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2002-24713 Reso Incomplete RESOLUTION NO. .,206.?-- ~</113 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, RATIFYING THE ADMINISTRATION'S FINDING OF DEFAULT OF REG ARCHITECTS, INe., REGARDING ITS AGREEMENT WITH THE CITY FOR ARCHITECTURALIENGINEERING SERVICES RELATING TO THE BAYSHOREIPAR 3 AND NORMANDY SHORES GOLF COURSES CLUBHOUSES AND RELATED FACILITIES, DATED JANUARY 6, 1999, DUE TO SIGNIFICANT DELAYS IN THE COMPLETION OF THE DESIGN SERVICES PHASES; AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO TERMINATE THE AGREEMENT WITH THE FIRM OF REG ARCHITECTS, INe.; PURSUE COMPLETION OF THE PROJECT THROUGH OTHER MEANS; AND SELECT AND NEGOTIATE A NEW DESIGN AND CONSTRUCTION AGREEMENT NECESSARY FOR THE PROSECUTION OF THE REMAINING WORK ON THE PROJECT. WHEREAS, on May 7,1998, the City issued Request for Qualifications No. 58-97/98 for architectural engineering services for the redesign and or/renovation of the BayshorelPar 3 and Normandy Shores Golf Courses Clubhouses and Related Facilities (the Project); and WHEREAS, on June 8, 1998, an Evaluation Committee reviewed the submitted proposals and recommended the selection of the firm of REG Architects, Inc. (REG) to the City Manager; and WHEREAS, on October 7, 1998, the Mayor and City Commission, following the City Manager's recommendation, authorized the Administration to negotiate an agreement with REG; and WHEREAS, on January 6, 1999, the Mayor and City Commission authorized the execution of an Agreement with REG for a schematic design plan and for cost estimates for both clubhouses, and services were to be completed by April 1999 (Agreement); and WHEREAS, on October 9, 1999, the Mayor and City Commission adopted a Resolution approving the overall plan for the renovation of the City's golf courses and facilities and authorized the Administration to provide the necessary financing to implement the Project; and WHEREAS, on February 9, 2000, the Mayor and City Commission approved the financing strategy for the renovation of the Bayshore and Normandy Shores Golf Courses and Clubhouses, and referred the plan to the Finance and Citywide Projects Committee for review of the projected costs; and WHEREAS, the Committee met on February 24, 2000, reviewed the information provided and recommended that the Administration proceed with completion of the design and construction documents as proposed; and WHEREAS, on July 12, 2000, the Mayor and City Commission adopted a Resolution authorizing additional services to REG, in the amount of $57,750, for the design of the Bayshore Golf Course Maintenance Facility and established the construction budget for the additional work at $650,000; and WHEREAS, REG has been unable to complete the permit review of the documents for the Bayshore Golf Course Clubhouse and Maintenance Facility; has presented the structural documents on five occasions, July 21, 2001, August 31, 2001, October 13, 2001, November 10, 2001, and December 18, 2001; and has not been capable of completing the review and obtaining the fmal signatures on the process; and WHEREAS, at the insistence of the Administration, and in view of the last recommendation from the Building Department reviewer, REG dismissed the structural engineer on the Project on November 16,2001, and proceeded to seek another professional to review the design, make the necessary corrections, and obtain the required structural signatures for permit; and WHEREAS, on November 16, 2001, the City issued a letter to REG notifying it that under the conditions of its Agreement with the City, it would be considered in default unless a written plan of action was received within seven days of receipt of the letter; and WHEREAS, REG responded to the established deadline by retaining the firm of ONM on November 26, 2001, to perform the structural services, and by providing a plan of action which required delivery of all permit review approvals, on all portions of the project, by December 21, 2001; and WHEREAS, if the documents were not ready for permit at that time, the City would consider a Termination for Cause, pursuant to Article 4.11.1 of the Agreement; and WHEREAS, in view of the failure by REG to provide a set of documents ready for permit and to obtain the necessary signatures from the structural reviewer of the Building Department, by December 21, 2001, the Administration is recommending that the Mayor and City Commission authorize it to Terminate the Agreement; and WHEREAS, the Administration will pursue, by other means, the completion of final documents and a construction agreement for the Project, which will be placed on a City Commission meeting agenda in the Spring of2002; and WHEREAS, the Administration is also assessing the revenue implications of the change in consultants and the new Project, and will reserve the rights of the City to seek damages from REG, if appropriate, under the conditions of the Agreement. 