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2002-24952 Reso RESOLUTION NO. 2002-24952 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE APPROPRIATION OF $142,887 TO SUPPLEMENT THE PREVIOUSLY APPROPRIATED $1,349,717 (COMPRISED OF $1,000,000 FROM THE HUD SECTION 108 FUND, $223,473 FROM THE STORMWATER BOND FUND AND $126,244 FROM THE WATER AND SEWER BOND FUND) FOR THE MARSEILLE DRIVE STREETSCAPE IMPROVEMENTS, AS FOLLOWS: $47,438 FROM THE STORMWATER BOND SERIES 2000 AND $95,449 FROM THE WATER AND SEWER BOND SERIES 2000 MISCELLANEOUS PROJECTS LINE ITEM. WHEREAS, the Marseille Drive Streetscape Improvements Project was placed on hold on several occasions since its inception in 1995 due to inadequate funding, and WHEREAS, on September 26,2000, $1 Million from the $4 Million Section 108 Housing and Urban Development Loan was added to the Project budget, and later, Storm Water and Water and Sewer Bond Funds were also made available; and WHEREAS, on January 9, 2002, Resolution No. 2002-24701 was adopted by the City Commission, approving an Amendment to the Agreement with Gambach Architects, Inc., in the amount of $10,990, for the provision of construction administration, and management, bidding and other related professional services necessary to complete the water main replacements, and street lighting portions of the Project, previously undertaken and completed by the Public Works Engineering staff; and WHEREAS, on March 6, 2002, Invitation to Bid No,19-01/02 was issued, and on April 12, 2002, the City received one (1) bid from Williams Paving, lnc; and WHEREAS, the Contractor's total base bid proposal for the construction of the Project, as stipulated in the bid documents, is one million three hundred and fifty-six thousand, nine hundred and thirteen dollars ($1,356,913), which is $7,196 over the Project's construction budget; and WHEREAS, the required 10% construction contingency of $135,69, also needed to proceed with the construction of the Project brings the total shortfall to $142,887; and WHEREAS, in light of the above, on May 29, 2002, the Mayor and City Commission . adopted a Resolution authorizing the Administration to negotiate with the sole bidder Williams Paving Inc., to bring the Project within budget; and WHEREAS, thereafter, Public Works engineering, CIP staff, and Gambach Architects met with Williams Paving, Inc. to discuss the available options and value . engineer the Project; and WHEREAS, those individual or combined options would not bring the Project within budget without compromising substantially the quality of the improvements envisioned for the area by the residents and the City; and WHEREAS, additional analysis indicated that the storm water and water improvements requested by the Public Works Department were not adequately funded by their respective bond issues, and WHEREAS, the Administration actively sought alternative funding sources for the Project, including a grant from the State of Florida Flood Mitigation Agency Assistance Program for $245,845; the result of the such application is expected by the Fall of 2002; and WHEREAS, in the interim, the amount of $142,887 has been identified and is available from the Public Works Department Miscellaneous Fund to cover the Project's budget shortfall, therefore, the Administration requests the approval of the additional funds. 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 approve and authorize the appropriation of $142,887 to supplement the previously appropriated $1,349,717 (comprised of$1 ,000,000 from the HUD Section 108 Fund, $223,473 from the Stormwater Bond Fund and $126,244 from the Water and Sewer Bond Fund) for the Marseille Drive Streetscape Improvements, as follows: $47,438 from the Stormwater Bond Series 2000 and $95,449 from the Water and Sewer Bond Series 2000 Miscellaneous Projects line item. PASSED AND ADOPTED this 31st day of July ,2002. ATTEST: ~(r~ . CITY CLERK F:\CAPI\$all\MAGMIC\GOBOND\MarseilleDriveFundingReso.doc APPROVED AS TO FORM & lANGUAGE & FOR EXeCUTION 7/2-./01.- Dol9 CITY OF MIAMI BEACH Office of the City Manager Letter to Commission No. /1/- J/x);)... ~ Subject: Mayor David Dermer and Date: July 26, 2002 Members of the City Commission ~ Jorge M. Gonzalez \ ~ City Manager 0 v U SECTION 108 LOAN- Response to Mike Thompson Inquiry To: From: In reference to the July 19, 2002 correspondence that was sent to you via email from Mike Thompson, I have asked staff to research and provide replies to Mr. Thompson's inquires, I. 1- How much money was provided by the North Beach section 108 loan? (In total with any grants attached). On September 27,2000, the Mayor and City Commission approved the Mayor and City Clerk to execute a grant agreement with the United States Department of Housing and Urban Development (HUD) for a $4,000,000 Section 108 Loan. (See Raso # 2000-24084) The amount of the loan was for $4,000,000 to be repaid over a ten-year period with future CDBG allocations for neighborhood streetscapes within the eligible community development target areas, On April 28, 1999, the Mayor and City Commission adopted Resolution # 99-23147, authorizing the City Manager to submit an application to HUD for a $4,000,000 Section 108 Loan for projects that included streetscape improvements in the North Beach area and the completion of the North Shore Youth Center. 