2004-25542 Reso
RESOLUTION NO. 2004-25542
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, FOLLOWING A DULY NOTICED PUBLIC
HEARING, AND HAVING ALSO CONSIDERED THE FACTS SET FORTH IN
THIS RESOLUTION AND EXHIBITS "A" AND "B", ATTACHED HERETO,
WAIVING BY 5/7THS VOTE, THE PROHIBITION OF TRAN CONSTRUCTION,
INC. FROM CONTINUING TO SERVE AS A VENDOR WITH THE CITY
PURSUANT TO MIAMI BEACH CITY CODE SECTION 2-487 (B)(4), FINDING
SUCH WAIVER TO BE IN THE BEST ECONOMIC INTEREST OF THE CITY,
REGARDING THE FOLLOWING EXISTING CONTRACTS: 1) THE MIAMI
BEACH GOLF COURSE CLUBHOUSE, RESTROOM PAVILIONS AND
MAINTENANCE YARD BUILDING; 2) THE DESIGN, PERMITTING AND
CONSTRUCTION OF FOUR NEW RESTROOM/CONCESSION FACILITIES
WITHIN THE BEACHFRONT PARKS LOCATED AT 21ST, 46TH, 53RD, AND
64TH STREETS; AND 3) THE JOB ORDER CONTRACTING (JOC)
CONTRACT RELATIVE TO THE FOLLOWING MIAMI BEACH CONVENTION
CENTER PROJECTS: A) CHILLER REPLACEMENT; B) REPLACEMENT OF
AIR HANDLERS; AND C) REFURBISHMENT OF 12 AIR HANDLING UNITS.
WHEREAS, on March 17, 2004, the Mayor and City Commission adopted a
resolution that set a public hearing for April 14, 2004, relative to waiving by 5/7ths vote,
the prohibition of Tran Construction, Inc. from continuing to serve as a vendor with the
City pursuant to Section 2-487(B)(4) of the Miami Beach City Code (the "City Code");
and
WHEREAS, Section 2-487(B)(4) of the City Code provides a waiver of the
prohibition of an individual or entity from serving as a vendor, should the following
condition exist: "A contract for the provision of goods, equipment or services exists
which, if terminated by the city, would be adverse to the best economic interests of the
city"; and
WHEREAS, the waiver request is pursuant to Section 2-487(A)(3) of the City
Code which states that "a person or entity who directly or indirectly makes a contribution
to a candidate who is elected to the office of mayor or commissioner shall be
disqualified for a period of 12 months following the swearing in of the subject elected
official from serving as a vendor with the city"; and
WHEREAS, the Administration is recommending that the City Commission waive
by 5/7ths vote, the prohibition of Tran Construction, Inc. from continuing to serve as a
vendor with the City, pursuant to Miami Beach City Code Section 2-487 (B)(4), based
on the adverse economic impact to the City which would occur if the contracts
referenced in the title in this Resolution were to be terminated; said adverse impact
more specifically set forth in Exhibits "A" and "B", which are attached to this Resolution
and incorporated by reference herein; and
WHEREAS, for the reasons set forth in this Resolution and in Exhibits "A" and
"B", attached hereto and incorporated herein, it is the Administration's
recommendation that it is in the City's best economic interest not to terminate Tran
Construction's existing contracts; and
WHEREAS, the City will be greatly hindered with any action or interruptions to
the progress of Tran Construction's existing contracts.
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, following a duly noticed public hearing and having also
considered the facts set forth in this Resolution and Exhibits "A" and "B", attached
hereto, hereby waive by 5/7ths vote, the prohibition of Tran Construction, Inc. from
continuing to serve as a vendor with the City pursuant to Miami Beach City Code
Section 2-487 (b)(4), finding such waiver to be in the best economic interest of the
City, regarding the following existing contracts: 1) the Miami Beach Golf Course
Clubhouse, Restroom Pavilions and Maintenance Yard Building; 2) the Design,
Permitting and Construction of Four New Restroom/Concession Facilities within
the Beachfront Parks located at 21 st, 46th, 53rd, and 64th Streets; and 3) the Job
Order Contracting (JOC) contract relative to the following Miami Beach Convention
Center projects: a) Chiller Replacement; b) Replacement of Air Handlers; and c)
Refurbishment of 12 Air Handling Units.