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 herein ratify the Administration's finding of default of REG Architects, Inc., regarding its Agreement with the City for Architectural/Engineering services relating to the BayshorePar 3 and Normandy Shores Golf Courses Clubhouses and Related Facilities, dated January 6, 1999, due to significant delays in the completion of the design services phases; authorizing the City Manager or his designee to terminate the Agreement with the firm of REG Architects, Inc.; pursue completion of the Project through other means; and select and negotiate a new design and construction Agreement necessary for the prosecution of the remaining work on the Project. PASSED and ADOPTED this day of January 2002. MAYOR ATIEST: CITY CLERK F:IWORK\$ALLlchartrandlBayshore GolfClublreg closeout reso,doc APPROVED AS TO FORM a LANGUAGE a FOR EXECUTlON .J:3~O ~ CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY m Condensed Title: Resolution declaring an emergency on the Bayshore Golf Course Clubhouse Project and requesting authorization to dismiss the consultant, REG Architects, Inc. Issue: Shall the City terminate for cause the consulting Agreement with the firm of REG Architects, Inc. for failure to provide timely completion of the documents review by the Building Department for compliance with codes and regulations. Item Summary/Recommendation: REG has submitted structural documents five times for review and failed to obtain the necessary approvals. REG is currently working with a third structural engineer in an attempt to correct the problems, and is significantly late with the production of documents. The CIP office recommends terminating the agreement with REG and will seek other means to complete the project, such as a design/build approach or Construction Manager at Risk approach, through an Invitation to Bid process. THE ADMINISTRATION RECOMMENDS APPROVAL OF THE RESOLUTION. Advisory Board Recommendation: IN/A Financial Information: Amountto be expended: D Finance Dept. Source of Funds: TH ~ AGENDA ITEM ~ DATE I- ~();1.... .m CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 TO: FROM: SUBJECT: COMMISSION MEMORANDUM Mayor Oavid Dermer and City Commission DATE: January 9, 2002 Jorge M. Gonzalez ~ A'/ ~ 1~ 'L City Manager ~~~~-, A RESOLUTION OF THE MAYOR AND ITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIOA, RATIFYING THE ADMINISTRATION'S FINDING OF DEFAULT OF REG ARCHITECTS, INC., REGARDING ITS AGREEMENT WITH THE CITY FOR ARCHITECTURAUENGINEERING SERVICES RELATING TO THE BAYSHORE/PAR 3 ANO NORMANDY SHORES GOLF COURSES CLUBHOUSES AND RELATED FACILITIES, OATED JANUARY 6, 1999, DUE TO SIGNIFICANT DELAYS IN THE COMPLETION OF THE DESIGN SERVICES PHASES; AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO TERMINATE THE AGREEMENT WITH THE FIRM OF REG ARCHITECTS, INC.; PURSUE COMPLETION OF THE PROJECT THROUGH OTHER MEANS; AND SELECT AND NEGOTIATE A NEW DESIGN AND CONSTRUCTION AGREEMENT NECESSARY FOR THE PROSECUTION OF THE REMAINING WORK ON THE PROJECT. ADMINISTRATION RECOMMENDATION: Adopt the Resolution. FUNDING: Remaining amount in the REG Architects, Inc. standing order would be used to secure the completion of the documents. ANALYSIS: On May 7, 1998, The City issued Request for Qualifications 58-97/98 for architectural engineering services for the redesign and or/renovation of the Bayshore/Par 3 and Normandy Shores golf courses clubhouses and related facilities. On June 8, 1998, an evaluation committee reviewed the submitted proposals. After presentations were made, the committee recommended the selection of the firm of REG Architects, Inc. (REG) to the City Manager. On October 7, 1998, the Mayor and City Commission, following the manager's recommendation, authorized the Administration to negotiate an Agreement with REG. Commission Memorandum January 9, 2002 Bayshore Golf Course Clubhouse Page 2 The Administration agreed on an initial fee of $15,000 for basic services with an additional $1,600 for reimbursable expenses for the Phase I, Pre-Design and Cost Study work. On January 6, 1999, the Mayor and City Commission authorized the execution of the Agreement with REG for a schematic design plan and for cost estimates for both clubhouses. The services were to be completed by April 1999. REG proceeded with the preliminary analyses of the clubhouses developing options and cost estimates. The Phase I schematic designs were submitted to the City in May of 1999. The Golf Advisory Board reviewed the designs on July 1, 1999, the Mayor's Ad Hoc Committee on July 15,1999 and the Finance and Citywide Projects Committee on July 21, 1999. The schematic designs and cost estimates were approved and recommended by all committees. On October 9, 1999, the Mayor and City Commission adopted a resolution approving the overall plan for the renovation of the City's golf courses and facilities and authorized the Administration to provide the necessary financing to implement the