUNDING TO BE PROVIDED FROM INTEREST EARNINGS IN THE GULF BREEZE LOAN POOL (FUND 367). WHEREAS, the City has continued to move forward with the construction of the Ballet Valet multi-level parking garage in the Art Deco District; and WHEREAS, the garage construction is proceeding on schedule, and is estimated to be completed by March 1, 1996; and WHEREAS, based upon expenditure projections to complete the garage, current appropriations are insufficient to cover costs; and WHEREAS, the appropriations of the funds requested will allow the City to pay the anticipate costs; and WHEREAS; such funds are available from interest earnings in the Gulf Breeze Loan Pool. NOW, THEREFORE, BE IT DUL Y RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, that the Mayor and City Commission hereby increases the appropriation to Work Order 2109 by $1,262,835, with funding to be provided from the Gulf Breeze Loan Pool (Fund 367). PASSED and ADOPTED this 24th day of January, 1996. Attest: Ro~+ PaA~ City Clerk F') ""'r' r Dr''"''''.. t ,. i" \~. i I", v iJ 'j) PFL:me lE'f" r I DEP - ...:nll' T. Oy 1frm~.L- Date ~!:1f__... CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 COMMISSION MEMORANDUM NO. ~t, -q ~ FROM: Mayor Seymour Gelber and Members of the City Commission . "J Jose GarCia-pedrosa'~- %..... City Manager DATE: January 24, 1996 TO: SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH FLORIDA, APPROPRIATING $1,262,835, ITEMIZED AS FOLLOWS: CONSTRUCTION (CHANGE ORDERS) - $169,409; SALES TAX - $125,000; DEBT SERVICE - $881,441; AND, OTHER - DEVELOPMENT RELATED COSTS - $86,985; INTO WORK ORDER 2109 - BALLET VALET GARAGE, WITH FUNDING TO BE PROVIDED FROM INTEREST EARNINGS IN THE GULF BREEZE LOAN POOL (FUND 367) RECOMMENDA TION Adopt the attached Resolution. BACKGROUND In March, 1994, the City Commission authorized the Administration to finalize negotiations with Ballet Valet to build a 648 space parking garage at 7th Street and Collins Avenue. On July 28, 1994, the City Commission appropriated $10,000,000 by via Resolution 94-21264 to fund the acquisition ofland and construction of Ballet Valet public/private parking garage project in the 700 block of Collins Avenue. The $10,000,000 consisted ofland acquisition costs of$3.2 million and construction costs of$6.8 million. To date, all components of the prefabricated structure are already assembled, and work on the interior is proceeding on schedule. AG~~~~~ 'L ~ ( ~j-q~ DATE. Ballet Valet January 24, 1996 Page - 2- Subsequent to this request, three prior appropriations totaling $545,177 have been approved. They are as follows: Change Order Number 1 (pedestrian elevator) for $280,471; Change Order Number 3 (fire suppression system) for $193,820; and Change Order Number 9 (drainage wells) for $70,866. These appropriations were approved on April 5, July 12, and December 6, 1995, respectively. Change Order Number 2 (Structural Inspector) was never presented for approval. Adding these change orders totaling $545,177 to the original $10,000,000 appropriation equals $10,545,177. A comparison of actual expenditures (as of 12/31/95) to budget is shown below: Category Construction Land Acquisition! Debt Service2 Other - Development Related Costs Structural Inspectoy3 Legal! Appraisal Fees ADA Compliance Environmental TOTALS Original Budget $6,800,000 3,200,000 Amended Budget $7,345,177 3,200,000 Actual as of 12/31/95 $4,827,961 3,044,461 566,536 $10000000 $10.545.177 56,055 194,573 1,600 70 $8.691.256 Available Balance $2,517,216 155,539 (566,536) (56,055) (194,573) (1,600) (70) $1 853.921 As shown above, $10,545,177 has been appropriated and $8,691,256 expended from inception of the project. The current available balance is $1,853,921. The available balance/savings of$155,539 from Land Acquisition will be used to offset Other - Development Related Costs (i.e. Structural Inspector, ADA Compliance, Environmental Approval, and a portion ofLegal!Appraisal Fees) II Ballet Valet Land Acquisition Selling Price Air Space 50% Cost Environmental Study Fees Dues From Seller Credit - Net Savings in Construction Title Insurance 50% Documentary Stamps 50% Surtax Total $2,842,544 275,000 1,300 (2,185) (100,000) 11,435 9,353 7.Ol4 $3044461 21 Interest during construction has been capitalized and will be deducted from the project budget appropriation as amended. 31 The Structural Inspector was engaged in January, 1995. An agenda item on this matter will be submitted under separate cover at a future Commission meeting. It is anticipated that total expenses for this component will be $90,000. This was originally shown as Change Order Number 2 and subsequently voided. Ballet Valet January 24, 1996 Page-3- ANALYSIS AND PROJECTIONS Having summarized the historical appropriations and expenses from inception, we must now take these actuals and factor in projections to determine the amount of additional funding that will be required to complete the project. A breakdown of remaining project costs which will occur during FY 1996 supporting an additional appropriation, are shown below: Carry Forward Balance $ 1.853.921 Projected Expenses Construction Sales Tax 4 Debt Service5 Other - Development Related Costs Structural Inspector Total Projected Over-Expenditure $ 2,642,905 125,000 314,905 33.945 $3.116.755 $(1 262835) 4/ Estimated amount for State sales tax for future expenditures on materials. 5/ Estimate of Capitalized Interest during construction. The projected costs which are expected during Fiscal Year 1996 total $3,116,755, whereas $1,853,921 is shown as the carry forward balance. Based of these projections, it is anticipated that an over-expenditure of $1,262,835 will occur. It must be noted that although the expenditures, detailed above, are projected to occur during FY 1996, this appropriation is required for the major categories for which allocations was never made, as detailed below: Construction Change Orders Sales Tax Debt Service Other - Development Related Costs Structural Inspector Legal/Appraisal Total $ 169,409 125,000 881,441 $33,945 53.040 86.985 $1.262835 CONCLUSION Since State Statutes prohibit ovc"-expenditure of budgets, the Administration is requesting an increased appropriation of $1,262,835 to provide for these costs. Interest earnings from the Gulf Breeze Loan Pool (Fund 367) have been identified as the source of funds. In order to complete the project, the Administration recommends that the Mayor and City Commission appropriate the additional funds required from the Gulf Breeze Loan Fund into Work Order 2109. JGP:SR:PFL:me