20150506 AM3r9r5.2015
MIAMIBEACH
City Gommission Meeting
ADDENDUM MATERIAL 3
City Hall, Commission Chambers, 3rd Floor, 1700 Convention Center Drive
May 6, 2015
Mayor Philip Levine
Vice-Mayor Jonah Wolfson
Commissioner Michael Grieco
Commissioner Joy Malakoff
Com m issioner Micky Steinberg
Commissioner Edward L. Tobin
Commissioner Deede Weithorn
City Manager Jimmy L. Morales
City Attorney Raul J. Aguila
City Clerk Rafael E. Granado
Vrsff us at www.miamibeachfl.gov for agendas and video "streaming" of City Commission Meetings.
ATTENTION ALL LOBBYISTS
Chapter 2, Article Vll, Division 3 of the City Code of Miami Beach entitled "Lobbyists" requires the
registration of all lobbyists with the City Clerk priorto engaging in any lobbying activitywith the City
Commission, any City Board or Committee, or any personnel as defined in the subject Code
sections. Copies of the Gity Code sections on lobbyists laws are available in the City Clerk's office.
Questions regarding the provisions of the Ordinance should be directed to the Office of the City
Attorney.
ADDENDUM AGENDA
R9 - New Business and Commission Requests
RgR Discussion Regarding The Collins Parking Garage Project Estimate Of Probable Construction
Cost.
(Capital lmprovement Projects)
Rl0 - Gitv Aftornev Reports
R10B Notice Of Closed Executive Session
Pursuant To Section 447.605, Florida Statutes, A Closed Executive Session Will Be Held
During Recess Of The City Commission Meeting On Wednesday, May 6,2015, ln The City
Manager's Large Conference Room, Fourth Floor, City Hall, For A Discussion Relative To
Collective Bargaining.
(Requested by Vice-Mayor Jonah Wolfson)
1
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2
MIAMIBEACH
City of Miomi Beoch, ,l700 Convention Cenler Drive, Miomi Beoch, Florido 33,l39, www.miomibeochfl.gov
COMMIS
TO:Mayor Philip Levine and Members e City
FRoM: Jimmy L. Morales, City Manager
DATE: May 6, 2015
SUBJECT: D!SCUSSION REGARDING
ON MEMORANDUM
mission
COLLINS PARKING GARAGE PROJECT
ESTIMATE OF PROBABLE CONSTRUCTION COST
This item was requested by the City Manager for discussion.
BACKGROUND
On March 21,2012, the City Commission adopted Resolution No. 2012-27869, approving a
Professional Services Agreement (Agreement) between the City and the joint venturc of Zaha
Hadid Limited Ua Zaha Hadid Architects and Berenblum Busch Architecture, lnc. (the
Consultant) for the Planning, Architectural, Engineering, Design, Bid and Award, and
Construction Administration Services for the Collins Park Garage Project.
The Consultant was tasked to produce a design that personifies iconic architecture and arrives
at a solution that addresses the unique needs of the City's stakeholders, residents, and visitors
to the City's Cultural Campus. The total estimated construction cost budget established for the
project was approximately $18,500,000, not including contingency.
As part of the scope, the Consultant was to develop a rough order of magnitude cost estimate at
concept, at 30% schematic design, at 60% design documents, and a definitive statement cost
estimate at 90% Construction Documents.
The Office of Capital lmprovement Projects (ClP) received the final approved Concept on
January 16,2013, which included a cost estimate of $20,796,081.
On January 20,2014 the Consultant submitted a cost estimate for the 30% schematic design in
the amount of $20,795,984.
On April 23, 2014, the City Commission adopted Resolution No. 2014-28579, accepting the
recommendation of the City Manager, pursuant to request for qualifications No. 2013-454-SR
for the Construction Manager at Risk Services for the construction of Collins Park Garage
Project; authorizing the administration to enter into negotiations with the Top Ranked Proposer,
Facchina Construction of Florida, LLC (CMR).
On November 10, 2014, the Agreement for Pre-Construction Services between City of Miami
Beach and the CMR was executed.
Agenda ltem fl9 Roate gF(f3
Commission Memorandum - Discussion Regarding Collins Park Garage Project
May 6,2015
Page 2 of 3
The agreement with the CMR requires that the CMR prepare an outline of proposed bid
packages and detailed cost estimates, at each design phase (60% design development, 90%
construction documents and 10Oo/o construction documents), and advise the City regarding
trends in the construction and labor markets that may affect the price or the schedule of the
project.
