2014-28834 Reso RESOLUTION NO. 2014-28834
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
CITY MANAGER; APPROVING AND AUTHORIZING THE ADMINISTRATION,
PURSUANT TO ITB 2014-385-YG, TO ENTER INTO NEGOTIATIONS WITH
THE LOWEST RESPONSIVE, RESPONSIBLE BIDDER; AND SHOULD THE
ADMINISTRATION NOT BE SUCCESSFUL IN NEGOTIATING AN
AGREEMENT WITH THE LOWEST RESPONSIVE, RESPONSIBLE BIDDER,
AUTHORIZING NEGOTIATIONS WITH THE SECOND LOWEST
RESPONSIVE, RESPONSIBLE BIDDER, FOR THE REPLACEMENT OF AT
LEAST SIX (6) OF THE EXISTING TWENTY-NINE (29) LIFEGUARD TOWERS
WITH THE SIX (6) APPROVED PROTOTYPE DESIGNS; AND IN THE EVENT
NEGOTIATIONS ARE UNSUCCESSFUL WITH BOTH BIDDERS TO THE ITB,
AUTHORIZING THE CITY MANAGER TO TAKE SUCH ACTIONS AS HE
DEEMS NECESSARY AND IN THE BEST INTEREST OF THE CITY TO
REFURBISH THE LIFEGUARD TOWERS; FURTHER AUTHORIZING THE
CITY MANAGER TO SELECT LOCAL ARTISTS TO DEVELOP A
CENTENNIAL THEME TO BE UTILIZED IN THE REFURBISHING OF AT
LEAST ONE (1) OF THE TOWERS; AND ESTABLISHING A REPLACEMENT
PROGRAM FOR THE LIFEGUARD TOWERS; FOR A TOTAL AMOUNT NOT
TO EXCEED $1,400,000.
WHEREAS, Invitation To Bid No. 2014-385-YG (the ITB), for the lifeguard stands
Replacement Project, was re-issued on September 24, 2014, with an opening date of October
29, 2014; and
WHEREAS, the scope of work included the demolition of 26 lifeguard towers, relocation
of 3 lifeguard towers and replacement of the existing 29 lifeguard towers located citywide on
the beachfront from South Pointe Park Pier to 86TH Street; and
WHEREAS, the City received bids from the following firms: (1) ABC Construction, Inc.
and (2) AARYA Construction & Design, Inc; in the amount of $3,010,854 and $3,124,845.15
respectively; and
WHEREAS, the total bid amount of each of the bids received significantly exceeded the
estimated budget of$900,000 for this project; and
WHEREAS, the City desires to replace at a minimum six (6) lifeguard towers with the
six (6) approved prototype designs; and
WHEREAS, the remaining lifeguard towers not being replaced will be refurbished; and
WHEREAS, the City will perform a site assessment of each existing lifeguard tower to
determine which tower will be replaced and which tower will be refurbished; and
WHEREAS, the City will enter into negotiations with the lowest responsive, responsible
bidder, and should the Administration not be successful in negotiating an agreement with the
lowest responsive, responsible bidder, the Administration will proceed to negotiate with the
second-lowest responsive, responsible bidder; and
WHEREAS, the total cost of the replacement and refurbishing of the lifeguard towers
shall not exceed the current available funding of$1,400,000; and
WHEREAS, the Administration may elect to refurbish the remaining lifeguard towers by
other means; and
WHEREAS, the Administration shall solicit and select local artists to develop a
Centennial Theme to be utilized in the refurbishing of at least one (1) of the towers; and
WHEREAS, the Administration will establish a program to replace the remaining
Lifeguard Towers.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby accept the recommendation of the City Manager; approve and authorize
the Administration, pursuant to ITB 2014-385-YG, to enter into negotiations with the lowest
responsive, responsible bidder; and should the Administration not be successful in negotiating
an agreement with the lowest responsive, responsible bidder, authorizing negotiations with the
second lowest responsive, responsible bidder, for the replacement of at least six (6) of the
existing twenty-nine (29) lifeguard towers with the six (6) approved prototype designs; and in the
event negotiations are unsuccessful with both bidders to the ITB, authorizing the City Manager
to take such actions as he deems necessary and in the best interest of the City to refurbish the
lifeguard towers; further authorize the City Manager to select local artists to develop a
Centennial theme to be utilized in the refurbishing of at least one (1) of the towers; and establish
a replacement program for the lifeguard towers; for a total amount not to exceed $1,400,000.