PASSED and ADOPTED this 14th day of A
ATTEST:
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T:\AG ENDA \2004 \Apr1404\Regular\Reso Tran.doc
APPROVED IS TO
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EXHIBIT "A"
I. CONTRACT FOR THE MIAMI BEACH GOLF COURSE CLUBHOUSE,
RESTROOM PAVILIONS AND MAINTENANCE YARD BUILDING (the
"Clubhouse"):
A. The Parks and Recreation Department estimates the following economic
impact on the City should the City Commission not waive the prohibition of
Tran Construction from serving as a vendor:
(1) Set forth in Exhibit "B', which is attached to the Resolution and
incorporated by reference therein, is a summary of the tournaments
booked at the Miami Beach Golf Club with the understanding that the
Clubhouse will be completed and ready for their use. Not having the
Clubhouse may jeopardize the City's chances to host these events and
seriously damage credibility.
(2) Presently, with the City not having the use of the Clubhouse, the Parks
and Recreation Department advises clients that if a covered and/or air
conditioned area is required for a tournament the client needs to rent
and pay for the use of a tent and related furnishings and equipment.
By illustration, an average sized tent with air conditioning costs
approximately $6,500 to rent for the standard tournament. The City did
not advise the groups who booked the events in Exhibit "B" of this
condition due to the expectation that the Clubhouse would be
completed.
(3) It is also important to note that as Parks and Recreation prepares its
budget for Fiscal Year 2004-2005, it is considering recommending a
rate increase based on the Clubhouse being fully operational. The
Department estimates that these rate increases will represent
additional average revenue of approximately $15,000 per month. The
Department would not recommend a rate increase if the Clubhouse is
not completed.
(4) Because the Clubhouse, golf course equipment maintenance facility
and on course restrooms are not completed, the City is paying for the
following costs:
$ 1,965.00 -- Modular Building per Month / $23,580/yr.
$ 4,300.00 -- Tropical Tent (Cart Barn) per Month/ $51 ,600.00/yr.
$ 200.00 -- Able Sanitation Temporary Rest Rooms (x2) Month /
$2,400.00/yr,
$ 55.00 -- Metal Container - Storage (x1) Month / $660.00/yr.
Combined Monthlv Expense
$6,520.00
Annual Expense
$78,240.00
(5) Additionally, there are several pieces of golf course maintenance equipment,
valued at over $93,000 that must be left outdoors exposed to salt air and rain,
causing damage and an accelerated deterioration of the units because the
golf course maintenance building is not completed, These include:
10/each Golf Carts (Maintenance)
2/each Tractors
1/each Sweeper
1/each Verticutter
1/each Sand Hauler
1/each Airfier
2/each Roller
B. The City's Capital Improvements Program (CIP) Office estimates that the
costs associated with disqualifying Tran Construction and terminating the
existing contract with Tran Construction on this project may potentially cost
the City $1,31 million. This estimate is calculated from the following likely
possibilities:
. $500.000 - Anticipated Profits Claim on remaining $1.6 Million of Work
. $300,000 - Wrongful Termination Claim
. $400,000 - 25% Premium to Replacement Contractor on remaining $1.6
Million of Work
. $60,000 - Additional Services To REG Architects to produce a Conformed
set
. $50,000 - Additional Services to URS for Extended Program Management
Additionally, based on recent experience, a work stoppage on the project
would be anticipated to last a minimum of four (4) to six (6) months. As
substantial completion on the project is currently scheduled for June 2004, a
disqualification Tran Construction would delay substantial completion of the
project until somewhere between October 2004 to January 2005.
II. THE DESIGN, PERMITTING AND CONSTRUCTION OF FOUR NEW
RESTROOM/CONCESSION FACILITIES WITHIN THE BEACH FRONT
PARKS LOCATED AT 21ST, 46TH, 53RD, AND 64TH STREETS
("Beachfront Restroom Project").
A, As of March 17,2004, Tran Construction has not commenced work on this
project. However, the City Commission appropriated $750,000 of the
proceeds from the Safe Neighborhood Parks (SNP) Bond Program for the
replacement of the restroom/concession facilities, These funds may be
lost if the project is not commenced by November 30, 2004.
B. The project was released as a design/build contract and a probable three
(3) to six (6) months of engineering and permitting is required prior to any
construction commencement. As time is presently such a critical
component, any replacement of the current Design/Build Team would
result in significant additional difficulties in meeting the Safe Neighborhood
Parks Bond funding timelines for the project. If the City loses the current
SNP bond funding, another source would need to be identified to replace
it.
III. THE JOB ORDER CONTRACTING (JOC) CONTRACT RELATIVE TO THE
FOLLOWING MIAMI BEACH CONVENTION CENTER PROJECTS: A)
CHILLER REPLACEMENT; B) REPLACEMENT OF AIR HANDLERS; AND
C) REFURBISHMENT OF 12 AIR HANDLING UNITS.
A. SMG, the City's Manager for the Miami Beach Convention Center,
estimates that a termination of Tran Construction's contract would create
more problems and prevent the Convention Center from achieving the
intended end results of these projects which have been closely
coordinated by all parties around the very busy Convention Center season
(Le., Boat show, Art Basel, multiple conventions, etc,).