On November 28, 2014 the Consultant provided the 60% Construction Documents submittal
package which included a cost estimate in the amount of $23,168,787.
The CMR reviewed the 60% drawings to perform their constructability review and provided an
outline of proposed bid packages and detailed cost estimate. The estimate was obtained by
distributing the 60% plans to potential subcontractors. The CMR "blasted" an invitation out to
the market (4,000 subs). They received many declines due to the plans being partial, but
received good coverage on all trades except concrete and steel, due to the specialized nature of
those systems. The CMR compiled all of the submitted bids and generated a potential
construction cost in the amount of $48,989,044.
On April 17, 2014, the Consultant provided an opinion of cost indicating why the project is
currently over budget (Attachment No. 1).
ANALYSIS
The difference between the CMR's 60% cost estimate of $48,989,044 and the Consultant's
cost estimate of $23,168,787 is $25,820,257. The available budget is $21,389,603 and
$3,863,658 for the ancillary improvements (site/plaza) for a total of $25,253,261.
The CMR prepared a cost analysis document (Attachment No. 2) that provides a comparison
between their cost estimate and the Consultant's estimate. The analysis shows many
disparities between line items, especially for the shell construction, structural steel, and
windows/storefront glazing. These three line items alone exceed the consultant's estimate by
approximately $20.5 million.
At this time the City must determine how to proceed with this project as outlined in the
Agreement. Article 4.4 states that "the construction cost budget shall not be exceeded without
fulljustifiable and unforeseen circumstances which are beyond the control of the parties."
Article 4.5 of the Agreement states that "lf the lowest and best base bid exceeds the
Construction Cost Budget by more than five percent (5%), the City Commission may, at its sole
option and discretion, elect any of the following options: (1) approve an increase to the
Construction Cost Budget; (2) reject all bids, and (at its option) authorize re-bidding of the
project; (3) abandon the project and terminate the remaining Services for convenience without
any further liability to the City; (a) select as many Deductive Alternatives as may be necessary
to bring the lowest and best bid within the Construction Cost Budget; or (5) work with the Design
Professional to reduce the Project Scope, construction schedule, Work, or such other action, as
deemed necessary, to reduce the construction cost budget. ln the event the City elects to
reduce the project scope, the Design Professional shall provide any required revisions to the
Contract Documents (including, without limitation, the Construction Documents), and provide re-
bidding services, as many times as reasonably requested by the City, at no additional cost to
the City, in order to bring any resulting, responsive and responsible bids within five percent (5%)
4
Commission Memorandum - Discussion Regarding Collins Park Garage Project
May 6, 2015
Page 3 of 3
of the Construction Cost Budget".
The Administration recommends proceeding with option (5) as stipulated in the Consultant's
Agreement and request that the Consultant revise the design to meet the approved construction
cost budget at no additional cost to the City.
CONCLUSION
Administration requests direction from the Mayor and Commission.
\\'-Sh.
JLM/MT/DM
5
Zaha Hadid Archilects ,ldndn&{$ss x+..
Attachment 1
April 17th, 2015
Mr. Humberto Cabanas
Division Director
Capital lmprovement Project Office
City of Miami Beach
Miami, FL 33139
Re: Collins Park Place
Dear Humberto:
Per our meeting held on April 16, 2015 and as per your request, we are hereby submitting our opinion as
to why the project is currently over budget, in conjunction with recommendations that could help resolve
the current budget challenges.
As a starting point, it is impoftant to understand that the Design Agreement was executed at the
beginning of 2012 when the construction industry was still in a slump and the construction market much
softer than today. For reasons beyond our control, the project schedule has been set-back more than a
year and a half resulting in additional escalation costs and landing the project in a time where the
construction industry is at, or close to its peak. Market conditions have changed dramatically and this is
directly reflected in the current project cost. For example, labor costs have skyrocketed since 2012
along with substantial increases in the price of key materials such as concrete. Aggravating the situation
further, there is a limited pool of qualified sub-contractors in South Florida to perform work such as
architectural concrete.
