2004-25666 Reso
RESOLUTION NO.
2004-25666
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, WAIVING, BY 5/7THS VOTE,THE
COMPETITIVE BIDDING REQUIREMENT, FINDING SUCH WAIVER TO BE
IN THE BEST INTEREST OF THE CITY, AND APPROVING THE AWARD
OF PURCHASE ORDERS TO THE FOLLOWING VENDORS FOR THE
COMPLETION OF THE COLONY THEATRE PROJECT: MIAMI
STAGECRAFT, IN THE AMOUNT OF $176,579 FOR STAGE LIGHTING;
MAVCO, IN THE AMOUNT OF $87,651 FOR COMMUNICATIONS AND
SOUND SYSTEM; FARREY'S HARDWARE, IN THE AMOUNT OF $33,364
FOR DOOR HARDWARE; FEDERAL MILLWORK, IN THE AMOUNT OF
$43,492 FOR MILLWORK; IRWIN SEATING, IN THE AMOUNT OF
$120,542 FOR AUDITORIUM SEATING; AND INTERAMERICASTAGE, IN
THE AMOUNT OF $216,183 FOR STAGE RIGGING.
WHEREAS, the Colony Theatre Renovation Project (Project) began as a $1.75
million concept project in early 1999 and a series of cultural facilities grants were pieced
together during the balance of that year; and
WHEREAS, in October 1999, the City executed a Professional Services Agreement
with the State of Florida Department of Management Services (OMS) to provide design,
preconstruction, and construction management at risk services; and
WHEREAS, at the current time the Project is funded at $6,985,462, which includes
five (5) amendments valued at $ 5,235,462; and
WHEREAS, the Architect of Record hired by OMS is R.J. Heisenbottle Architects
("RJHA"), and the Construction Manager/Contractor is McCartney Construction Company
("McCartney"); and
WHEREAS, a gross price for the City's budgeting purposes was provided by the
Project team in July 2002, of $6,365,000, which served as the basis for the final
appropriation by the City; and
WHEREAS, this amount was inclusive of OMS, RJHA, and McCartney's fees,
including Project contingency; and
WHEREAS, in this Project, a formal Guaranteed Maximum Price (GMP) that was
expected to be in line with the final budget amount was executed by OMS on behalf of the
City in February 2003; and
WHEREAS, City staff was not permitted to review the GMP prior to OMS'
acceptance and execution of the GMP, despite several requests to do so; and
WHEREAS, the City finally received a copy of the executed GMP for construction
in April 2003, in the amount of $5,568,002; and
WHEREAS, for reasons of perceived expediency OMS authorized construction
activities to commence in November 2002, prior to the execution of the GMP document
and over the objections of City staff; and
WHEREAS, City staff objections stemmed primarily from the fact that the
Construction Documents for the Project had not yet been permitted by the Building
Department, Project specifications were not complete, and a draft GMP had not been
provided for the City to consider; and
WHEREAS, the current GMP is $6,985,462, based upon McCartney's latest pay
application, and the construction of the Project currently stands at approximately 66%
completion; and
WHEREAS, the remaining time to substantial completion of the project is
approximately 6-7 months; and
WHEREAS, two contract change orders are currently in negotiation totaling
$144,768; and
WHEREAS, it has been determined that the current GMP will not be sufficient to
cover all expected costs associated with the construction of the Project; and
WHEREAS, DMS has proposed that the City of Miami Beach participate in the
State of Florida's Sales Tax Recovery Program, as offered by OMS through McCartney;
and
WHEREAS, this program allows for the direct purchase of goods and services by
the City eliminating the requirement of paying taxes on the goods if they were purchased
by McCartney or one of its sub-contractors; and
WHEREAS, it is expected that the savings will be upward of $30,000 if the City
awards Agreements to the following vendors: Miami Stagecraft, in the amount of
$176,579 for stage lighting; Mavco, in the amount of $87,651for communications and
sound system; Farrey's Hardware, in the amount of $33,364 for door hardware; Federal
Millwork, in the amount of $43,492 for millwork; Irwin Seating, in the amount of $120,542
for auditorium seating; and Interamerica Stage, in the amount of $216,183 for stage
rigging and the savings would be re-programmed back into the Project to offset projected
short falls; and
WHEREAS, these vendors were selected by McCartney during its bid process,
