414-2002 RDA Reso
RESOLUTION NO. 414-2002
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE
MIAMI BEACH REDEVELOPMENT AGENCY, AWARDING A
CONTRACT TO THE TOWER GROUP, IN THE AMOUNT OF
$7,195,069.00, PURSUANT TO INVITATION TO BID NO. 02-
01/02, FOR THE CONSTRUCTION OF THE CITY OF MIAMI
BEACH REGIONAL LIBRARY; ADDITIONALLY ALLOCATING
FUNDS, .IN THE AMOUNT OF $506,044, FOR THE PROJECT
CONTINGENCY; APPROPRIATING FUNDS, IN THE AMOUNT
OF $751,079, FOR PROJECT MANAGEMENT BY URS
CORPORATION-SOUTHERN; APPROPRIATING FUNDS, IN
THE AMOUNT OF $107,333, FOR PROJECT CONCURRENCY
FEES; AND APPROPRIATING FUNDS, IN THE AMOUNT OF
$103,440, FOR CAPITAL IMPROVEMENT PROJECTS (CIP)
OFFICE MANAGEMENT, FROM THE REDEVELOPMENT
AGENCY (RDA), TAX INCREMENT 1998 BONDS, SERIES B.
WHEREAS, on September 23, 1998, the Mayor and City Commission adopted
Resolution No. 98-2904, authorizing the Mayor and City Clerk to execute an Agreement
with the firm of Robert A. M. Stern Architects (Stern) for the architectural and
engineering design of a Regional Library; a 400-space Parking Garage; and Park and
Streetscape Improvements in the area surrounding Collins Park (the Project); and
WHEREAS, on January 6, 1999, the Mayor and City Commission authorized
appropriation of the funding necessary to implement the Agreement with Stern and
authorized an amendment, which reflected a change in scope, deleting the Parking
Garage and adding surface lots to the Project; and
WHEREAS, in December 2000, Stern delivered the completed Project documents to
the City's Building Department for review and approval for permit, and the permitting
process was completed in November 2001; and
WHEREAS, on November 2, 2001, the Project was advertised for bid; pursuant to
Invitation to bid No. 02-01/02 (the Bid), a pre-bid conference was held on November 7,
2001, and six bids were received on December 19, 2001; and
WHEREAS, the Oversight Committee (construction sub-committee) met on January 3,
2002 to review and evaluate the bids of the three lowest bidders, which are within the
budget constraints of the Project and the evaluation consisted of checking on the
submitted schedule of values and comparing it against the project estimates; and
WHEREAS, the sub-committee recommended that the Project be awarded to the firm
of Regosa Engineering, Inc., for the amount of $6,895,993.51, as the lowest and best
bidder, and
WHEREAS, on January 28, 2002, pursuant to City Ordinance No. 2002-3344 (the City's
Bid Protest Ordinance), the City's Procurement Division notified all the bidders of the
City Manager's recommendation, and advised all six bidders in writing, of their rights to
protest the proposed award; and
WHEREAS, on January 29, 2002, the 3rd low bidder, The Tower Group, filed a bid
protest alleging that Regosa Engineering did not meet the minimum requirements of the
Bid; specifically, The Tower Group alleged that Regosa did not comply with the
Minimum Requirement in the Bid that bidders must have a minimum of five years
experience in providing similar type/size scope of work as indicated in the Technical
Specifications; as a result, the item was withdrawn from the City Commission Agenda
and a review was conducted by the Administration and the City Attorney's Office; and
WHEREAS, as a result of the bid protest, on February 13, 2002, Alex Lamis of Stern,
along with Michael Nardone of URS Corporation, and Jorge Chartrand of the CIP Office
visited six sites, two from each bidder, which were submitted as examples of projects
that would best exemplify a similar size/type of project as the Regional Library; and
WHEREAS, on February 21, 2002, Alex Lamis of Stern provided a statement, which
summarizes his evaluation and recommendation as follows: ".. .while any of the
contractors may be able to do a good job with the library, or may have other projects
that we have not visited that are a closer fit to the library type, based on the projects
visited and the materials thus far received, we cannot say with certainty that any of the
three contractors satisfy the CMB's criteria that the contractor have a minimum of 5
years experience with similar type/size of projects"; and
WHEREAS, the minimum experience requirement was raised by the Cultural Campus
