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HomeMy WebLinkAbout2003-25264 Reso RESOLUTION NO. 2003,-2526~ A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH MORTON TOWERS APARTMENT, LP, A DELAWARE LIMITED PARTNERSHIP (MORTON TOWERS), TO COMPLETE REQUIRED PUBLIC STREETSCAPE AN D STO RMWATER IMPROVEMENTS ON BOTH SIDES OF BAY ROAD BETWEEN 14TM AND 16TM STREETS, WITH MORTON TOWERS CONTRIBUTING $600,000 TOWARD THE COST OF THE IMPROVEMENTS AND THE CITY CONTRIBUTING UP TO $900,000 ASSOCIATED WITH STORMWATER IMPROVEMENTS; AND FURTHER AUTHORIZING THE APPROPRIATION OF SAID AMOUNT FROM THE SERIES 2000 STORMWATER REVENUE BOND FUND. WHEREAS, in December 1997, the City and the entity now known as Morton Towers Apartment, LP, a Delaware Limited Partnership (Morton Towers), the developer of the Flamingo Resort Residences Project at 1500 Bay Road, agreed on additional requirements to the City Development Order issued for the Project in November 1997, with one of these requirements being that Morton Towers would design and construct comprehensive public streetscape improvements on both sides of Bay Road, adjacent to the Project, which extends from 14th to 16th Streets; and WHEREAS, this agreement limited Morton Towers' financial obligation for completing the required improvements to $300,000 and stormwater improvements were not contemplated at the time; and WHEREAS, the City's Comprehensive Stormwater Management Plan identified the Bay Road corridor as a priority drainage basin; and WHEREAS, the CIP Office, as part of its Planned Progress initiative, identified the necessity to coordinate the required below-ground utility infrastructure improvements with Morton Towers' above-ground public improvements within the right of way, to avoid having to remove and replace them at a later date; and WHEREAS, the complexity of the above ground improvements and the need to provide for improved drainage required that the City design the improvements; and WHEREAS, when the City entered into an agreement with Glatting Jackson in 2001 for the planning and design of the West Avenue/Bay Road Neighborhood ROW Improvement Project, it was contemplated that Bay Road improvements would be designed as part of that project and that the design would be provided to Morton Towers for construction; and WHEREAS, the design of Bay Road improvements was prioritized but took until December 2002 to complete, in part because of several substantial changes required to obtain community consensus on the design over the course of three community meetings; and WHEREAS, when the plans were first being developed at the conceptual level, the cost of the Project was estimated to be approximately $450,000 and Morton Towers had expressed willingness at that time to cover the additional cost of the Project in order to expedite its construction; and WHEREAS, as construction drawings were developed and the scope of the required drainage improvements was further clarified, the estimated cost of the improvements increased to approximately $750,000, at which time it became clear that the City would need to find a mechanism to contribute funding to the Project that would still be constructed by Morton Towers in accordance with the original agreement; and WHEREAS, an alternative approach to this situation, the delay of all of the work for inclusion in the overall West Avenue Neighborhood ROW project, was rejected as the construction of the neighborhood project is not scheduled to begin for several years and Morton Towers and the City have a need to have an operational and attractive street adjacent to this nearly completed high-density development; and WHEREAS, upon completion of the design, the consultant's cost estimate for the Project was approximately $1 million dollars, 77% of which was generated by the substantial drainage requirements; and WHEREAS, once the plans were completed, Morton Towers sought bids from 20 qualified firms and received four actual bids, the lowest of which was still substantially higher than the consultant's estimated cost so the consultant was obligated to revise the design to bring the Project cost within budget; and WHEREAS, some of the consultant's cost reduction revisions, while being acceptable technically and therefore contractually in terms of the consultant meeting its responsibility to design to the Project budget, do not meet the City's desire for optimal improvements; and WHEREAS, the estimated cost of the Project at this time, including a 10% construction contingency, is approximately $1,500,000; and WHEREAS, Morton Towers has agreed to increase its contribution to the Project by 100%, from the initially required $300,000 to $600,000; and WHEREAS, the City has negotiated the attached Agreement whereby Morton Towers will construct the Bay Road improvements; and WHEREAS, the essential provisions of the Agreement are as follows: (1) the City will provide construction plans and construction administration services; (2) Morton Towers will serve as a Construction Manager at no cost; (3) Morton Towers will execute the construction contract contingent upon City approval; (4) City approval of contractor payments will be required; (5) payments to Morton Towers will be made on a reimbursement basis according to actual expenditures; (6) the City has retained a design professional to provide detailed design services including construction administration and therefore any problems arising from such (such as errors and/or omissions) will be the responsibility of the City to pursue, via its contract with the design professional; (7) Morton Towers will directly manage the general contractor and will limit its liability for future claims to those arising from the construction quality and workmanship; and (8) a final Certificate of Occupancy for the Flamingo Resort Residences Project will not be issued until the streetscape Project has been completed. 