2013-28436 Reso RESOLUTION NO. 201.3-28436
RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
CITY MANAGER PERTAINING TO THE RANKING OF FIRMS, PURSUANT TO
REQUEST FOR PROPOSALS (RFP) NO. 305-2013-TC FOR DESIGN/BUILD
SERVICES FOR RIGHT-OF-WAY INFRASTRUCTURE IMPROVEMENT
PROGRAM NO. 8B - LOWER NORTH BAY ROAD; AND FURTHER
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN
AGREEMENT FOR DESIGN/BUILD SERVICES WITH PREVIOUSLY
APPROPRIATED FUNDING, AND FUTURE APPROPRIATION THROUGH A
CAPITAL BUDGET AMENDMENT TO THE CAPITAL BUDGET FOR FISCAL
YEAR 2013/2014.
WHEREAS, Requests for Proposals No. 305-2013TC, for Design-Build Services for
the Neighborhood No. 8B - Lower North Bay Road Right of Way Improvement Project (the
RFP) was issued on July 18, 2013, with an opening date of September 10, 2013; and
WHEREAS, a pre-proposal conference was held to provide information to prospective
proposers was held on August 6, 2013; and
WHEREAS, the Public Group and Bidnet issued bid notices to 480 prospective
proposers of which; in addition, 158 vendors were notified via email, which resulted in the
receipt of two (2) proposals from the following firms: Central Florida Equipment Rentals, Inc.,
and Ric-Man International, Inc.; and
WHEREAS, after the Administration's review of the proposals received, Central Florida
Equipment Rentals, Inc. has been ranked as the best proposal by the Evaluation Committee;
and
WHEREAS, after considering the review and recommendation of City staff, the City
Manager exercised his due diligence and carefully considered the specifics of this RFP process
and recommends to the Mayor and City Commission to award the construction contract to
Central Florida Equipment Rentals, Inc. and authorize the Administration to engage in value
engineering to further reduce the cost and time for completion of said project.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby
accept the recommendation of the City Manager pertaining to the ranking of firms, pursuant to
Request for Proposals (RFP) No. 305-2013TC for Design/Build Services for Right-of-Way
Infrastructure Improvement Program No. 8B - Lower North Bay Road; and further authorizing
the Mayor and City Clerk to execute an Agreement for design/build services with previously
appropriated funding, and future appropriation through a Capital Budget amendment to the
Capital Budget for Fiscal Year 2013/2014.
PASSED AND ADOPTED THIS DAY OF kemPtr2013.
ATTEST:
Rafael ranado, CLERK �y hilip Levi R D AS T4
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IN me Date
COMMISSION ITEM SUMMARY
Condensed Title:
Resolution Of The Mayor And City Commission Of The City Of Miami Beach Florida,Accepting The Recommendation Of The City
Manager Pertaining To The Ranking Of Firms,Pursuant To Request For Proposals(RFP)No.305-2013-TC For Design/Build Services
For Right-Of-Way Infrastructure Improvement Program No.8b—Lower North Bay Road;And Further Authorizing The Mayor And City
Clerk To Execute An Agreement For Design/Build Services With Previously Appropriated Funding,And Future Appropriation Through A
Capital Budget Amendment To The Capital Budget For Fiscal Year 2013/2014 To Be Presented At The December 11,2013 Commission
Meeting.
Key Intended Outcome Supported:
Maximize efficient delivery of services
Supporting Data(Surveys,Environmental Scan,etc:The 2009 Customer Satisfaction Survey indicated that 79%of
businesses rated recently completed capital improvement projects as"excellent"or"good."
Item Summa /Recommendation:
On July 18,2013,the Administration issued Request for Proposals(RFP)No.305-2013TC for Design-Build Services
for the Neighborhood No.8B—Lower North Bay Road Right of Way Improvement Projects.The Project limits consist of
the North Bay Road corridor, including Chase Avenue, bounded by Sunset Drive to the south, Biscayne Bay to the
west,and Alton Road to the east and north,including those intersections within the aforementioned project limits,from
II
Biscayne Bay to Alton Road.
