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96-22048 RESO RESOLUTION NO. 96-22048 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA AUTHORIZING AND DIRECTING THE ADMINISTRATION TO PROCEED WITH THE PLANNING AND THE ADMINISTRATION OF THE FIRE CODE REQUIREMENTS LOAN PROGRAM; ESTABLISHING A FIVE YEAR PERIOD TO IMPLEMENT AND TO PROCEED WITH THE SECURING OF THE CITY LOAN FOR THE FIRE CODE REQUIREMENTS LOAN PROGRAM; AND DIRECTING THE ADMINISTRATION TO PRESENT SUCH PROGRAM TO THE MAYOR AND CITY COMMISSION FOR FINAL APPROVAL. WHEREAS, the Mayor and City Commission of the City of Miami Beach have found that the health, safety and welfare of the residents of the City will be served by the imposition of the requirements of the 1991 edition of the 1991 edition of the National Fire Protection Association Life Safety Code ( 1991 Code); and WHEREAS, the Mayor and City Commission have found that the imposition of the requirements of the 1991 Code will place a burden on the residents of the City; and WHEREAS, the Mayor and City Commission have declared that a public purpose will be served by assisting residents in implementing the requirements of the 1991 Code. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA as follows: 1. The Administration is hereby authorized to proceed with the planning and administration to implement a loan program for those buildings not in compliance with the 1991 Code. 2. The Administration is directed to survey each of the affected buildings and develop plans to comply with the requirements of the 1991 Code by October 1, 1997. 3. The Administration is directed to provide for an implementation period of five years, from October 1, 1996 through September 30, 2001, prior to the requirements of the 1991 Code being enforced on the affected buildings. 4. The Administration is hereby directed to proceed with acquiring a loan from a municipal loan pool to provide the funds necessary to implement said loan program. 5. The Administration is hereby directed, at the earliest possible date, to present this completed program to the Mayor and City Commission for final approval. Passed and Adopted this 3rd day of July , 1996. Attest: Ro(""'f f~ City Clerk FORM APPROVED B11r~ Dale 0Jl/)/9~ CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 CITY OF rMIAMI "BE'ACH OFFICE OF THE CITY MANAGER . COMMISSION MEMORANDUM NO. ~~9<6-q la TELEPHONE: (305) 673-7010 FAX: (305) 673-7782 July 3, 1996 To: Mayor Seymour Gelber and Members of the City Commission From: Jose Garcia-Pedrosa City Manager ~ Subject: Implementation Plan for the Improvements Necessary under the 1991 Fire Code Administrative Recommendation The Administration recommends that the Mayor and City.Commission conceptually adopt the Plan presented at the June 5 and June 19 meetings and direct the Administration to present the fonnal plan with the documents authorizing the financing of this Loan Program. Background At the June 4 Commission Meeting, several questions were raised as to the implementation of the loan plan for the improvements necessary for the requirements for the sixty high rise buildings under the 1991 Fire Code. The loan program was modeled after similar loan programs in the housing programs in the Community Development Block Grant Program (CDBG). These programs require a principal return upon the sale of the residence prior to a certain period of time elapsing. The proposed requirement of the balance of the loan due upon sale comes from this CnBG requirement. The difference in cost to the City for the interest payments without the due on sale requirement are $6,632,100 over the twenty year life of the loan or approximately $332,000 annually (see attached schedules). Additionally, the anticipated $4,003,000 in interest income from the investment of these repayment proceeds would not be realized. The lack of these earnings would raise the annual cost another $200,000 annually. The net annual cost to the City without the due on sale and the lack of the investment earnings would increase from the anticipated $266,000 annually to $798,000 annually. The anticipated effect of this "due on sale clause" is minimal to the condominium association who is the payor of the loan. The Association can assess its members an additional small amount to cover the anticipated annual sales in the building and provide such funds to the City as such sales occur. Agenda Item R1C. 1-3..9b Date The Commission also questioned the three year compliance time window and the availability of qualified contractors for this type of work over the three years. Additional concerns were raised as to the cost of such work being driven up by the shortened compliance deadline. The Building Official has opined that