through a competitive bidding process, as the providers of goods/services for the Project,
and the costs are already included in the construction contract; and
WHEREAS, although, the Administration believes that all practical steps have been
taken to assure competitive bidding, it is recommended that the Mayor and City
Commission herein waive, by 5/7ths vote, the formal competitive bidding requirement, and
further recommend moving forward with participation in the Sales Tax Recovery Program;
and
WHEREAS, if the City were to choose not to participate in the Sales Tax Recovery
Program but put these goods out for a new formal competitive bidding process, it will have
an adverse affect on the Project by causing additional delay to the completion of the
Project and preventing the Colony Theatre from opening for any part of the 2004-2005
season; and
WHEREAS, the funding for the aforementioned vendors is already a part of the
existing agreement with OMS/McCartney and will be reallocated from the McCartney
contract to pay McCartney's vendors directly.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA to waive, by 5/7ths vote, the
competitive bidding process requirement, finding such waiver to be in the best interest of the
City, and approve the award of purchase orders to the following vendors for the completion
of the Colony Theatre Project: Miami Stagecraft, in the amount of $176,579 for stage
lighting; Mavco, in the amount of $87,651for communications and sound system; Farrey's
Hardware, in the amount of $33,364 for door hardware; Federal Millwork, in the amount of
$43,492 for millwork; Irwin Seating, in the amount of $120,542 auditorium seating; and
InterAmerica Stage, in the amount of $216,183 for stage rigging.
PASSED and ADOPTED this 8thday of September, 2004.
~t ~ AA~
CITY CLERK
ATTEST:
T:\AGENDA \20041Sep0804 IRegularlcolonywaiver _ Reso.doc
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
~q~y
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
m
Condensed Title:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,
FINDING AND DECLARING THE EXISITENCE OF A VALID PUBLIC EMERGENCY; AND APPROVING A
WAIVER, BY 5/7THS VOTE, OF THE COMPETITIVE BIDDING PROCESS; AUTHORIZING
PARTICIPATION IN THE STATE OF FLORIDA'S "SALES TAX RECOVERY PROGRAM" AS OFFERED
BY THE DEPARTMENT OF MANAGMENT SERVICES THROUGH IT'S CONSTRUCTION MANAGER,
MCCARTNEY CONSTRUCTION, INC., IN CONJUNCTION WITH THE COLONY THEATRE
CONSTRUCTION PROJECT; AWARDING AGREEMENTS TO PROVIDE GOODS AND SERVICES FOR
THE COMPLETION OF THE COLONY THEATRE PROJECT.
Issue:
Should the City approve Request for Waiver of Competitive Bid presented by DMS for participation in the
State of Florida's "Sales Tax Recovery Program" for the Colony Theatre renovation project?
Item Summarv/Recommendation:
The Colony Theatre Renovation project began as a $1.75 million concept project in early 1999. A series of
cultural facilities grants were pieced together during the balance of that year and in October 1999, the City
executed a Professional Services Agreement with the State of Florida Department of Management
Services (DMS) to provide design, preconstruction, and construction management at risk services. At the
current time the project is funded at $6,985,462 which includes 5 amendments valued at $ 5,235,462. It
has been determined that the current GMP will not be sufficient to cover all expected costs associated with
the construction of the project. DMS has proposed that the City of Miami Beach participate in the State of
Florida's Sales tax recovery program, as offered by DMS through its construction manager, McCartney
Construction, Inc. This program allows for the direct purchase of goods and services to City Government
which eliminates the requirement of paying taxes on the goods and/or services. It is expected that the
savings will be upward of $30,000 that can be re-programmed to offset additional costs, by awarding
Agreements to the following vendors MIAMI STAGECRAFT, in the amount of $176,579; MAVCO, in the
amount of $87,651; FARREY'S HARDWARE, in the amount of $33,364; FEDERAL MILLWORK, in the
amount of $43,492; IRWIN SEATING, in the amount of $120,542; AND INTERAMERICA STAGE, in the
amount of $216,183.