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 Mayor and City Clerk to execute the attached Agreement with Morton Towers to complete required public streetscape and stormwater improvements on both sides of Bay Road between 14~ and 16~ Streets, with Morton Towers contributing $600,000 toward the cost of the public improvements and the City contributing up to $900,000, associated with stormwater improvements; and further authorizing the appropriation of said amount from the Series 2000 Stormwater Revenue bond fund. PASSED AND ADOPTED this 30th day of July ,2003. ATTEST: CITY CLERK APPROVED AS I'O' FORM & LANGUAGE T:~AG E NDA~2003~I~~.doc Condensed Title: CITY OF' MIAMI BEACH COMMISSION ITEM SUMMARY A Resolution Approving and Authorizing the City to Enter Into an Agreement With Morton Towers Apartment, LP, a Delaware Limited Partnership (Morton Towers), to Complete Required Public Streetscape and Stormwater I m provements on Both Sides of Bay Road Between 14th and 16th Streets With the City Contributing the $900,000 Associated With Stormwater Improvements and Morton Towers Contributing $600,000 Toward the Remainin~l Cost of the Improvements. Issue: Shall the City enter into an agreement with Morton Towers for improvements to streetscape and stormwater infrastructure on Bay Road between 14th and 16th Streets, with the City contributing $900,000 toward the stormwater improvements, and the developer contributing $600,000 for the rest of the improvements? Item Summary/Recommendation: In December 1997, the City and Morton Towers Apartment, LP, a Delaware Limited Partnership (Morton Towers), the developer of the Flamingo Resort Residences project at 1500 Bay Road, agreed on additional requirements to the City Development Order issued for the project in November 1997. One of these requirements was that Morton Towers would design and construct comprehensive streetscape ' 4th t mprovements on both s des of Bay Road adjacent to the project wh ch extends from 1 o 16~ Streets. However, the agreement limited Morton Towers' financial obligation for completing the improvements to $300,000. In 2001, when the City entered into an agreement with Glatting Jackson for the planning and design of the West Avenue/Bay Road Neighborhood ROW Improvement Project, it was contemplated that Bay Road improvements would be designed as part of the project and that the design would be provided to AIMCO for construction. The design of Bay Road improvements was prioritized but took until November 2002 to complete. The cost of the improvements needed is estimated at $1,500,000. Morton Towers is required by DRB Order to implement improvements but is limited to paying $300,000 in doing so. The City needs to ensure that the improvements built are comprehensive, and AIMCO needs to satisfy its DRB Order to obtain a Certificate of Occupancy. Morton Towers will construct comprehensive Bay Road improvements and be compensated up to $900,000, the difference between the actual cost of the project and Morton Towers' contribution of $600,000, which includes an additional $300,000 that Morton Towers has agreed to contribute beyond their legally required $300,000 contribution. Approximately 77% of the project cost is associated with drainage improvements. City funding for the project in the amount of $900,000 is available from the Series 2000 Stormwater Bond allocation for the West Avenue Neighborhood. The proposed agreement is attached (Attachment A). The Administration recommends approval of the resolution. Advisory Board Recommendation: INA Financial Information: Funds: $900,000 Series 2000 Stormwater Bond Fir~ance Dept. Total $900,000 City Clerk's Office Legislative Tracking: l Donald P. Shockey AGENDA ITEM C 7 ~-~ DATE "~--~"~.~ CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.miamibeachf].gov To: From: Subject: COMMISSION MEMORANDUM Mayor David Dermer and Date: July 30, 2003 Members of the City Commission Jorge M. Gonzalez City Manager /~)~- A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO ENTER INTO AN AGREEMENT WITH MORTON TOWERS APARTMENT, LP, A DELAWARE LIMITED PARTNERSHIP (MORTON TOWERS), TO COMPLETE REQUIRED PUBLIC STREETSCAPE AND STORMWATER IMPROVEMENTS ON BOTH SIDES OF BAY ROAD BETWEEN 14TM AND 16TM STREETS, WITH MORTON TOWERS CONTRIBUTING $600,000 TOWARD THE COST OF THE IMPROVEMENTS AND THE CITY CONTRIBUTING UP TO $900,000 ASSOCIATED WITH STORMWATER IMPROVEMENTS; AND FURTHER AUTHORIZING THE APPROPRIATION OF SAID AMOUNT FROM THE SERIES 2000 STORMWATER REVENUE BOND FUND. ADMINISTRATION RECOMMENDATION: Adopt the Resolution. FUNDING: Funds for this project are available as follows: $57.7 M - S/W Bond Neighborhood Series 2000 West Avenue/Bay Road $900,000 ANALYSIS: In December 1997, the. City and Morton Towers Apartment, LP, a Delaware Limited Partnership (Morton Towers), the developer of the Flamingo Resort Residences project at 1500 Bay Road, agreed on additional requirements to the City Development Order issued for the project in November 1997. One of these requirements was that Morton Towers would design and construct comprehensive public streetscape