HomeMy WebLinkAboutR-82-0236RESOLUTION NO. 8 2 ` ? 3 6
A RESOLUTION ALLOCATING COMMUNITY DEVELOPMENT
BLOCK FUNDS TO THE OVERTOWN DEMONSTRATION
PROJECT - 240 NORTHWEST 11TH STREET IN THE
AMOUNT OF $35,000 AND AUTHORIZING THE CITY
ATTORNEY TO INITIATE LEGAL ACTION AGAINST
M. CARTER BUILDING CONTRACTOR, INC., IF HE
DEEMS IT IN THE CITY'S BEST INTEREST AND
NECESSARY TO RECOVER ANY AND ALL COSTS INCURRED
BECAUSE OF SAID CONTRACTOR'S FAILURE TO PERFORM
ITS CONTRACT.
WHEREAS, the City of Miami by Resolution No. 80-763
entered into contract with M. Carter Building Contractor, Inc.
for work related to the rehabilitation of a City -owned resi-
dential building located at 240 N. W. llth Street; and
WHEREAS, it has been determined that said contractor
was unable to prosecute the specified work to timely completion
and the contractor's services were terminated by notice dated
October 20, 1982; and
WHEREAS, a performance bond was not required due to
the City's desire to attract participation of minority con-
tractors and the understanding that the nature of the work
would make procurement of such bonds prohibitive; and
WHEREAS, by Resolution 81-955, the City Manager was
authorized to execute contracts with project sub -contractors
in order to expedite completion of subject project and an
amount of $40,000 of Community Development Block Grant was
allocated to subject project; and
WHEREAS, additional funds are needed to cover the cost
of certain unanticipated work completed by project sub -contractors
and to cover the expense of providing relocation benefits to
the building's tenants during the period of time when the
building was under renovation.
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF
THE CITY OF MIAMI, FLORIDA:
CITY COMMISSION
MEETING OF
MAR 1 1 1982
ouniar. 2 ' 2 3
Section 1. An amount of $35,000 is hereby allocated
from the Community Development Block Grant funds to be used to
complete the Overtown Demonstration Project - 240 N. W. llth
Street.
Section 2. If the City Attorney determines that it
is in the best interest of the City of Miami, lie may initiate
litigation against the project's original contracter, M. Carter
Building Contractor, Inc., to recover any and all costs incurred
because of the contractor's failure to meet the terms of its
contract.
PASSED AND ADOPTED this ii day of MARCH , 1982.
MAURICE A. FERRE
1AURICE A. FERRE, MAYOR
TEST:
I-
ITY CLERK
PREPARED AND APPROVED BY:
4
J . MAXWELL
IISTANT CITY ATTORNEY
APPROVED AS TO FORM AND CORRECTNESS:
V'
J .
CITY ATTORNEY
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Howard V. Gary February 8, 1982
City Manager
Resolution allocating $35,000
of CDBG funds to the Overtown
Demonstration Project - 240
NW llth Street
Dena Spillman, Director City Commission Agenda Item
Community Development
It is recommended that the City Commission
allocate $35,000 of Community Development
Block Grant funds to complete the rehab-
ilitation of a City -owned multi -family build-
ing located at 240 NW llth Street.
In October, 1980, the City Commission authorized execution of a con-
tract with M. Carter Building Contractor, Inc., to undertake rehab-
ilitation of a City acquired multi -family building located in the
Overtown neighborhood. The project is intended to serve as an example
of the City's commitment to the sucessful redevelopment of Overtown;
to demonstrate the feasibility of conversion of existing dwelling
units into significatly larger units; and to serve as a housing reloca-
tion resource.
By September, 1981, the project had progressed to the extent that
approximately 80% of required work items had been completed. However,
at that point, the contractor defaulted and was unable to complete
subject project. Moreover, staff discovered that in certain cases, the
contractor failed to pay subcontractors and/or suppliers for work
performed and for which the contractor had been paid. The normal bond-
ing requirements were waived due to the desire to utilize minority
contractors and the understanding that the nature of the work to be
undertaken and the location of the building made procurement of such
bonds prohibitive to obtain.
The contractor's right to proceed was officially terminated by notice
dated October 20, 1981. In order to minimize the City's further
financial liability and protect the building from potential acts of
vandalism, it was necessary for staff to coordinate the remaining work
among the various subcontractors.
To expedite completion of the project, Resolution 81-955, adopted by
the City Commission, authorized the City Manager to waive competitive
bidding and allocated an additional $40,000 of Community Development
Block Grant funds to the project. When the City assumed responsibili-
ty for completion of the project, it was estimated that the aforemention-
ed funds would be sufficient to complete the remaining work items.
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V.
However, additional unforeseen costs arose because specific
items included in the original contract had to be corrected,
and in several cases redone. These costs included additional
interior carpentery and masonary work, installation of handicap
railing, electrical and plumbing fixtures, and interior and
exterior repainting.
The total project completion budget is $398,000. This amount
includes cost of rehabilitation; operating expenses ie., gas,
water and sewer charges, taxes, liability insurance, maintenance,
from date of acquisition; interdepartmental charges, ie., pre-
paration of legal survey and project bid documents; and tenant
relocation expenses.
The cost breakdown is as follows:
Heating/Air Conditioning
$ 20,900
Roof
24,200
Electrical
23,700
Plumbing
21,100
Appliances
4,900
Cabinets
10,300
Utilities
3,100
Termite Tent
1,800
Awnings
9,000
Construction Mgt.
6,100
Security Services
2,000
General Construction
200,300
(demolition, interior/exterior
painting, foundations, railings,
walls, floors, ceilings)
Rehabilitation Costs $327,400
Sub -contractor compensation 65,000
Operating expenses/Administration 5,600
Costs 398,000
The building's renovations have been completed and the tenants
have taken possession of the units.
City Commission approval of this item is recommended.
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