project. On February 9, 2000, the Mayor and City Commission approved the financing strategy for the renovation of the Bayshore and Normandy Shores golf courses and clubhouses and referred the plan to the Finance and Citywide Projects Committee for review of the projected costs. The Committee met on February 24, 2000, reviewed the information provided and recommended that the Administration proceed with completion of the design and construction documents as proposed. The Mayor and City Commission accepted the recommendation at the March 15, 2000 meeting. The construction amount recommended for the Bayshore Golf Course clubhouse was $2,113,800 and for Normandy Shores Clubhouse was $1,353,160. The fees for REG were established at $294,675 for both clubhouses with an additional $61,365 for surveys and reimbursables. On May 10, 2000, the Mayor and City Commission adopted a resolution authorizing the award of a contract to the firm of Metcalf and Eddy, Inc., in the amount of $375,000, for the environmental remediation of the Bayshore Golf Course Maintenance facility. This work was to be completed prior to construction of the new facility designed by REG. On July 12, 2000, the Mayor and City Commission adopted a resolution authorizing additional services to the firm of REG, in the amount of $57,750, for the design of the Bayshore Golf Course Maintenance Facility and established the construction budget for the additional work at $650,000. On October 17, 2001, the Mayor and City Commission adopted a resolution approving the award of a construction contract to TDI International, Inc., for the Renovation of the Bayshore Golf Course. Construction on the project began on December 3, 2001, with a projected completion of October 2002, when the course will be re-opened. Commission Memorandum January 9, 2002 Bayshore Golf Course Clubhouse Page 3 REG has been unable to complete the permit review of the documents for the Bayshore Golf Course Clubhouse and Maintenance Facility. They initially submitted the documents on May of 2001, and after obtaining signatures from most of the different building trades at the Building Department, they have failed to complete the structural review. REG has presented the structural documents on five occasions, July 21, 2001, August 31, 2001, October 13, 2001, November 10, 2001 and December 18,2001. In spite of the numerous submittals, REG has not been capable of completing the review and obtaining the final signatures on the process. At the insistence of the City Administration, and in view of the last recommendation from the Building Department reviewer, REG dismissed the structural engineer on the project on November 16, 2001 and obtained a release. REG proceeded to seek another professional to review the design, make the necessary corrections and obtain the required structural signatures for permit. On November 16, 2001, the City issued a letter to REG notifying them that under the conditions of the Agreement with the City, they would be considered in default unless a written plan of action was received within seven days of receipt of the letter. REG responded by the established deadline by retaining the firm of ONM on November 26, 2001 to perform the structural services and by providing a plan of action. This plan required delivery of all permit review approvals, on all portions of the project, by December 21, 2001. If the documents were not ready for permit at that time, the City would consider Termination for Cause, pursuant to Article 4.11.1, in accordance with the conditions of the Agreement with REG. In view of the failure by REG to provide a set of documents ready for permit and to obtain the necessary signatures from the structural reviewer of the Building Department, the Administration is recommending that the Mayor and City Commission authorize the Termination for Cause of the Agreement with REG Architects, Inc., for architectural and engineering services for the design and construction documents for the Bayshore and Normandy Shores golf courses clubhouses and related facilities. Additionally, the Administration will pursue by other means the completion of final documents and a construction agreement for the Bayshore Clubhouse and Maintenance Facility portion of the project. The Administration will explore a design/build approach or a Construction Manager at Risk approach with a Guaranteed Maximum Price through an Invitation to Bid process. The new agreement to complete the design and to construct the Bayshore Clubhouse and Maintenance Facility will be placed on a Commission meeting agenda in the Spring of 2002. A scope of services and the conditions for the Agreement are currently being developed by the Administration with the assistance of URS, Inc., the City's Program Manager for facilities. The Administration believes that this is the most expedient course of action at this time. Commission Memorandum January 9, 2002 Bayshore Golf Course Clubhouse Page 4 Due