Oversight Committee, which recommended a minimum of 5 years of library construction
experience because of the previous situation the City encountered with the Bass
Museum construction; and
WHEREAS, this type of requirement made sense given the high quality finishes and
other architectural features requisite in a building designed by a world class architect
like Robert A.M. Stern Architects; and
WHEREAS, a key component for Stern was to have a bidder demonstrate experience
constructing facilities that contain the specific high quality finishes and architectural
features of the designed facility and experience constructing these finishes and features
in facilities of similar size, which should be noted is an experience-based requirement
and as such does not directly address the issue of ability; and
WHEREAS, in a meeting with the City Attorney's Office (CAO), the Administration has
been advised that the "5 year minimum experience requirement" is a material
specification and as such cannot be waived without incurring a potential legal
challenge; and
WHEREAS, upon careful consideration of the above information and site visits, the
Administration recommended Rejection of All Bids at the March 20, 2002 City Commission
Meeting; and
WHEREAS, on March 19,2002, the Tower Group, the third lowest bidder, filed a protest to
the Rejection of All Bids contending that they (The Tower Group) met the minimum
experience requirement to construct the project and the Administration resolved this protest
opining that the information and references available for review, at that time, did not clearly
demonstrate that any of the bidders evaluated met the minimum qualifications requirement;
and
WHEREAS, after discussion at the March 20, 2002 City Commission meeting, the
Administration was directed to evaluate three additional reference projects from each of the
three lowest bidders in an effort to ensure fair treatment and evaluation of all responsive
bidders within the budget, and to minimize potential delays and expense involved in a re-
bid; and
WHEREAS, the three lowest bidders, Regosa Engineering, SFCS, and the Tower Group
provided additional reference projects at the Administration's request with an emphasis on
projects of similar size/type to the Library (a 44,000 square foot building with high end
finishes and a construction budget of approximately $7.1 million); and
WHEREAS, on April 2, 2002, Alex Lamis of Stern, along with Todd Osborn of URS
Corporation, Tim Hemstreet and Jorge Chartrand of the CIP Office visited nine (9) sites,
three (3) sites per each bidder noted above, that were submitted as examples of projects
that would best exemplify similar size/type of project; and
WHEREAS, based on the additional site visits, the two lowest bidders, Regosa Engineering
and SFCS, Inc., have not demonstrated compliance with the minimum experience
requirement; and
WHEREAS, the third lowest bidder, The Tower Group, has demonstrated compliance
based on the latest submission of projects, and on the additional site visits, which also have
been built over the last five years; and
WHEREAS, based on the additional site visits, Stern has determined that the submitted
materials do not demonstrate compliance with the Minimum Requirement by Regosa
Engineering and SFCS, but has determined that Tower's materials do demonstrate
compliance with the Minimum Requirement; and
WHEREAS, on September 12, 2001, fees in the amount of $107,333, were transferred
from the Regional Library work order to the City's concurrency account; and
WHEREAS, the Administration is also requesting allocation of a contingency, from a
previous appropriation of $8,492,500, for the Project construction, in the amount of
$506,044, to address any future eventualities, which might arise during the construction
period; and
WHEREAS, pursuant to Request for Qualifications No. 111-99/00, on June 27,
2001, the Mayor and City Commission, adopted Resolution No. 2001-24499, approving
execution of an Agreement with the firm of URS Corporation-Southern (URS), for
management services on various City projects; and
WHEREAS, the Regional Library at the Collins Park Cultural Center is one of the
projects in the Agreement, and fees, in the amount of $751,079, were approved for