B. There exist Heating Ventilation and Air Conditioning (HVAC) conditions
which, unless these projects conclude within the next 30 days, the
Convention Center will be crippled with systems which have been out of
commission prior to Tran Construction's start of the work, and subsequent
to their commencing their work. If there were an interruption to the
progress of work, the City would be faced with additional costs to have
temporary HV AC systems brought in to service the systems, which will be
down due to Tran Construction's work. Without clearly having a definitive
timeframe of when the interruption will be resolved between the City and
Tran Construction, the Convention Center could be faced with months and
months of additional costs for any temporary systems and or lack of use of
the systems in place.
C, If Tran Construction is disqualified from serving as a vendor, and the
project contracts are terminated, Convention Center staff is looking at an
extensive cost factor to continue the projects that have been awarded and
in progress that could include the following:
o Delay in project completion
o Cost in re-bid (approximately 30 Days)
o Cost in re-permitting
o Cost in project close-out
o Cost to re-open new project
o Subcontractor payments
o Supplier Payment
o Cost in gathering releases of liens on all parties involved
o Cost of City staff
o Availability of fund and the capacity on other JOC contractors
o Cost of De-mobilization and Mobilization
o Attorney fees
EXHIBIT "B"
TOURNAMENTS BOOKED AT THE MIAMI BEACH GOLF CLUB
September 3, 04 - 144 players - National Lymphoma Foundation
September 5, 04 - 50 players - Caldwell Bankers
September 10, 04 - 144 players - Multiple Sclerosis
September 17, 04 - 144 players - Cancer Society
September 26, 04 - 90 players - Tony Roma's
Revenue Total for September
October 3,04 - 100 players - American Teleservices Assn.
October 8, 04 - 100 players - Playboy Scramble
October 27, 04 - 60 players - Accentuce
October 30,04 - 128 players _1st Home Mortgage
Revenue Total for October
November 4, 04 - 90 players - Merit McConnell
November 6,04 - 144 players - Habitat for Humanity
Revenue Total for November
December 3,04 - 144 players - American Cancer Society
January 10, 05 - 120 players - Commercial Real Estate
January 15, 05 - 144 players - MAFSI
Revenue Total for January 2005
March 11, 05 - 80 players - ITA Group
April 15, 05 - 50 players - Acordia Golf Outing
May 6, 05 - 100 players - Washington Guardsmen
GRAND TOTAL
$7,560.00
3,750.00
7,560.00
7,560.00
6.750.00
$33,180.00
$7,500.00
7,500.00
4,500.00
9.600.00
$29,100.00
$8,100.00
9.072.00
$17,172,00
$ 9, 072.00
$18,000.00
$ 21.600.00
$39,600.00
$14,000.00
$ 8,750.00
$ 8.500.00
$159,374.00
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
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(;onaensea Iltle:
A Resolution Waiving By 517ths Vote, The Prohibition OfTran Construction, Inc. From Continuing To Serve
As A Vendor Regarding The Following Existing Contracts: 1) The Miami Beach Golf Club Clubhouse,
Restroom Pavilions And Maintenance Yard Building; 2) The Design, Permitting And Construction Of Four
New Restroom/Concession Facilities Within The Beachfront Parks Located At 21st, 46th, 53rd, And 64th
Streets; And 3) The Job Order Contracting (JOC) Contract Relative To The Following Miami Beach
Convention Center Projects: A) Chiller Replacement; B) Replacement Of Air Handlers; And C)
Refurbishment Of 12 Air Handline Units.
Issue:
Shall the City Commission Waive the Prohibition of Tran Construction from Serving as a Vendor?
Item Summary/Recommendation:
On March 17,2004, the Mayor and City Commission adopted a resolution that set a public hearing for April
14,2004, relative to waiving by 517ths vote, the prohibition of Tran Construction, Inc. from continuing to serve
as a vendor with the City pursuantto Section 2-487(B)(4) ofthe Miami Beach City Code (the "City Code").
The Administration is recommending that the City Commission waive by 517ths vote, the prohibition ofTran
Construction, Inc. from continuing to serve as a vendor with the City pursuant to Miami Beach City Code
Section 2-487 (B)(4), based on the following economic impact to the City:
As it relates to the Miami Beach Golf Course Clubhouse, Restroom Pavilions and Maintenance Yard Building,
the CIP office estimates that the costs associated with disaualifvina Tran construction on this oroiect may
ootentiallv cost the City at least $1.31 million olus ooerational costs of $244,114.