The second contributing factor relates to scope increases. The project, as priced by FACCHINA, reflects
the 60% D.D. submittal documents, which were based on a design alternative as requested by the City
where the ground floor was elevated 3 feet above the original design for a major portion of the project to
address sea level rise concerns. This modification, substantially increased the earthwork required to
achieve the elevated level and also affected several components such as the main structure, ramps,
concrete steps, sheer walls, railings, landscape, etc. ln addition, the building overall height increased
and exfiltration trenches were implemented instead of the original drainage wells.
Furthermore, our ability to respond to market conditions and modify our design accordingly, was
severely diminished by the fact that the construction manager, who was intended to provide pre-
construction services and guidance at earlier stages of development, was not engaged until recently,
depriving the design team of usefulfeedback.
Finally, it is important to mentlon that the project unique architecture and its geometry, transcends
typical parking garage expectations and standards. lts execution must be achieved with utmost care,
paying attention to details, solutions and finishes not normally found on standard garages. The added
project complexity coupled with the current market conditions and limited availability of qualified
contractors are major contributors to the cost overrun.
6
Zaha Hadid Architecfs k+rrnr{}rsw
Strategies and Recommendations moving foruvard.
We recommend working alongside contractors / sub-contractors to understand the construction
techniques to implement that are less costly yet preserve the design intent. One key example that would
represent a significant cost savings is to work with a formwork contractor to standardize concrete forms.
Another strategy, far more drastic which should be approached with care is to eliminate portions of the
project. We have identified and discussed several items at an earlier stage of project development,
when it became clear to us that the original schedule could not be maintained. Some items, ranging
from the elimination of the feature glass elevator on the plaza to an extreme of removing an entire floor
of parking, could be re-assessed. Although these items do not constrain the main building use, they do
have a dramatic impact on the project.
ln consideration of the high-profile nature of this project and its design architect, our options with regard
to cost cutting (value engineering) are more limited than would typically be the case. To build/develop
what has been proposed and approved by City could be facilitated through the involvement of a third
party "sponsor" who would provide the additional funding necessary to complete the project. Miami
Beach has a long history of using public/private partnerships as a vehicle for parking garage
development throughout the City and we would anticipate significant interest from the private sector for
the Collins Park project as well.
We thank you for the opportunity to provide services to the City of Miami Beach and remain fully
committed to the successful completion of this magnificent project. Please don't hesitate to contact us if
you have any questions or need further clarifications.
Sincerely,
Zaha Hadid Architects
.p'z -1-;S+-*.*z;---/,
Chris Lepine, RIBA
Senior Associate
CC:Sabrina Baglieri, Fernando Paiva. CMB
Jesus Vazquez, Lisa O'Brien. FACCHINA
Eva Tiedemann, ZHA
Berenblum Bugch Architecture, lnc.
il,hU
Gu$tavo Bererlblum, AIA
err/rcJnat
7
O' FLORIOA,CONSTBUCTION
Collins Park Garage
