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HomeMy WebLinkAbout1990-10-30 - City Commission Special Meeting MinutesCITY OF TAMARAC CITY COUNCIL SPECIAL COUNCIL MEETING TUESDAY, OCTOBER 30,_ 1990 hLL To =3ZL Mayor Abramowitz called this meeting to Order on Tuesday, October 30, 1990 at 9:30 A.M. in the Conference Room 1. PRESENT• Mayor Norman Abramowitz Vice Mayor Bruce Hoffman Councilman Dr. H. Larry Bender Councilman Henry Rohr Councilman Henry Schumann John P. Kelly, City Manager Dina McDermott, Assistant City Manager Alan Ruf, City Attorney (entered at 9:55 A.M.) Mike Couzzo, Director of Public Works Patricia Marcurio, Office Manager, City Clerk's Office Karen Jackson, Secretary ************************************************************************ 1. a. NOTION TO APPROVE Change Orders #4 - 9 to the contract with Toro Engineering & Construction Corp. for the TAMARAC MULTI -PURPOSE CENTER in the amount of $66,876.00. The amount of $66,876.00 is to be taken from Account #330-652-572-624. b. MOTION TO APPROVZ Change Orders #1 - 9 to the contract with Scharf & Associates, Inc., in the amount of $8,524.62 for the TAMARAC MULTI -PURPOSE CENTER. The amount of $8,524.62 is to be taken from Account #330-652-572-696, Architect Fees. SYNOPSIS OF ACTION:. a. APPROVED with the provision that the City Attorney investigate the legality of the City paying the sales taxes. b. APPROVED * a. C/M Rohr NOTION TO APPROVE Change Orders #4 - 9, SECONDED * by C/M Schumann. City Manager Kelly said all of the articles listed in the change orders are in the initial proposal of the Multi -Purpose Center to be accomplished. He said the City could not afford to authorize them at that time because the monies were not all in place which is why the additional grants that were secured allowed for that expenditure. He said the City can allow for these change orders that are separate from the original, tied in like the bleachers and other things placed on hold until the final grant came in. He said Dina McDermott, Assistant City Manager, has been pushing the State to get the money to the City to have those expenditures authorized. He said the money is now in place. Mayor Abramowitz asked if this money does or does not represent additional money. Mike Couzzo, Director of Public Works and Parks and Recreation, said the money for these additional items will come from the most recent $150,000.00 received from Legislative appropriation. Mayor Abramowitz said there was a total amount of money to be spent for the Multi -Purpose Center. He asked if there would be an increase in the cost of the project from any other funds other than the money the State issued by $66,000.00. City Manager Kelly said that is correct. Page 1 ✓' City Council Special Meeting 10/30/90/KJ Mr. Couzzo said there is a summary of the change orders in the backup, dated October 22, 1990, from Scharf and Associates, referencing the Multi -Purpose Center as follows: 1) Addition of two sampling points required by the Broward County Health Department, that was unanticipated 2) Right--of-Way improvements, for the turn lane in front of the project coordinated with the County and State Departments of Transportation 3) Roughen the back stops Mr. Couzzo said Items 1 through 3 were previously approved. Ho said Items 4 through 9 are the Change Orders. 4) Exterior lighting. Mr. Couzzo said the original lighting that was designed had to be cut back because of the cost of the project. He said it is suggested that lighting be installed to provide additional exterior security and lighting for people using the facility art night. 5) Courtyard revisions, the area that is immediately inside the buildings, the open area, there were some modifications for planting and for concrete work 6) Bleachers, the sheer cost of purchase and installation of the bleachers, with a seating capacity of 208 to 210 which are telescopic in nature (they fold up), plastic, highly durable and have low maintenance 7) Additional back stops which are the shorter back stops, plain white for basketball to be played at half court style for multiple games 8) Purchase and installation of scoreboard for competitive situations 9) Case work in the arts and crafts room, cabinetry and counter work which will provide storage for art classes and craft classes -in the Senior Center V/M Hoffman said on some of the Change Orders, there is a 6% sales tax. He said the City does not pay sales tax and he does not understand why the City gets charged for it. City Manager Kelly said if the Contractor purchases the item and not the City, the City is obligated to pay the tax. V/M Hoffman said he disagreed. He said if the Contractor pays for it without getting the City's sales tax number, that is his problem. City Manager Kelly said the City does not lend it's sales tax number. Mayor Abramowitz said the City went