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Home My WebLink AboutexhibitCITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO : FROM: Joe Arriola City Manager l �l Mary H. Conway, Director Capital Improvement & Transportation Department.CLOsuRE$ • DATE: November 22, 2004 FILE : SUBJECT : Emergency Finding for Specified Homeland Defense Bond -Funded Projects REFERENCES: This memorandum seeks your approval and adoption of the below described Emergency Finding justifying the waiver of competitive procurement procedures and the selection of the architect/engineers and/or contractors identified herein to implement the specified Projects under design -build or construction management -at -risk methodology. EMERGENCY FINDING FINDINGS ■ On August 8, 2002 the CITY, with the prior approval of the voters, issued Limited Ad Valorem Tax Bonds, Series 2002, known as the Homeland Defense Neighborhood Improvement Bonds ("Bonds"), in the aggregate principle amount of $153,186,405.85 as tax-exempt bonds, for the purpose of funding capital improvement projects identified pursuant to Ordinance No. 12137 adopted October 11, 2001 and Resolution No. 02-797 adopted July 9, 2002. • Projects to be implemented with the Bond proceeds included several sizeable projects for improvements at Grapeland Heights Park and Jose Marti Park, and the creation of a new, state-of— the-art park within the Little Haiti community. • These projects have been further refined, scoped and subsequently programmed into the City's Capital Improvement Program and Multi -Year Plan as: Grapeland Heights Park Water Theme Park (B-35828), Grapeland Heights Park Community Recreation Facility and Parking (B-30105), Grapeland Heights Park Fields & Site Development (B-60496), Jose Marti Park Gymnasium (B- 35857), Little Haiti Park Cultural Campus (B-30295), and Little Haiti Park Soccer and Recreational Facilities (B-38500). • Based on their programmatic scope and complexity, these projects have extended timelines from the commencement of design procurement to opening: the Little Haiti Park Cultural project normally requires 4 to 7 years to complete and all other projects require 3 to 5 years to complete. ■ The total present commitment of Bond proceeds to these projects is $33,879,655, representing over 21% of the Bonds issued, and the combined estimated cost of these projects is approximately $58 million based on a total build out of the desired project scope, with funds anticipated from other City and outside sources. • There have been lengthy delays in implementing these and other projects funded from Bond Proceeds. • These delays preclude the City's ability to issue subsequent bonds for other City needs, including the balance of projects identified but yet unfunded under the Bond Program pending the issuance of a 2nd series, valued at over $100 Million and the planned issuance of Special Obligation Bonds to fund comprehensive street, highway and streetcar projects over the next 5 years, funded primarily from the November 22, 2004 Joe Ariola, City Manager Emergency Finding for Specified Homeland Defense Bond -Funded Projects Page 2 City's portion of the Miami -Dade County Transportation Surtax (Half -Cent Sales tax). • Further, the Tax Compliance Certificate of Issuer for the Bonds states that the Bonds were issued on the reasonable expectation that at least 85% of Bond proceeds would be spent within 3 years from the date of issue, that is by August 8, 2005, after which time the City's investment yield from bond proceeds is dramatically reduced. • The Tax Compliance Certificate of Issuer for the Bonds also states that any unspent Bond proceeds after August 8, 2005 "shall not be invested in Higher Yielding Investments", which, for the last 28 months has yielded approximately $8 million in interest. • After August 8, 2005, there is the potential that a portion of Bond proceeds may be subject to federal tax levied by the Internal Revenue Service should the yield fall below the cost of reinvestment, as interest rates are projected to rise above the current low levels. • The City can reduce design and construction timelines considerably, to a 1 — 3 year timeframe, by using design -build and construction management -at -risk methods rather than the traditional design - bid -build process for public works. These methods have been selected by the Capital Improvement and Transportation Department as the most advantageous and expeditious ways to implement these critical projects. ■ The City has the capability of further reducing the schedules for the specified projects by as much as one (1) year by waiving competitive procurement procedures and securing the needed design and construction services directly from local vendors that are recognized industry experts in these kinds of projects. • The City Code provides in Section 18-90 that in cases of emergency, "the City may purchase directly those goods or services whose immediate procurement is essential to the life, health, welfare, safety or convenience of the City," and that the City Manager may waive competitive procurement requirements after making a written finding supported by reasons that an emergency exists, subject to ratification by the City Commission by a 415th affirmative vote. • The Director of the Department of Capital Improvements and Transportation contends that the above enumerated statements regarding the specified projects sufficiently justify the finding of an emergency, in that the time to competitively procure and award the contracts will further jeopardize the City's bonding capacity and create an undue hardship on the public welfare, and the waiver of competitive procurement requirements for the specified projects. ■ Section 255.20, Florida Statute, "Local Bids and Contracts for Public Construction Works" permits the City to use any contract arrangement with a private sector contractor to award contracts for public construction work that is allowed by municipal ordinance. • The procedures required for the selection of design and design -build firms under 287.055, Florida Statute, the Consultants Competitive Negotiation Act ("CCNA"), may also be waived if there is a finding of a valid public emergency certified by the agency head, the City Manager. ACTIONS 1. The Department has determined that the most expeditious method of implementing the Grapeland Heights Park projects (B-35828, B-30105 and B-60496), and the Little Haiti Park Soccer and Recreational Facilities project (B-38500) is to use the Design -Build method: November 22, 2004 Joe Ariola, City Manager Emergency Finding for Specified Homeland Defense Bond -Funded Projects Page 3 a. The Department recommends that Recreation Design Consultants serve as the prime consultant/contractor for the Grapeland Heights Park projects (B-35828, B-30105 and B- 60496) with the design firm of Carzo Castella Carballo Thompson Selman (C3TS) as the subconsultant/engineer. b. The Department recommends that Recreation Design Consultants serve as the prime consultant/contractor for the Little Haiti Park Soccer and Recreational Facilities (B-38500) with the design firm of Zyscovich Architects as the subconsultantlarchitect. 2. The Department has determined that the most expeditious method of implementing the Jose Marti Park Gymnasium (B-35857) and Little Haiti Park Cultural Campus (B-30295) projects is to use the Construction Management -at -Risk method: a. The Department recommends that Pirtle Construction Company, Inc. serve as the contractor, Construction Manager at Risk, for the Jose Marti Park Gymnasium project (B- 35857) and that the design firm of Zyscovich Architects serve as the architect for the project under a previously existing agreement dated June 24, 2002 subject to the additional approval of the City Commission. b. The Department recommends that Pirtle Construction Company, Inc. serve as the contractor, Construction Manager at Risk, for the Little Haiti Park Cultural Campus (B- 30295) project and that the design firm of Zyscovich Architects continue as the architect for the project as approved by Resolution No. 04-0151 adopted March 11, 2004 under its previously existing agreement dated June 24, 2002. 3. The Department has investigated and identified the aforementioned firms as having excellent qualifications uniquely geared to the projects for which they are recommended, substantial records of experience in projects of like size and complexity, and are appropriately licensed. The above finding -n.-commendatio j=re approved and adopted as those of the City Manager/Chief Ad 1Q,-trative 0 cer of the City of Mia Joe rio - , City Man = T er Date Cc: lenn Marcos, Director, Purchasing Department Jorge L. Fernandez, City Attorney Jorge Cano, Deputy Director, Capital Improvements Dianne Johnson, Contracts and Government Affairs Administrator, Capital Improvements S/MCC/ 1