As it relates to the Design, Permitting and Construction of Four New Restroom/Concession Facilities within
the Beachfront Parks located at 21st, 46th, 53rd, and 64th Streets, funds appropriated from the proceeds
from the Safe Neighborhood Parks (SNP) Bond Program in the amount of $750,000 may be lost if the
proiect is not commenced bv November 30, 2004.
As it relates to the Job Order Contracting JOC) contracts relative to the Miami Beach Convention Center
(MBCC) Projects, it is the Administration's strong belief that the MBCC and the City of Miami Beach will be
greatly hindered with any action or interruptions to the progress of these contracts, which Tran has diligently
worked on to conclude in the next 30 days
THE ADMINISTRATION RECOMMENDS APPROVING THE RESOLUTION.
Advisory Board Recommendation:
I
Financial Information:
Source of
Funds:
Ainount
Approved
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Agenda Item
Date
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.miamibeachfl.gov
To:
From:
Subject:
COMMISSION MEMORANDUM
Mayor David Dermer and
Members of the City Commission
Jorge M. Gonzalez \ p/" ~
City Manager () 0
Date: April 14.2004
PUBLIC HEARING
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, WAIVING BY 5/7THS VOTE, THE
PROHIBITION OF TRAN CONSTRUCTION, INC. FROM CONTINUING TO
SERVE AS A VENDOR WITH THE CITY PURSUANT TO MIAMI BEACH
CITY CODE SECTION 2-487 (B)(4), FINDING SUCH WAIVER TO BE IN
THE BEST ECONOMIC INTEREST OF THE CITY, REGARDING THE
FOLLOWING EXISTING CONTRACTS: 1) THE MIAMI BEACH GOLF
COURSE CLUBHOUSE, RESTROOM PAVILIONS AND MAINTENANCE
YARD BUILDING; 2) THE DESIGN, PERMITTING AND CONSTRUCTION
OF FOUR NEW RESTROOM/CONCESSION FACILITIES WITHIN THE
BEACHFRONT PARKS LOCATED AT 21ST, 46TH, 53RD, AND 64TH
STREETS; AND 3) THE JOB ORDER CONTRACTING (JOC) CONTRACT
RELATIVE TO THE FOLLOWING MIAMI BEACH CONVENTION CENTER
PROJECTS: A) CHILLER REPLACEMENT; B) REPLACEMENT OF AIR
HANDLERS; AND C) REFURBISHMENT OF 12 AIR HANDLING UNITS.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
On March 17, 2004, the Mayor and City Commission adopted a resolution that set a public
hearing for April 14. 2004, relative to waiving by 517ths vote, the prohibition of Tran
Construction, Inc. from continuing to serve as a vendor with the City pursuant to Section 2-
487(B)(4) of the Miami Beach City Code (the "City Code").
Section 2-487(B)( 4) of the City Code provides a waiver of the prohibition of an individual or
entity from serving as a vendor, should the following condition exist: "A contract for the
provision of goods, equipment or services exists which, if terminated by the City, would be
adverse to the best economic interests of the City."
Commission Memo
Waiver Re Prohibition of Tran Construction from Serving as a Vendor
Apri114,2004
Page 2 of8
The reason for the waiver request is that Section 2-487(A)(3) of the City Code states that
"a person or entity who directly or indirectly makes a contribution to a candidate who is
elected to the office of mayor or commissioner shall be disqualified for a period of 12
months following the swearing in of the subject elected official from serving as a vendor
with the city."
The Administration is recommending that the City Commission waive by 517ths vote, the
prohibition of Tran Construction, Inc. from continuing to serve as a vendor with the City
pursuant to Miami Beach City Code Section 2-487 (B)( 4), based on the following economic
impact to the City:
1) THE MIAMI BEACH GOLF COURSE CLUBHOUSE, RESTROOM PAVILIONS AND
MAINTENANCE YARD BUILDING (the "Clubhouse"):
a. Resolution No. 2002-24979 was passed and adopted by the City Commission
on September 2002. Said Resolution approved the award of contract to Tran
Construction, Inc., in the amount of $2,669,000, pursuant to Bid No. 54-01/02,
for the Miami Beach Club (formerly Bayshore Golf Course) Clubhouse,
Restroom Shelters and Maintenance Yard Building.
b. The lowest bid ($2,387,230) for the Clubhouse project was submitted by Lear
Associates, Inc. ("Lear"). However, Lear was deemed non-responsive for failure
to meet the minimum experience requirements of three (3) commercial projects
of at least 15,000 square feet and $1.5 million construction value. Tran
Construction was the second low bidder and demonstrated to the satisfaction of
the City and URS, the City's Program Manager, that they met the minimum
experience requirements and were deemed as the best bidder pursuant to
Section 2-369 of the City Code.
c. A Candidate's Campaign Treasurer's Report lists a check for a campaign
contribution to the candidate's campaign for City Commission from Tran
Construction being deposited on October 28, 2003. The candidate has been
elected to the office of Commissioner.
d. As of March 10, 2004, the Capital Improvements Projects (CIP) Office estimates
that the Clubhouse is approximately 70% complete.