to this regrettable situation, the completion of the Clubhouse and Maintenance Facility at Bayshore Golf Course is now expected for early 2003. The golf course renovation portion will be completed in October 2002 and temporary facilities will be provided while construction of the new clubhouse is in progress. The completion of the Maintenance Facility portion will be expedited once a new designer and contractor is on board in order to facilitate the maintenance of the new golf course installations by Professional Course Management, Inc., the City's Golf Course managing firm. A new schedule will be provided with the recommendation for award in response to the Invitation to Bid for the Bayshore Golf Course clubhouse and the Normandy Shores Golf Course clubhouse design and construction. The Administration is also assessing the revenue implications of the change in consultants and the new project approach as described above. The change may impact operating conditions and the initial capital investment due to the delays and the inability of REG to complete the permit review. The City will reserve the right to seek damages from REG, if appropriate, under the conditions of the Agreement. Further information will be provided to the Mayor and City Commission on the financial and operating implications as it is developed. F:\WORK\$ALL\chartrandlBayshore GolfClub\reg agreement closeout.doc CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY m -:;;;;;;='" Condensed Title: Resolution declaring an emergency on the Bayshore Golf Course Clubhouse Project and requesting authorization to dismiss the consultant, REG Architects, Inc. Issue: Shall the City terminate for cause the consulting Agreement with the firm of REG Architects, Inc. for failure to provide timely completion of the documents review by the Building Department for compliance with codes and regulations. Item Summary/Recommendation: REG has submitted structural documents five times for review and failed to obtain the necessary approvals. REG is currently working with a third structural engineer in an attempt to correct the problems, and is significantly late with the production of documents. The CIP office recommends terminating the agreement with REG and will seek other means to complete the project, such as a design/build approach or Construction Manager at Risk approach, through an Invitation to Bid process. THE ADMINISTRATION RECOMMENDS APPROVAL OF THE RESOLUTION. Advisory Board Recommendation: IN/A Financial Information: Amount to be expended: D Finance Dept. Source of Funds: TH ~ AGENDA ITEM ~ DATE I- 'J--CJ~ CITY OF MIAMI BEACH & CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 COMMISSION MEMORANDUM TO: Mayor David Dermer and City Commission DATE: January 9, 2002 ffiOM: 'L SUBJECT: A RESOLUTION OF THE MAYOR AND ITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, RATIFYING THE ADMINISTRATION'S FINDING OF DEFAULT OF REG ARCHITECTS, INC., REGARDING ITS AGREEMENT WITH THE CITY FOR ARCHITECTURAUENGINEERING SERVICES RELATING TO THE BAYSHORE/PAR 3 AND NORMANDY SHORES GOLF COURSES CLUBHOUSES AND RELATED FACILITIES, DATED JANUARY 6, 1999, DUE TO SIGNIFICANT DELAYS IN THE COMPLETION OF THE DESIGN SERVICES PHASES; AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO TERMINATE THE AGREEMENT WITH THE FIRM OF REG ARCHITECTS, INC.; PURSUE COMPLETION OF THE PROJECT THROUGH OTHER MEANS; AND SELECT AND NEGOTIA TE A NEW DESIGN AND CONSTRUCTION AGREEMENT NECESSARY FOR THE PROSECUTION OF THE REMAINING WORK ON THE PROJECT. ADMINISTRATION RECOMMENDATION: Adopt the Resolution. FUNDING: Remaining amount in the REG Architects, Inc. standing order would be used to secure the completion of the documents. ANALYSIS: On May 7, 1998, The City issued Request for Qualifications 58-97/98 for architectural engineering services for the redesign and or/renovation of the Bayshore/Par 3 and Normandy Shores golf courses clubhouses and related facilities. On June 8, 1998, an evaluation committee reviewed the submitted proposals. After presentations were made, the committee recommended the selection of the firm of REG Architects, Inc. (REG) to the City Manager. On October 7, 1998, the Mayor and City Commission, following the manager's recommendation, authorized the Administration to negotiate an Agreement with REG. Commission Memorandum January 9, 2002 Bayshore Golf Course Clubhouse Page 2 The Administration agreed on an initial fee of $15,000 for basic services with an additional $1,600 for reimbursable expenses for the Phase I, Pre-Design and Cost Study work. On January 6, 1999, the Mayor and City Commission authorized the execution of the Agreement with REG for a schematic design plan and for cost estimates for both clubhouses. The services were to be completed by April 1999. REG proceeded with the preliminary analyses of the clubhouses developing options and cost estimates. The Phase I schematic designs were submitted to the City in May of 1999. The Golf Advisory