the Project and Construction Management services by URS; and
WHEREAS, the CIP office will continue to provide management and coordinating
services on all City projects such as the Regional Library and funds, in the amount of
$103,440, are needed for the CIP management charges for the duration of the Project;
and
WHEREAS, funds for project management by URS Corporation-Southern; funds for
project concurrency fees; and funds for Capital Improvement Projects Office (CIP)
Management; are available from the Redevelopment Agency (RDA), Tax Increment
1998 Bonds, Series B; and
WHEREAS, based on the additional site visits, the subsequent evaluations by Stern
and City staff, and the recommendation by Stern, the Administration is now
recommending award of a contract for construction to the firm of The Tower Group in the
amount of $7,195,069.00 pursuant to Invitation to Bid 02-01/02.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRMAN AND
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairman
and Members award a contract to The Tower Group, in the amount of $7,195,069.00,
pursuant to Invitation to Bid No. 02-01/02, for the construction of the City of Miami
Beach Regional Library; and additionally allocate funds, in the amount of $506,044, for
the project contingency; appropriate funds, in the amount of $751,079, for project
management by URS Corporation-Southern; appropriate funds, in the amount of
$107,333, for project concurrency fees; and appropriate funds, in the amount of
$103,440, for Capital Improvement Projects Office (CIP) Management, from the
Redevelopment Agency (RDA), Tax Increment 1998 Bonds, Series B.
PASSED and ADOPTED this 10th day of April 2002.
ATTEST:
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Resolution No. 414-2002
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CITY OF MIAMI BEACH
REDEVELOPMENT AGENCY ITEM SUMMARY
m
Condensed Title:
A Resolution of the Chairman and Members of the Miami Beach Redevelopment Agency
Awarding a Contract to the Tower Group, in the amount of $7,195,069, pursuant to Invitation to
Bid No. 02-01/02, for the Construction of the City of Miami Beach Regional Library, and
appropriating funds, in the amount of $961,852, from the Redevelopment Agency Tax Increment
1998 Bonds, Series B, for URS Program Management fees, CIP Management fees and the
Project's Concurrency fees.
Issue:
Shall the City award a contract to The Tower Group in the amount of $7,195,069 for the
construction of a Regional Library at the Collins Park Cultural Center
Item Summary/Recommendation:
Pursuant to Invitation to Bid No. 02-01/02 for the Regional Library, the City received six bids of
which three were considered to be within budget. The City reviewed the credentials of the three
lowest bidders and obtained a recommendation from the City's consultant, Robert A. M. Stem.
The City reviewed representative projects from the three lowest bidders in order to ascertain
their experience with libraries or with projects of similar size/type. According to Stern, and
supported by URS, the City's Program Manager, and City staff, the submissions of the two
lowest bidders do not clearly demonstrate the specific experience necessary to meet the
minimum requirements of the Bid. Stern, URS, and Staff have determined that the third lowest
bidder, The Tower Group, does meet the minimum requirements and is the lowest and best
bidder. Additionally, the Administration requests the Redevelopment Agency appropriate funds
for the Program management fees, the Capital projects Office Management fees and the
project's concurrency fees from the RDA Tax Increment 1998 Bonds, Series B.
Advisory Board Recommendation:
The Construction sub-committee of the Collins Park Cultural Center Oversight Committee
recommended award to Regosa Engineering prior to the Bid Protest.
Financial Information:
Amount to be $961,852
expended:
Source of
Funds:
Finance
Dept.
Sign.Qffs:
TH
T:\CMGR\AGENDA\2002\APR1002\REGULAR\Library RDA Cover Sheet.doc
AGENDA ITEM
DATE
8A
'1-/0-02-
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
&
TO:
FROM:
SUBJECT:
REDEVELOPMENT AGENCY MEMORANDUM
DATE: April 10, 2002
Chairman and Members of
the Miami Beach Redevelopment Agency
Jorge M. Gonzalez . J?_ ~
Executive Director ~.yvv !