2- Where did the money get allocated or spent? Be Specificl The four million dollars loan was allocated, and will be spent, as follows: $1,000,000 for the completion of the North Shore Youth Center; $1,000,000 for the completion of the Marseille Drive Streetscape Project; $1,000,000 for eligible streets* in the target areas of Normandy Isle; $1.000,000 for eligible streets* in the target areas of North Shore. $4,000,000 Total in Section 108 loan funds *These streets may include, depending on amount of funds available and the scope of work for each streetscape: Bay Drive west of Trouville Esplanade to 71 at Street; Bay Drive east of Rue Notre Dame; Biarritz Drive west of Trouville Esplanade to 7151 Street; Biarritz Drive east of Rue Notre Dame to Rue Vendome; Rue Granville from Bay Drive to Calais Drive; Rue Notre Dame from Bay Drive through Marseille Drive; Marseille Drive from Letter to Commission Page 2 Mike Thompson - Section 108 Loan Trouville Esplanade to Rue Verdun; Tatum Waterway; Marseille Drive; Bay Drive; Biarritz; Rue Granville; Verdun; and Notre Dame; and other North Beach improvements. 3- How much (if any) is left? All four million has been obligated as outlined above, To date, $41,357 has been expended from the Section 108 Loan. [See Resolution #2001-245051 II, 1 - In the past, CDBG was set aside for Marseille Drive. It is my understanding that this money went elsewhere, Where was it allocated or spent? In Fiscal Year 1997/98 Marseille Drive was awarded $76,650 in CDBG funds under the North Beach Street Improvements project [Resolution # 97-224531. A total of $263,650 was allocated to the North Beach Street Improvements project. The project scope and budgets for the streetscapes were allocated as follows: $76,650 for Marseille Drive and $187,00 for 77'h Street. In the following year, FY 1998/99, Marseille Drive was awarded another $200,000 in CDBG funds under the North Beach Development Corporation North Beach Streetscape Improvements project rResolution # 98-228141. In addition, the North Beach Street Improvements project (which at the time consisted Marseille Drive and 77th Street) received $149,707 through a reallocation of funds from the North Beach Development Corp (NBDC) Faryade program bringing the total in CDBG funds to $613,357 for North Beach Street Improvements project. rResolution #99-230941. Therefore, there was a total of $426,357 available in CDBG funding for Marseille Drive, prior to the submission of the Section 108 Loan, 2 - Who authorized the movement to another location? On March 15, 2000, Commission approved the reallocation of CDBG funds in the amount of $100,000 to the North Beach Development Corporation (NBDC) Fac;ade Program from the FY 97/98 CMB North Beach Street Improvements. [See Resolution #2000-238381. This left $326,357 in CDBG funds available for Marseille Drive. At or around this time, the City was formally notified that the Section 108 Loan had been approved. Since the CDBG funding for the Marseille Drive component was insufficient, the project was redefined to reflect the increased project costs, CDBG funds were substituted and replaced with Section 108 funds and the project was allocated $1,000,000. The remaining CDBG funds were used to complete the 77th Street component of the North Beach Street Improvements project, The use of CDBG funds for the 77'h Street project was not inconsistent with the original CDBG allocation awarded to the North Beach Streets Improvements. Upon the completion of the 77'h Street project, the balance of those CDBG funds ($164,209) were used for budget shortfalls on the North Shore Park and Youth Letter to Commission Page 3 Mike Thompson - Section 108 Loan Center. [See Resolution # 2001-246881. 