there are more than sufficient qualified contractors available to perform this work (see attached list) within the specified dates. Additionally, he has speculated that the increased level of work, with the available pool of qualified contractors, may stimulate competition and actually tend to drive the cost down rather than up. The Fire Department has stated that they can easily inspect and approve plans, for sprinklers or approved life safety systems, with their current personnel within this time period. The Administration has determined that a five-year compliance period would be appropriate for the implementation of these Code Requirements. The period allowed for the implementation of these requirements will be the five-year period, October 1, 1996 through September 30, 2001. The public information meetings with the condominium associations have taken place and will continue throughout this implementation period. We will meet with the individual condominium associations and building owners as well as create an ongoing dialogue with the Council of Condominiums. The Fire Department will begin discussing with each building the necessary improvements to implement these Code Requirements with each of the sixty buildings. We anticipate that this process will be completed within the first year of this program, with all of the buildings having an approved plan at that time. The actual loan agreement with the Sunshine State Municipal Loan Pool has yet to be approved. The Administration will continue to work through the August recess and present this agreement for the Commission's approval in September. Both of these dates will be in advance of the implementation date and the initial loan application period beginning in October 1, 1996. The proposed resolution will authorize the Administration to proceed with the implementation of this loan program and to bring the loan documents and the program administFative rules back to the City Commission for final approval in September. JGP/RJN/cp The following is a representive listing of contractors who specialize in design and installation of fire protection systems, including fire sprinkler retrofit in existing buildings. Although these companies are licensed, the City of Miami Beach makes no warranty as to capability of the firms or pricing structure. The City neither endorses nor recommends any of these companies. A-I Fire Sprinkler Corp. 504 N.E. 190th Street N. Miami, FL 33179 (305) 653-1142 CC# 389568000194 All Fire Services, Inc. 504 N.E. 190 Street Miami, FL 33179 (305) 653-1142 CC# 389568000194 Fallon Enterprises 3071 N.W. 64th Avenue Sunrise, FL 33313 (305) 742-6787 CC# 038553000186 Capsco Industries 33 N. W. 4 Street Miami, FL 33128 (305) 358-2887 CC# 929324000191 Fox-Fire Systems, Inc. 4153 S.W. 47th Ave., Ste. 157 Ft. Lauderdale, FL 33314 (305) 986-0907 CC# 022450000192 FR Fire Protection Systems 3359 N.W. 154 Terrace Miami, FL (305) 681-9583 CC# 010079000186 F&R Fire Protection System, Inc. 3359 N.W. 154 Terrace Miami, FL 33054 (305) 681-9583 CC# 010079000186 Southern Fire Control 1650 N.W. 54 Avenue Miami, FL (305) 621-4800 CC# 974895000191 Goral Enterprises, Inc. 6095 N.W. 167 Street Miami Lakes, FL 33015 (305) 822-6060 CC# 903494000191 Viking Automatic Sprinklers 8690 N.W. 58 Street Miami, FL 33166 (305) 92-5910 CC# 085422000179 Grinnell Fire Prot. System, Inc. 2700 West 81st Street Hialeah, FL 33016 (305) 822-8220 CC #099050017700 Allied Fire Protection 9355 W. Okeechobee Rd. Hialeah, FL (305) 824-5095 CC# 519486000194 Adigo Engineering, Inc. 7922 N.W. 64 Street Miami, FL 33166 (305) 593-2187 CC# 063343018300 Fred McGilvray, Inc. 8690 N.W. 58 Street Miami, FL 33166 (305) 592-5910 CC# 085422000179 A-I Fire Equipment 3619 N.W. 2 Avenue Miami, FL (305) 573-8273 CC# 050443017800 Annour Security Systesm 18901 N.E 5 Avenue Miami, FL (305) 652-9777 EF# 0000905 ADT Security Systems 1052 S. Powerline Rd. Ft. Lauderdale, FL 1-800-238-3009 EF# 0000100 Biscayne Electric, Inc. 8289 N.W. 56 Street Miami, FL (305) 592-9705 CC#9549, ER#0010668, EC#0000209 Alarm Control, Inc. 6065 N.W. 167 Street Miami, FL (305) 825-4647 EF# 0000160 Cerberus Pyrotronics 7415 Corporate Ctr. Drive Miami, FL (305) 591-5656 EF# 0000913 Fla. State Fire & Security, Inc. 3921 S.W. 47 Avenue Davie, FL (305) 651-8122 EC# 000669 Glanz Technologies, Inc. 687 N.E. 124 Street N .Miami, FL (305) 893-1269 EF# 0000075 Miami Beach Electric 885 N.E 79 Street Miami, FL (305) 865-5757 CC# 13235, ER# 6191, EF#83 Fire Alarm Systems 504 N.E. 190 Street Miami, FL (305) 652-1613 EF# 0000008 Riggs Electric, Inc. 6230 S.W. 112 Street Miami, FL (305) 661-7064 CC# 16349, ER# 8872 CC - Certificate of Competency ER - Electrical Register EC - Electrical Competency