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY, AWARDING A CONTRACT TO THE
TOWER GROUP, IN THE AMOUNT OF $7,195,069.00, PURSUANT TO
INVITATION TO BID NO. 02-01/02, FOR THE CONSTRUCTION OF THE
CITY OF MIAMI BEACH REGIONAL LIBRARY; ADDITIONALLY
ALLOCATING FUNDS, IN THE AMOUNT OF $506,044, FOR THE
PROJECT CONTINGENCY; AND APPROPRIATING FUNDS, IN THE
AMOUNT OF $751,079, FOR PROJECT MANAGEMENT BY URS
CORPORATION-SOUTHERN; FUNDS, IN THE AMOUNT OF $107,333,
FOR PROJECT CONCURRENCY FEES; AND FUNDS, IN THE AMOUNT
OF $103,440, FOR CAPITAL IMPROVEMENT PROJECTS OFFICE (CIP)
MANAGEMENT, FROM THE REDEVELOPMENT AGENCY (RDA), TAX
INCREMENT 1998 BONDS, SERIES B.
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution to award a contract to The Tower Group for the construction of the
Miami Beach Regional Library. After further visits to the additional representative projects
submitted by all three of the lowest bidders, and after further evaluation of the scope,
content, and quality of the additional projects visited, the City's consultant, Robert A. M.
Stern, City staff and the City's Program Manager, URS, have concluded that the two lowest
bidders, Regosa Engineering and SFCS, Inc. do not meet the minimum Bid criteria of five
years experience in projects of similar size and similar type as the Regional Library. The
conclusion on the latest projects by Regosa and SFCS is consistent with the evaluation of
the projects previously submitted. The additional projects included by The Tower
Group, which were not previously submitted, have been deemed by the project team
as meeting the above minimum criteria and thus the City is now recommending award to
The Tower Group as the lowest and best bidder.
FUNDING:
Funding, in the amount of $8,492,500, was previously appropriated and placed in Fund
372.2181.069357 of the General Fund Reserve for Capital Improvements for the Regional
Library. Additional funding is also available from a $300,000 Florida State Library Grant
Redevelopment Agency Memorandum
April 1 0, 2002
Regional Library
Page 2
and from Parking Bonds for the parking lots in the Project. This additional funding will be
appropriated at a later date. Funding for URS Project Management, for Concurrency fees
and CIP Management is available from the Redevelopment Agency (RDA), Tax Increment
1998 Bonds, Series B.
ANALYSIS:
On September 23, 1998, the Mayor and City Commission adopted Resolution No. 98-
22904, authorizing the Mayor and City Clerk to execute an Agreement with the firm of
Robert A. M. Stern Architects (Stern) for the architectural and engineering design of a
Regional Library, a 400-space Parking Garage, and Park and Streetscape Improvements
in the area surrounding Collins Park (the Project).
On November 18, 1998, the Mayor and City Commission directed the Administration to
design two surface lots in lieu of the Parking Garage.
On January 6, 1999, the Mayor and City Commission appropriated the funding necessary
to implement the Agreement with Stern and authorized an amendment reflecting the
change in scope by deleting the Parking Garage and adding surface lots.
In December 2000, Stern delivered the completed documents to the City's Building
Department for review and approval for permit. The process was completed in November
2001 and all approvals were obtained except for the last signature needed from the State
Department of Environmental Regulation. This signature has now been obtained and the
Project is ready to be permitted.
In order to advertise the Project for bid, it was necessary to pay the corresponding
concurrency mitigation fees related to the site demands and the available capacity of the
City's infrastructure. On September 12, 2001, fees in the amount of $107,333, were
transferred from the Regional Library work order to the City's concurrency account. These
fees were not previously budgeted and consequently reduced the available construction
budget for the Project. The Administration is now requesting appropriation of funds from
the RDA Tax Increment Bonds to account for the concurrency fees.
On May 30, 2001, the Mayor and City Commission approved a Stipulated Order of Taking
and Final Judgment, entered by the Court, to acquire the Ablon Parcel. This property
would provide the last piece needed for the construction of the Regional Library. On June
6, 2001, the Miami Beach Redevelopment Agency Board (RDA) appropriated funds and
the required deposit for the property was delivered to the Court. Once the deposit was
registered, the City obtained title to the Ablon property.
