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LTC 62-2003 CITY OF MIAMI BEACH Office of the City Manager Letter to Commission No. To: From: Subject: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez~ City Manager Date: March 6, 2003 STATUS REPORT ON THE GENERAL OBLIGATION BOND FUNDED PROJECT FOR THE REHABILITATION OF FIRE STATION NO. 4 On February 26, 2003, to comply with a previous City Commission's request, the Administration submitted to the Mayor and City Commission a Project Status Report (attached), that included a comprehensive breakdown of the project budget per components, as well as a breakdown by task of the recently approved additional services fees of $64,791, for MC Harry and Associates, the City's consultant. The additional services were authorized to perform work for the Project not included in the original Agreement. The additional work includes splitting the project and preparation of contract documents by the consultant for two (2) bid packages composed of Bid Package 1: relocation of the existing building to a southwesterly location on the site, and Bid Package 2: performance of all design, construction documentation, and contract administration work associated with the new state-of-the-art Fire Station. The additional engineering work necessary to re-grade a portion of the 69th Street street-end is also included in the new services to be rendered by MC Harry and Associates. Moreover, the Status Report included a synopsis of the project's current schedule for completion, and the delays anticipated in the event the Administration was directed by the City Commission to pursue the demolition of the existing building in lieu of its relocation to a westerly position on the project site. It appears that a primary issue of concern to the City Commission is the latest NE estimate of probable cost, which includes a probable shortfall of $213,000 for the project as currently configured. Discussion has included references to the cost of the relocation of the historic building, currently estimated to cost $504,702. If the historic facility were to be demolished, the project would probably be within budget with the surplus funds being made available to cover FFE (furniture, fixtures and equipment) items that currently are not budgeted. Alternatively, a portion, or all of the funds, could be used to offset the estimated shortfall on Fire Station No. 2. Therefore, on February 26, 2003, the item was referred by the Mayor and City Commission to the Finance and Citywide Projects Committee to formulate a recommendation as to whether or not the existing building should be relocated or demolished. Another issue of discussion was that the current project has neither a programmatic use for the relocated building, nor funding to pay for the interior renovation. Therefore after the relocation, the building will remain closed to the public. Letter to Commission Status Report on GO Bond Funded Fire Station No. 4 Rehabilitation Project March 6, 2003 Page 2 of 2 The Project was also discussed at the General Obligation (GO) Bond Oversight Committee meeting of March 3, 2003. The general consensus expressed bythe Committee reflects a support for the building not to be relocated, but to be demolished instead. Members of the Committee requested that the Administration seek a legal opinion from the City Attorney and/or Bond Counsel as to whether the demolition of the existing building would be compatible with the expressed intention of the community when it approved the 1999 General Obligation Bond. Alternatively, the Committee also requested that the City Attorney/Bond Counsel advise as to the appropriateness of using GO Bond proceeds to relocate and stabilize the historic structure. In an effort to minimize future delays to the project, the Administration directed MC Harry and Associates to finalize the documents for Bid Package 1 (relocation of histodc building). The effort to design the relocated facility and to demolish the 1960's addition was authorized on July 9, 2002, when the Historic Preservation Board approved the concept plan. The formal amendment for this portion of the scope was not presented to the City Commission until February 5~ due to a desire to include the 69~ Street streetend design portion with the amendment. On March 4, 2003, MC Harry and Associates submitted a complete set of documents for Bid Package 1 for City staff and URS' review. The documents submitted include the selective demolition specifications as well as the complementary drawings and specifications for prospective bidders to issue proposals for the first phase of the Project. While waiting for the fate of the existing building to be decided, the ClP Office has instructed the consultant to proceed with the necessary building permit approval process of Bid Package 1. These documents, if all goes well, should be ready to bid in April. Concurrently, construction documents for Bid Package 2 are also being developed by the consultant, Completion is anticipated for May 2003. The Building Department review is expected to last about eight (8) weeks on Bid Package 2, with a projected bid date of late July 2003. Attachment JMG\RCM~T~M F:\CAPi~$ali~NIAGMIC\GOBOND\ST4STATU 03-19-03.doc