Board reviewed the designs on July 1, 1999, the Mayor's Ad Hoc Committee on July 15, 1999 and the Finance and Citywide Projects Committee on July 21, 1999. The schematic designs and cost estimates were approved and recommended by all committees. On October 9, 1999, the Mayor and City Commission adopted a resolution approving the overall plan for the renovation of the City's golf courses and facilities and authorized the Administration to provide the necessary financing to implement the project. On February 9, 2000, the Mayor and City Commission approved the financing strategy for the renovation of the Bayshore and Normandy Shores golf courses and clubhouses and referred the plan to the Finance and Citywide Projects Committee for review of the projected costs. The Committee met on February 24, 2000, reviewed the information provided and recommended that the Administration proceed with completion of the design and construction documents as proposed. The Mayor and City Commission accepted the recommendation at the March 15,2000 meeting. The construction amount recommended for the Bayshore Golf Course clubhouse was $2,113,800 and for Normandy Shores Clubhouse was $1,353,160. The fees for REG were established at $294,675 for both clubhouses with an additional $61,365 for surveys and reimbursables. On May 10, 2000, the Mayor and City Commission adopted a resolution authorizing the award of a contract to the firm of Metcalf and Eddy, Inc., in the amount of $375,000, for the environmental remediation of the Bayshore Golf Course Maintenance facility. This work was to be completed prior to construction of the new facility designed by REG. On July 12, 2000, the Mayor and City Commission adopted a resolution authorizing additional services to the firm of REG, in the amount of $57,750, for the design of the Bayshore Golf Course Maintenance Facility and established the construction budget for the additional work at $650,000. On October 17, 2001, the Mayor and City Commission adopted a resolution approving the award of a construction contract to TDI International, Inc., for the Renovation of the Bayshore Golf Course. Construction on the project began on December 3, 2001, with a projected completion of October 2002, when the course will be re-opened. Commission Memorandum January 9, 2002 Bayshore Golf Course Clubhouse Page 3 REG has been unable to complete the permit review of the documents for the Bayshore Golf Course Clubhouse and Maintenance Facility. They initially submitted the documents on May of 2001, and after obtaining signatures from most of the different building trades at the Building Department, they have failed to complete the structural review. REG has presented the structural documents on five occasions, July 21, 2001, August 31, 2001, October 13, 2001, November 10,2001 and December 18, 2001. In spite ofthe numerous submittals, REG has not been capable of completing the review and obtaining the final signatures on the process. At the insistence of the City Administration, and in view of the last recommendation from the Building Department reviewer, REG dismissed the structural engineer on the project on November 16, 2001 and obtained a release. REG proceeded to seek another professional to review the design, make the necessary corrections and obtain the required structural signatures for permit. On November 16, 2001, the City issued a letter to REG notifying them that under the conditions of the Agreement with the City, they would be considered in default unless a written plan of action was received within seven days of receipt of the letter. REG responded by the established deadline by retaining the firm of ONM on November 26, 2001 to perform the structural services and by providing a plan of action. This plan required delivery of all permit review approvals, on all portions of the project, by December 21, 2001. If the documents were not ready for permit at that time, the City would consider Termination for Cause, pursuant to Article 4.11.1, in accordance with the conditions of the Agreement with REG. In view of the failure by REG to provide a set of documents ready for permit and to obtain the necessary signatures from the structural reviewer of the Building Department, the Administration is recommending that the Mayor and City Commission authorize the Termination for Cause of the Agreement with REG Architects, Inc., for architectural and engineering services for the design and construction documents for the Bayshore and Normandy Shores golf courses clubhouses and related facilities. Additionally, the Administration will pursue by other means the completion of final documents and a construction agreement for the Bayshore Clubhouse and Maintenance Facility portion of the project. The Administration will explore a design/build approach or a Construction Manager at Risk approach with a Guaranteed Maximum Price through an Invitation to Bid process. The new agreement to complete the design