On November 2, 2001, the construction phase of the Project was advertised for bid. A pre-
bid conference was held on November 7, 2001. Six bids were received on December 19,
2001. The Collins Park Cultural Center Oversight Committee, in its advisory capacity,
assigned a sub-committee to review the bids. This sub-committee was composed ofthree
Redevelopment Agency Memorandum
April 1 0, 2002
Regional Library
Page 3
citizen volunteers: Mike Hammon, Alan Shulman and Philip Morris; Donald Chauncey from
the Miami-Dade Library System; Jim Borrelli, representing Stern; Juan Poleo, representing
the Project Program Manager, URS; and Jorge E. Chartrand, Senior Capital Projects
Coordinator.
The sub-committee reviewed the following three lowest bids, which were within the budget
constraints of the Project:
1.) Regosa Engineering
2.) S.F.C.S. Inc.
3.) The Tower Group
$6,895,993.51
$6,999,997.00
$7,195,069.00
The evaluation consisted in part of checking on the submitted schedule of values and
comparing it against the Project estimates.
The RFP provides in part as a condition for qualification previous experience in
construction of a library or similar facility. The project managers for the bidders; the
bidders' references; and previous experience with other projects were also reviewed. None
of the bidders presented direct experience of construction of a library or similar facility in
their written submittals, whereby, the sub-committee set the experience issue aside and did
not consider bidders' experience in constructing a library or similar facility in its final
recommendation. The bidders' financial capabilities and previous project records were
also reviewed and checked.
Based on the above review, and the reference and financial reviews performed by the
City's Procurement Division, the sub-committee recommended that the Project be awarded
to the firm of Regosa Engineering, Inc. (Regosa), for the amount of $6,895,993.51, as the
lowest and best bidder. The recommendation was accepted by the City Manager and an
agenda item was placed on the January 30, 2002 City Commission Meeting Agenda for
approval and award.
On January 28, 2002, pursuant to City Ordinance No. 2002-3344, (the City's Bid Protest
Ordinance), the City's Procurement Division notified all the bidders of the City Manager's
recommendation, and advised all six bidders in writing, oftheir right to protest the proposed
award.
On January 29, 2002, the 3rd lowest bidder, The Tower Group, filed a bid protest, alleging
that Regosa Engineering did not meet the minimum requirements of the Bid. Specifically,
The Tower Group alleged that Regosa did not comply with the requirement that bidders
have a minimum of 5 years experience in providing similar type/size scope of work as
indicated in the Technical Specifications. As a result, the City Manager withdrew the item,
and by extension any recommendation, from the City Commission Agenda prior to
consideration by the Commission, and a subsequent review was conducted by the
Administration and the City Attorney's Office.
Redevelopment Agency Memorandum
April 10, 2002
Regional Library
Page 4
The purposes of the review were to assess the legal issue of whether or not the minimum
experience requirement is material and also to perform additional research into the
qualifications of each bidder relative to the minimum experience requirement.
On January 31,2002, a telephone conference was held among Mr. Alex Lamis, Partner in
Stern Architects; Mr. Jaime Borrelli, President of Borrelli and Associates; First Assistant
City Attorney Raul Aguila; Assistant City Manager Robert Middaugh; and Procurement
Director Gus Lopez. Mr. Aguila stated to Mr. Lamis, the City Manager's request to have a
more detailed analysis of the three low bidders; particularly given the issue raised by
Tower in its bid protest, as submitted prior to the item being withdrawn from the last City
Commission meeting. To that end, Mr. Lamis advised that site inspections would be
warranted in order for Stern to determine and evaluate whether each of the three low
bidders had experience with similar size/type of projects.
