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LTC 496-2018 Report on Emergency PurchasesMAMI c City of Miami Beach, 1700 Co nvention Center Dri ve, Miami Bea ch, Flor ida 3313 9, www .miam ibeachfl .g ov LTC # 496-2018 LETIER TO COMMISSION To: Mayor Dan Gelber and Members oft From: Jimmy L. Morales, City Manager Date: September 13 ,,2018 Subject: Report on Emergency Purchases EMERGENCY PURCHASES. Miami Beach City Code Section 2-396 provides for the City Manager to waive the requirements for competitive bidding for emergency purchases as defined in the Code . Pursuant to this provision, emergency purchases exceeding $50,000.00 are to be reported to the City Commission at its meeting following the emergency. The emergency purchase request process outlined in Code allows the City to respond expeditiously to unexpected needs . The Emergency Purchase Request form for each emergency reported is attached. Emergency Purchases Form No. Nature of Emergency Requestor Contractor Value 2018-357 Chiller replacement at 777 Property Master Mechanical $ 152,000 Building. Management Services, Inc. Scott Rakow Youth Center Parks and CIMCO 2018-382 ice rink condenser Recreation Refrigeration $ 74,892 replacement JLM~~ F:\PURC\$ALL\REPORTS\Monthly Reports\FY 2018\Emergency & Unauthorized Purchase Report\September 13 , 2018.docx MIAMI BEACH Emergency Purchase Authorization Request No.: EPA z.otg -o5'2 -A'f Contact Information Date: Requester: 08/21/2018 Jose de! Risco Location of Emergency: Requesting Department: Scott Rakow Youth Center lee Rink Parks and Recreation Required Goods/Se,rvi,es: Contact No.: Replacement of Ice Rink Condenser Extension 6276 Nature of Emergency Describe Type (threat to public's life, health, welfare or significant loss of property) and Details of Emergency (Attach additional detail, if necessary, and all available documentation justifying emergency declaration.): The Scott Rakow Youth Center Ice Rink is in need of a new condenser. The existing unit has been on a routine maintenance schedule and was planned for replacement in the future . After maintenance servicing yielded favorable projections for its durability, during the last capital budget process, the replacement of the unit was placed as an item in the general obligation bond, rather than the FY 2019 capital budget request. However, during recent maintenance servicing, it has been discovered that the decline of the unit has been accelerated and corrosion exists to the point that immediate replacement is necessary. Currently, the bottom of the condenser is corroded beyond repair, having split open causing water to leak. The leak is currently minimal with a temporary repair ·in plac,e; however, once the split in the metal expands, the compressor that is maintaining the ice will shut down . In turn, this will cause the ice rink to be closed until a new condenser is installed. Since the unit is custom built, manufacturing time will take a minimum of eight weeks. There is no way to predict how long the recent temporary repairs will last until a shutdown of the unit is required. In order to prevent a larger emergency, which will cause programming and rental cancellations for residents, for an unknown amount of time, we are declaring this purchase an emergency . Funding from the Parks and Recreation FY 2018 Operating Budget has been identified. Vendor(s) Information Proposed Vendor (attach detail if multiple vendors): CIMCO Refrigeration Inc . Oescribe+icw & Why Recommended Vendor(s) Selected: I Estimated Cost (if known): $74,892 .00 We propose to proceed with CIMCO Refrigeration Inc. CIMCO has committed to having the unit delivered and installed within six weeks, with only a three-hour system shut down. The Parks arid Recreation Department has worked with the Procurement Department to identify a contract that could be used for the replacement of the unit, but have not been able to do so. CIMCO Refrigeration Inc . is the designer of the condenser, which eliminates any mark-up costs imposed by other vendors. City Code Sec. 2-396. • Emergency Purchases: (a) City Manager. In case of an apparent emergency requiring immediate purchase of supplies or contractual serv ice, the city manager shall be empowered to authorize the procurement director to secure by open mar'~et procedure at the lowest obtainable price, any supplies or contractual services not exceeding S25,000,00 . The city manager has the authority to act in the case of an emergency that might affect the health, safety and welfare of the city , Such action shall be reported al the next regular meeting of the city commission when supplies or services exceed $25 .000.00, (b) Head o.f Department. In case of actual emergency, and with the prior consent of the procurement director. and the prior approval of the city manager, the head of any using agency may purchase directly any supplies whose immediate procurement is essential to prevent delays in the work of the using agency that may vitally affect the life, health or convenience of citizens , The head of such using agency shall send to the procurement director a r uisition and a cop of the delive record, t ether with a full written re rt of the circumstances of the eme { '{ MIAMI BEACH No.: Emergency Purchase Authorization Request lilf~ -~ Contact Information Date: Requestor: August 10, 2018 Adrian Morales Location of Emergency: Requesting Department: 1701 Meridian Avenue (777 Building) Property Management -Chiller Replacement Required Goods/Services: Contact No.: HVAC Services 305-673-7631 Nature of Emergency Describe Type (threat to public's life, health, welfare or significant loss