The Design/Build Firm(DBF)will be responsible for the design,permitting,construction,construction management,and
resident project representative services associated with earthwork, roadway, pavement restoration, sidewalk re-
construction,water main and water services installation,sanitary sewer lining,storm drainage infrastructure installation,
streetlight wiring upgrades, and streetscape/planting improvements for Neighborhood 8B—Lower North Bay Road
Improvement Project.A DCP has been prepared by the City's Public Works Department which defines the necessary
modifications, updates,and additions to the existing CH2M HILL construction drawings and technical specifications.
The DBF will also provide a new full right-of-way utility location and topographic survey and integrate the necessary
changes into the base maps for the design.The updated drawings will also reflect"lessons learned"and improvements
added by past and current projects.
Notice of the RFP was issued to 480 firms through the City's e-procurement systems. In addition, 158 vendors were
notified via email of the RFP.A total of 41 firms accessed the solicitation,which resulted in the receipt two(2)proposals
from Central Florida Equipment Rentals,Inc.and Ric-Man International,Inc.Through the Procurement Division's review
of each proposal for responsiveness, both firms were deemed responsive pursuant to the requirements of the
Solicitation.On September 24,2013,the Committee convened to review and discuss the responsive proposals.The
Committee evaluated each proposal based on the criteria noted in the RFP and resulting in the following ranking:
• 1s`Ranked: Central Florida Equipment Rentals, Inc.
• 2nd Ranked: Ric-Man International, Inc.
RECOMMENDATION
In accordance with the recommendation of the Committee and the due diligence review by the City Manager, the
Administration recommends that the Mayor and City Commission adopt a resolution to authorizing the Administration to
enter into negotiations with the top-ranked firm,Central Florida Equipment Rentals,Inc.;and should the Administration
not be able to successfully negotiate an agreement with the top-ranked firm,authorizing the Administration to negotiate
with the second-ranked firm, Ric-Man International, Inc.
Advisory Board Recommendation:
Financial Information:
Source of Amount Account
Funds: 1 127,404 Fund 304-2326-069357-Capital Reserve
2 425,872 Fund 384-2326-069357-2003 GO Bonds
3 432,468 Fund 420-2326-069357-Water&Sewer GBL Series 2010
4 632,957 Fund 423-2326-069357-Water&Sewer(Gulf Breeze)Series 2006
5 193,171 Fund 423-2326-061357-Water&Sewer(Gulf Breeze)Series 2006
6 885,161 Fund 424-2326-069357-Water&Sewer 2000S
7 304,223 Fund 425-2326-069357-Water&Sewer
8 294,651 Fund 427-2326-069357-Stormwater Bonds
9 152,360 Fund 428-2326-069357-Stormwater Bonds
10 711,928 Fund 429-2326-069357-Stormwater LOC Reso
11 122,072 Fund 429-2326-061357-Stormwater LOC Reso
AGENDA ITEM 67
MIAMIBEACH 12--11-13
� DATE
12 3,102,887 Fund 431-2326-069357-2011 Stormwater Bonds
13 316,756 Fund 431-2326-061357-2011 Stormwater Bonds
The following are subject to future appropriation:
14 35,672 Fund 302-2321-000356-Pay-As-You-Go-Capital Fund
15 59,422 Fund 302-2321-061357-Pay-As-You-Go-Capital Fund
16 69,906 Fund 302-2325-069357-Pay-As-You-Go-Capital Fund
17 691,355 Fund 304-Capital Reserve
18 371,283 Fund 424-2205-069357-Water&Sewer 2000S
19 1,532 Fund 428-2330-069357-Storm Water Bonds-Phase I
�I
20 22,433 Fund 428-2330-069355-Storm Water Bonds-Phase 1
21 2,556 Fund 428-2329-069357-Storm Water Bonds-Phase I
22 50,804 Fund 428-2329-069355-Storm Water Bonds-Phase I
23 390,669 Fund 431-2329-061357—2011 Stormwater Bonds
OBPI Total 9,397,542
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
David Martinez,ext. 6972
Sign-Offs:
Repartmel ector Assis t City r City anager
AD DM KGB M T JLM
T\ A\2013December 11\RFP 2013-185 P25 Mobile R dio System Consulting Services-Summary.doc
MIAMI BEACH
City of Miami Beath, 1700 Convention Center Drive, Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Philip Levine and Members of the ity Commission
FROM: Jimmy L. Morales, City Manager
DATE: December 11, 2013
SUBJECT: RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY
MANAGER PERTAINING TO THE RANKING OF FIRMS, PURSUANT TO REQUEST
FOR PROPOSALS (RFP) NO. 305-2013-TC FOR DESIGN/BUILD SERVICES FOR
RIGHT-OF-WAY INFRASTRUCTURE IMPROVEMENT PROGRAM NO. 8B —
LOWER NORTH BAY ROAD; AND FURTHER AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE AN AGREEMENT FOR DESIGN/BUILD SERVICES
WITH PREVIOUSLY APPROPRIATED FUNDING, AND FUTURE APPROPRIATION
THROUGH A CAPITAL BUDGET AMENDMENT TO THE CAPITAL BUDGET FOR
FISCAL YEAR 2013/2014 TO BE PRESENTED AT THE DECEMBER 11, 2013
COMMISSION MEETING.