Commission Memo
Waiver Re Prohibition of Tran Construction from Serving as a Vendor
April 14, 2004
Page 3 of 8
e. The CIP Office estimates that the costs associated with disaualifvina Tran
Construction on this proiect may potentiallv cost the City $1.31 million.
This estimate is calculated from the following likely possibilities:
. $500.000 - Anticipated Profits Claim on remaining $1.6 Million of Work
. $300,000 - Wrongful Termination Claim
. $400,000 - 25% Premium to Replacement Contractor on remaining $1.6
Million of Work
. $60,000 - Additional Services To REG Architects to produce a Conformed
set
. $50,000 - Additional Services to URS for Extended Program Management
Additionally, based on recent experience, a work stoppage on the project would
be anticipated to last a minimum of four (4) to six (6) months. As Substantial
Completion on the project is currently scheduled for June 2004, a
disqualification of the current Contractor would delay Substantial Completion of
the project until somewhere between October 2004 to January 2005.
f. The Parks and Recreation Department estimates the following economic impact
on the City should the City Commission not waive the prohibition of Tran
Construction from serving as a vendor:
(1) The following is a summary of the tournaments booked at the Miami
Beach Golf Club with the understanding that the Clubhouse will be
completed and ready for their use. Not having the Clubhouse may
jeopardize our chances to host these events and seriously damage our
credibility.
September 3,04 - 144 players - National Lymphoma Foundation
September 5, 04 - 50 players - Coldwell Bankers
September 10, 04 - 144 players - Multiple Sclerosis
September 17, 04 - 144 players - Cancer Society
September 26,04 - 90 players - Tony Roma's
Revenue Total for September
October 3,04 - 100 players - American Teleservices Assn.
October 8, 04 - 100 players - Playboy Scramble
October 27, 04 - 60 players - Accentuce
October 30, 04 - 128 players - 151 Home Mortgage
$7,560.00
3,750.00
7,560.00
7,560.00
6,750.00
$33,180.00
$7,500.00
7,500.00
4,500.00
9.600.00
Commission Memo
Waiver Re Prohibition of Tran Construction from Serving as a Vendor
April 14, 2004
Page 4 of8
GRAND TOTAL
$29,100.00
$8,100.00
9,072.00
$17,172.00
$ 9, 072.00
$18,000.00
$ 21,600.00
$39,600.00
$14,000.00
$ 8,750.00
$ 8.500.00
$159,374.00
Revenue Total for October
November 4, 04 - 90 players - Merit McConnell
November 6, 04 - 144 players - Habitat for Humanity
Revenue Total for November
December 3, 04 - 144 players - American Cancer Society
January 10, 05 - 120 players - Commercial Real Estate
January 15, 05 - 144 players - MAFSI
Revenue Total for January 2005
March 11, 05 - 80 players - ITA Group
April 15, 05 - 50 players - Acordia Golf Outing
May 6, 05 - 100 players - Washington Guardsmen
(2) Presently, with the City not having the use of the Clubhouse, the Parks
and Recreation Department advises clients that if a covered and/or air
conditioned area is required for the event that the client needs to rent
and pay for the use of a tent and related furnishings and equipment. For
illustration, an average sized tent wi AC costs approximately $6,500 to
rent for the standard tournament. The City did not advise the groups who
booked the events below of this condition due to the expectation that the
Clubhouse would be completed.
(3) It is also important to note that as Parks and Recreation prepares for
their budget for FY 05, they are considering recommending a rate
increase based on the Clubhouse being fully operational. Parks
estimates that these rate increases will represent additional average
revenue of approximately $ 15,000 per month. The Administration would
not recommend a rate increase if the Clubhouse is not completed.
(4) Also because the clubhouse, golf course equipment maintenance facility
and on course restrooms are not completed the City is paying for the
following costs:
Commission Memo
Waiver Re Prohibition of Tran Construction from Serving as a Vendor
April 14, 2004
Page 5 of 8
$ 1,965.00 -- Modular Building per Month / $23,580/yr.
$ 4,300.00 -- Tropical Tent (Cart Barn) per Month/ $51 ,600.00/yr.
$ 200.00 -- Able Sanitation Temporary Rest Rooms (x2) Month /
$2,400.00/yr.
$ 55.00 -- Metal Container - Storage (x1) Month / $660.00/yr.