The City Manager agreed to reimburse Stern for additional labor costs ($3,000) and travel
expenses, to provide a detailed report, outlining the findings of the site inspections, from a
list of representative projects selected and provided by each of the three low bidders, and
the determination of the strengths and weaknesses, based on Stern's observations and
professional expertise. Each of the top three bidders were then asked by the Procurement
Division to submit two (2) examples of projects that they believe demonstrated that they
possessed the requisite experience.
On February 13, 2002, Alex Lamis of Stern, along with Michael Nardone of URS
Corporation and Jorge Chartrand of the CIP Office visited six (6) sites that were submitted
by each of the respective bidders as examples of projects that would best exemplify similar
size/type of project (two (2) each). The following summarizes the results of said site visits:
Reaosa - Sites Visited
Miami Beach Marina / Monty's Restaurant
. Reviewed project was not consistent with the library design.
Lennox Villas (Townhouses and individual units)
. Reviewed project was not consistent with the library design.
SFCS - Sites Visited
City of Sunrise Utility Administrative Center
. Reviewed project was not consistent with the library design.
A second project for SFCS was not visited because the team was not able to contact the
person or persons, which would allow access to the facility within the Miami International
Airport grounds. In any event, the City's team concluded that an in-flight kitchen facility for
airlines use would not be representative or compatible with the standards expected of a
library building that includes high end finishes and materials.
Redevelopment Agency Memorandum
April 1 0, 2002
Regional Library
Page 5
Tower Group - Sites Visited
Northwest Miami Warehouse (400,000 sq. ft.)
. Reviewed project was not consistent with the library design.
Dole Flowers Offices and Flower Processing Facility
. Reviewed project was not consistent with the library design.
In conclusion, none of the facilities visited satisfied the criteria that the contractors have a
minimum of five years experience with both similar type and size of projects.
On February 14, 2002, Alex Lamis of Stern provided a written statement summarizing
Stern's position based on the previous day's site visits. The Administration felt the initial
response was not complete enough and requested Stern to address the qualifications of
the three low bidders, and provide a more detailed summary of his recommendation.
On February 21, 2002, Alex Lamis provided a second statement, which summarizes
Stern's evaluation and recommendation as follows:
"In summary, while any of the contractors may be able to do a good job with
the library, or may have other projects that we have not visited that are a
closer fit to the library type, based on the projects visited and the materials
thus far received, we cannot say with certainty that any of the 3 contractors
satisfy the CMB's criteria that the contractor have a minimum of 5 years
experience with similar type/size of projects."
The "minimum experience requirement" was originally raised by the Collins Park Cultural
Center Oversight Committee, which recommended a minimum of 5 years of library
construction experience, because of the construction issues that previously arose in the
Bass Museum project, particularly with regard to the decisions and working relationship
between the project architects and the contractor. The Administration agrees that this type
of requirement is appropriate given the high quality finishes and other architectural features
requisite in a building designed by a world class architectural firm such as Stern. Stern, in
addressing this recommendation, attempted to write the requirement in a manner that
would provide flexibility; i.e., the ability to include bidders that had built facilities essentially
the same as a high quality library but not a library (Performing Arts Center, Museum, Class
A office buildings, etc).
A key component for Stern was to have a bidder demonstrate experience constructing
facilities that contain the specific high quality finishes and architectural features of the
designed facility and experience constructing these finishes and features in facilities of
similar size. It should be noted that this is an experience-based requirement and as such
does not directly address the issue of ability.
Redevelopment Agency Memorandum
April 1 0, 2002
Regional Library
Page 6
The Administration met with the City Attorney's Office to address the issue of whether the
Mayor and City Commission has the discretion to waive the Minimum Requirement at
issue; that is that the Prospective Bidder (General Contractor) must have a minimum offive
(5) years experience in providing similar type/size scope of work as indicated in the
Technical Specifications (of the Bid). After conferring with both the Project architects (Mr.