Advisory Board Recommendation:
IN/A
Financial Information:
Finance Dept.
Approved
Source of
Funds:
c
City Clerk's Office Legislative Tracking:
I Diana Trettin
Si n-Ofts:
~-
City Manager
AGENDA ITEM C7C
DATE 9-8-<J'f
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 Date: September 8, 2004
Members of the City Commission
Jorge M. GOnZalezJ/}o/'""--X.---
City Manager , U
{
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, FINDING AND DECLARING THE
EXISTENCE OF A VALID PUBLIC EMERGENCY; AND APPROVING A
WAIVER, BY 5/7THS VOTE, OF THE COMPETITIVE BIDDING PROCESS;
AUTHORIZING PARTICIPATION IN THE STATE OF FLORIDA'S "SALES
TAX RECOVERY PROGRAM" AS OFFERED BY THE DEPARTMENT OF
MANAGEMENT SERVICES (DMS) THROUGH IT'S CONSTRUCTION
MANAGER, MCCARTNEY CONSTRUCTION, INC., IN CONJUNCTION
WITH THE COLONY THEATRE CONSTRUCTION PROJECT; AWARDING
AGREEMENTS TO THE FOLLOWING VENDORS TO PROVIDE GOODS
AND SERVICES FOR THE COMPLETION OF THE COLONY THEATRE
pROJECT: MIAMI STAGECRAFT, IN THE AMOUNT OF $176,579;
MAVCO, IN THE AMOUNT OF $87,651; FARREY'S HARDWARE, IN THE
AMOUNT OF $33,364; FEDERAL MILLWORK, IN THE AMOUNT OF
$43,492; IRWIN SEATING, IN THE AMOUNT OF $120,542; AND
INTERAMERICA STAGE, IN THE AMOUNT OF $216,183.
ADMINISTRATIVE RECOMMENDATION:
Adopt the Resolution.
FUNDING:
Funds for these agreements have been previously appropriated from City Center
Redevelopment Agency (RDA) Tax Increment Financing (TIF) funds for this project.
ANALYSIS:
The Colony Theatre Renovation project began as a $1.75 million concept project in early
1999. A series of cultural facilities grants were pieced together during the balance of that
year and in October 1999, the City executed a Professional Services Agreement with the
State of Florida Department of Management Services (DMS) to provide design,
preconstruction, and construction management at risk services. A detailed history of the
project was previously provided as a Status Report in September 2003. At the current time
the project is funded at $6,985,462, which includes design costs, construction costs and
the OMS Management fee. This number is comprised of the original $1.75 million plus five
(5) amendments valued at $5,235,462.
City Commission Memorandum
September 8, 2004
Colony Theater
Page 2 of 3
Through its Agreement with the City, OMS provides a practically full service operation and
many of the normal duties of the City are fully delegated by agreement to OMS as the
City's Agent. The Agreement calls for OMS to hire both the Architect and the Construction
Manager/Contractor through its own competitive bid process and the respective
agreements with each party are executed and administered by OMS. The City's
obligations under its Agreement with OMS are primarily to provide funding and to pay
timely upon OMS' approval of proper payment applications.
A gross price for the City's budgeting purposes was provided by the project team in July
2002 of $6,365,000 which served as the basis for the final appropriation by the City. This
amount was inclusive of OMS, RJHA, and McCartney's fees, including project contingency.
In this project, a formal GMP that is essentially in line with this final budget amount was
executed by OMS on behalf of the City in February 2003. It should be noted that contrary
to the language above, City staff was not permitted to review the GMP prior to OMS'
acceptance and execution of the GMP, despite several requests to do so. The City finally
received a copy of the executed GMP in April 2003. McCartney's GMP for construction
was $5,568,002.