3. What CDBG or Section 108 money is being used to rehab Marseille Drive from East Bay Drive to Rue Notre Dame as presently planned? There is a total of $1,000,000 in Section 108 funds to improve Marseille Drive from East Bay Drive to Rue Notre Dame. III. Please provide the name of the Washington office director of "investigation and/or fraud division" regarding the misuse of Federal Community Funding, that person's or division's current phone numbers, fax numbers and mailing addresses. The City of Miami Beach firmly attests that there has not been any fraud conducted in relation to the Section 108 Loan nor with its CDBG program. However, in response to Mr, Thompson's request, HUD handles complaihts in one of four ways: via email www.hud.gov/comolaintslfraud waste.cfm; by phone: 1-800-347-3735; by fax: 202-708- 2451; and by mail: Department of Housing and Urban Development, Office of Inspector General Hotline, Assistant Inspector General for Investigations, 451 ?'h Street, SW, Room 8270, Washington, DC 20410 In addition to this Letter to Commission, additional historical background is contained in the Commission Memorandum for July 31, 2002, requesting Commission approval to amend the Economic Development Initiative (ED I) grant, which is a grant that may only be awarded with an approved Section 108 loan. Initially, at the time of the approval of the Section 108 Loan, HUD also approved a $1,000,000 EDI grant that will be used as part of the debt service on the $4M Section 108 Loan. JMG\CMC\RCM\~~ \\CH2\VOL 1 INEIG\DevelopmentIJOANNAICorrespondence\Seclion 108 Mike Thompson.doc C: Michael Thompson Robert Parcher, City Clerk Christina M. Cuervo, Assistant City Manager Robert C. Middaugh, Assistant City Manager Vivian Guzman, Director, Neighborhood Services Department Joanna Revelo, Director, Community Services Division Lisa Bustamante, HUD, Community Planning & Development - Florida State Office .July 19, 2002 Michael Thompson 2140 Calais Drive Miami Beach, Florida 33141 City of Miami Beach 1 700 Convention Way Miami Beach, Fl. 33141 Sent via Fax 305-673-7254 Attention: City Clerk. Robert Parcher Dear Mr. Parcher: Please provide to me (a Miami Beach citizen) as spelled out in the State of Florida laws more specifically "The Sunshine Act". the folluwing infomution. 1 request of you to provide frum The Community Development Department the below: 1. 1- How much money was provided by the North Beach section 108 loan? (In total with any grants attached) 2- Where did the money get allotted or spent? Be specific! 3- How much (if any) is left? H. I-In the past. CDBG money was set aside for Marseille Drive. It is my understanding that this money went elsewhere, Where was it allocated or spent? 2- Who authorized the movement to another location? 3- What CDBG or Section 108 money is being used to rehab Marseille Drive from East Bay Drive to Rue Notre Dame as presently planned? Ill. Please provide the name of the Washington office director of "investigation and/or mud division" regarding the misuse of Federal Community Funding, that persons or divisions currant phone numbers, fax numbers and mailing addresses c- via e-mail, to the Mayor and to all Commissioners to the City Manager via fax to Joanna Revelo-Community Development Director / CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY m - Condensed Title: A Resolution of the Mayor and City Commission of the City of Miami Beach, Florida, approving and authorizing the appropriation of $142,887 as follows: $47,438 from the Stormwater Bond Series 2000 and $95,449 from the Water and Sewer Bond Series 2000 Miscellaneous Projects line item to supplement the reviousl a ro riated $1,349,717 for the Marseille Drive Streetsca e 1m rovements. Issue: Whether to approve the additional $142,887 from the Water and Sewer and Stormwater Bonds Miscellaneous Projects line items, respectively, to supplement the previously appropriated $1,349,717 for the construction of the Marseille Drive Streetscaoe Imorovements. Item Summary/Recommendation: In response to Invitation to Bid No.19-01/02 the City received one (1) bid from Williams Paving, Inc, in the amount of one million three hundred and fifty-six thousand, nine hundred and thirteen dollars ($1,356,913) for the construction of the Project. The contractor's base bid proposal is $7,196 over the project's total construction budget. The addition of the required 10% construction contingency of $135,691 to the current bid proposal brings the shortfall to $142,887. In light of the aforementioned, on May 29, 2002, the Mayor and City Commission adopted a Resolution authorizing the Administration to negotiate with the sole bidder Williams Paving Inc, to bring the project within budget. Thereafter, City staff and the architect met with the contractor to value engineer the project. The value engineering options alone or in combination would not bring the project within budget without compromising substantially the quality of the improvements. The Administration actively sought additional funding for the Project including the submittal of a