Miami Beach, FL
60% Design Development Drawings
SF: 245,797
Attachment 2
COST ANALYSIS
L.L.c.
8
o
10
11
12
13
14
15
16
17
18tr
2A
21
22
23
24
01-415
01-450
01-541
01-603
02-100
02-1 1 0
02-201
02-300
02-500
02-590
02-61 0
02-710
02-730
02-800
02-900
nr-oEn
)UKVEYIN(,
]ONCRETE/SOIL TEST, THRESHOLD - BY OWNER
]ITE SAFETY
)RANES & HOISTING
:ROSION CONTROL, MOT, TMFFIC CONTROL
)EMOLITION
;ITEWORK / MISC. EARTHWORK
,ILINGS. AUGER CAST
JNDERGROUND UTILITIES
;OILS STABILIZATION
,AVING & HARDSCAPES
:ENCING
,AVER TILES
.ANDSCAPING
JITE MISC
UIAINTFNANCF OF TRAFFIC
790,086
88'1,950
267,124
0
'100,000
0
246,290
397,370
402,000
0
U
0
0
0
0
$-
$
$$-
$
$$ 3.21$ 3.sg$ 1.09
$$ 0.41$-$ 1.00$ 1.62$ 1.64s-
rncruoeo uerow
0
lncluded Below
lncluded in Concrete
lncluded Below
65,018
358,682
1,414,6s0
560,000
0
240,000
lncluded Abov€
Not lncluded - See Comments
.150,000
181,900
a2 R50
$-
$
$$-$-$ 0.26$ 1.46$ 5.76$ 2.28
$$ 0.98$-$-$ 0.61$ 0.74$ 0.34
(65,018
431,404
(532,700
(292,876
0
(1 40,000
?46,290
247,370
220,100
/A? R50
U
0
0
o3-300 HELL 7-001_601 s 32-51 25.fi,l.e21 tol-7!t '17 0-13 ?30
UJ- /UU
04-200
04-300
04-400
od-?on
IOISTING AND MATERIALS TRANSPORT (BUCKHOIST)
iIASONRY
\RCHITECTURAL PRECAST CONCRETE
]RICK AND VENEER
,flsatrt I aNtrdl ts er,)NaRtrTtr trt tr[rtrNTq
U
152,700
0
Not Use(
n
0.62
u
$
$
$
q
rncruoeo Aoov(
61,449
0
Not Used
0.25
u
s
$
$
q
U
91,251
0
0
n
o5-3(x,
'TRUCTURAL
STEEL r,516,486 s 6.17 3,src,342 $ r4.3lt (2,006,894
ZA
27
28
29
30
31
32
33
34
363
l-s
39
4C
41
42
42
44
4a
4e
47
48
4S
5C
5'l
52
aa
54
5€
57
58
5e
6C
61
62
63
64
6€
6€
6i
6€
6S
7C
71
7i
06-600
06-650
06-700
07-100
07-210
07-220
07-230
07-910
08-1 10
08-200
TOUGH CARPENTRY
;INISH CARPENTRY
MOOD TRUSSES
AiATERPROOFING
]ULDING INSULATION
;PRAY FIREPROOFING
TOOFING
)AULKING
)OORS /FRAMES / HARDWARE
/VOOD DOORS / FRAMES
1\/trPHtrAn n6npa
0
0
Not Use(
502,171
0
0
25,221
0
39,600
0
2._04
0.10
o.', u
$
$
$
$
$
$
$
$
$
$
c
5,000
'10,000
Not Used
745,670
lncluded in Orywal
0
lncluded in Waterproofin(
100,000
28,350
0
f,l^t I lc6d
0.02
0.04
3.03
i.o.
0.12
$
$
$
$
$
$
$
$
$
$(
(5,000
(10,000
0
(243,499
0
0
0
( 1 00,000
1 1,250
0
08-400 /VINDOWS & STOREFRO}ITS qn.280 3.68s 2.112.5D0 s 9.82 (1_512.22C
UU-CUU
09-1 00
09-260
09-310
09-510
09-650
09-700
09-700
09-900
10-000
10-161
10-401
10-501
10-601
10-650
10-800
10-900
1 1 -000
1 1-100
1 2-000
1z-',t00
1 3-000
1 3-1 00
13-200
14-020
1 5-400
1 5-450
1 5-51 0
15-800
1 6-1 00
1 6-1 50
16-200
1 7-1 00
01 -000
)nYLtun I
.ATH/PLASTER/STUCCO
)RWVALL
]EMMIC TILE / MARBLE / GRANITE
\COUSTICAL CEILINGS
TESILIENT / CARPET
JTONE COUNTERTOPS
JPECIAL FINISHES
]AINTING
:IRE EXTINGUISHERS AND KNOX BOX
-OCKERS
JIGNS (IDENTIFYING DEVICES)
,OSTAL SPECIALTIES
:OLDING PARTITIONS
/VIRE SHELVING
TOILET PARTITIONS & ACCESSORIES
)THER ACCESSORIES
/VINDOW WASHING EQUIPMENT
)ARKING CONTROL EOUIPMENT
:URNISHINGS
/VINDOW TREATMENTS
)OOL AND POOL EQUIPMENT
tAcuzzt
:OUNTAINS
:LEVATORS
)LUMBING
)LUMBING FIXTURE ALLOWANCE
:IRE SPRINKLERS
IVAC
:LECTRICAL
-IGHT FIXTURE ALLOWANCE
SITE POWER AND LIGHTING
-OW VOLTAGE/CCTV/ACCESS CONTROL
3ENERAL REOUIREMENTS - FIELD CONDITIONS
0
0
U
Not Use(
Not Use(
Not Use(
Not Use(
Not Use(
0
0
NOI USC(
Not Use(
Not Use(
Not Use(
Not Use(
54,810
0
Not Use(
350,000
Not Use(
Not Use(
Not Use(
Not Use(
Not Use(
660,000
440,300
'12,000
202,125
1 35,s00
1,334,750
lncluded Abov(
108,000
1 57,500
ncluded in GC':
0.22
1.42
2.69
1.79
0.0s
0.82
0.55
s.43
0.44
0.64
u
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Not lncluded
NOI USCO
Not Used
50,000
25,000
2,400
Not Used
Not Used
Not Used
85,000
4,870
Not Used
Not Used
Not Used
Not Used
Not Used
3,500
n
Not Used
See Comment!