For reasons of apparent expediency (according to OMS correspondence to the City), OMS
authorized construction activities to commence in November 2002, prior to the execution of
the GMP document and over the objections of City staff. City staff objections stemmed
primarily from the fact that the Construction Documents for the project had not yet been
permitted by the Building Department, project specifications were not complete, and a draft
GMP had not been provided for the City to consider.
The current GMP is $6,985,462. Based upon the latest Contractor pay application, the
construction of the project currently stands at approximately 66% completion. OMS has
been paid 100% of their fee up to and including Amendment #6, of which only a portion of
the construction has been completed. The remaining time to substantial completion of the
project is approximately 6-7 months. Two contract change orders are currently in
negotiation totaling $144,768. Although staff has rejected the majority of these change
orders on a contractual basis, it is possible that there will be change orders that are
acceptable given the current state of the construction documents. Items that were not
included in the construction documents at the time the GMP contract was executed
between OMS and the Construction Manager are subject to change orders. As previously
reported, OMS authorized the GMP and commencement of construction prior to the
completion of 100%, permitted construction documents. If the value of acceptable future
change orders exceeds $150,000 allocated as the contingency, the Administration will
have to return to the Commission to seek additional funding.
It has been determined that the current GMP will not be sufficient to cover all expected
costs associated with the construction of the project. OMS has proposed that the City of
Miami Beach participate in the State of Florida's Sales tax recovery program, as offered by
OMS through its Construction Manager, McCartney Construction, Inc. This program allows
for the direct purchase of goods and services by the City which eliminates the requirement
City Commission Memorandum
September 8, 2004
Colony Theater
Page 3 of 3
of paying taxes on the goods and/or services if they were purchased by the Construction
Manager or a sub-contractor. It is expected that the savings will be upward of $30,000 if
the City awards Agreements to the following vendors: Miami Stagecraft, in the amount of
$176,579; Mavco, in the amount of $87,651; Farrey's Hardware, in the amount of $33,364;
Federal Millwork, in the amount of $43,492; Irwin Seating, in the amount of $120,542; and
Interamerica Stage, in the amount of $216,183. This savings would be re-programmed
back into the project to offset projected short falls.
These vendors were selected by the Construction Manager during their bid process,
presumably through a competitive bidding process, as the providers of goods/services for
the project, and the costs are already included in the construction contract. McCartney, the
Construction Manager, was chosen by OMS through a competitive bidding process. The
Administration believes that all necessary steps regarding competitive bidding have been
met and recommend moving forward with participation in the Sales Tax Recovery Program.
If the City were to choose to participate in the Sales Tax Recovery Program but put these
goods/services out for a new competitive bidding process, it will delay the completion of the
project.
Other construction items are being reviewed to determine where value engineering can be
employed to further reduce the total costs. In addition to participation in the sales tax
recovery program and additional value engineering, the Administration has determined that
it is in the City's best interest to provide full time inspection oversight for the construction
project. This is dealt with separately by other items on this agenda.
The funding for the agreements to participate in the State of Florida's Sales Tax Recovery
Program is already a part of the existing agreement with OMS/McCartney and will be
reallocated from the McCartney contract to pay McCartney's vendors directly.
CONCLUSION:
The Administration recommends that the City Commission find and declare the existence
of a valid public emergency; and approve a waiver, by 5/7ths vote, of the competitive
bidding process; authorizing participation in the State of Florida's "Sales Tax Recovery
Program" as offered by the Department of Management Services (OMS) through it's
Construction Manager, McCartney Construction, Inc., in conjunction with the Colony
Theatre construction project. The Administration also recommends awarding agreements
to the following vendors, to provide goods and services for the completion of the Colony
Theatre project: Miami Stagecraft, in the amount of $176,579; Mavco, in the amount of
$87,651; Farrey's Hardware, in the amount of $33,364; Federal Millwork, in the amount of
$43,492; Irwin Seating, in the amountof$120,542; and Interamerica Stage, in the amount
of$216,183.
T:\AGENDAI2004\Sep0804\RegularlColony theater waiver of competitive bidding.doc