and to construct the Bayshore Clubhouse and Maintenance Facility will be placed on a Commission meeting agenda in the Spring of 2002. A scope of services and the conditions for the Agreement are currently being developed by the Administration with the assistance of URS, Inc., the City's Program Manager for facilities. The Administration believes that this is the most expedient course of action at this time. Commission Memorandum January 9, 2002 Bayshore Golf Course Clubhouse Page 4 Due to this regrettable situation, the completion of the Clubhouse and Maintenance Facility at Bayshore Golf Course is now expected for early 2003. The golf course renovation portion will be completed in October 2002 and temporary facilities will be provided while construction of the new clubhouse is in progress. The completion of the Maintenance Facility portion will be expedited once a new designer and contractor is on board in order to facilitate the maintenance of the new golf course installations by Professional Course Management, Inc., the City's Golf Course managing firm. A new schedule will be provided with the recommendation for award in response to the Invitation to Bid for the Bayshore Golf Course clubhouse and the Normandy Shores Golf Course clubhouse design and construction. The Administration is also assessing the revenue implications of the change in consultants and the new project approach as described above. The change may impact operating conditions and the initial capital investment due to the delays and the inability of REG to complete the permit review. The City will reserve the right to seek damages from REG, if appropriate, under the conditions of the Agreement. Further information will be provided to the Mayor and City Commission on the financial and operating implications as it is developed. F:\WORK\$ALL\chartrand\Bayshore GolfClublreg agreement closeout.doc RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, RATIFYING THE ADMINISTRATION'S FINDING OF DEFAULT OF REG ARCHITECTS, INC., REGARDING ITS AGREEMENT WITH THE CITY FOR ARCHITECTURALIENGINEERING SERVICES RELATING TO THE BAYSHOREIPAR 3 AND NORMANDY SHORES GOLF COURSES CLUBHOUSES AND RELATED FACILITIES, DATED JANUARY 6,1999, DUE TO SIGNIFICANT DELAYS IN THE COMPLETION OF THE DESIGN SERVICES PHASES; AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO TERMINATE THE AGREEMENT WITH THE FIRM OF REG ARCIDTECTS, INC.; PURSUE COMPLETION OF THE PROJECT THROUGH OTHER MEANS; AND SELECT AND NEGOTIATE A NEW DESIGN AND CONSTRUCTION AGREEMENT NECESSARY FOR THE PROSECUTION OF THE REMAINING WORK ON THE PROJECT. WHEREAS, on May 7, 1998, the City issued Request for Qualifications No. 58-97/98 for architectural engineering services for the redesign and or/renovation of the Bayshore/Par 3 and Normandy Shores Golf Courses Clubhouses and Related Facilities (the Project); and WHEREAS, on June 8, 1998, an Evaluation Committee reviewed the submitted proposals and recommended the selection of the firm of REG Architects, Inc. (REG) to the City Manager; and WHEREAS, on October 7, 1998, the Mayor and City Commission, following the City Manager's recommendation, authorized the Administration to negotiate an agreement with REG; and WHEREAS, on January 6, 1999, the Mayor and City Commission authorized the execution of an Agreement with REG for a schematic design plan and for cost estimates for both clubhouses, and services were to be completed by April 1999 (Agreement); and WHEREAS, on October 9,1999, the Mayor and City Commission adopted a Resolution approving the overall plan for the renovation of the City's golf courses and facilities and authorized the Administration to provide the necessary financing to implement the Project; and WHEREAS, on February 9, 2000, the Mayor and City Commission approved the financing strategy for the renovation of the Bayshore and Normandy Shores Golf Courses and Clubhouses, and referred the plan to the Finance and Citywide Projects Committee for review of the projected costs; and WHEREAS, the Committee met on February 24, 2000, reviewed the information provided and recommended that the Administration proceed with completion of the design and construction docwnents as proposed; and WHEREAS, on July 12, 2000, the Mayor and City Commission adopted a Resolution authorizing additional services to REG, in the amount of $57,750, for the design of the Bayshore Golf Course Maintenance Facility and established the construction budget for the additional work at $650,000; and WHEREAS, REG has been unable to complete the permit review of the docwnents for the Bayshore Golf Course Clubhouse and Maintenance Facility; has presented the structural docwnents on five occasions, July 21, 2001, August 31, 2001, October 13,2001, November 10, 2001, and December 18, 2001; and has not been capable of completing the review and obtaining the final signatures on the process; and WHEREAS, at the insistence of the Administration, and in view of the last