of property) and Details of Emergency (Attach additional detail, if necessary, and all available documentation justifying emergency declaration.): The proposed scope of work under this emergency request consists of the replacement of the existing chilled water plant, chilled water piping and electrical as required at 1701 Meridian Avenue (777 Building). The existing chiller is beyond its useful life and has had several significant failures over the last few months. The attempts at repairing the chiller have not been successful as it continues to fault. The chiller replacement has been deemed the number one priority for funding under the FY19 Capital Renewal and Replacement. however, it does not appear it will endure the demand of the summer months and the typical lead time to procure a new chiller. We have identified funding through a change in priorities in the current FY18 Capital Renewal and Replacement projects to cover the expected cost. The imminent threat of the chiller failing beyond repair puts the tenants , staff, and public at risk of disruption to their operations, loss of expected revenue , health hazards, and life safety. The 777 Building is a shared building between leased tenants and City staff. The chiller failures have caused significant aggravation , and discomfort to the building's end users. Some tenants and departments have been forced to close for the day while the repairs were occurring . Disruption to their operations of this magnitude significantly impairs their business and revenue opportunities. The building has no additional sources of cooling, or ventilation and we run the risk of being left without air conditioning when this chiller fails completely . This may cause building occupants wellness and health issues. The cost of the necessary repairs and upgrades is approximately $152,000 .00 . The City will be using the Building and Specialty Trade Contractors for Minor Projects (ITS 2017-049-WG). However, due to the short time frame and the gravity of the situation, the Department is requesting a declaration of emergency so that this matter can be addressed immediately. Proposed Vendor (attach detail if multiple vendors): Estimated Cost (if known): Master Mechanical Services, Inc. $152,000.00 Describe How & Why Recommended Vendor(s) Selected: This contractor is familiar with the chiller at the 777 Building, as well as the rest of the HVAC systems tied to it, furthermore, they are currently under contract for HVAC Equipment, Installation, Parts, and Services with the City of Miami Beach . Using this contractor will allow for a smooth execution of the scope of work required for this project as well as effective preventive maintenance after installation has been finalized. Work will be completed from Friday-Monday. City Code Sec. 2·396 . ·Emergency Purchases: (a) City Manager. In case of an apparent emergency requiring immediate purchase of supplies or contractual service, the city manager sha ll be empowered to authorize the procurement director to secure by open market procedure at the lowest obtainable price , any supplies or contractual services not exceeding $25,000 .00. The city manager has the authority to act in the case of an emergency that might affect the health , safety and welfare of the city . Such action shall be reported at the next reqular meetinq of the citv commission when suoolies or services exceed $25 ,000 .00. (b) Head of Department. In case of actual emergency , and with the prior consent of the procurement director, and the prior approval of the city manager , the head of any using agency may purchase directly any supplies whose immediate procurement is essential to prevent delays in the work of the using agency that may vitally affect the life, health or convenience of citizens. The head of such using agency shall send to the procurement director a re uisition and a co of the delive record , to ether with a full written re art of the circumstances of the emer enc . AUGUST 8 , 2018 REV PROPOSAL SUBMITTED TO : CITY OF MIAMI BEACH PROPERTY MANAGEMENT 1245 MICHIGAN AVE MIAMI BEACH, FL33139 ATTN : EMAIL: TEL: ADRIAN MORALES ADRIANMORALES@MIAMIBEACHFL.COM 305-673-7000 EXT. 2932 Master Mechanical Services, Inc. CMC 057200 15181 NW 3 3 Place Miami, FL 33054 Office 305/825-3004 Fax 305/825-1607 info @masterrnechanicalservices.com JOB NAME/LOCATION: 1701 MERIDIAN-CHILLER REPLACEMENT I CONTRACT PRICE: JOB COST $152,000 AFTER AN ONSITE REVIEW OF EXIST ING TRANE CHILLER , MASTER MECHANICAL SERVI CES , INC . PROVIDES THE FOLLOWING QUOTE FOR REPLACEMENT. • REMOVAL/ DISPOSAL OF EXISTING CHILLER • FURNISH AND INSTALL TRANE CGAM110 AIR COOLED CHILLER • FACTORY PUMP PACKAGE • FACTORY COMPLETE COAT CORROSION PROTECTION COATED COIL • 1 sr YEAR TRANE PARTS AND LABOR WARRANTY • 2-5 YEAR COMPRESSOR WARRANTY • EXISTING STEEL SUPPORT TO REMAIN • MODIFY CH ILLED WATER PIPING AS REQUIRED • MODIFY ELECTRIC AS REQUIRED • RE-INSULATE CHW LINES AS REQUIRED • TRANE FACTORY START UP • CRANE/ PERMITS/ BARRICADES JOB COST TRANE $89,200 X (15%) CRANE CRANE PERMITS POLICE BARRICADES INSULATION TIE DOWN MATERIAL ELECTRICAL PERMIT PIPING DISPOSAL LABOR (333HR X $55) •••• $102,580 $ 8,600 $ 3,000 $ 900 $ 2,000 $ 4,500 $ 850 $ 1,550 $ 5,000 $ 3,500 $ 1,200 $ 18,320 $ 152,000 NOTE : PROJECT TO BE COMPLETED FRIDAY THRU MONDAY ACCEPTANCE OF PROPOSAL-THE ABOVE PRIC ES , SPECIFICATIONS AND CONDITIONS ARE SATISFACTORY AND ARE HER EB Y ACC EPTE D. You ARE AUTHORIZED TO DO THE WORK AS SPECIFIED. PAYMENT TO BE MAD E AS OUTLINED ABOVE. OWNER OR CONTRACTOR: MASTER MECHANICAL SERVICES , INC: CITY OF MIAMI BEACH PROPERTY MANAGEMENT DATE SEAN PINNA DATE