ADMINISTRATION RECOMMENDATION
Adopt the resolution.
KEY INTENDED OUTCOME SUPPORTED
Ensure well-designed quality capital projects
FUNDING
Funding in the amount of$7,701,910 has been previously appropriated in the Capital Budget as
follows:
Construction Cost including Contingency:
$ 127,404 Fund 304 - Capital Reserve
$ 425,872 Fund 384 - 2003 GO Bonds
$ 432,468 Fund 420 -Water & Sewer GBL Series 2010
$ 632,957 Fund 423 -Water & Sewer (Gulf Breeze) Series 2006
$ 193,171 Fund 423 -Water & Sewer (Gulf Breeze) Series 2006
$ 885,161 Fund 424 -Water & Sewer 2000S
$ 304,223 Fund 425 -Water & Sewer
$ 294,651 Fund 427 - Stormwater Bonds
$ 152,360 Fund 428 - Stormwater Bonds
$ 711,928 Fund 429 - Stormwater LOC Reso
$ 122,072 Fund 429 - Stormwater LOC Reso
$ 3,102,887 Fund 431 - 2011 Stormwater Bonds
$ 316,756 Fund 431 - 2011 Stormwater Bonds
$ 7,701,910
City Commission Memorandum—Design/Build Services—Lower North Bay Road ROW Improvements RFP
December 11, 2013
Page 2 of 6
New Appropriations:
$ 35,672 Fund 302 - Pay-As-You-Go Capital Fund
$ 59,422 Fund 302 - Pay-As-You-Go Capital Fund
$ 69,906 Fund 302 - Pay-As-You-Go Capital Fund
$ 691,355 Fund 304 - Capital Reserve
$ 371,283 Fund 424 -Water & Sewer 2000S
$ 1,532 Fund 428 - Storm Water Bonds — Phase 1
$ 22,433 Fund 428 - Storm Water Bonds — Phase 1
$ 2,556 Fund 428 - Storm Water Bonds — Phase 1
$ 50,804 Fund 428 - Storm Water Bonds — Phase 1
$ 390,669 Fund 431 —2011 Stormwater Bonds
$ 1,695,632
BACKGROUND
On April 9, 2003, the City Commission approved the Basis of Design Report (BODR),
completed and submitted by CH2MHill for the Neighborhood No. 8 Bayshore/ Sunset Islands
Project. This BODR was the culmination of a comprehensive planning effort that included input
and reviews by residents, various City Departments, and the Design Review Board (DRB).
Invitation to Bid No. 2-09/10 was issued on November 25, 2009. The bid opening date was
February 8, 2010. Since the City was experiencing some difficulty acquiring the necessary
permits to continue with the project due to regulatory agencies taking a stricter
approach/interpretation of the anti-degradation policy of Biscayne Bay, the bid opening was
postponed until the dewatering permit issue could be resolved.