PASSED AND ADOPTED this /9 day of /v01/eig/k2014.
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T:WGENDA\2014\November\Procurement\ITB-2014-385' G: ifggua" id Stands I r•*roject-Resolution(REVISED)11.21.2014.doc
APPROVED AS TO
FORM & LANGUAGE
& F• EX CUTION
(Z3115
City Attorney Date
COMMISSION ITEM SUMMARY
Condensed Title:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,
ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER PROVIDING TWO OPTIONS FOR THE CITY
COMMISSION'S SELECTION AND AUTHORIZATION FOR THE REPLACEMENT OR REFURBISHMENT OF 29
LIFEGUARD TOWERS:OPTION 1 —NEGOTIATE WITH BIDDERS TO ITB 2014-385-YG;OR,OPTION 2—WAIVE
BIDDING BY 5/7S TO REFURBISH EXISTING UNITS, FINDING SUCH WAIVER TO BE IN THE CITY'S BEST
INTEREST.
Key Intended Outcome Supported:
Maximize the Miami Beach brand as a world class destination.
Supporting Data(Surveys, Environmental Scan,etc: N/A
Item Summary/Recommendation:
Given that the City has commenced its centennial celebrations, the Administration is seeking to replace current
lifeguard towers with the new models designed by William Lane.The scope of work for this project will entail the new
construction of 29 lifeguard towers for the City of Miami Beach from South Pointe Park Pier to 86th Street,replacing the
existing 29 lifeguard towers.Additionally,26 lifeguard towers must be demolished and removed from the site.The City
will be keeping three(3)lifeguards towers,which are located at:the ends of 10th Street(Jetson Tower), 12th Street,
and South Point Pier. The new lifeguard towers must be installed at the same location where the existing ones are
currently located.
To seek a contractor for the project, on July 24,2014,the City issued Invitation to Bid(ITB)No.2014-305-YG for the
desired scope.However,on September 17,2014,the City Commission approved the City Manager's recommendation
to reject all bids,pursuant to ITB 2014-305-YG,because the apparent low bidder was deemed non-responsive and the
second lowest bidder's price of$3,598,566 exceeded the project estimate of costs.The estimated construction budget
for the work identified in the ITB was$900,000; although, $1.49 million is available for the project.
Prior to issuing a subsequent ITB,the Administration attempted to address bidders'concerns which included:the need
for the City to provide staging areas adjacent to the points of installation; the reduction of the amount of liquidated
damages; and reduction of the quantity of units to be delivered by the March 2015 date. Prior to the issuance of the
second ITB,the City secured four(4)staging areas,evenly spaced and strategically placed along the beach adjacent to
the points of installation, the liquidated damages were reduced from $1,900 to $1,000 per day, and the delivery
schedule was modified to require delivery of the first 15 lifeguard towers by March 2015, with the remainder to be
delivered by May 2015.
On September 24,2014,Invitation to Bid(ITB)No.2014-385-YG was re-issued with the aforementioned revisions.On
October 29, 2014,the ITB resulted in the following two bids:
ABC Construction $3,010,854.00
AARYA Construction&Design $3,124,845.15
Both bids received once again significantly exceed the available funds for the project.