Borrelli and Mr. Lamis on behalf of Stern), who assisted in the preparation of the Bid
specifications, and reviewing applicable case law, the City Attorney's Office has opined that
the aforestated Minimum Requirement is a material term. The language contained therein
("[Bidders] ... must have a minimum offive years experience ..." [Emphasis supplied]) is
mandatory. While a governmental body can waive immaterial variances (generally defined
as those which provide no economic advantage to the noncomplying bidder, and do not
affect the bid absent fraud or misconduct), a material variance is one that gives a bidder a
substantial advantage over the other bidders and restricts or stifles competition. A material
variance cannot be waived without incurring a potential legal challenge from an
unsuccessful bidder.
Upon careful consideration of the above information and site visits, the Administration
recommended rejection of all Bids at the March 20, 2002 City Commission Meeting. On
March 19, 2002, the Tower Group, the third lowest bidder, filed a protest to the rejection of
all Bids contending that they (The Tower Group) met the minimum experience requirement
to construct the project. The Administration resolved this protest opining that the
information and references available for review, at that time, did not clearly demonstrate
that any of the bidders evaluated met the minimum qualification requirement.
After discussion at the March 20, 2002 City Commission meeting, in which bidders
expressed project experience that was not provided as part of their submissions pursuant
to the bid process, the Administration agreed to reconsider the recommendation and
evaluate three additional reference projects from each of the three lowest bidders in an
effort to ensure fair treatment and evaluation of all responsive bidders within the budget,
and to minimize potential delays and expense involved in a re-bid. The three lowest
bidders, Regosa Engineering, SFCS and The Tower Group provided additional reference
projects at the Administration's request for similar projects. The request emphasized that
3 similar size/type facilities to the Library (a 44,000 square foot building with high end
finishes and a construction budget of approximately $7.1 million) were requested to
complete the evaluation.
The reference projects submitted were as follows:
Regosa Engineering -
Miami Beach Police Station Lobby Renovations
Flamingo Park Pool, Miami Beach
Locust Hotel Renovations, Ocean Drive
Redevelopment Agency Memorandum
April 1 0, 2002
Regional Library
Page 7
SFCS -
Terminal 21 Building, Port Everglades
Parking Garage, Fort Lauderdale
Sunrise Utilities Administration Building, Sunrise FI
The Tower Group-
Doral Executive Office Building
Suntrust Bank, Key Biscayne
Decor House, Furniture Showroom, Miami
On April 2, 2002, Alex Lamis of Stern, along with Todd Osborn of URS Corporation, Tim
Hemstreet and Jorge Chartrand of the CIP Office visited the nine (9) sites noted above that
were submitted by the respective bidders as examples of projects that would best
exemplify similar size/type of project (three (3) each). The following summarizes the
results of said site visits:
Regosa Engineering - The three additional site visits combined with the previously visited
sites, do not demonstrate 5 years' experience providina similar size/type projects. Regosa
did not indicate construction costs for the additional projects. The Miami Beach Police
Station Lobby Renovations project was a small renovation project similar in neither size nor
type. Although the Flamingo Park Pool project demonstrates a "similar" type project due to
finishes and specialized systems, it does not represent similar size and is not yet
completed. The Locust Hotel Renovation was a complex project, but does not represent
similar type due to the fact that the finishes are not "high-end", and while this project is
similar in square footage, it does not appear to be of similar cost.
SFCS - The three sites visited combined with the previously visited sites do not
demonstrate 5 years experience providina similar size/type projects. The combined
evaluations demonstrate that although the bidder has experience with one (1) project of
similar size (both cost and square footage), Terminal 21 at Port Everglades, and one (1)
project of similar type (concentration of standard finishes), Sunrise Utilities Administration
Building, there is not a sufficient number of compliant projects to indicate five (5) years of
experience.
The Tower Group - The additional sites visited combined with the previously visited sites,
demonstrate that the bidder meets the minimum reauirement of 5 years experience
providina similar size/type projects. The combined evaluations demonstrate experience
providing both similar size projects (both cost and square footage), several projects exceed
$5 million in value, as well as similar type (concentration of standard finishes), Sun Trust
Bank, and equivalent finishes (concentration of high-end/special finishes), Decor House
and Royal Palm Doral Center III.
