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HomeMy WebLinkAboutR-80-0435,:r RESOLUTION No. 80-435 A RESOLUTION AUTHORIZING THE CITY MANAGER TO CONDITIONALLY AWARD A CONSTRUCTION CONTRACT FOR THE CITY OF MIAMI/UNIVERSITY OF MIAMI JAMES L. KNIGHT INTERNATIONAL CENTER, WITH AN INCREASE IN THE BID AMOUNT FROM $26,700,000 TO $28,201,359 SUBJECT TO THE SUCCESSFUL TIMELY COMPLETION OF THE SALE OF CITY REVENUE BONDS ISSUED FOR SAID CENTER CONSTRUCTION. WHEREAS, the City has accepted an Economic Development Administration Grant, No. 04-51-20591, dated September 16, 1977, by Resolution No. 77-795, dated October 13, 1977, to assist in the construction of the CITY OF MIAMI/UNIVERSITY OF MIAMI JAMES L. KNIGHT INTERNATIONAL CENTER whereby the City agreed to maintain continuous onsite construction work; and WHEREAS, on August 1, 1979, the City received a bid in the amount of $26,700,000 for the total construction of said Center; and WHEREAS, the City Manager reported that the August 1, 1979, bid of Frank J. Rooney, Inc., was the only bid received for the Center's total construction and was, therefore, the lowest responsible bid and recommended that a contract be awarded to said firm; and WHEREAS, the Commission by Resolution No. 79-617 did authorize the conditional award of a construction contract to Frank J. Rooney, Inc. , subject to the sale of Lj;4C#0�rty,;T ftt* llion Revenue bonds by March 1, 1980; and 17',_ii�j NO. WHEREAS, Frank J. Rooney, Inc. in their bid documents committed to hold their bid at $26,700,000 through March 1980; and WHEREAS, due to increased construction costs to the general contractor and his sub -contractors, it will be necessary to increase the base bid amount by $1,001,359 for completion of construction; and WHEREAS, in preliminary negotiations with the contractor, it was determined that the Structural Steel Contract with Florida Steel Corp. would be assigned to Frank J. Rooney, Inc. for a fee of $200,000; and WHEREAS, it is recommended by the Manager that the Cash Allowance for contingencies be increased by $300,000; CITY COMMISSION MEETING OF J U N i 9 1960 mmm No. 8 3 NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Manager is hereby authorized to conditionally award a contract for the CITY OF MIAMI/UNIVERSITY OF MIAMI JAMES L. KNIGHT INTERNATIONAL CENTER to Frank J. Rooney, Inc., with an increase in the bid amount from $26,700,000 to $28,201,359. subject to the successful timely completion of the sale of City Revenue Bonds issued for said Center Construction. PASSED AND ADOPTED this 19 day of June 1980. ATTEST: cf 1ph Ongie, City Cler PREPARED AND APPROVED BY: rt F.,_: lark ssistant City Attorney APPROVED AS TO FORM ge/J. Knox, Jr., CTNESS: orney MAURICE A. FERRE MAURICE A. FERRE, M a y o r 80.435 .ITT OF MIAMI. IiH'f�^�•�:.`�rr'iG� �r1;:t,iVi�Af�ID:i`-1 .O. Joseph R. Grassie June 17, 1980 �,LE. City Manager /; \ General Construction Contract Conference/Convention Center Vi6cent E. "EP!!71ENCES. ais�zr t City Manager ::tic._..3URF3 It is recommended that the General Construction contract with Frank J. Rooney, Inc., for the City of Miami University of Miami James L. Knight International Center, be increased from $26,700,00 to $28,201,359. In the bids received by the City on August 1, 1980, Frank J. Rooney, Inc., the successful bidder for the general construction contrast had committed to hold their bid for 90 days. By addendum No. 11 to that bid they were asked to quote what additional cost (if any) would be incurred to hold their bid through January 1980. They did not quote any additional cost for this extension. Upon award to Frank J. Rooney, Inc. for construction of that part of the Conference/Convention Center that serves as the platform for the Hotel on October 24, 1979 for $2,335,000, as part of the negotiations, Frank J. Pc(-)ncy had acireed to hold their original bid of $26,700,000 through March, 1980, our planned date of sale of the bonds. During those same negotiations, the City had expressed their intent•to assign the structural steel contract, which had been separately bid for construction scheduling reasons, to Frank J. Rooney, Inc. Due to the eleven month delay before the City could make a full commitment to provide the funds necessary for completion of: construction, costs have continued to rise in an inflationary spiral.. The contractor and his suhcontractors and suppliers are no longer able to hold to the original bid amount. To sortie degree these increases in costs have been offset by savings to the City initi,ited by the value engineering efforts of the contractor to save money for the City. Y o - q'3�- - Joseph R. Grassie June 17, 1980 Page 2 The increase of $300,000 in the cash allowance for contingencies is based upon a preliminary estimate to cover the cost of some changes and additions due to programmatic requirements of the facility that have not been fully designed or costed. The total increase of $1,501,359 over the original bid of $26,700,000 reflects an increase of 5.62s which is certainly less than 11/12's of our annual rate of inflation.