Not Used
Not Used
Not Used
Not Used
Not Used
s03,750
717,343
24,000
459,864
200,487
1,220,579
881,310
- See Commentr
20,000
865,967
D
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
0.20
0.10
0."
0.35
0.02
o.o,
2.05
2.92
0.10
1.87
0.82
4.97
3.59
0.08
3.52
U
0
(50,000'
(2s,000'
(2,400
0
0
0
(30,1 90
(4,870
0
0
0
0
(3,500
0
350,000
0
0
0
0
0
156,250
(277,043
(12,000
(257,735
(64,987
114,171
0
108,000
1 37,500
r86s 967
osl04/2o7s
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Cost Analysis 8
ACC na
CONSTRUCTI0N ot
Collins Park Garage
Miami Beach, FL
60% Design Development Drawings
SF: 245,797
Attachment 2
COST ANALYSIS
L. L,C.FLORlOA.
SUE I (J I AL JUI' (;US I 1U,UUb,69b $1b.44 41 ,12 t ,t'13 b Ib/.JZ 1.384.528
,J
74
75
76
77
78
79
80
81
82
83
a4
01-991
01 -81 0
01-810
01-675
01-820
01-900
]ONTINGENCY
3ENERAL LIABILITY INSURANCE
]UILDERS RISK INSUMNCE. BY OWNER
]UILDERS RISK DEDUCTIBLE - BY OWNER
3UB BONDS OR CDI
]AYMENT & PERFORMANCE BOND
:SCALATION
:XTENDED SCHEDULE BOND PREMIUM
/VARRANTY/MAINTENANCE BOND
)ESIGN FEES
SENERAL CONDITIONS
360,000
Not lnclude(
0
0
Not lnclude(
Not lncludec
571,309
0
0
0
1,322,084
$
$
$
Q
$
$
$
$
$
$
$
1.46
2.32
s.se
U
't,645,'t0'l
641,589
0
0
690,942
392,536
lncluded in Concrete
0
0
0
2,607,169
$ 6.69
$ 2.61
$
$-
$ 2.81
$ 1.60
$
$$-
$$ 10.61
(1,285,101
(641,s89
n
0
(690,942
(392,536
571,309
0
0
0
(1 ,285,08s
IO IAL INIJIREC I UOS IS 2,253,393 5,9t t,33t $ 24.32 13,t23,944
oc
8(
CONTRACTOR'S FEE 2,020.899 $ 8.22 '1,884,194 $ 7.67 I 36,705
PRECONSTRUCTION FEE 0 $0 $0
SUBTOTAL INDIRECT COSTS & FEES 4.274.292 s 17.39 7.861.531 $ 31.98 (3.587.239
ADJUSTMENT TO BALANCE 7.598 $7.598
GRAND TOTAL 23.166.786 $ 94.26 48.989.044 $ 199.31 Q5.820.2s8
i/Space I 49,718.42 $/Space $ 105,126.70
os/04/zots
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Cost Analysis 9
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g MIAMIBEACH
OFFICE OF THE MAYOR AND COMMISSION MEMORANDUM
To: Jimmy Moroles, City Monoger
From: Jonoh Wolfson, Commissioner
Dote: Moy 5, 2015
Re: Commission Agendq ltem - Closed Executive Session
Pleose ploce on the Moy 6, 2Ol5 Commission Agendo:
I om requesting o closed Executive Session to be held during the recess of the Moy 6,
2O15 Commission meeting, for o discussion relotive to collective borgoining.
Pleose feel free to contoct my Aide, Brett Cummins ot x6437, if you hove ony questions.
JW
We ore commiffed to providing excellent public service ond safefy to oll who live, work, ond ploy in our vibronf , tropicol, hrstoric comnunity
Agenda ltem Rt0 8..
Date 5-6{f11
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