grant application to the State of Florida Flood Mitigation Agency Assistance Program. Additional analysis indicate that the Stormwater and Water improvements requested by the Public Works Department were significantly under-funded by their respective Bond issues. In the interim, the amount of $142,887 was identified and made available from the Storm Water, and Water and Sewer Series 2000 Bonds for Miscellaneous Projects line item to cover the project's budget shortfall. Therefore, the Administration requests the approval of the attached Resolution bv the Mavor and Citv Commission. Advisory Board Recommendation: IN/A Financial Information: Source of Funds: An'!C)unt $47,438 $95,449 Account Storm Water Bond Series 2000 Water & Sewer Bond Series 2000 APproved 1 2 3 4 Total $142,887 islative Trackin JMG AGENDA ITEM DATE Co7B ?-3/-d;L CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.ci.miami-beach.fl.us COMMISSION MEMORANDUM From: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez \ .. ~ City Manager d ,.,....0 Date: July 31, 2002 To: Subject: A RESOLUTION APPROVING AND AUTHORIZING THE APPROPRIATION OF $142,887 TO SUPPLEMENT THE PREVIOUSLY APPROPRIATED $1,349,717 (COMPRISED OF $1,000,000 FROM THE HUD SECTION 108 FUND, $223,473 FROM THE STORMWATER BOND FUND AND $126,244 FROM THE WATER AND SEWER BOND FUND) FOR THE MARSEILLE DRIVE STREETSCAPE IMPROVEMENTS, AS FOLLOWS: $47,438 FROM THE STORMWATER BOND SERIES 2000 AND $95,449 FROM THE WATER AND SEWER BOND SERIES 2000 MISCELLANEOUS PROJECTS LINE ITEM. ADMINISTRATION RECOMMENDATION: Adopt the Resolution. FUNDING: Funding in the total amount of $142,887 is available as follows: . $47,438 from the Storm Water Bond Series 2000 line item for Miscellaneous Projects. . $95,449 from the Water and Sewer Bond Series 2000 line item for Miscellaneous Projects. ANALYSIS The Marseille Drive Streetscape Improvements Project has been a vision of the community since 1995 when the City of Miami Beach entered into a Professional Services Agreement with Gambach-Sklar Architects, Inc. for the provision of architectural and engineering services for the project. During the course of the project, many funding issues arose. As a result, the project was put on hold on several occasions until additional funds could be identified. On September 26, 2000, $1 Million from the $4 Million Section 108 Housing and Urban Development Loan was injected in the budget. Later, additional Storm Water and Water and Sewer Bond Funds were also made available. These additional funds allowed the Administration to pursue the implementation ofthe proposed improvements to Marseille Drive. I ~ j I Marseille Drive Improvements Commission Memorandum July 31, 2002 Page 2 In the interim, pursuant to the dissolution of the firm of Gambach-Sklar Architects Inc, on January 9,2002, Resolution 2002-24701 was adopted by the Mayor and City Commission, authorizing the assignment of the existing Agreement between the City and Gambach- Sklar Architects, Inc, to Gambach Architects, Inc., for the provision of architectural and engineering services for the Marseille Drive Streetscape Improvements Project. Additionally, the City Commission approved an amendment to the Agreement with Gambach Architects, Inc. in the amount of $10,990 for the provision of construction administration, and management, bidding and other related professional services necessary to complete the water main replacements, and street lighting portions of the Project previously undertaken and completed by the Public Works Engineering staff. On March 6, 2002, Invitation to Bid No. 19-01/02 was issued. On April 12, 2002, the City received one (1) bid from Williams Paving, Inc. The contractor's total base bid proposal for the construction of the Project as stipulated in the bid documents is one million three hundred and fifty-six thousand, nine hundred and thirteen dollars ($1,356,913). The contract document stipulates that the Contractor shall attain substantial completion within one hundred-fifty (150) calendar days after the date of issuance of the Notice to Proceed. Additionally, the project must be completed and ready for final payment within thirty (30) calendar days following the substantial completion date. The Scope of Work encompasses the construction of 5' wide sidewalks, with 6" deep valley gutter system to catch basins; paved angled parking (including handicap parking); paving, re-grading and striping of roadways; landscaping, including shade trees; irrigation; improvement of the drainage system; installation of water mains; and street lighting. The Project Limits include Marseille Drive, from Bay Drive to Rue Notre Dame; Rue Versailles, and Rue Notre Dame north of Marseille Drive. The