2011-27627 Reso RESOLUTION NO. 2011 -27627
A RESOLUTION APPROVING AND AUTHORIZING THE APPROPRIATION OF
FUNDS FROM FLEET MANAGEMENT RETAINED EARNINGS FUND 510, IN
THE AMOUNT OF $109,273, TO COVER A CONSTRUCTION AND
CONTINGENCY FUNDING SHORTFALL ASSOCIATED WITH ADDITIONAL
WORK SCOPE AND CONSTRUCTION MANAGEMENT FEES FOR THE
FLEET MANAGEMENT ROOF REPLACEMENT PROJECT.
WHEREAS, on September 28, 2004, the Mayor and City Commission ado •ted
Resolution No. 2004 -25697 establishing a capital renewal and replacement reserve to provide a
dedicated source of funding for capital renewal and replacement project that extend the useful
life of General Fund assets; and
WHEREAS, on February 23, 2005, the Mayor and City Commission amended Resolution
No. 2004 -25697 by adopting Resolution No. 2005 -25832 to provide for more stringent criteria for
allowable uses of the Fund; and
WHEREAS, these criteria require that the Mayor and City Commission approve specific
projects to be funded each year; and
WHEREAS, on September 10, 2009, the Mayor and City Commission tentatively adopted
the proposed millage rate of 5.6555 mills, which included 0.1083 mills dedicated for capital
renewal and replacement; and
WHEREAS, on September 24, 2009, the Mayor and City Commission approved
Resolution No. 2009 -27207 adopting the FY 2009/10 project- specific appropriations for the
Capital Renewal and Replacement Fund Budget which included funding in the amount of
$115,000 for the Fleet Management Roof Replacement project; and
WHEREAS, on September 15, 2010, the Mayor and City Commission tentatively adopted
the proposed millage rate of 6.21555 mills, which included 0.1083 mills dedicated for capital
renewal and replacement; and
WHEREAS, on September 20, 2010, the Mayor and City Commission approved
Resolution No. 2010 -27510 adopting the FY 2010/11 project- specific appropriations for the
Capital Renewal and Replacement Fund Budget which included funding in the amount of
$181,856 for the Fleet Management Roof Replacement project, fora total amount of $296,86 in
project funding; and
WHEREAS, the Capital Improvement Projects Office has requested and negotiated a
Job Order Contract proposal in the amount of $363,426; and
WHEREAS, additional project soft costs for construction management, contingency, and
JOC System Gordian fee amount to an additional $42,702, for a total project cost of $406,129;
and
WHEREAS, there remains a resulting funding shortfall for the Fleet Management Roof
Replacement project in the amount of $109,273.
NOW, THEREFORE, BE IT 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 appropriate funds from
Fleet Management Retained Earnings Fund 510, in the amount of $109,273, to cover a
construction and contingency funding shortfall associated with additional work scope and
construction management fees for the fleet management roof replacement project.
PASSED AND ADOPTED this /31hday of Apri I , 2011.
ATTEST:
.A
ROBERTS PARCHER, CITY CLERK MA I HERRE "A BOWER, MAYOR
T: \AGENDA\2011\4- 13- 11\Fleet Management - Roof Replacement\Fleet Management - Roof Replacement - RESO.doc
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
4
__ii' st . rney ate
COMMISSION ITEM SUM ARY
Condensed Title:
A resolution approving and authorizing the appropriation of funds from Fleet Management Retained E:rnings
Fund 510, in the amount of $109,273, to cover a construction and contingency funding shortfall ass•ciated
with additional work scope and construction management fees for the Fleet Management Roof Repla ement
project.
Key Intended Outcome Supported:
Ensure well maintained facilities and infrastructure.
Supporting Data (Surveys, Environmental Scan, etc.): Based on the City's 2009 CommunitySati-faction
Survey, 87.2% of residential respondents and 85% of business respondents rated the appearan e and
maintenance of the City's public buildings as excellent and good.
