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2010-27565 Reso RESOLUTION NO. 2010 -27565 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A CONSENT TO ASSIGNMENT AND FIRST AMENDMENT TO JOB ORDER CONTRACT (JOC) NO. 23- 08/09, BETWEEN THE CITY AND UNITECH BUILDERS, CORP., WHICH PROVIDES FOR UNITECH TO ASSIGN THE JOC CONTRACT TO DAVID MANCINI AND SONS, INC. WHEREAS, on July 15, 2009, the Mayor and City Commission approved Job Order Contract No. 23- 08/09, for Horizontal Construction Projects, dated July 15, 2009, with Unitech Builders, Corp. (the JOC Contract); and WHEREAS, Unitech Builders, Corp., also referred to herein as Assignor, now wishes to assign the JOC Contract to David Mancini and Sons, Inc. (Assignee and /or the new JOC Contractor); and WHEREAS, pursuant to Section 18.1 of the JOC Contract, assignment of the JOC Contract requires the written consent of the Mayor and City Commission; and WHEREAS, the Administration has exercised its due diligence on the new JOC Contractor and recommends said assignment; and WHEREAS, the Administration recommends that the Mayor and City Commission hereby approve and authorize the Mayor and City Clerk to execute the attached Consent to Assignment and First Amendment to JOC Contract No. 23- 08/09, which shall have an effective date of December 8, 2010, and remain in effect throughout the remainder of the current term of the JOC Contract, scheduled to expire on July 14, 2014; and WHEREAS, notwithstanding the requested assignment, Unitech Builders, Corp. will continue to be responsible for, and maintain all required warranties and responsibilities for, previously completed projects and any ongoing project with the City prior to the effective date of the assignment. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve and authorize the Mayor and City Clerk to execute a Consent to Assignment and First Amendment to Job Order Contract (JOC) No. 23- 08/09, dated July 15, 2009, by and between the City and Unitech Builders, Corp., which provides for Unitech Builders, Corp. to assign the JOC contract to David Mancini and Sons, Inc. PASSED and ADOPTED this 8fh day of De&& ,er , 2010. • ii 4 / Mayor ATTEST: (AAA t fa (It bt APPROVED AS TO City Clerk FORM & LANGUAGE T: AGENDAl20101December 81ConsentlAssignmentResolution .doc & FOR EXECUTION II`` 0 -. Da COMMISSION ITEM SUMMARY Condensed Title: A Resolution Approving An Assignment Of Job Order Contract (JOC) No. 23-08/09, By And Between The City And Unitech Builders, Corp., Dated July 15, 2009, For Horizontal Construction Projects, Which Provides For Unitech Builders, Corp. To Assign Its Contract To David Mancini And Sons, Inc!; Further Authorizing The Mayor And City Clerk To Execute Same. Key Intended Outcome Supported: To ensure well maintained facilities; and to ensure well maintained infrastructure. Supporting Data (Surveys, Environmental Scan, etc.): N/A Issue: Shall the City Commission Approve the assignment? Item Summary /Recommendation: Unitech, by letter dated November 17, 2010, has requested that their JOC Contract be assigned to David Mancini and Sons, Inc. ( "David Mancini "). Pursuant to Section 18.1 of the JOC Contract, assignment of the JOC Contract requires the written consent of the Mayor and City Commission. Key points of assignment are as follows: 1. Unitech will continue to honor and maintain all required warranties and responsibilities for previously completed projects and any ongoing project with the City, as of December 8 2010. 2. Unitech's Performance and Payment Bonds will remain in effect for one year after the date of acceptance of all completed work. 3. David Mancini and Sons, Inc. agrees to be bound by all legal terms and conditions, responsibilities, and pricing of the JOC Contract. 4. David Mancini and Sons, Inc. agrees to furnish to the City's Risk Manager, Certificates of Insurance or endorsements evidencing the required insurance coverage as specified in Article 7, entitled "Insurance ", on pages 39 and 40 of the JOC Contract. 