ANALYSIS:
The City of Miami Beach is the owner of the Sunset Island Guard House located at 1356 W 29 Street, Miami Beach Florida 33140-4273 (the “Guard House”), as well as the other improvements located in the public right of way along W 29 Street.
As part of the City’s FY14/15 Capital Budget, the Mayor and City Commission appropriated funding in the amount of $200,000 for the design, permitting, demolition of the existing Guard House, construction of a new Guard House in the center of the entrance road, with road widening and new gates.
Based on the Planning Department’s determination, the existing Guard House building is individually designated and listed in the Miami Beach Historic Properties Database and therefore could not be demolished. The Home Owner’s Association (HOA) requested modifications to the original scope of work, which consist of: renovation to the existing Guard House, including the restroom, cooling system, lighting, new roof and the construction of a new Guard House Kiosk in the center of the entrance road (West 29 Street) including widening of the existing median, hardscape improvements and brick pavers, conduits for the HOA’s security system, new security gates, landscaping and irrigation system (“Project”). The design of the modified Project is depicted in the attached concept plan (Exhibit A), with a construction cost estimate including contingency in the amount of $462,000.
Following the City’s payment of expenditures for design and related Project costs, the amount remaining from the City Appropriation, and available for the construction of the Project, is $104,000, which funds are insufficient to construct the Project. The HOA has offered to provide funding (HOA Contribution) in excess of the City’s available funding in an effort to collaborate with the City to facilitate the construction of the Project, which has been outlined in the attached Sunset Island 1 & 2 – Agreement (Exhibit B). This Agreement establishes the following:
1. The City will competitively bid the project according to standard procurement requirements.
2. Prior to award of the construction contract for the Project, the City shall provide the HOA with the opportunity to confirm its agreement to make the HOA Contribution, based upon the final bids received by the City for the Project. Per the Agreement, the HOA Contribution must be made by November 1, 2018.
3. HOA can request that the City make scope reductions to the Project in the event the bids exceed the sum of City’s available funding and the HOA Contribution in an amount necessary for the Project to be completed.
4. HOA can decline to proceed with the HOA Contribution to the Project in which case the City Administration shall, based on the lack of funding for the overall Project, reject bids, and in such event, the City may thereafter work with the HOA to identify potential options for moving forward with the Project, or any portion thereof, or cancel the Project.
The funding Agreement also outlines the process and timeline for payment of the HOA Contribution, award of the construction contract and issuance of the Notice to Proceed (NTP) to start construction of the Project; should the HOA wish to continue with the Project.
Also included in this package is a Maintenance and Use Easement Agreement (Exhibit C) which establishes ownership of the assets by the City and acknowledges the HOA’s acceptance of the responsibility to maintain these assets.