MANAGER'S DUE DILIGENCE&RECOMMENDATION
After reviewing the bids received and considering the available project funds,as well as the fact that the City has twice
attempted to secure a contractor through an ITB,the City Manager recommends that the Mayor and City Commission
approve a resolution authorizing the City Manager to proceed with one(1)of the following options:
Option 1 —Negotiate with Bidder(s)Pursuant to Section 2-367(c)of the City Code.
Option 2—Waive Bidding by 5/7s to Refurbish Existing Units.
Both options are detailed in the attached memorandum.
RECOMMENDATION
The Administration recommends that the Mayor and City Commission of the City of Miami Beach,Florida approve one
of the options recommended by the City Manager for the Lifeguard Towers Replacement Project.
Advisory Board Recommendation:
N/A
Financial Information:
Source of Amount Account
Funds: 1 N/A N/A
2
OBPI Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Alex Denis, Extension 6641
Sign-Iffs:
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T:WGEND• .'014\Novemb.`'rocur- ent\ITB-2014-3: 'ifegu.rd nd Replacement Projection(Reje't bids) - Summary.doc
IAGENDA ITEM R24 .
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Philip Levine and Members o the City Co mission
FROM: Jimmy L. Morales, City Manager
DATE: November 19, 2014
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY
MANAGER PROVIDING TWO OPTIONS FOR THE CITY COMMISSION'S
SELECTION AND AUTHORIZATION FOR THE REPLACEMENT OR
REFURBISHMENT OF 29 LIFEGUARD TOWERS: OPTION 1 — NEGOTIATE WITH
BIDDERS TO ITB 2014-385-YG; OR, OPTION 2 — WAIVE BIDDING BY 5/7S TO
REFURBISH EXISTING UNITS, FINDING SUCH WAIVER TO BE IN THE CITY'S
BEST INTEREST.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
KEY INTENDED OUTCOME SUPPORTED
Maximize the Miami Beach brand as a world class destination.
BACKGROUND
Miami Beach is known internationally for its unique and iconic lifeguard towers designs.
However, these towers are in need of replacement and the Administration desires to complete
the replacement by the City's centennial celebration. The proposed project replaces the
existing 29 lifeguard towers located citywide on the beachfront from South Pointe Park Pier to
86TH Street. The new lifeguard towers will feature functionally and aesthetically upgraded
designs. This project was adopted as part of the Capital Budget Amendment No. 4 of the
Fiscal Year 2013/2014.
In 2006, the City opted to internally undertake the construction of 22 lifeguard towers, instead of
purchasing these from a contractor, as a result of a need for expediency, as well as to contain
costs while providing a durable product. At that time, City's estimate of costs for constructing
lifeguard towers internally with Property Management personnel was approximately $25,000 per
tower (not including labor costs) and was achievable through the creation of a standardized mass
production line or process. The Property Management Division of the Public Works Department
proceeded with the construction of the new ocean lifeguard towers to replace those damaged or in
need of replacement due to wear and tear and deemed unusable. At the time, the principal concern
was the rapid construction of sturdy and functional lifeguard towers.
Commission Memorandum-ITB-2014-385-YG Lifeguard Towers Replacement Project
November 19, 2014
Page 2
Following the deployment of the 22 lifeguard towers constructed by the City, the Administration
began receiving community feedback regarding the designs of the lifeguard towers. At that time,
the community was expressing a desire that the lifeguard tower designs be updated. William Lane,
one of the architects of the original designs, offered to redesign the towers at no cost to the City.
Once the redesigns were completed, in 2007 it was estimated that the newly designed lifeguard
towers would cost approximately $45,000 per tower (not including labor costs). It was determined
that the custom built and iconic designs of the proposed lifeguard towers are more time consuming
to build than the mass produced stands and, as a result, economies of scale achievable in mass
production are not realized. As a result, the construction of the newly designed towers was
delayed.