5. David Mancini and Sons, Inc. agrees to provide Performance and Payment Bonds, each in the amount of one million dollars ($1,000,000), guaranteeing to City the completion and performance of the work covered in the JOC Contract, as well as full payment of all suppliers, laborers, and subcontractors, pursuant to General Conditions, Section 00400, Paragraph 4, entitled "Performance Bond and Payment Bond ", on pages 36 and 37 of the JOC Contract. 6. David Mancini and Sons, Inc. agrees to provide additional Performance and Payment Bonds, each in the amount of 100% of the value of any projects assigned that may exceed their initial bonding of $1,000,000. THE ADMINISTRATION HAS EXERCISED ITS DUE DILIGENCE ON THE NEW JOC CONTRACTOR, DAVID MANCINI AND SONS, INC., AND RECOMMENDS APPROVAL OF ASSIGNMENT. Advisory Board Recommendation: Financial Information: Source of Funds: Amount Account Approved 1 2 3 OBPI Total Financial Impact Summary: City Clerk's Office Legislative Tracking: Gus Lopez, extension 6641 Sign - Offs: epartment Director Assistant City Manager City Manager Je; GL CWC FB JGG /I1 PDW JMG 0� T: NDA\2010 \December 8\ Consent \AssignmentltemSummary.doc MIAMI BEACH AGENDA ITEM C7 F DATE P-1- /D m MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the Cit Gmm l i ssion FROM: Jorge M. Gonzalez, City Manager DATE: December 8, 2010 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AN ASSIGNMENT OF JOB 1 ORDER CONTRACT (JOC) NO. 23-08/09, BY AND BETWEEN THE CITY AND UNITECH BUILDERS, CORP. , DATED JULY 15, 2009, FOR HORIZONTAL CONSTRUCTION PROJECTS, WHICH PROVIDES FOR UNITECH BUILDERS, CORP. TO ASSIGN ITS CONTRACT TO DAVID MANCINI AND SONS, INC.; FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE SAME. ADMINISTRATION RECOMMENDATION Adopt the Resolution. KEY INTENDED OUTCOMES SUPPORTED To ensure well- maintained facilities; and To ensure well- maintained infrastructure. ANALYSIS Based on the results of the City's JOC program coupled with the high volume of anticipated construction projects, the City issued on March 24, 2009, six (6) separate Invitations to Bid (ITB) for the various categories of construction - related work: • ITB 22 -08/09 — Vertical • ITB 23 -08/09 — Horizontal • ITB 24 -08/09 — Electrical • ITB 25 -08/09 — Mechanical • ITB 26 -08/09 — Waterproofing /Painting • ITB 27 -08/09 — Roofing On April 24, 2009, the City received sixty -two (62) bids overall by forty -eight (48) contractors. A Technical Review Panel convened and reviewed all bids received and participated in interviewing twenty -four (24) shortlisted contractors, who were represented by their respective project managers, site superintendents, and cost estimators. At its July 15, 2009 meeting, the Mayor and City Commission awarded Job Order Contract No. 23- 08/09, for horizontal construction projects, to the following contractors: 4 JOC Contract Assignment December 8, 2010 Page 2 of 4 1. Carivon Construction Co.; 2. Downrite Engineering Corp.; 3. Envirowaste Services Group; 4. GEC Associates, Inc.; 5. H.A. Contracting Corp.; 6. Ric -Man International, Inc.; and 7. Unitech Builders Corp. Downrite Engineering failed to provide the required Performance and Payment Bonds; therefore, the City did not enter into an agreement with Downrite Engineering. All other contractors, including Unitech Builders Corp. (Unitech), provided all the necessary documents, bonds, and insurance certificates, and executed JOC agreements with an effective date of July 15, 2009. It is important to note that Unitech has the lowest adjustment factors of any of the horizontal contractors for overtime and non - prepriced work. Also, Unitech has the second lowest adjustment factor of any of the horizontal contractors for normal time work. Therefore, if the City Commission approves the assignment of contract, David Mancini and Sons, Inc. will be bound by the same low adjustment factors currently under Unitech's contract. CONTRACTOR NORMAL TIME OVERTIME NON - PREPRICED Carivon Construction 1.0287 1.0315 1.0660 Envirowaste 1.0223 1.0456 j 1.0500 GEC Associates 1.0000 1.0200 j 1.0660 H.A. Contracting 1.0190 1.0456 1.0660 Ric -Man International 1.0223 1.0456 1.0158 Unitech Builders 1.0060 1.0060 1.0060 The aforementioned adjustment factors represent the contractor's only adjustment to the prices published in the Construction Task Catalog and must include all indirect costs such as overhead, profit, payment and performance