Bids were reopened on October 18th, 2010. On November 18, 2010, the Technical Review
Panel (TRP), as well as support staff from the Design Engineer of Record CH2M Hill, convened
to review, evaluate, and rank the bids submitted for the Lower North Bay Road Infrastructure
Improvement Project Neighborhood 8B.
On December 8, 2010, the Mayor and City Commission adopted Resolution No. 2010-27567,
approving a contract award with Trans Florida Development Corporation (TFDC), pursuant to
Invitation to Bid No. 2-09/10, for the construction of the Right-of-Way Infrastructure
Improvement Program Bayshore Neighborhood No. 8B, Lower North Bay Road project.
On February 7, 2011, shortly after construction contract award, a memorandum was presented
by William Goldsmith to the members of CIPOC, City Commissioners, Public Works, the City
Manager, and the Lower North Bay Road Homeowner's Association (HOA) summarizing a
preliminary review of the project and requesting several upgrades to the existing plans.
On August 18, 2011, Notice to Proceed 1 (NTP-1)was issued to Trans Florida.
On December 5, 2011, the CIP Office held a Pre-Construction Meeting in anticipation of a
ground breaking in January, 2012. Owner Departments as well as utility companies (FPL,
Sprint, AT&T, and Atlantic Broadband) attended the meeting.
On February 2, 2012, during the time the contractor was securing their final right of way and
dewatering permits and prior to the issuance of the Second Notice to Proceed (NTP-2), CIP
received additional comments from PWD which required further design analysis from the
City Commission Memorandum—Design/Build Services—Lower North Bay Road ROW Improvements RFP
December 11, 2013
Page 3 of 6
engineer of record. The project was put on a temporary "hold" status while the review was
taking place.
On April 16, 2012, a Technical Memorandum was provided by the engineer of record to Public
Works which finalized and closed out the comments and the need for any additional plan
revisions.
As a result of the requested improvements by the HOA, additional comments received by PWD,
as well as incurred delays by the contractor in providing the adequate documentation to issue
NTP-2, the project incurred delays.
As a result of these delays, on May 30, 2012, the contractor sent notification to the City that due
to recent price escalations from their vendors they would not be able to honor the original
Contract price.
On July 9, 2012, the Administration presented the aforementioned revisions which included the
additional scope and the contractor's proposal for increase in material and labor prices resulting
P P P P
from the Contractors claim of a delayed start of construction. Staff requested funding to the
Finance & Citywide Projects Committee. On September 27, 2012 the City Commission
approved additional funding to the Capital Budget 2013 in the amount of $828,643 for the cost
increases and additional scope as related to improvements requested by Public Works
Department and in material escalation cost. On September 28, 2012, NTP #2 was issued to
TFDC.
In October, 2012, the State Attorney Office issued the Affidavit in Support of his Arrest Warrant
(Affidavit) in support of the arrest of former procurement director, Gus Lopez, which was
transmitted to the City Commission via Letter to Commission (LTC). Subsequent the issuance of
the Affidavit, City Administration decided to review the City's existing contracts with those
vendors and/or contractors named in the Affidavit, which included TFDC. The review resulted in
a termination for convenience of the TFDC agreement.
Subsequent to the termination of the TFDC agreement, and because the original desi n for the
q g 9
Lower North Bay Road project was completed several years ago, staff determined it would be
prudent to re-evaluate and update this design, using the recently completed Storm Water
Management Master Plan, along with the criteria established with the updated 'Storm Water
Design Guidelines' as provided by the Public Works Department.
After reviewing various options for contracting of the final design and construction services, it
was determined that the best course of action would be to proceed as a design-build project to
achieve the necessary updates for the Lower North Bay Road improvements. The design-build
model has inherent flexibility and lends itself well to incorporating additional scope without
significantly impacting the projected schedule for commencement of this project.
On July 18, 2013, the Administration issued Request for Proposals (RFP) No. 305-2013TC for
Design-Build Services for the Neighborhood No. 8B — Lower North Bay Road Right of Way
Improvement Projects.
The Project limits consist of the North Bay Road corridor, including Chase Avenue, bounded by
Sunset Drive to the south, Biscayne Bay to the west, and Alton Road to the east and north,
including those intersections within the aforementioned project limits, from Biscayne Bay to
Alton Road.