through this before. He said if the City orders the item, the Contractor will not assume the responsibility for the material when it is delivered. He said when it arrives, if the City orders it and it is defective, then the Contractor will not assume responsibility. He said this is what happened the last time. V/M Hoffman said this was on an Engineering project and the City did not pay sales tax. He said he hopes the City did not pay sales tax on anything else that went into the million dollar construction of the Multi -Purpose Center. City Manager Kelly said whatever the City purchases direct, the City does not pay sales tax on. He said the Contractor must pay sales tax. Dina McDermott, Assistant City Manager, said it is his property prior to the City. Page 2 City Council Special Meeting 10/30/90/KJ V/M Hoffman said when the City purchases something from the store, the storekeeper does not charge the City sales tax. There was extensive discussion concerning the payment by the City of sales tax. C/M Rohr said if there is a legal way for the City to purchase the items and get warranties on them the same as the Contractor does, the City should purchase them. He said the State says the outfit that purchases the item, pays the sales tax. C/M Bender said this should be referred to the Legal Department and have them issue a ruling on this. He said there needs to be some written guidance for the present and the future of how this needs to be handled. He said other cities have the same problems and need to be worked out. C/M Schumann said Contractors have their own tax numbers and when they purchase something, they can say, "This is a tax exempt item". He said they are not the ultimate user, so why would they pay a sales tax or maybe they are not paying a sales tax and billing the City. Gary Kuhl, Vice President of Scharf and Associates, said they pay the sales tax. He said there is no way out of it. He said the School Board has explored the option of purchasing materials and giving them to the Contractor. He said they found out that two people are trying to do one job with a split responsibility and the City would not get the price advantage that the Contractor does. He said the sales tax is a moot point because the City is getting the material at the Builder's discount. He said if the City would try to purchase the back stops without the sales tax, the City will pay more. V/M Hoffman said the Contractor is purchasing the material for resale purposes. He said the Contractor does not pay sales tax and should not. Mr. Kuhl said the Contractor does pay sales tax. He said the Contractor has to because it is the law and is paid every time. V/M Hoffman said a retailer buys it for resale, he does not pay sales tax until he sells the merchandise. He said the retailer should have a resale number and if he does not, he is not doing his job. He said the retailer purchases merchandise for the purpose of resale and sales tax is collected at the final point of sale to the end user. He said every Contractor should have a tax resale number and he should purchase the merchandise on his tax resale number and he should not pay tax until he sells it to the end user. Mayor Abramowitz asked if the City is the ultimate user and C/M Schumann said yes, and if the City is exempt, there is no tax. Mr. Kuhl said the Contractor purchases the material from the supplier and, at that time, he pays the sales tax. He said the sales tax is not paid when the City pays the Contractor. He said the Contractor has not paid anything on the Change Order at present. He said some of these items, such as the bleachers, have not been ordered. He said when the Change Order is initiated, the Contractor purchases the material and pays the sales tax. He said the additional money for the installation and the Contractors' profit and overhead is then billed to the City after the installation is completed. He said the Contractor is paying the sales tax at the time of purchase and has no choice. City Attorney Ruf said if the contract is materials plus labor plus profit and the Contractor purchases the material, the Contractor pays the sales tax which is included in the contract; otherwise, every contract the City would enter into, the City V Page 3 City Council Special Meeting 10/30/90/KJ would purchase the materials, save the sales tax and just pay the labor. He said he is not a tax expert. V/M Hoffman said the Contractor should have a resale tax number and should not pay a tax until it is sold to the ultimate user if that user is supposed to pay tax, which the City is not. He;said the City, as a municipality, should not pay sales tax. C/M Rohr said the tax exempt number is used on the sales slip to show that no tax is necessary. V/M Hoffman asked if the City paid sales tax when they purchased the furniture for the building. City Manager Kelly said