Given that the City has commenced its centennial celebrations, the Administration is seeking
to replace current lifeguard towers with the new models designed by William Lane. The scope
of work for this project will entail the new construction of 29 lifeguard towers for the City of
Miami Beach from South Pointe Park Pier to 86th Street, replacing the existing 29 lifeguard
towers. Additionally, 26 lifeguard towers must be demolished and removed from the site. The
City will be keeping three (3) lifeguards towers, which are located at: the ends of 10th Street
(Jetson Tower), 12th Street, and South Point Pier. The new lifeguard towers must be installed
at the same location where the existing ones are currently located.
To seek a contractor for the project, on July 24, 2014, the City issued Invitation to Bid (ITB)
No. 2014-305-YG for the desired scope. However, on September 17, 2014, the City
Commission approved the City Manager's recommendation to reject all bids, pursuant to ITB
2014-305-YG, because the apparent low bidder was deemed non-responsive and the second
lowest bidder's price of $3,598,566 exceeded the project estimate of costs. The estimated
construction budget for the work identified in the ITB was $900,000; although, $1.49 million is
available for the project.
Prior to issuing a subsequent ITB, the Administration attempted to address bidders' concerns
which included: the need for the City to provide staging areas adjacent to the points of
installation; the reduction of the amount of liquidated damages; and reduction of the quantity of
units to be delivered by the March 2015 date. Prior to the issuance of the second ITB, the City
secured four (4) staging areas, evenly spaced and strategically placed along the beach
adjacent to the points of installation, the liquidated damages were reduced from $1,900 to
$1,000 per day, and the delivery schedule was modified to require delivery of the first 15
lifeguard towers by March 2015, with the remainder to be delivered by May 2015.
ITB PROCESS
On September 24, 2014, Invitation to Bid (ITB) No. 2014-385-YG was re-issued with the
aforementioned revisions. On October 29, 2014, the ITB resulted in the following two bids:
ABC Construction $3,010,854.00
AARYA Construction & Design $3,124,845.15
Commission Memorandum—ITB-2014-385-YG Lifeguard Towers Replacement Project
November 19, 2014
Page 3
Therefore, both bids received once again significantly exceed the available funds for the
project.
MANAGER'S DUE DILIGENCE & RECOMMENDATION
After reviewing the bids received and considering the available project funds, as well as the
fact that the City has twice attempted to secure a contractor through an ITB, the City Manager
recommends that the Mayor and City Commission approve a resolution authorizing the City
Manager to proceed with one (1) of the following options:
Option 1 — Negotiate with Bidder(s) Pursuant to Section 2-367(c) of the City Code.
This option will allow the City Manager to approve and execute an Agreement where the
Administration has negotiated a mutually agreeable agreement (based primarily on
schedule and costs) with the lowest and responsive, responsible bidder to ITB 2014-385-
YG; and, if the Administration is unable to successfully negotiate an agreement with the
lowest bidder, the City Manager may terminate negotiations with such bidder and direct the
Administration to commence negotiations with the second lowest and responsive,
responsible bidder to the ITB. Any resulting agreement pursuant to the options denoted
above will be provided to the City Commission via Letter to Commission (LTC).
Option 2 — Waive Bidding by 5/7s to Refurbish Existing Units. This option allows the
City Manager to direct staff to secure contractor(s) to refurbish all 29 existing towers in
time for the March, 2015, centennial celebrations within the available project budget.
Pursuant to Section 255, Florida Statutes, if the City decides to refurbish the existing
lifeguard towers, and providing that the total cost of refurbishment is $300,000 or less, the
City Commission may waive the competitive bidding requirements, by a 5/7s vote, which
would allow the Administration to secure the services of a contractor(s) to complete the
refurbishment.
In an effort to supplement the available budget, the City may explore the possibilities of selling
or auctioning the remaining 26 lifeguard towers in their present condition.
CONCLUSION
The Administration recommends that the Mayor and City Commission of the City of Miami
Beach, Florida approve one of the options recommended by the City Manager for the
Lifegu- • Towers Replacement Project.
JLM/ /JMJ /DM/AD/YG
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