Combined Monthly Expense
$6,520.00
Annual Expense
$78,240.00
g. A basis for a waiver is found in Section 2-487(B)(4), which states that a
contract for the provision of goods, equipment or services exists which, if
terminated by the City, would be adverse to the best economic interests
of the City.
2. THE DESIGN, PERMITTING AND CONSTRUCTION OF FOUR NEW
RESTROOMICONCESSION FACILITIES WITHIN THE BEACHFRONT PARKS
LOCATED AT 21ST, 46TH, 53RD, AND 64TH STREETS ("Beachfront
Restroom Project").
a. Resolution No. 2003-25196 was passed and adopted by the City
Commission on April 30, 2003. Said Resolution approved the award of a
contract to Tran Construction, Inc., in the amount of $648,000, pursuant to
Bid No. 03/02/03, for the Design, Permitting and Construction of Four New
Restroom/Concession Facilities within the Beachfront Parks located at 21 51,
461h, 53rd and 641h Streets, and authorized the reallocation of $175,000 from
the General Obligation Bond Series 2000 Funds, for use in the construction
of the 461h and 53rd Street Facilities.
b. Tran Construction's bid in the amount of $648,000 was the lowest and best
bid. The second lowest bid ($868,990) submitted by Design/Build
InterAmerican Construction, was $220,990 higher than Tran's bid.
c. A Candidate's Campaign Treasurer's Report lists a check for a campaign
contribution to the candidate's campaign for City Commission from Tran
Construction being deposited on October 28, 2003. The candidate has been
elected to the office of Commissioner.
Commission Memo
Waiver Re Prohibition of Tran Construction from Serving as a Vendor
Apri114,2004
Page 6 of 8
d. As of March 17, 2004, TRAN Construction has not commenced work on this
project. However, the City Commission appropriated $750,000 of the
proceeds from the Safe Neighborhood Parks (SNP) Bond Program for the
replacement of the restroom/concession facilities. These funds mav be
lost if the proiect is not commenced bv November 30. 2004. Extensions
available for use of these funds have alreadv been obtained. There are
no additional extensions.
e. The project was released as a Design/Build and a probable three (3) to six
(6) months of engineering and permitting is required prior to any construction
commencement. As time is presently such a critical component, any
replacement of the current Design/Build Team would result in significant
additional difficulties in meeting the Safe Neighborhood Parks Bond funding
timelines for the project. If the City loses the current SNPB funding, another
source would need to be identified to replace it.
3. THE JOB ORDER CONTRACTING (JOC) CONTRACT RELATIVE TO THE
FOLLOWING MIAMI BEACH CONVENTION CENTER PROJECTS: A)
CHILLER REPLACEMENT; B) REPLACEMENT OF AIR HANDLERS; AND C)
REFURBISHMENT OF 12 AIR HANDLING UNITS.
a. Resolution No. 2003-25157 was passed and adopted by the City
Commission on March 19, 2003. Said Resolution awarded a contract to
Tran Construction as well as five (5) other contractors to provide
construction work on a job order contract basis.
b. Tran Construction was one of six General Contractors that were awarded
contracts based on the lowest and best adjustmentfactors (Le., percentage
of overhead and profit added to firm fixed prices contained in the
construction task catalog).
c. A Candidate's Campaign Treasurer's Report lists a check for a campaign
contribution to the candidates campaign from Tran Construction being
deposited on October 28, 2003.
d. SMG estimates the following economic impact to the City should the City
Commission not waive the prohibition of Tran Construction from serving as a
vendor on the aforementioned three (3) projects:
Commission Memo
Waiver Re Prohibition of Tran Construction from Serving as a Vendor
April 14, 2004
Page 7 of 8
TITLE
STATUS NOW
STATUS IN 30 DAYS
I.-I
~al~llmi,iigll~1
RErbi$hAtPReU
Based on the information and progress of each job listed on the previous page, a
termination to Tran's contract would create more problems and prevent the Convention
Center from achieving the intended end results of these projects which have been
closely coordinated by all parties around the very busy Convention Center season (Le,
Boat show, Art shows, multiple conventions, etc.).
Right now, there exists HVAC conditions which, unless these projects conclude within
the next 30 days, the Convention Center will be crippled with systems which have been
out of commission prior to Tran's start of the work and subsequent to them commencing
their work. If there were an interruption to the progress of work, the City would be
faced with additional costs to have temporary HVAC systems brought in to service the
systems, which will be down due to Tran's work. Without clearly having a definitive
timeframe of when the interruption will be resolved between the City and Tran
Construction, the Convention Center could be faced with months and months of
additional costs for any temporary systems and or lack of use of the systems in place.