The Design/Build Firm (DBF) will be responsible for the design, permitting, construction,
construction management, and resident project representative services associated with
earthwork, roadway, pavement restoration, sidewalk re-construction, water main and water
services installation, sanitary sewer lining, storm drainage infrastructure installation, streetlight
City Commission Memorandum—Design/Build Services—Lower North Bay Road ROW Improvements RFP
December 11, 2013
Page 4 of 6
wiring upgrades, and streetscape / planting improvements for Neighborhood 8B — Lower North
Bay Road Improvement Project. A DCP has been prepared by the City's Public Works
Department which defines the necessary modifications, updates, and additions to the existing
CH2M HILL construction drawings and technical specifications.
The DBF will also provide a new full right-of-way utility location and topographic survey and
integrate the necessary changes into the base maps for the design. The updated drawings will
also reflect "lessons learned" and improvements added by past and current projects.
RFP PROCESS
Request for Proposals (RFP) No. 305-2013TC was issued on July 18, 2013, with an opening
date of September 10, 2013. The pre-proposal conference was held on August 6, 2013. During
the pre-proposal conference, prospective bidders were instructed on the procurement process
and the information their respective proposals should contain.
Notice of the RFP was issued to 480 firms through the City's e-procurement systems. In
addition, 158 vendors were notified via email of the RFP. A total of 41 firms accessed the
solicitation, which resulted in the receipt of the following two (2) proposals:
• Central Florida Equipment Rentals, Inc.
• Ric-Man International, Inc.
Through the Procurement Division's review of each proposal for responsiveness, both firms
9 P P P
were deemed responsive pursuant to the requirements of the Solicitation.
On September 18 2013 the City Manager via Letter to Commission LTC No. 342-2013,
i P Y 9 (LTC)
an Evaluation Committee the "Committee" consisting of the following individuals:
appointed ( ) 9 9
• Edward Baldie, Capital Projects Coordinator, CIP Office
• Mark Balzli, Resident and Lower North Bay Road Neighborhood Association Member
• Darlene Fernandez, Capital Projects Coordinator, CIP Office
• Douglas Seaman, Assistant City Engineer, Public Works
• Jason Hagopian, Resident and Design Review Board Committee Member
On September 24, 2013, the Committee convened to review and discuss the responsive
proposals. The Committee evaluated each proposal based on the following criteria noted in the
RFP:
• 15 Points - Qualifications of Contractor and Key Personnel
• 15 Points - Qualifications of Design Engineer/Key Personnel
• 10 Points - Understanding of the Project/Project Approach/Risk Assessment Plan
• 5 Points - Past Work Performance Evaluation Surveys
• 5 Points - Prior Work History as a Team
• 5 Points - Willingness to meet time and budget requirements as demonstrated by past
performance
• 5 Points - Certified disadvantaged business enterprise (DBE) participation. Either the
Prime Consultant or the sub-Consultant team may qualify for proof of DBE
certification. Accepted DBE certifications include the Small Business
Administration (SBA), State of Florida, or Miami-Dade County
• 5 Points— Location
• 5 Points— Recent, current, and projected workloads of the firms
• 5 Points—The volume of work previously awarded to each firm by the City
City Commission Memorandum—Design/Build Services—Lower North Bay Road ROW Improvements RFP
December 11, 2013
Page 5 of 6
Upon completion of the interviews, the Committee discussed each prospective proposer's
qualifications, experience, and competence to score and rank the firms as provided in Table 1.
The Committee recommended that the Administration enter into negotiations with the top-
ranked firm, Central Florida Equipment Rentals, Inc.; and should the Administration not be
able to successfully negotiate an agreement with the top-ranked firm, authorizing the
Administration to negotiate with the second-ranked firm, Ric-Man International, Inc.
