Resolution 74-14546 RESOLUTION NO. 74-14546
A RESOLUTION AUTHORIZING EXECUTION OF
CONTRACT WITH EDWARD L. NEZELEK, INC. ,
AND THE CITY OF MIAMI BEACH, IN CONNECTION
WITH "THEATER OF THE PERFORMING ARTS , PB-81"
WHEREAS , the City Council of the City of Miami Beach,
Florida, has determined to transform the Miami Beach Auditorium
into the Theater of the Performing Arts ; and
WHEREAS , it is necessary to employ a contractor in
connection with the transformation of the Auditorium; and
WHEREAS , the City Council of the City of Miami Beach
has determined that it is in the best interests of the City of
Miami Beach and its inhabitants to award the contract for the
work hereinabove set forth to Edward L. Nezelek, Inc. , the
low bidder meeting the specifications , for a maximum amount of
Four Million Seven Hundred Ninety-five Thousand Seven Hundred
Sixty and no/100 Dollars ($4 , 795, 760 . 00) , for the services
as described in the specifications ; and
WHEREAS , the City Attorney has approved the contract
as to form, and the City Manager has recommended that the City
Council enter into the same ; and
WHEREAS , the transformation of the Miami Beach
Auditorium into the Theater of the Performing Arts falls within
the intent of the electorate in approving the $4 Million,
April 23 , 1970 Bond Issue therefor; and
WHEREAS , the City Council of the City of Miami Beach
is familiar with the provisions of said contract;
NOW, THEREFORE , BE IT DULY RESOLVED BY THE CITY
COUNCIL OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and
the City Clerk be and they are hereby authorized and directed
to execute said contract in the name of and on behalf of the
said City, and the disbursing officers of the City are hereby
authorized and directed to disburse the monies required by the
terms of said contract from appropriate funds of the City
available for such purpose . 'V
PASSED and ADOPTED this 20tp1y of Novel':.- , 1974 .
/L_. /-//
Attest:
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City Clerk
OFFICE OF THE CITY ATTORNEY - 1130 WASHINGTON AVENUE - MIAMI BEACH, FLORIDA 33139
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"V ACATIONLAND U. S. A."
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OFFICE OF CITY MANAGER CITY HALL
FRANK R. SPENCE 1130 WASHINGTON AVENUE
CITY MANAGER COUNCIL MEMORANDUM NO. 4833 (B) TELEPHONE: 673-7010
November 18, 1974
TO: City Council
FROM: Frank R. Spence
City Manager
SUBJECT: AWARD OF CONTRACT FOR "THEATRE OF THE
PERFORMING ARTS, PB-81"
On August 1, 1970, a $4 million G.O. Bond Issue was authorized by
the electorate for the construction of a Theatre of the Performing
Arts. These bonds were sold in March 1973, with the funds invested
immediately. An architectural contract was awarded to Morris
Lapidus Associates and Ralph Alswang in an amount approximating
$400,000.
The City has now received five firm bids to undertake construction
of a Theatre of the Performing Arts, the lowest bidder meeting
specifications being Edward L. Nezelek, Inc. , in the amount of
$4, 795, 760. It is the recommendation of the Administration, and of
the Ad Hoc Committee for the Theatre of the Performing Arts, that
the City proceed with this project and that the award be made to
the lowest bidder meeting specifications.
The funding situation is as follows:
Sale of Bond Issue $4,000,000.
Less Architectural Contract - 400,000. (Approx. )
Sub Total Construction Funds Available 3,600, 000.
Interest Earned 1974 + 300,000.
Interest Estimated 1975 250,000.
Construction Funds Available From Bond Issue 4, 150,000.
and Interest
The City will be able to earn additional monies on these bond funds
during the year 1975 for a number of reasons, which includes the fact
that actual construction will not begin on the Auditorium until
May 4, 1975, and will not be completed until January 10, 1976.
Therefore, funds will not be paid out for actual work completed until
late in 1975 and the first part of 1976. Secondly, as is the customary
practice of the City, the City retains ten (10%) percent of the con-
tract ($479, 576. ) , as a guarantee that all work will be done according
to specifications. This amount is not given to the contractor until
the City accepts the project.
Continued. . .
AGENDA
ITEM a..' A
DATE ` ` — 0..0 —7 si
SUBJ: THEATRE OF THE PERFORMING ARTS PAGE TWO.
The contract to be awarded is strictly for the construction of the
facility and does not include interior furnishings, such as seating,
carpeting, wall covering, etc. , plus inspection fees and incidental
costs incurred by the City. It is estimated by the architect that
this figure should not exceed $700,000. This means that the total
obligation to the City is $5,495, 760. With an estimated $4.15 million
available, this means that the City will have to commit an additional
$1,345, 760.
It is the recommendation of the Administration that this additional
amount be funded out of a Resort Tax Bond Issue, which was similarly
used to finance the Convention Hall Wraparound. The City' s Two (2%)
Percent Resort Tax pays for the principal and interest for these
bonds. This City' s Financial Advisor, Stanley Ross, states that the
City is actually in a position to sell additional Resort Tax Bonds in
the amount of up to $8 million. This can be done through either sell-
ing a new Resort Tax Bond Issue, or refinancing the existing Resort
Tax Bond Issue, which was sold when the interest rates were high and
the market bad, plus the fact that since the City had no prior experi-
ence in the Resort Tax funding field, they were sold on the open
market un-rated. It is now Mr. Ross' opinion that we now have a good
history on these bonds and that we can now get a good rating on them,
which would mean a lower interest rate. These additional bonds would
not be sold until sometime next year when the market is better, plus
the fact that these monies would not be needed in view of the cash
flow procedures outlined above, until late 1975 or early 1976. The
City Attorney has advised that it would be legal to utilize Resort Tax
Bond Funds to fund the difference above the available G.O. Bond Issue,
and the amount needed to complete construction.
The architect, Morris Lapidus, advises that if the contract is not
awarded at the November 20 Council Meeting, then the City can forget
about this project for the next year and, in all probability, forever,
since construction costs continue to increase at the rate of 18% to
24% per year. This would place the project completely out of the reach
of the City' s funding capabilities at this time.
It is, therefore, the recommendation of the Administration that the
Theatre of the Performing Arts project move forward and be funded as
outlined above.
FRS:mb
Enc. : Letter from Traveler' s Insurance Company.
.19
RESOLUTI8NI��NAIj4-14546
(Authorizing execution of contract with
Edw. L.Nezelek, Inc./CMR re Theatre of
Performing Arts)
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