If Tran Construction is disqualified from serving as a vendor, Convention Center
staff is looking at an extensive cost factor to continue the projects that have been
awarded and in progress that would include the following:
o Delay in project completion
o Cost in re-bid (approximately 30 Days)
o Cost in re-permitting
o Cost in project Close-out
o Cost to re-open new project
o Subcontractor payments
o Supplier Payment
o Cost in gathering releases of liens on all parties involved
o Cost of City staff
o Availability of fund and the capacity on other JOC contractors
o Cost of De-mobilization and Mobilization
o Attorney fees
Commission Memo
Waiver Re Prohibition of Tran Construction from Serving as a Vendor
April 14, 2004
Page 8 of 8
If after the issues are resolved and Tran is successful with their legal pursuit, the
MBCC and the City of Miami Beach will be faced with additional re-mobilization fees,
permit extension fees, permit renewal fees, storage fees, equipment rental fees,
increased overhead fees, delay claim fees, etc.
It is the Administration's strong belief that the MBCC and the City of Miami Beach will
be greatly hindered with any action or interruptions to the progress of these contracts,
which Tran has diligently worked on to conclude in the next 30 days.
CONCLUSION
The Administration recommends that the City Commission waive by 517ths vote, the
prohibition of Tran Construction, Inc. from continuing to serve as a vendor with the City
pursuant to Miami Beach City Code Section 2-487 (B)(4), finding such waiver to be in
the best economic interest of the City, regarding the following existing contracts:
1) The Miami Beach Golf Course Clubhouse, Restroom Pavilions And Maintenance
Yard Building;
2) The Design, Permitting And Construction Of Four New Restroom/Concession
Facilities Within The Beachfront Parks Located At 21 st, 46th, 53rd, And 64th Streets;
and
3) The Job Order Contracting (JOC) Contract Relative To The Following Miami Beach
Conve ion Center Projects: A) Chiller Replacement; B) Replacement Of Air Handlers;
And efurbishment Of 12 Air Handling Units.
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;"~MflMIBEA'CH~1t~
NOTICE OF PUBLIC HEARINGS .......
NOTICE IS HEREBY glYon 1I1at pu~1c hearings will be held by the Mayor and CIty Cammisskln of thl CItj of Mleml
Beed1, FIo!1de, "the CommIelIlonChembers, 3rd floor, a~ Hall, 1100 Convention Cerrter OI1ve, Mleml Beech, Floride,
oo.....Aprt/14,lfJ04,lnconsiderthelollcwing:
8110:15&,",
An Ordinance AmonlIIng Il"opler 142 "Land Development ReguIaIla1s' Of The CIIy Code, DIvIsion 1, 'CCC, Ci'Iic And
CoovontIon Center 1lieIrIct.. n Older To Allow WSMlls Of De,eIopment ReguIa1lone By A FiY&-SewnlhsI'o1ll Of The
CItj CoIm1iss1on For DeveIopnenIS Per1eInlng To Go,emmonHlwlled Or lJeeed IluIIdIngs, IJges And SIte8 Whk:ll Me
Wholly lIlled By, Open And Acc8IeI~e To The GeIIeraI POOIIc, Or lIlled By Nof.For-Pro1ll, Edu:a1IofIaI, Or CuIluraJ
Organlla1lOl1S, Or For Coo,.,,~oo Centel Hotels, Or CoIMlntloo Center HoteIltcessory Gamges, 01 CIty utilized
ParI<i1g Lo1e, ProvIded They Me Cootinual~ lIlled For SIlcI1 Purpooee; And To Amend The Public NoIIee Requjr8lllllll1e
For Such WaMlIs, ProvIding For COd1flca1iOfl, Repeeor, Se'lerebillty And E_
Inqu~" mey be dlr8cl8d In the l'imnWig Deper1ment el (3051 613-1550.
8110:3014:
An 0nI1r1onc8 Amondlng Th....d Development Regulatior1s Of The COde Of The CIty Of Miami _, By AmllfIdlng
Chapler 138, ~d 'SlIlfIS," ByAmon<ingMicle~. EI1IItIed 'Speclfi: use Signs," By Creatlllg 5ectIor113B-205 To
establish Regulaoons And Criteria For Signs For V<<1Ic8I Relall Cent8ffi; ProvIdWig For Inclusioo In The CIty COdI;
ProvIding For Repealer, Se'lerablllty And An EIIectlvellale
Inq_ mey be dIr8CI8d In the PIlI"I1Ing Oepartmont el(305) 613-1550.
