Friday, February 17, 2012

Click here for live audio from City Commission Work Session (2/17)

This is on the major portion of the beach redevelopment project and the Morganti Guaranteed Maximum Price (GMP) contract. Click here for back-up.  Mulvehill is absent, or at least not present at the beginning of the meeting.

Staff is making a presentation.  Ms. Margoles is leading it.  Representatives from Kimley Horn and Morganti are present, along with Jason Bregman (Micheal Singer Group) and John Szerdi (Living Designs Group.)  The GMP is set at $6,424,000 which includes a $800,000 allowance for parking lot lighting that will light only 300 and some parking space - it is not for the entire parking area.  There is also an allowance for repairs of the seawall at $224,207.50.  Contingency amounts to $50,000 (?)  They are reviewing the changes made for value engineering and the exceptions to the contract.  There is quite a list of alternates - Margoles is saying the direction from the Commission was to go out and get a base bid and then make adjustments from there.  There are 33 separate alternates.

They are talking about the phasing plan.  It has two main phases and keeps 50% of the parking available throughout the project.  The plan is also being reviewed by Palm Beach County for impact to their park to the north.  Phase 1 includes the back of the dune, installation of utility lines in the western parking lot and allows normal access through the site.  Phase 2 includes the eastern area, the promenade, beach area and the main entrance.  They are reviewing the lighting plan now.  The western parking area would represent half of the total number of light fixtures.

They anticipate beginning in March, finishing up everything by January.  Two access points would be maintained during the entire construction period.  Work around the casino building would be over with in September, which would allow the tenants to do their improvements and move-in sometime in October.

They are taking 5 minutes to get back-up material distributed from the December 20th meeting.  (9:35 a.m.)  They are back at 9:42 a.m.  This material shows the break down of the bids and actual item costs.

Mayor thanks everyone for their presentation and notes that the project is more expensive than anticipated.  She also notes that the $800,000 for lighting leaves the western parking area unlit.  346 spaces would be lighted and are enough, per code, to serve the building/tenants.  She points out that there are more "adds" than "deletes" in the alternates.  She asked about the total number of parking spots available for the pier during May and June.  Answer:  33 plus 2 handicapped.  Most of the spaces in the western lot will be open during that time.

McVoy thanks everyone and is excited that they are at this stage.  He thinks that the total is $5 million for the county and $1.2 million that was budgeted already and expected.  We are not looking for unbudgeted money.  The exception is the seawall.  He has a number of questions on the alternates and what is in and what it out.  The way he looks at this is that Micheal Singer group presented design concepts - they were interesting features and had an overall concept.  This would be a big part of what makes this project extraordinary.  He is concerned that many of those are sliding off the map now.

The Mayor asks about the county grant and what is eligible.  Margoles says that the agreement specified items that would be paid by the grant.  She says the disconnect this point is that some of the individual items cost more than the original bid, once they were bid out.

Maxwell says that $280,000 was the original estimate for utilities.  The cost now is $1.8 million, including the lights.  He says that finally we are having a conversation on the totality of the project, which is what we should have been doing all along.  The cost now is more than what was promised to the community - that was $11 million.  (listening on-line - stream went down at 10:15) - will try to get it back.  (Back up now a few minutes later)  They are talking about the main entrance features and those are unknown at this point.  He asks about the numbers today have been bid out and did they actually get the three bids.  He said yes, and Morganti says that yes, they did.  They can present the actual bids.  Maxwell would like an explanation if there was less than three sub-contractors bidding on an item.  The county money cannot fund anything related to the casino building area and areas that would be used for decal parking.  He asks if we are in jeopardy of losing the grant based on the timelines contained in the agreement.  Margoles says that the city is fine with the County regarding the timelines.  He wants to make sure that the County can't back out of the agreement. The next deadline is February 2nd of 2013 and that would be for the end of construction.  He would like a letter from the County acknowledging same.  Carr says that they will ask for that.  The bid documents can be available Monday or Tuesday of next week.  The meeting concerning the contract and the Commission issuing it is scheduled for Thursday.  He is concerned about the amount of time he has to review them.

McVoy talks about getting a Good Housekeeping letter from the County.  To do that, the County needs to know what we are doing and when we are doing it.  Right now, the meeting is scheduled for Thursday.  If there isn't time, then we are going to have re-schedule the meeting and the County would need to know that new date.  Amoroso would like a breakdown given to the Commission so that everything is identified that is making up that total.  How can you bid it out without a breakdown?  (have to step away for a few minutes)