it was purchased direct from the Thomas Ruff and Company. He said when he worked for Broward County, he had objected to the County paying the sales tax to the vendox and wrote to the Department of Revenue. He said the Department cf Revenue responded by stating that the vendor would have to pay the sales tax unless Broward County wanted the vendor to use it's tax exempt number. He said the County Attorney's office advised not to give the vendor the tax exempt number because the County would have to provide storage of the materials until the vendor would be ready to use it. He said he feels it is wrong, but the State demands the person purchasing the material, pay the sales to.N. Mayor Abramowitz said the City would have to accept the merchandise, store it until it is used, and the City does not want the responsibility and if there was a defect, the City would be responsible and liable. C/M Bender suggested this be researched through a tax attorney for the correct procedure. City Attorney Ruf said he would research this information. Mayor Abramowitz suggested contacting Bob Foy, Director of Engineering, for follow-up of how it was handled previously and he would like this information documented for future use. He suggested, due to the essence of time factor, that this be approved, based on the legal interpretation of whether the City has to pay tax or not. Mr. Kuhl suggested that if Council cannot come back with the facts and figures to support the payment of sales tax, it would be Council's perrogative to execute a future Change Order taking the credit for the sales tax. He said the Contractor is not charging the City sales tax and not paying it because that would be fraud. C/M Rohr said if it turns out that the City does not have to pay the sales tax and has paid it, a refund can be requested from the State. C/M Bender said in the Motion, it should be written that if it is found that sales tax does not have to be paid, a Change Order would be made and accepted by the Contractor. * a. C/M Rohr MOVED to APPROVE Item 1.a. as amended, SMCONDED * by C/M Schumann. VOTE: ALL VOTED AYE * b. C/M Rohr MOVED to APPROVE Item lb, S$CONDED by C/M Bender. Mr. Couzzo distributed copies (See Attachment 1). He said this is a service and no sales tax is charged for a service. He said the City has elected to change the construction of the project and in doing so, there is a charge the architect has the right to recoup. He said these are architectural and engineering fees to do design and administrative work relating to the previous Change Orders, He said this fee is based on Article 6 of the contract. Page 4 �-` City Council Special Meeting 10/30/90/KJ I 7 1 1 1 1 Mr. Kuhl said this is in accordance with the contract. He said there have been no change orders on this job due to errors or omissions. He said all Change Orders have been improvements to the City's benefit and all items discussed today were designed one year ago, at which time, they could have billed the City, but knowing that the State funding was not available, did not. He said these Change Orders will result in approximately a 3-month extension in the overall completion of the project. He said the bleachers and scoreboard will be installed in the future. He said. this is the base percentage cost by contract that is requested for the time for designing the plans and specifications and administering the contract and cover architectural and engineering costs. Mayor Abramowitz commended Mr. Couzzo and Mr. Kuhl for their work and expressed his appreciation. Mr. Couzzo said the project is within the budget and there are no Change Orders in the contract. He said the Change Orders being discussed are what the City is recommending due to the need for additional amenities. He said without the use of a construction consultant, the City saved over $100,000.00. City Manager Kelly said all of the capital projects the City has undertaken have been done well. VOTE: ALL VOTED AYE 2. a. MOTION TO APPROVE Change Orders #1 -- 12 to the contract with Scharf & Associates, Inc., for the TAMARAC PUBLIC SERVICE ADMINISTRATIVE COMPLEX which result in a decrease of $665.00 in construction costs. b. MOTION TO APPROVE Change Order #13 to the contract with Scharf & Associates, Inc., for the TAMARAC PUBLIC SERVICE ADMINISTRATIVE COMPLEX for the addition of one metal shed in the amount of $38,913.00. This amount is to be taken from Account #325-872-588-99C, Resources Available -Net Ending. C. MOTION TO APPROVE Change Orders #1 - 12 to the contract with Scharf & Associates, Inc., in the amount of $1',224.54 for the TAMARAC PUBLIC SERVICE ADMINISTRATIVE COMPLEX. The amount of $1,224.54 is to be taken from Account #325-193-519-696, Architect Fees. a. APPROVED b. TABLED. The architect is to furnish Council with detailed brochures and information regarding this item. C. APPROVED