bonds, insurance, design and contingency costs. Unitech, by letter dated November 17, 2010, has requested that their JOC Contract be assigned to David Mancini and Sons, Inc. ( "David Mancini "). See attached letter from Unitech. Pursuant to Section 18.1 of the JOC Contract, assignment of the JOC Contract requires the written consent of the Mayor and City Commission. The potential value of the contract is $23,562,646. The dollar amount is based on the Unitech's contract having a maximum value of $25 million over five (5) years. Since July 2009, Unitech has been issued work valued at $1,437,353.38. The Administration has exercised its due diligence on the new JOC Contractor, David Mancini and recommends said assignment based on the following: KEY PERSONNEL David Mancini has put together a qualified team of design and construction professionals who have demonstrated the ability to successfully perform and execute projects. The key personnel of David Mancini and Sons are as follows: JOC Contract Assignment December 8, 2010 Page3of4 1. David Mancini, President. Mr. Mancini has over 30 years construction experience in South Florida. He is currently holds a state of Florida; Underground Utility License ( #CU- C0442220). Until recently, Mr. Mancini was President of Ric -Man International where he oversaw up to $35 million in projects. Some of the key projects listed in Mr. Mancini's resume include: a. Washington Avenue Improvements. Over '/Z mile of complete roadway, infrastructure and beautification improvements along a heavy pedestrian and retail /hotel corridor. Project consisted of drainage, water mains, sidewalks and curbs & gutters, landscaping, gravity wells, roadway, signalization, lighting and markings. b. Miami River Water Main Project. Over 800 feet of new 30" water main designed as open cut but converted by Mr. Mancini to design /build directional drill, which resulted in saving Miami -Dade county time and money and resolving easement issues. Project consisted of directional drilling water main under river, sidewalks and curb & gutters, and roadway restoration. c. Replacement of 48" Force Main. Over 5,000 feet of 48" PCCP removal in right -of -way replaced with 48" DIP in 8 months including design, permits and construction. d. Broward County Broadview Neighborhood. Over 120,000 feet of water mains throughout a 470 residential neighborhood. This project also required service connections on private property behind homes. 2. Albert Dominguez, Project Manager. Mr. Dominguez was the Senior Project Manager with Ric -Man International, and he was responsible for managing over $27 million of capital improvements projects. He is a licensed Professional Engineer. Some of the key projects listed in Mr. Dominguez's resume include: a. Nautilus Neighborhood No. 7 Improvements. Project consisted of installing a new water main and connecting homes in front and rear, drainage improvements including more than 250 structures, 18,000 LF of drainage pipe, and six (6) pump stations, lighting landscaping, and hardscape improvements throughout. Construction had to content with accommodating the needs of the 772 residents and two (2) schools. b. Lumus Neighborhood Improvements. Project consisted of refurbishing 10 urban streets with over 13,000 LF of water main, and drainage pipe. Close coordination with 119 business owners, 485 residents, public transportation, schools, restaurants, valet parking and night clubs. JOC Contract Assignment December 8, 2010 Page4of4 BONDING CAPACITY David Mancini and Sons, Inc. has a total program bonding capacity of $100 million. Their Surety, Liberty Mutual Insurance Company, carries an A.M. Best Rating of A, which is considered excellent. See attached letter from Nielson, Hoover & Associates, dated November 22, 2010. KEY POINTS OF ASSIGNMENT 1. The Consent to Assignment and First Amendment to the JOC Contract, will have an effective date of December 8, 2010, and remain in effect throughout the remainder of the current term of the JOC Contract, scheduled to expire July 14, 2014. 2. Unitech will continue to honor and maintain all required warranties and responsibilities for previously completed projects and any ongoing project with the City, as of December 8, 2010. 