Issue:
Shall the Mayor and City Commission adopt the attached resolution which approves the appropriation if funds
to cover a funding shortfall for the Fleet Management Roof Replacement project?
Item Summary/Recommendation:
On September 28, 2004, the Mayor and City Commission adopted Resolution No. 2004 -25697 establi.hing a
separate reserve with a dedicated source of funding to be used exclusively for Capital Rene al and
Replacement (CRR) projects in order to ensure that funding levels would provide for major CRR costs so that
improvements to General Fund assets were not deferred many years beyond their useful life.
The Fleet Management Division's Fleet Maintenance building roof was constructed in 1945. P operty
Management has reported that these roof leaks, which have been patched and repaired several tim-s, are
creating moisture problems throughout the building. The roof has exceeded its useful life expectan y and
requires replacement.
On September 24, 2009 and September 20, 2010, the Mayor and City Commission adopted Resolut on No.
2009 -27207 and 2010 -27510 approving the annual Fiscal Year (FY) 2009/10 and FY 2010/11 appro
for the CRR Fund budget, respectively. The FY 2009/10 budget included $115,000 for the Fleet Management
Roof Replacement project and the FY 2010/11 budget included an additional $181,856 in funding, fo a total
available funding amount of $296,856.
A Job Order Contract (JOC) was requested by the Capital Improvements Projects Office to commence
construction of the Fleet Management Roof Replacement project. The JOC proposal was negotiated for a
lump sum fee of $363,426. Including an additional $42,702 associated with project soft costs results it a total
project cost of $406,129 and funding shortfall in the amount of $109,273.
Fleet Management is an Internal Service department deriving its revenue from all departments that operate
vehicles through a department chargeback process. Consequently, Fleet Management's projects are funded
from the revenues collected by the department. This is in contrast to General Fund CRR projects where funds
are derived from General Fund revenues. Funding in the amount of $109,273 shall be appropriated from Fleet
Management Retained Earnings Fund 510. The Administration recommends that the Mayor and City
Commission adopt a Resolution approving and authorizing the appropriation of funds from Fleet Management
Retained Earnings Fund 510, in the amount of $109,273, to cover a construction and contingency funding
shortfall associated with additional work scope and construction management fees for the Fleet Management
Roof Replacement Project.
Advisory Board Recommendation:
Financial Information:
Source of Amount Account Approved i
Funds. 1 Fleet Management Retained
$109,273 Earnings Fund 510
OBPI / IP Total $109,273 _
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Janette Fernandez Arencibia, Ext. 6596
Sign -Offs:
Department Director Assistant C sr, ana • er Cit M -Ja •
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1 \F et Management - Roof Replacement \Flee Management - Roof Replacement - SUMMARY.•.
trA,, M IAMI AGENDA. ITEM C 78
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MIAMIBE
City of Miami Beach, 170 Convention Center Drive, Beach,
ty e, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
C
DATE: April 13, 2011
SUBJECT: A RESOLUTION APPROVING AND AUTHORIZING THE APPROPRIATION OF
FUNDS FROM FLEET MANAGEMENT RETAINED EARNINGS FUND 510, IN THE
AMOUNT OF $109,273, TO COVER A CONSTRUCTION AND CONTINGENCY
FUNDING SHORTFALL ASSOCIATED WITH ADDITIONAL WORK SCOPE AND
CONSTRUCTION MANAGEMENT FEES FOR THE FLEET MANAGEMENT ROOF
REPLACEMENT PROJECT.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
FUNDING
Fleet Management is an Internal Service department deriving its revenue from all departments that
operate vehicles through a department chargeback process. Consequently, as an internal- funded
organization, Fleet Management's projects are funded from the revenues collected by the department.
This is in contrast to General Furid Capital Renewal and Replacement (CRR) projects where funds are
derived from General Fund revenues. Funding in the amount of $109,273 shall be appropriated from
Fleet Management Retained Earnings Fund 510.