a. Mr. Couzzo said this is a combination of a variety of changes that allows an overall decrease of construction costs of $665.00 and Staff recommends approval: VOTE: ALL VOTED AYE * b. C/M Rohr MOVED to APPROVE Item 2b, 8ECONDED by C/M Bender. Mr. Couzzo said the storage facility was originally designed into the project and, due to the extreme constraints of the budget for the project, it was deleted. He said this facility is being recommended at this time because Staff feels that when the agreement was terminated with Construction Managemenyt- Services, there was some financial leeway. He said this facility is required for equipment storage. He said at present, there is no storage for mowing or spraying equipment. He said this facility will be a multi --use facility and will be used for chemical storage, as required by law, a nursery work area and small Page 5 City Council Special Meeting 10/30/90/Ka equipment and engine repair. He said this facility will be 201 x 30' and there are no facilities to perform these needs at present. Mayor Abramowitz said he is not happy having items brought before Council without prior information supplied. Mr. Couzzo said there were provisions for this but due to the extreme constraints on the budget, it was deleted. Mr. Kuhl said this is a pre-engineered building which is the ss.me as the one being used at the Utilities/Engineering site. He stid this is 20' x 90' and called a Butler Building. Mr. Couzzo said the Utilities/Engineering building cost approximately $60,000.00 and is used for dry storage and exterior shed storage. C/M Rohr asked how this is different than the metal sheds used in yards. Mr. Kuhl said this is a structurally pre -fabricated building. C/M Rohr said the term "shed" should not be used. Mr. Kuhl said steeds are basically used for bicycles, lawnmowers and storage. V/M Hoffman asked when this needs to be built and how long it will take. Mr. Couzzo said Staff would like it to be up when the Multi - Purpose Center opens. He said it needs to be ordered and manufactured. V/M Hoffman asked if this was tabled for a short period of time, would there be enough time to accomplish the job. Mr. Couzzo said there is enough time in the contract to readdress. this item. C/M Schumann asked what was used prior to this request for storage. Mr. Couzzo said at the old facility, even though the master Butner Building was there, there were small sheds all around the outer perimeter that were used for all of the maintenance. C/M Schumann said the materials are listed as being $2,200.00, the labor is $2,500.00 and sub -contract work is $30,022.00. He asked what constitutes the sub -contract work costing $30,022.00. Mr. Couzzo said the sub -contractor is going to manufacture the building. Mr. Kuhl said three dump trucks can fit in this building. He .said it is fully enclosed, has roll -up doors, electricity, water, emergency power and has a slab to support weight. He said the sub -contractor does all of the roofing, siding and roll -up dcors and also the foundation or slab. He said the Contractor will do the lighting, plumbing and grading which is why the Contracter's costs are minimal. C/M Bender said the building needs to be secured due to the City's equipment being stored in it. He asked if $38,913.00 is available at present. Mr. Couzzo said that was part of the $85,000.00 that was set aside for a construction manager to do this project which he is now doing. He said Staff is recommending this money be taken Eram the $85,000.00 that was previously set aside and the money is available. C/M Bender asked if this will increase the overall cost of the project and Mr. Couzzo agreed. C/M Bender asked if this building Page 6 City Council Special Meeting 10/30/90/KJ 1 Il 1 would be needed immediately for storing equipment and Mr. Couzzo agreed. TAPE 2 V/M Hoffman asked if there is sales tax on this. Mr. Kuhl said the sales tax is included in the sub -contractor's price. Mr. Couzzo said at the old Public Works facility they had sheds that were in continual need of repair and did not meet the Code requirements. Mr. Kuhl said if Council wants to defer this decision for a couple of weeks this would be no problem. He said pictures are available for them to view and he would be happy to demonstrate this. Mayor Abramowitz said he was against this project until the storage of chemicals was mentioned. He said there are laws regarding chemical storage. He said he has no objection to tabling this temporarily and he asked if there is something to serve this purpose which will cost less. Mr. Kuhl said this is about as inexpensive an item available which is weather tight and secured. He said using masonry would be more expensive. C/M Rohr asked how much more it would cost if it was of a larger capacity. He said this is being built for the City and will be used for a long