recommendation from the Building Department reviewer, REG dismissed the structural engineer on the Project on November 16,2001, and proceeded to seek another professional to review the design, make the necessary corrections, and obtain the required structural signatures for permit; and WHEREAS, on November 16,2001, the City issued a letter to REG notifying it that under the conditions of its Agreement with the City, it would be considered in default unless a written plan of action was received within seven days of receipt of the letter; and WHEREAS, REG responded to the established deadline by retaining the firm of ONM on November 26, 2001, to perform the structural services, and by providing a plan of action which required delivery of all permit review approvals, on all portions of the project, by December 21,2001; and WHEREAS, if the docwnents were not ready for permit at that time, the City would consider a Termination for Cause, pursuant to Article 4.11.1 of the Agreement; and WHEREAS, in view of the failure by REG to provide a set of docwnents ready for permit and to obtain the necessary signatures from the structural reviewer of the Building Department, by December 21, 2001, the Administration is recommending that the Mayor and City Commission authorize it to Terminate the Agreement; and WHEREAS, the Administration will pursue, by other means, the completion of final docwnents and a construction agreement for the Project, which will be placed on a City Commission meeting agenda in the Spring of 2002; and WHEREAS, the Administration is also assessing the revenue implications of the change in consultants and the new Project, and will reserve the rights of the City to seek damages from REG, if appropriate, under the conditions of the Agreement. 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 herein ratify the Administration's finding of default of REG Architects, Inc., regarding its Agreement with the City for Architectural/Engineering services relating to the BayshorePar 3 and Normandy Shores Golf Courses Clubhouses and Related Facilities, dated January 6, 1999, due to significant delays in the completion of the design services phases; authorizing the City Manager or his designee to terminate the Agreement with the firm of REG Architects, Inc.; pursue completion of the Project through other means; and select and negotiate a new design and construction Agreement necessary for the prosecution of the remaining work on the Project. PASSED and ADOPTED this day of January 2002. MAYOR ATfEST: CITY CLERK F:\ WORK\$ALL\chartrandIBayshore GolfClub\reg closeout reso.doc ,.,.ROftD MTO fORM a LANGUAGE a FOR E)CECUTION .i:3rO~ Author: MercediaWilliams at C-H-PO Date: 03/14/2002 11:13 AM Priority: Normal TO: JorgeChartrand CC: LiliamHatfield BCC: Admin Subject: R-7-B ~o1J;) -' ;)cj:J I ~ On January 9, 2002, agenda item R-7-B was amended. changes below (see 1/9/02 afteraction) : Please note the R7B A Resolution Ratifying The Administration's Finding Of Default Of REG Architects, Inc., Regarding Its Agreement With The City For Architectural/Engineering Services Relating To The Bayshore/Par 3 And Normandy Shores Golf Course Clubhouses And Related Facilities, Dated January 6, 1999, Due To Significant Delays In The Completion Of the Design Services Phases; Authorizing The City Manager Or His Designee To Terminate The Agreement With The Firm Of REG Architects, Inc.; Pursue Completion Of The Project Through Other Means; And Select And Negotiate A New Design And Construction Agreement Necessary For The Prosecution Of The Remaining Work On The project. (Capital Improvement Projects) ACTION: Resolution No. 2002-24713 adopted as amended. Jorge Gonzalez, City Manager, stated that based on discussions as late as today between the Administration and REG Architects, Inc., REG has agreed to an amendment to their agreement which gives them until 5:00 p.m. on January 25 to deliver "permitable" documents on Bayshore Clubhouse, Maintenance Building, and Restroom Facilities. Further: 1. If REG fails to provide the permitable set of documents for any reason, then REF accepts voluntarily termination for cause effective 5:00 p.m., January 25, 2002; or 2. If REG successfully provides the permitable set of documents, then REG agrees to the following series of conditions: A. REG agrees to provide the City a cash bond in the amount of $100,000. Said cash bond will be provided the City no later than January 31, 2002, and will be in a form acceptable to the City. If, during the remaining course of the project, any of the following occurs, then REG agrees to forfeit the entire $100,000 cash bond. If REG successfully performs, the cash bond will be released by the City. If REG fails to perform, REG accepts termination for cause. Pursuant to this section, REG must: 1. Respond to Contractor, URS and/or City inquires in an acceptable manner within 72 hours of contract. City is sole arbiter of an acceptable response. 