2011-27764 Reso RESOLUTION NO! 2011 -27764
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. 22- 08/09, BETWEEN
THE CITY AND GERRITS CONSTRUCTION, INC., WHICH PROVIDES FOR
GERRITS 'TO ASSIGN THE 'JOC_ CONTRACT TO COASTLAND
CONSTRUCTION, INC.
WHEREAS, on July 15, .2009, the Mayor and City Commission approved Job
Order Contract No. 22- 08109, for Vertical Construction Projects, dated July 15, 2009,
with Gerrits Construction, Inc. (the JOC Contract); and
WHEREAS, Gerrits Construction, Inc., also referred to herein as Assignor, now
wishes to assign the JOC Contract to Coastland Construction, Inc. (Assignee - and /or the
new JOC Contractor); and
WHEREAS, pursuant 10 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. 22- 08/09,
which shall have an effective date of October 19, 2011, 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, Gerrits Construction,.
Inc. 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. 22-,
08/09, dated July 15, 2009, by and between the City 'and Gerrits Construction, Inc.,
which provides for Gerrits Construction, Inc. to assign the JOC contract - to Coastland
Construction, Inc.
PASSED and ADOPTED this r �i�h day of . 2011.
.13
Ion
Mayor
E ATTEST:
INCORP ORATED=
c APPROVED AS TO
FORM & LANGUAGE
City Clerk N 26 : °v 's' & MR EXECUTION
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COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Approving An Assignment Of Job Order Contract (JOC) No. 22- 08/09, By And Between The City
And Gerrits Construction, Inc., Dated July 15, 2009, For Vertical Construction Projects, Which Provides For
Gerrits Construction, Inc. To Assign Its Contract To Coastland Construction, 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:
I Shall the City Commission Approve the assignment?
Item Summa /Recommendation:
Gerrits Construction, Inc., by letter dated May 10, 2011, has requested that their JOC Contract be assigned to
Coastland Construction, Inc. ( "Coastland "). 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. Gerrits Construction, Inc. will continue to honor and maintain all required warranties and
responsibilities for previously completed projects and any ongoing project with the City, as of June 1,
2011.
2. Gerrits Construction, Inc. Performance and Payment Bonds will remain in effect for one year after the
date of acceptance of all completed work.
3. Coastland agrees to be bound by all legal terms and conditions, responsibilities, and pricing of the
JOC Contract.
4. Coastland 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. Coastland 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. Coastland 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,
COASTLAND CONSTRUCTION, 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:
Depart ent Direc or Assistant City Manager City Manager
GL .,. FV i DB J , 411rAlb.
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1
el i r M I AM AGENDA ITEM C 6"
E DATE l0 -!9- -u
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 City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: October 19, 2011
SUBJECT: 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. 22- 08/09, BETWEEN
THE CITY AND GERRITS CONSTRUCTION, INC., WHICH PROVIDES FOR
GERRITS TO ASSIGN THE JOC CONTRACT TO COASTLAND
CONSTRUCTION, INC.
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. 22- 08/09, for vertical construction projects, to the following contractors:
1. BDI Construction
2. Gerrits Construction
3. Harbour Construction
4. Matrix Construction
JOC Contract Assignment
October 19, 2011
Page 2 of 3
5. Team Contracting
On August 24, 2011, Gerrits Construction subsequently requested their JOC Contract be
assigned to Coastland Construction, Inc., see attachment A.
The City Attorney's Office opined that pursuant to Section 18.1 of Gerrits' JOC Contract,
assignment of Contract requires the written consent of the Mayor and City Commission. ,
Therefore, the City Manager must recommend for or against the assignment of contract.
ADMINISTRATION'S DUE DILLIGENCE
On August 30, 2011, the City's Public Works Director, CIP Director, and Procurement
Director interviewed Coastland's key personnel — Project Manager, Site Superintendents and
Cost Estimators, and they all agreed to recommend the assignment of contract based on
Coastland's construction experience and licenses /certifications; Coastland's understanding
of how the JOC process works; Coastland's track record of completing projects on time and
within budget; Coastland's performance evaluation surveys completed by their clients;
Coastland's understanding of the JOC contract's terms, conditions, and adjustment factors;
Coastland's current and projected workload; and their knowledge, skills and abilities relative
to construction projects.
On September 23, 2011, in an effort to further verify the qualifications of this contractor, CIP
staff conducted a comprehensive second interview with Coastland's president, Alejandro
Rodriguez. The second interview focused on identifying and keeping consistent with the
City's due diligence of determining the contractor's overall qualifications to conduct a typical
construction job and understanding the contractor's process under a JOC.
- The contractor displayed a comprehensive approach to starting a project by having
their project managers and superintendents pull their own permits. This is the
preferred approach over retaining an on site expeditor, because when walking
drawings through plans review, a contractor's familiarity with the drawings and
project allows him to answer questions that an expeditor may not know.
- The contractor utilizes Construction Management software (Primavera) to track a
project's progress and submittals.
- During the course of the job, the contractor constantly updates the Construction
Documents to ensure that they reflect as -built conditions from start to end. This
facilitates the production of As- Builts at completion of the job.
- Furthermore, the contactor was asked to provide Certificates of Occupancy for
completed projects as well as a close out manual from a previous job, demonstrating
their knowledge of close out procedures.
- Coastland currently holds a GC license, license number CGCO57347 and roofing
license, license number CCCO57204 both since 1994.
- Coastland has a bonding capacity of $8 million which exceeds the required $2 million
under JOC vertical contract.
- Coastland has been in business for 10 years.
- To date, Coastland's largest project in terms of scope and dollar value is the
Sunshine Lakes Apartment Expansion Project in Coral Gables completed 4 months
early under an original 18 month duration. The budget for the job was $7,643,000.00
and the project was completed for $7,271,666.00.
JOC Contract Assignment
October 19, 2011
Page 3 of 3
Attached please find Coastland's list of completed projects, attachment B; the resumes of
their key personnel, attachment C; their performance evaluation surveys, attachment D; and
Certificates of Occupancy for twelve (12) of their completed projects, attachment E.
KEY POINTS OF ASSIGNMENT
1. The Consent to Assignment and First Amendment to the JOC Contract, will have an
effective date of October 19, 2011, and remain in effect throughout the remainder of
the current term of the JOC Contract, scheduled to expire July 14, 2014.
2. Gerrits will continue to honor and maintain all required warranties and responsibilities
for previously completed projects and any ongoing project with the City, as of
October 19, 2011.
3. Gerrits' Performance and Payment Bonds will remain in effect for one year after the
date of acceptance of all completed work.
4. Coastland agrees to be bound by all legal terms and conditions, responsibilities, and
pricing of the JOC Contract.
5. Coastland 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. Coastland 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. Coastland 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.
Attachment F, the 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. 22 -08/09 from Gerrits Construction, Inc., to Coastland
Construction, Inc.
Attachments:
Attachment A - Mr. David Gerrits, email requesting his JOC Contract be assigned to
Coastland Construction.
Attachment B - Contractor's list of completed projects
Attachment C - Contractor's resumes of key personnel
Attachment D - Contractor's performance evaluation surveys
Attachment E - Certificates of Occupancy for (12) completed projects
Attachment F - Consent to Assignment
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