period of time and should probably be larger. * b. V/M Hoffman MOVED to TABLE Item 2b, SECONDED by C/M Rohr. VOTE: ALL VOTED AYE Mayor Abramowitz asked that brochures and pictures be brought in with a bid for a larger facility and also the possibilities of a less expensive perrogative. * c) C/M Schumann MOVED to APPROVE Item 2c, SECONDED by * V/M Hoffman. Mr. Couzzo said this is similar to the Multi -Purpose Center architectural/engineering Change order done previously. He said on the Change Orders previously approved on the Public Service Administrative Complex, the contractor has the same clause in his contract, Article 6, indicating the 7.5% mark-up on the additional construction, which will be $1,224.54. VOTE: ALL VOTED AYE V/M Hoffman said in the Tam -A -Gram under the trash and bulk pickup article, Item 11, white goods such as refrigerators, will not be picked up. He asked what people are supposed to,do with these items. City Manager Kelly said this was discussed at a Council meeting regarding the challenge of Waste Management's imposition of a fee for white goods. He said there has been no follow up from their attorney. He said they should still be picking up the white goods. He said there have been no calls regarding the article in the Tam -A -Gram. He said this will be placed on Channel 19. He said the white goods will be picked up during the bulk pick-up. V/M Hoffman said under the contract, they are required to pick up bulky material at specified times. Mayor Abramowitz suggested printing the change in the Tam--A-Gram. Dina McDermott, Assistant City Manager, said most of the people that have refrigerators and stoves to pick up, generally call Southern Sanitation prior to pick up for specific instructions and requirements. Page 7 -✓. City Council Special Meeting 10/30/90/KJ Mayor Abramowitz suggested this be investigated and publicized, V/M Hoffman said adjustments need to be made on the sign Ordinance. He said City Attorney Ruf is working on it. Mayor Abramowitz said the visit by the Russian police on Monday, October 29, 1990 was informative, entertaining and very unusual. He said he will give his thanks and appreciation to the Cantor of the Temple due to the need of a Russian interpreter on very Short notice. With no further business, at 10:55 A.M. CAROL A EVANS CITY CLERK Mayor Abramowitz ADJOURHRD this meeting fORMAN owl,ABRAMOWITZ, MAYOR "This public document was promulgated at a cost of $98.96 or7,4i.20.per copy to inform the general public, public officers and emplo"es pf recent opinions and considerations of the City Council of the'City of Tamarac." CITY OF TAMARAC APPR El) AT MEETING of 11�24L90— City Clerk Page $ ✓ City Council special Meeting 10/30/90/KJ i7 11 11 1 I 1 1 .r"'-�-- - - - - vr� ARTICLE fi IOJ36PO Veo ADDITIONAL SERVICES AND CHANGES IN SCOPE OF WORK CITY or ARCHITECT may request changes that would Increase, decrease, or otherwise modify the Scope of Services to be provided under this Agreement. Such changes must be contained In a written amendment, executed by the parties thereto, with the same formality and of equal dignity prior to any deviation from the terms of this Agreement, Including the Initiation of any extra work. Alternate bid package preparation beyond the programmed scope.of work Is an hourly additional service at a Guaranteed Maximum Cost. Change orders/construction change directives are at a maximum cost rate of seven and 5/10 percent (7.5%). Change orders and all changes will require an executed amendment. ARTICLE 7 CITY'S RESPONSIBILITIES 7.1 Assist ARCHITECT by placing at his disposal all available Information pertinent to the Project Including previous reports and any other data relative to design or construction of the Project. 7.2 Furnish to ARCHITECT such data as required for performance of ARCHITECT'S basic services Including core borings, probings, and subsurface explorations, hydraulic surveys, laboratory tests and inspections of samples, materials and equipment; appropriate profes- sional Interpretations of all of the foregoing; environmental assessment and Impact statements; property, boundary, easement, rights -of -way, topo- graphic and utility surveys; property descriptions; zoning, deed and other land use restriction; and other special data or consultations unless such data Is to be furnished by the ARCHITECT. 7.3 Arrange for access to and make all provisions for ARCHITECT to enter upon public and private property as required for ARCHITECT to perform Its services. 7.4 Examine all studies, reports, sketches, drawings, specifications, proposals and other documents presented by ARCHITECT, obtain advice of an attorney, Insurance counselor and other consultants as CITY deems appropriate for such examination and render In writing decisions pertaining thereto within a reason able time so as not to delay the services of ARCHITECT. 9