1I1I1l45Ll11.:
A PuIIIl: Hena 1b~ ~ $?the Vole, Tll8'J'fIlIibItial Of Trell Construc1iQn, Inc. From ConlIn~ To
S8nt~_. The CIty PtnuInf'I'O MIani _ CIIy Code 5ectIor12,481 iBX4), ~SIlcI1W1iver To Be
In. The IIIIII~. .1fttInII.Of The QIy, RIlIIII4Ing The foIloo!Ing t;o!IIIn~ Cro1rac:,,~ MIami _ Golf
COurII'.......Il!I&tniIJDI'Mn""'_lWdBuIldlnli; 2) The lleSIgn, ,,",CoII8Irul:1IonOf
IiM'NIli~AEllIllesWi1llIflThe~ PeI1ls lDcaI!dN.21et,461h, 5 ,And 64th SlAels;
And 31 The JoIl Ordir COiIlnlclIng (JOC) Coolm Relative To The FaIowi1o __ ConventIon Center Projects:
AI Chiller RepIecemefII; 8) RepieI:emontOfAi H8fId18rs;And Cl_nt Of 12 AIr IB"OIIfIg Unlls
Inqulrl" may be dlr8cl8d In the CIty an's 0IIIce et (305)B13-1411.
r ~ ~li An AmenIlmem To The Code Of l!'f'dlY Of "'1 Beach, By AmllfIdIng .~.. '
Oeveklpment Of . ~~~.lIBitIlAndIlilllliellM8"DiIliIcr\I~"ilIE,1IbietI
IJeeEllter1lllfl_ . .' .'TaQll<lePlllilcAnd~CllIlnIIleIItUIkrf
OpenToThePubllc;AIId All~ditlOnet In ZOOlIgOletrlcl."
Inquln" may be drecl8d In the ~annlflg Deplf1ment et (305) 613-1550.
81 11:3OLm.:
APuIlIIc HBlnng To Consider An Am8fIdment To The COdI Of The CIty Of Miami Beech, By Amonofng Cl1~r 142,
"zoning Districts And Regulations," ArtIcle II, "District Reguletions', Divlskln 5, CO-2 Commercial, Medium "tensity
DIstrIct, Section 142.302, "MoIn Permitted US8S"DIYi~on 11, 1-1 Ught kldustriel Dm~ Sectloo142-485, "Prohi~led
1Jeea' And Division 18, '15 PerformaIlce SIafIlIard District," SectIon 142-883 'Permltted 1Jges', By Eliminating Dence
Halle And Entertainment Establishments (Also Operating'" AlcoIlolk: llewrage EstabIOhments And Restaur.lnts WIIh
Fun Kilthena And serving Full Meetsl'" Permhted Uses In Certatn Meas Of The CD-2 Commercial, Medium Intensity
District, The 1-' Ught Industrial District, And The 15 Pertc<msnce Standard DIstrIcl
Inquiries mey be directed to the PleMlng Department at (305)613-1550.
INTERESTED PARTIES ere Invtted In appear et thIe meeting, or be _led by an agent, or In express their 'iews kl
writing addressed In the City Cammisston, c/o the CIIy CIIl!k, 1100 CooventIon Canter DrIve, let Floor, City Hall, MISlm
Bead1, Fklrlda 33139. Copies ot th~ ordinance ere available tor po.ilIic Inspection dunng normal bo~nlSS hours in the
CIty CIa",'s OfItce, 1100 Co",on~on Centel Dri", 1~ Floor, CIty HIM, Miami Beach, Aorida 33139. This meeting may
III COfI~nued an<! under suctl circumstances additionalleget notice wotJd not be pro,ided.
Robert E. PaI1:I1er, a~ an
CIty of Miami BeadI
_t In Sectloo 2B6.Dl05, Fla. Stat" the City herelly advisee the pu~k: thet: if a penon decid,,1n appeal any
declalon mode by the Ci~ Commission wiIh respect to any mellBr considlJ8d el lis meeting or lis hearIfIg, such
I*SllIl must ensure that a 'lSlba1lm record of the lW'eetillgs Is made, wllk:h recor<! incIud" the tes1imooy end
-.ce upon wllk:h the appeal Is In be based. This notice does nof conattbrte coosent by the CIty tor the Intro<Iuc~on
or admIsOoo of otherwise ifl8dmlssl~e or Irrllevant ..deIlee, nor does ~ autIlonze challenges or appee~ not
IlIl8rwise elowed by lew.
III request this _rial kl eccessIble ~ ~gn language Interpreters, 1nforma1iOfloo ICC8Slllor persoos wi1h
_II~", and/or any eccommoda1iOfl1n r&I'iew eny document or pwtIcIpate In any clty-sponsored lW'eetilng,
Pl8a!8COf11ac! 3Q5-504-248g(vok:I), 305-lI13-7218(1TY) II" days kledwnce In Imtiate your r&Q1Jest. m usersmlY
.Celli11.(~_SBrvke).... "" .. .. ~- '" ... .. .. '" ... " ..... ... \- ... " .,,-... .. '" ",1CII254..