3. Unitech's Performance and Payment Bonds will remain in effect for one year after the date of acceptance of all completed work. 4. David Mancini and Sons, Inc. agrees to be bound by all legal terms and conditions, responsibilities, and pricing of the JOC Contract. 5. David Mancini and Sons, Inc. agrees to furnish to the City's Risk Manager, Certificates of Insurance or endorsements evidencing the required insurance coverage as specified in Article 7, entitled "Insurance ", on pages 39 and 40 of the JOC Contract. 6. David Mancini and Sons, Inc. agrees to provide Performance and Payment Bonds, each in the amount of one million dollars ($1,000,000), guaranteeing to City the completion and performance of the work covered in the JOC Contract, as well as full payment of all suppliers, laborers, and subcontractors, pursuant to General Conditions, Section 00400, Paragraph 4, entitled "Performance Bond and Payment Bond ", on pages 36 and 37 of the JOC Contract. 7. David Mancini and Sons, Inc. agrees to provide additional Performance and Payment Bonds, each in the amount of 100% of the value of any projects assigned that may exceed their initial bonding of $1,000,000. The attached consent to assignment and resolution has been reviewed and form approved by the City Attorney's Office. CONCLUSION The Administration recommends that the Mayor and City Commission approve the assignment of JOC Contract No. 23 -08/09 from Unitech Builders, Corp., to David Mancini and Sons, Inc. T:IAGENDAl2010 \December 81Consent1AssignmentUnitech.doc �__��i Nell NIELSON, HOOVER & ASSOCIATES November 22, 2010 El u; • 0 City of Miami Beach, Florida City Hall 0 1700 Convention Center • Miami Beach, Florida 33139 x a a RE: DAVID MANCINI & SONS, INC. H z Gentlemen: 0 R. This is to advise you that our office provides suretyship for David Mancini & Sons, Inc. Their Surety is o Liberty Mutual Insurance Company, which carries an A. M. Best Rating of A (Excellent), Financial Size Category of XV, and is listed in the department of the Treasury's Federal Register. David Mancini & Sons, Inc. has a bonding capacity on individual projects of $25,000,000 and a total about $100,000,000. program capacity of o z Q Based upon normal and standard underwriting criteria at the time of request, we should be in a position to provide Performance and Payment Bonds for David Mancini & Sons, Inc. It must be understood, o however, that we reserve the right to review all contractual documents prior to final commitment to issue 06 any bonds. z 0 w David Mancini & Sons, Inc. is an excellent contractor and we hold them in high regard. We feel z extremely confident in them and encourage you to offer them an opportunity to execute any upcoming projects. . H V This letter is not an assumption of liability, nor is it a bid or performance and payment bond. It is issued w only as a bonding reference requested by our respected client. Please understand that our willingness to provide surety on this or any project is predicated upon specific z criteria at the time of the bond request including, but not necessarily limited to, a review of all contract • documents, bond forms, financing and all other pertinent underwriting factors. 0 c 8 If I can provide any additional information on this fine company, please do not hesitate to give me a call at (305) 722 -2663. Z D S' r ,,, C rles J ielson President 8000 Governors Square Boulevard Suite 101 Miami Lakes, FL 33016 P: 305.722.2663 F: 305.558.9650 www.nielsonbonds.com IIITECIL 8 OILDEDS, 2NR, • • • • November 17, 2010 Theo Carrasco, Ph.D., Procurement Coordinator City of Miami Beach Procurement Division • 1700 Convention Center Drive Miami Beach, FL 33139 • RE: Assignment of lob Order Contract !TB 23 -08/09 Mr. Carrasco: • .. Unitech Builders would like to assign Job Order Contract No 23 08/09 Horizontal • Citywide Services with the City of Miami Beach to David Mancini and Sons, Inc. This assignment will be effective upon City Commission approval on 8, 2010. • If you have any questions, please do not hesitate to contact me. Thank you, • • • Anthony R Gomez President • • • • • • • 16115 SW 117 Avenue, Suite 23 • Miami, Florida 33177 • Phone 305259.1980 - Fax 305.259.1970 CGC # 054992