Table 1: RFQ 305-2013TC Evaluation Committee Results
Baldie Balzli Fernandez Hag o ian Seaman Aggre-
Raw Raw Raw Raw Raw gate
Score Rank Score Rank Score Rank Score Rank Score Rank Rankn
Central Florida
Equipment
Rentals, Inc. 93 1 93 1 90 2 91 1 85 2 7
Ric-Man
International, Inc. 92.94 1 85.94 2 94.94 1 87.94 2 91.94 1 8
It is important to note that pricing in both proposals received are approximately 24% above the
estimated budget for the probable design-build cost. Staff attributes this to a number of
underlying factors that were not considered in the original design:
• The cost to design and reconstruct the 291h Street seawall was never included in the
original budget for this project. The new bid proposals reflect this new scope, including
additional costs for any restoration and adjustments of any features and utilities affected
during construction. Such components include asphalt pavement, outfall pipes, storm
water discharge aprons, and security guard housing.
• The new design criteria takes into consideration the (currently unknown) cost to
harmonize an undetermined amount of driveways in order to alleviate the flooding
conditions on private property. Driveways are to be interfaced with the improvements in
the right-of-way to maximize conveyance of storm water into the drainage system. This
`harmonization' was never included in the original budget for this project. There is no
way of determining which driveways in this neighborhood will warrant harmonization until
a proper topographic survey is performed.
Additional funding was previously requested and approved toward the estimated probable
construction cost for Lower North Bay Road. However, the approved amount will not sufficiently
cover the necessary additional storm water components of this project. The more stringent
requirements as outlined by both the Design Criteria provided by the Public Works Department
and the 2011 Storm Water Master Plan resulted in a much greater construction cost than Staff
anticipated. Furthermore, when combining the fact that market conditions have steadily been
escalating, along with the careful evaluation of the aforementioned factors above, this
administration is of the opinion that the current bids are competitive, fair, and reasonably priced.
CITY MANAGER'S DUE DILIGENCE/CONCLUSION
After considering the review and recommendation of the Committee, the City Manager
exercised his due diligence and carefully considered the specifics of this RFP process. Two
important factors were critical in the City Manager's due diligence: 1) the integrity and 2)
financial capacity of the responding firms.
Of particular interest in the City Manager's review was the fact that one of the firms, Ric-Man
International, was also named in the Affidavit. In this matter, the City Manager appointed Robert
Meyers, former director of the Miami-Dade County Commission on Ethics, to review the
particulars of the Affidavit with regard to Ric-Man International. Mr. Meyers has concluded that
City Commission Memorandum—Design/Build Services—Lower North Bay Road ROW Improvements RFP
December 11, 2013
Page 6 of 6
he has found "no significant character or integrity issues exist within the existing configuration of
RMI (Ric-Man International) among its current owners or employees that should disqualify the
company from doing business with the City or would hamper RMI's ability to perform in
accordance with contract requirements dictated by the City of Miami Beach." A copy of the
report prepared by Mr. Meyers with regard to Ric-Man International being named in the Affidavit
is attached.
The other important matter considered in the due diligence review by the City Manager was the
financial capacity of the firms. In this regard, the City utilizes the Dun & Bradstreet (D&B)
Supplier Qualifier Report, which provides an overview of the financial capacity of each firm and
the likelihood (risk score) that the firm may encounter financial restrictions that would impede its
ability to successfully carry out its contractual obligations. While the D&B information noted Ric-
Man International as a medium risk supplier, the D&B information for Central Florida originally
indicated that firm as a high risk supplier. However, Central Florida has addressed certain
matters with D&B that may have led to the high risk score, significantly improving its score to a
medium risk score.
Accordingly, it has been determined that both firms are qualified to perform the required
services. Nonetheless, Central Florida has been top-ranked by the Committee and has
proposed a slightly lower cost for the project.
CONCLUSION
Based on the Committee recommendation and the City Manager's due diligence, the City
Manager recommends award of the contract to Central Florida. Additionally, based on the
information and opinion provided by Mr. Meyers on the attached report relative to the Ric-Man
International being named in the Affidavit, the City Manager recommends consideration of Ric-
Man International on future solicitations contingent upon compliance with solicitation
requirements and the results of evaluations of qualifications, proposed scope and cost.