Based on the above, and in this specific situation, the two lowest bidders have not
demonstrated compliance with the minimum experience requirement. The third lowest
bidder, The Tower Group, has demonstrated compliance based on the latest submission of
projects, which also have been built over the last five years. As noted above, the three
projects submitted by The Tower Group in their March 22, 2002 submission were not
Redevelopment Agency Memorandum
April 1 0, 2002
Regional Library
Page 8
previously reviewed by the City. Previous projects reviewed by the City demonstrated
compliance with similar size projects over a five year period, but not similar type of projects.
Finally, the projects submitted by The Tower Group in the most recent submission include
two projects that demonstrate finishes equivalent to those found in the proposed Regional
Library.
Under the City's bid process, in order for a bidder to be deemed responsive, its bid must
conform in all material respects to the requirements in the Bid. Pursuant to the
requirements of its contract with the City, Stern is the appropriate entity to determine
whether or not a prospective bidder has demonstrated compliance with the Technical
Specifications that they (Stern) have developed. In this unique situation, the City must
consider the "minimum experience" requirement as material, and should strongly consider
the recommendation of the architect of record that developed the bid requirements and
specifications.
Based on the materials submitted by the three low bidders, Stern has determined that the
submitted materials do not demonstrate compliance with the Minimum Requirement by
Regosa Engineering and SFCS. Stern has determined that Tower's projects do
demonstrate comp1t'ance with the Minimum Requirement. The City Attorney's Office has
opined that this is a mandatory requirement in the bid, and - as such - must be considered
material. To waive same as to any of the three low bidders, would constitute a material
variance and therefore subject the City to a possible legal challenge.
Because the submission of the two lowest bidders do not clearly demonstrate the specific
experience required by the Minimum Requirement, and the third lowest bidder does meet
the minimum requirement; the Administration is recommending award of a contract for
construction to the firm of The Tower Group in the amount of $7,195,069.00 pursuant to
Invitation to Bid 02-01/02. (contract award)
The Tower Group is ranked as one of Florida's largest General Contractors, based on total
revenue in 2001, which totaled $169 million. The Tower Group was established in Florida
in 1995 and currently has 78 employees. The company has built projects ranging in size
from $2.1 million to $28 million in size. Based on the latest example projects, the company
has also built multiple projects that contain similar finishes and work quality to the Regional
Library.
The background, credit, and reference checks performed by the Procurement Division and
CIP Office staff all came back positive and favorable.
The Administration is also requesting allocation of a contingency appropriation, separate
from the construction award, in the amount of $506,044, to address any future
eventualities, which might arise during the construction period. This contingency fund will
be used as needed for changes in the work, unforeseen conditions, etc. A previous
appropriation of $8,492,500 will be used for the construction award and the contingency,
and the remaining funds, in the amount of $791,387, will be used for FF&E costs on the
Project.
Redevelopment Agency Memorandum
April 1 0, 2002
Regional Library
Page 9
Pursuant to Requests for Qualifications No. 111-99/00, on June 27,2001, the Mayor
and City Commission, adopted Resolution No. 2001-24499, approving execution of an
Agreement with the firm of URS Corporation-Southern (URS), for management services on
various City projects. The Regional Library at the Collins Park Cultural Center is one of
the projects in the Agreement, and fees, in the amount of $751,079, were approved for
the Project and Construction Management services by URS. In addition, the CIP office will
continue to provide management and coordinating services on all City projects such as the
Regional Library. Funds, in the amount of $1 03,440, are needed for the CIP management
charges for the duration of the Project. The Administration requests the Miami Beach
Redevelopment Agency appropriate funds to address these fees.
Funds for the Project and Construction Management services by URS Corporation-
Southern, for the Concurrency fees, and for management and coordinating services by
he Capital Improvement Projects Office, for the duration of the Project are available
from the Redevelopment Agency Tax Increment 1998 Bonds, Series B.
T:\WORK\$ALL \chartrand\Library.Reg. Library RDA 1 memo. doc