contractor's base bid proposal is $7,196 over the project's total construction budget. The addition of the required 10% construction contingency of $135,691 to the current bid proposal brings the shortfall to $142,887. The following table is an illustration of the un- funded project items in relation to the available construction funding: Marseille Drive Williams Paving Inc's Available Un-funded Streetscape Project Base Bid Funding for Costs Total Base Bid $1,356,913 $1,349,717 $7,196 10% Construction $0 $0 $135,691 Contingency Grand Total $1,356,913 $1,349,717 $142,887 Marseille Drive Improvements Commission Memorandum July 31, 2002 Page 3 In light of the above, on May 29, 2002, the Mayor and City Commission adopted a Resolution authorizing the Administration to negotiate with the sole bidder Williams Paving Inc., to bring the project within budget. Thereafter, Public Works engineering, and CIP staff met with the contractor to discuss and value engineer the project. Gambach Architects, Inc. was present at the meeting and participated in the discussion and further communications between the City and the contractor. The following options were considered: . Reduction of the size and quantity of the proposed landscaping materials for the project . Substantial reduction in the scope of the project . Execution of portion of the work, including the water replacement lines and lighting improvements by Public Works Department personnel These options alone or in combination would not bring the project within budget without compromising substantially the quality of the improvements envisioned for the area by the residents and the City. Additional analysis indicates that the Stormwater and Water improvements were under funded. The table attached (Attachment A) demonstrates the cost to funding shortfall. Concurrently to the value engineering effort, the Administration actively sought other sources of additional funding for the Project. On March 30, 2002, a grant application for the amount of $245,845 was submitted to the State of Florida Flood Mitigation Agency Assistance Program. The application and other supporting documents are being evaluated by the State Agency. A determination as to whether the grant will be approved or not is expected by the Fall of 2002. Should the City be successful in getting this grant, then this funding can be used to offset the bond funds within the project. In light of the above, the City is left with the following options for the project: 1) Approval of an increase in the Construction Cost Budget (Increase of funding). 2) Rejection of all bids and proposals, and re-bidding. 3) Abandonment of the Project and termination of the consultant's services for the Project without further liability to the City. 4) Implementation of the scope reductions necessary to bring the project within budget. Identified scope reductions include the lighting, and landscaping line items evaluated respectively in the contractor's bid at $80,368 and $47,651. Marseille Drive Improvements Commission Memorandum July 31, 2002 Page 4 To avoid any further delays in the construction of the Project, Option 1 is the most viable one. Option 2, "rejection of all bids and proposals, and re-bidding" the project will cause an approximate 3 to 4 months delay. In addition, there is no guarantee that the new bids will come within budget. Option 3, "abandonment of the Project and termination of the consultant's services...>> would be contrary to the vision of the community, the City Commission, and the Administration for this neighborhood. In the interim, the amount of $142,887 was identified and made available to cover the project shortfall. It is comprised of $47,438 from the Stormwater Bond Series 2000, and $95,449 from the Water and Sewer Bond Series 2000 Miscellaneous Projects Fund. An approval by the Mayor and City Commission to appropriate such additional funds for the project will allow the Administration to award the contract to Williams Paving Inc., and issue a Notice to Proceed with the construction in a reasonable time, thereafter. Therefore, the Administration recommends appropriating the necessary funds to accomplish Option #1 above as indicated in the attached Resolution by the Mayor and City Commission. Attachment T:\AGENDA\2002UUL3102\REGULAR\MarseilleDriveFundingMemo.doc .. 'u It: CD C 'a in III .... o 1> l! .. c o U C) c: :s c: = LL CD :ii .!! .fti ~ .. U CD ...... e D. 8. l\l U .! CD !.! .. III tno CDU .~ C ... 0 C .- .. Q) U = = .- ... CD" f ~ l\l 0 :EU C) .. co "" CO cO ~ .. co "" CO co~ ~ .. C")...."lt "a.... ~a"lt cv) 10- tIS ('I~CO ('I~N ~ ..,. -0 -0 e:: ~ S Lt s:u.. -oe:: (I) e:: e:: CI:l 0. 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