RECOMMENDATION
As a result, the City Manager recommends that the Mayor and City Commission adopt a
resolution authorizing the Administration to enter into negotiations with the top-ranked firm,
Central Florida Equipment Rentals, Inc.; and should the Administration not be able to
successfully negotiate an agreement with the top-ranked firm, authorizing the Administration to
negotiate with the second-ranked firm, Ric-Man International, Inc.
ATTACHMENTS
• Attachment A— Ric-Man International Report
• Attachment B — Bid Tally for RFQ 305-2013TC — Design/Build Services for Right-of-Way
Infr tructure Improvement Program No. 8B — Lower North Bay Road
JLM/MT/ /DM/AD
T:\AGENDA\2013\July 17\RFP Issuance for Design-Build for Lower North Bay Road-MEMO.doc
Weiss Serota Helf nan Pastoriza Cole
& Boniske, P.L.
Memo
To: Alex Denis,Procurement Director, City of Miami Beach
From: Robert Meyers,Esq.
i
Date: November 21, 2013
Re: Ric-Man International Report
Introduction:
The Office of the City Manager retained my services to conduct investigations and prepare
reports concerning the actions and conduct of each of the sixteen contractors named in the
Affidavit in Support of Arrest Warrant of former Procurement Director Gus Lopez and Pierre
Landrin (principal of Almani Marketing). Pursuant to your direction, I will consider the case
against Ric-Man International (hereinafter "RMI") first. Before I offer my findings and
recommendations concerning RMI, I will set forth the framework for analyzing the actions of all
contractors, which will be applied to all of the reports I file with the City. As I understand it,
neither RMI nor any of the other contractors identified in the Arrest Warrant have been charged
with any criminal wrongdoing in connection with the Gus Lopez and Pierre Landrin arrests.
Please be advised it is not within the scope of my inquiry to consider the relative strengths or
weaknesses of possible criminal charges against RMI or its principals in this report. Rather, my
recommendation will fall into one of three categories:
1) No significant character or integrity issues exist within a company that would hamper
its ability to perform in accordance with the contract requirements dictated by the
City of Miami Beach.
2) Questionable ethical and integrity issues exist among the principals and employees of
the company that would suggest the company should be deemed non-responsive and
the City should not transact business with said company.
3) Serious ethics breaches and major integrity issues existed with the current ownership
and employees when dealing with the City of Miami Beach which would warrant a
finding that the City Manager should initiate debarment proceeding against such a
company.
My recommendations will be based on my examination of the following local ordinances: 1)
Section 2-369 of the Miami Beach City Code; 2) Section 2-481 et.seq. of the Miami Beach City
Code ("City Lobbying Ordinance; 3) Section 2-486 of the Miami Beach City Code "Cone of
Silence"); 4) Section 2-446, et. seq. of the Miami Beach City Code (City Ethics Ordinance) and
5 Section 2-11.1 of the Miami-Dade County ode("County Ethics Ordinance"
tY ( tY )
Back r
Since much of alleged corruption and criminal activity occurred within the JOC Program, it is
important to summarize the program and the City's rationale for opting for this contracting
system. In a somewhat ironic twist, the City stated in a 2001 resolution that the purpose behind
issuing the Request for Proposal (RFP) was to establish a Job Ordering Contracting (JOC)
system "to more rapidly engage contractors, while lowering costs and strengthening internal
controls." In 2002, the City created the JOC program and entered into an agreement with the
Gordian Group to manage the program and oversee the contractors. These contracts would range
from several thousand dollars to multi-million dollar capital projects. The original JOC program
was limited to horizontal and vertical construction projects and was later expanded to include
streetscapes, electrical, mechanical,painting/waterproofing and roofing. The JOC program grew
substantially over several Invitations to Bid (ITB) to the point where the Gordian Group was
expected to manage the thirty-one contractors over the seven general categories.
The principal advantage of the JOC program was to establish an expedited process to enable the
City to receive quick responses in the form of bids or quotes from the prequalified companies.