2. Provide acceptable, timely response to issues of errors or omissions. City is sole arbiter of acceptable response. 3. Provide acceptable and timely response to address unforeseen site issues. City is sole arbiter of acceptable response. 4. Provide Ana acceptable and timely response to any reasonable request of the City. City is sole arbiter of acceptable, timely or reasonable. 3. REG agrees to a deductive change order to remove Normandy Shores Golf Course Clubhouse, and Par 3 scope of work from the Agreement. City agrees any fees already paid and received by REG for work on this scope of work will not be returned to the City. 4. This settlement agreement services as a remedy for the alleged default of REG and could preclude the City from collecting other damages not contemplated in this agreement. Commissioner Gross stated that "permitable" documents need to be clearly defined in the agreement. Motion made by Commissioner Garcia to authorize the City Manager to sign the Settlement Agreement; seconded by Commissioner Steinberg; Voice vote: 6-0; Absent: Vice-Mayor Smith. Tim Hemstreet to handle. See City Code Section 2-379 - Debarment of Contractors from City work Handout: 1. Commission Memorandum from Jorge M. Gonzalez, City Manager, to Mayor Dermer and members of the City Commission, dated January 9, 2002, RE: REG Architects/Bayshore Golf Course Thanks! Afteraction January 9, 2002\ lo1o' J<_u City of Miami Beach J II tA~ vJlv-' _ 6..(j q", . to {iJ" ( 7:31:48 p.m. J (J/(' R7B A Resolution Ratifying The Administration's Finding Of Default Of REG Architects, Inc., Regarding Its Agreement With The City For Architectural/Engineering Services Relating To The Bayshore/Par 3 And Normandy Shores Golf Course Clubhouses And Related Facilities, Dated January 6, 1999, Due To Significant Delays In The Completion Of the Design Services Phases; Authorizing The City Manager Or His Designee To Terminate The Agreement With The Firm Of REG Architects, Inc.; Pursue Completion Of The Project Through Other Means; And Select And Negotiate A New Design And Construction Agreement Necessary For The Prosecution Of The Remaining Work On The Project. (Capital Improvement Projects) ACTION: Resolution No. 2002-24713 adopted as amended. Jorge Gonzalez, City Manager, stated that based on discussions as late as today between the Administration and REG Architects, Inc., REG has agreed to an amendment to their agreement which gives them until 5:00 p.m. on January 25 to deliver "permitable" documents on Bayshore Clubhouse, Maintenance Building, and Restroom Facilities. Further: 1. If REG fails to provide the permitable set of documents for any reason, then REF accepts voluntarily termination for cause effective 5:00 p.m., January 25,2002; or 2. If REG successfully provides the permitable set of documents, then REG agrees to the following series of conditions: A. REG agrees to provide the City a cash bond in the amount of $100,000. Said cash bond will be provided the City no later than January 31, 2002, and will be in a form acceptable to the City. If, during the remaining course of the project, any of the following occurs, then REG agrees to forfeit the entire $100,000 cash bond. If REG successfully performs, the cash bond will be released by the City. If REG fails to perform, REG accepts termination for cause. Pursuant to this section, REG must: 1. Respond to Contractor, URS and/or City inquires in an acceptable manner within 72 hours of contract. City is sole arbiter of an acceptable response. 2. Provide acceptable, timely response to issues of errors or omissions. City is sole arbiter of acceptable response. 3. Provide acceptable and timely response to address unforeseen site issues. City is sole arbiter of acceptable response. 4. Provide Ana acceptable and timely response to any reasonable request of the City. City is sole arbiter of acceptable, timely or reasonable. 3. REG agrees to a deductive change order to remove Normandy Shores Golf Course Clubhouse, and Par 3 scope of work from the Agreement. City agrees any fees already paid and received by REG for work on this scope of work will not be returned to the City. 4. This settlement agreement services as a remedy for the alleged default of REG and could preclude the City from collecting other damages not contemplated in this agreement. Commissioner Gross stated that "permitable" documents need to be clearly defined in the agreement. Motion made by Commissioner Garcia to authorize the City Manager to sign the Settlement Agreement; seconded by Commissioner Steinberg; Voice vote: 6-0; Absent: Vice-Mayor Smith. Tim Hemstreet to handle. See City Code Section 2-379 - Debarment of Contractors from City work Handout: 1. Commission Memorandum from Jorge M. Gonzalez, City Manager, to Mayor Dermer and members of the City Commission, dated January 9, 2002, RE: REG Architects/Bayshore Golf Course Prepared by the City Clerk's Office Page # 18 M:\$CMB\CITYCLER\AFTERACT\2002\Afteractions\aaOl0902.doc