improvements on both sides of Bay Road adjacent to the project which extends from 14thto 16~ Streets. However, the agreement limited Morton Towers' financial obligation for completing the improvements to City Commission Memorandum July 30, 2003 Re: Bay Road Improvements Agreement Page 2 $300,000. In addition, the improvements contemplated at the time of the agreement did not include drainage improvements. The City's Comprehensive Stormwater Management Plan identified the Bay Road corridor as a priority drainage basin. The CIP Office, as part of its Planned Progress initiative, identified the necessity to coordinate the required below- ground utility infrastructure improvements with Morton Towers' above-ground improvements within the right of way to avoid having to remove and replace them at a later date. The complexity of the improvements and the need to provide for improved drainage required that the City design the improvements. In 2001, when the City entered into an agreement with Glatting Jackson for the planning and design of the West Avenue/Bay Road Neighborhood ROW Improvement Project, it was contemplated that Bay Road improvements would be designed as part of the project and that the design would be provided to Morton Towers for construction. The design of Bay Road improvements was prioritized but took until December 2002 to complete, in part because of several substantial changes required to obtain community consensus on the design. When the plans were first being developed at the conceptual level, the cost of the project was estimated to be approximately $450,000. Morton Towers had expressed willingness at that time to cover the additional cost of the project in order to expedite its construction. As construction drawings were developed and the scope of the required drainage improvements was further clarified, the estimated cost of the improvements increased to approximately $750,000. At this point, it became clear that the City would need to find a mechanism to contribute funding to the project that would still be constructed by Morton Towers in accordance with the original agreement. An alternative to this approach was to delay the work for inclusion in the overall West Avenue Neighborhood ROW project. However, the construction of the neighborhood project is not scheduled to begin for several years and Morton Towers and the City have a need to have an operational and attractive street adjacent to this nearly completed high-density development. Upon completion of the design, the consultant's cost estimate for the project was approximately $1 million dollars, 77% of which was generated by the substantial drainage requirements. Once the plans were completed, Morton Towers began seeking estimates from construction contractors for constructing the improvements. Morton Towers sought bids from 20 qualified firms and received four actual bids. The lowest bid was still substantially higher than the consultant's estimated cost so the consultant was obligated to revise the design to bring the project cost within budget. Some of the revisions, while being acceptable technically and therefore contractually in terms of the consultant meeting its responsibility to design to the project budget, do not meet the City's desire for optimal improvements. The estimated cost of the project at this time, including a 10% construction contingency, is approximately $1,500,000. Morton Towers has agreed to increase their contribution to the project by 100% from the initially required $300,000 to $600,000. The City needs to create a mechanism for accomplishing the improvements so that Morton Towers can satisfy their Development Order, construct the required improvements, and obtain a Certificate of Occupancy. In order to accomplish this, the City needs to enter into an agreement whereby Morton City Commission Memorandum July 30, 2003 Re: Bay Road Improvements Agreement Page 3 Towers will construct the Bay Road improvements and be compensated up to $900,000, the difference between their $600,000 contribution and the total project cost. The City has negotiated a legal agreement (the Agreement - Attachment A) with Morton Towers which provides a mechanism for managing a construction project on the City Right- of-Way implemented by a private entity and partially funded by the City. The essential provisions of the Agreement are as follows: (1) the City will provide construction plans and construction administration services; (2) Morton Towers will serve as a Construction Manager at no cost; (3) Morton Towers will execute the construction contract contingent upon City approval; (4) City approval of contractor payments will be required; (5) payments to Morton Towers will be made on a reimbursement basis according to actual expenditures; (6) the City has retained a design professional to provide detailed design services including construction administration and therefore any problems arising from the detailed design will be the responsibility of the City to pursue via its contract with the design professional; (7) Morton Towers will directly manage the general contractor and will limit its liability for future claims to those arising from the construction quality and workmanship; and (8) a final Certificate of Occupancy for the Flamingo Resort Residences project will not be issued until the streetscape project has been completed. The Administration recommends approval of the item. JMG:RCM:TH:DPS T:~AGEN DA~2003~jul3003~regular~Bayrddevagmementmerno.doc