BACKGROUND
The City currently maintains a vast number and variety of buildings, structures and facilities; hundreds of
acres of recreational and open space; significant public art pieces; and hundreds of miles of streets,
sidewalks and alleys. As a result of the City's ongoing Capital Improvement Program and the Miami -
Dade County General Obligation Bond Program, there has been an additional increase in capital
renewal and replacement needs. In the past, the cost of maintaining these General Fund assets came
from General Funds. To deal with the increasing cost of needs, the Mayor and City Commission adopted
Resolution No. 2004 -25697 on September 28, 2004 establishing a separate reserve with a dedicated
source of funding to be used exclusively for CRR projects in order to ensure that funding levels would
provide for major CRR costs so that improvements to General Fund assets were not deferred many
years beyond their useful life. Appropriations from the fund are reviewed and approved each year by the
City Commission as part of the budget process, and are used exclusively for those capital expenditures
that help to extend or replace the useful life of our facilities.
ANALYSIS
The Fleet Management Division's Fleet Maintenance building was constructed in 1945. The original roof
was constructed of metal and transite roofing materials that have deteriorated over time. The roof has
been patched and repaired several times throughout the years and still has many leaks. Property
Management has reported that these roof leaks are creating moisture problems throughout the building.
Based on information provided by the Property Management Division, the roof was scheduled for
replacement by 2008. As such, the roof replacement is currently two years overdue. The Fleet
Fleet Management - Roof Replacement - MEMO
April 13, 2011
Page 2 of 2
Maintenance building's roof has exceeded its useful life expectancy and now requires replacement.
9 P Y q P
On September 24, 2009 and September 20, 2010, the Mayor and City Commission adopted Resolution
No. 2009 -27207 and 2010 -27510 approving the annual Fiscal Year (FY) 2009/10 and FY 010/11
appropriation for the CRR Fund budget, respectively. The FY 2009/10 budget included $115,000 for the
Fleet additional
Management Roof Replacement project and the FY 2010/11 budget included an a
9 P P J 9 d
$181,856 in funding, for a total available funding amount of $296,856.
1
A Job Order Contract (JOC) was requested by the Capital Improvements Projects Office to commence
construction of the Fleet Management Roof Replacement project. The scope of services incl ded the
cost of replacing the existing roofing system; engineering design fees for calculations and support
documentation for the structure and roofing system; and permitting fees to obtain approva s by all
jurisdictional agencies. Based on the structural engineering design analysis it was determined that the
spacing of the existing purlins were too wide spread and did not meet current buildi g code
requirements. Therefore, the scope of work required additional structural support, or purlins, to b added
to withstand the increased wind loads and to meet current building code requirements. The JOC
proposal was revised to incorporate the costs of providing purlins and was negotiated for a lurnp sum
fee of $363,426. 1
The supplemental request for funds in the amount of $109,273 covers the cost of the additionall scope
associated with the purlins and soft costs including the Job Order Contract fee payable to the Gordian
Group, Inc., project management fees, and contingency. The following table outlines the project costs
and available funding:
Fleet Management Roof Replacement Project Costs
Negotiated JOC Proposal Fee ...................................... ............................... ...................$363,426....
...................
Gordian Fee
..........................................(, a� 1.95% ....................................................................................................................... ............................... .....................$7,087....
Construction Management Fee @ 4.80% $17,444
Contingency @ 5.00% $18,171
Total $406,129
Current Available Funding
FY 2009/10
FY 2010/11 $181,856
Total $296,856
Funding Shortfall
Total Project Costs $406,129
. . . . . . . . . . . . . . . . . . . . . . . .
Total Available Funding $296,856
Difference $109,273
CONCLUSION:
The Administration recommends that the Mayor and City Commission adopt a resolution approvi ig and
authorizing the appropriation of funds from Fleet Management Retained Earnings Fund 510, in the
amount of $109,273, to cover a construction and contingency funding shortfall associated with additional
work scope and construction management fees for the Fleet Management Roof Replacement Project.
JMG /DBJ? J/ (CF
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