LTC 291-2012 Status of Contracts MIAMBEACH
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OFFICE OF THE CITY MANAGER 2012 NOV. 1 1 4 rl 10: 0 6
LTC #i 291 -2012 LETTER TO Co?VM8816A FF ICiE
TO: Mayor Matti Herrera Bower and Members of the City Co mission
FROM: Kathie G. Brooks, Interim City Manager •
DATE: November 13, 2012
SUBJECT: Status of Contracts between CMB and ContractorsNendors Named in 10/19/12 Affidavit
in of Arrest Warrant for Former Procurement Director Gus Lopez
The purpose of this LTC is to update the Mayor and City Commission on the status of Contracts
between CMB and ContractorsNendors Named in 10/19/12 Affidavit in Support of Arrest Warrant
for Former Procurement Director Gus Lopez
On October 23, 2012, Letter to Commission (LTC) No. 270 -2012 provided the City Commission with
information regarding the recent arrest of the City's Former Procurement Director and the Affidavit in
Support of the Arrest Warrant (Affidavit).
Since then, the City Administration has reviewed the City's current contracts with the vendors and /or
contractors named in the Affidavit. The following steps have already been taken:
JOB ORDER CONTRACTS (JOC) PROJECTS
The following actions have been taken in regard to JOC projects:
1. The City has ceased the assignment of projects and issuance of any new purchase orders
for any Job Order Contracts (JOC).
2. Current JOC projects with purchase orders assigned to contractors other than these named
in the Affidavit are continuing, unless otherwise recommended by the user department.
3. Projects assigned to contractors other than those named in the Affidavit, which had not yet
had a purchase orders issued will be cancelled and the City will issue Invitation to Bids
(ITBs).
4. Projects assigned to contractors named in the Affidavit are included on Appendix "A" and are
under review.
5. The City is developing a process and seeking alternatives for the prequalification of firms to
be used for smaller projects and on as needed basis for which the City predominately used
JOC (electrical, mechanical, building trades, etc.).
Where necessary, the City has continued to contract for certain services (formerly contracted
through JOC) via the emergency. procurement or piggyback procedures available under the City
Code. To that end, the City has already:
• Prepared Amendment No.1 to the contract between the City and Underpower to add street
lighting repairs to non -FDOT lights to the scope of services;
FDOT is currently doing three (3) milling and resurfacing projects in the City: Collins Avenue; Lincoln
to 26 St; 41 st St. project; and Harding Avenue project. On these contracts, the City is responsible to
placing utility covers at correct elevations prior to the final lift of asphalt. Additionally, the City is
responsible to relocate or replace fire hydrants to FDOT standards.
Because these projects were time sensitive and would have been awarded to JOC contractors, the
City has instead utilized the emergency procurement procedures (City Code Section 2 -396). In this
case, we have used the competitively solicited FDOT contracts for paving on each of the projects.
• Prepared contract in the amount of $45,350 with General Asphalt Co., which is the FDOT
contractor on the Collins Avenue Lincoln to 26 St. project.
• Prepared contract in the amount of $21,675 with General Asphalt Co. which is the FDOT
contractor on the 41 st St. project.
• Prepared contract in the amount of $8,800 with Weekley Asphalt Inc., which is the FDOT
contractor on the Harding Avenue project.
The City contracted Lanzo Construction to perform road reconstruction services in response to the
63 Street water main blow -up which occurred on November 1, 2012. Lanzo is a FDOT contractor
and was the only City contractor that performs this type of work not named in the Affidavit.
OTHER CONSTRUCTION PROJECTS
Since most of the affected City contracts with contractors named in the Affidavit are for the provision
of construction services, the Interim City Manager has met with the Capital Improvement Projects
(CIP) Office and Public Works Department and requested that they provide a list of any current
contracts with any of the contractors named in the Affidavit, as well as any immediately foreseeable
competitive selections (i.e. ITB's, RFP's, and /or RFQ's) where it is anticipated that one of more of
the named contractors may submit a response. To that end, the City has already:
• Postponed the Bid Opening pursuant to ITB#49 -11/12 for the Right -of -Way Infrastructure
Improvement Program for Venetian Islands Bid Package 13 C;
• Terminated for convenience the contract with Trans Florida Development Corp for Bayshore
Neighborhood Bid Package 8B — Lower North Bay Road.
Exhibit "A" presents a list of current construction projects with contractors named in the Affidavit,
both JOC and for traditionally bid contracts, which are under review.
Exhibit "B" presents a list of construction projects which the City will need to issue bids for in.the
upcoming months.
NON CONSTRUCTION PROJECTS
• The Administration has reviewed the Miami -Dade County contract with GRM Information
Management Services for records management services to piggyback from said contract
and rescind the current purchase authority which authorized the utilization of the contract
that IDD has with the Department of Children and Families. The Administration is preparing
an analysis for the City Manager's review.
• Pursuant to the City Commission's direction at its October 24, 2012 meeting, the City
rescinded the award of a new contract to Security Alliance, and has contacted Security
Alliance to advise them of the same, as -well as to secure a month to month extension under
their current contract. Security Alliance has advised the City that it is amenable to the month
to month extension, provided the City approves an increase in Security's hourly rates,
consistent rate with the Living Wage increase adjustment. This request is under review by
the Administration. The City is also preparing a new RFP for security guard services.
' l
I
In addition and as requested by the City Commission on October 24, 2012, the City Attorney's Office
has prepared an amendment to the Debarment Ordinance which will provide additional grounds for
debarment, as well as suspension, of City contractors. First reading of the proposed amendment will
be at the November 14, 2012 Commission Meeting.
Finally, with respect to the City Commission's directive on October 24, 2012 that the City Attorney's
Office proceed with looking into possible debarment of any or all of the contractors /vendors named
in the Affidavit, the investigatory documents in custody of the State Attorney's Office regarding the
Lopez's criminal investigation are still, as of the date of this LTC, exempt from disclosure. These
materials are expected to become public record by the end of November.
Thank you.
C: Patricia D. Walker, Chief Financial Officer
Raul J. Aguila, Chief Deputy City Attorney
Rafael Granado, City Clerk
F: \PURC \$ALL \Maria \LTC \LTC on Status of Contracts Named in the Affidavit (1).doc
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