Although deadlines were established when the City need to bid a new project, a company could
deliver a bid by e-mail, fax or hand-delivery— a process considerably less formal than the RFP,
RFQ or ITB processes. In a nutshell, the City would issue an ITB wherein companies would
compete to be placed on a list to respond to projects that the city needed to complete. Once
prequalified, the City would only be permitted to request quotes or bids from the prequalified
companies. The City had the discretion to seek quotes or bids from one or more of the
prequalified companies, except for projects in excess of$1 million dollars. For such projects, the
City mandated that bids had to be received by at least three companies on the list. It should be
noted that none of the ITBs for the JOC program specified the process for assigning work or
equalizing work distribution among the pre-qualified companies. As a result of the fallout from
the arrests of Gus Lopez and Pierre Landrin and the naming of sixteen city contractors in the
Arrest Warrant, the JOC Program was shelved in late 2012
Landrin-Lopez Arrest Warrant and RMI
According to the Affidavit in Support of Arrest Warrant dated October 19, 2012, RMI allegedly
entered into an agreement with Almani Marketing whereby RMI would pay Almani an initial fee
of$3,000; a fee of$5,000 if RMI was placed on the list of pre-qualified companies under the
Horizontal JOC Program 23-08/09 and then a payment of 1% of all payments received by the
company in connection with work performed under this contract. The agreement was for
consulting services Almani provided RMI to assist in preparing the bid in response to the 2008
JOC ITB. RMI was selected as one of the companies prequalified to perform work under the
Horizontal contracting category and entered into an agreement with the City on August 26,2009.
According to the arrest affidavit and records the company has shared with me, RMI paid Almani
in excess of$80,000 from August of 2009 to August 2010. According to Section 2-485.3 of the
Miami Beach City Code, no person or entity may pay, give or agree to pay or give a contingency
fee to another person. A contingency fee is defined as a fee, bonus, commission or other
nonmonetary benefit as compensation which is dependent on or in any way contingent on the
passage defeat, or modification of. an ordinance, resolution, action or decision of the city
commission; any action, decision or recommendation of the city manager or any city board or
committee; or any action, decision or recommendation of city personnel during the time period
of the entire decision-making process regarding such action, decision or recommendation which
foreseeably will be heard or reviewed by the city commission, or a city board or committee.
Under the circumstances,the arrangement that Almani Marketing reached with RMI violated this
section of the City's lobbying ordinance because a sizable portion of Almani's fees were tied to
the award of contracts by the City Commission or City personnel. Moreover, this arrangement
would also violate Section 2-11.1(s) of the Miami-Dade County Code. It is undisputed that
Almani Marketing was paid in this fashion and a case could be made against Pierre Landrin of
Almani Marketing that he engaged in unregistered lobbying as well. According to an
examination of the records produced by the Miami Beach City Clerk, there is no record of
Almani Marketing or Pierre Landrin ever having registered to lobbying on behalf of RMI.
Further, there is sworn testimony that Landrin attempted to influence the Gordian Group when a
dispute arose between RMI and the Gordian Group. More significantly, it is clear from the
statements reviewed that Landrin encouraged and advocated for this client and "lobbied" his
business partner, the former City of Miami Beach Procurement Director, on behalf of RMI.
Overview of RMI
Essentially, there are three companies owned or controlled by Mancini siblings doing business
with the City of Miami Beach — RMI, DMSI and Ric-Man Construction. For purposes of this
report, the focus will begin in the year 2002 when the family agreed to give David Mancini a
50% ownership interest of RMI and the other 50% was split evenly between Lisa and Paul
Jankowski(David's sister and brother-in-law.) According to sworn testimony, RMI began to bid
on projects (prior to JOC) with the City of Miami Beach in 2004 with David Mancini acted as
the point person on these Miami Beach matters because of his experience in the field. It is
unconverted that David Mancini would not consult with his partners when deciding to bid on
Miami Beach work. Fast forward to 2010, and after much acrimony, David Mancini's interest in
RMI was bought out in October 2010, at which time Lisa and David became 100%owners of the
company. Parenthetically, David Mancini formed DMSI, a rival company to RMI, and it has
been successful in doing business with the City of Miami Beach.
By any definition, RMI has been quite successful securing work under the JOC program. Based
on records prepared by the City, RMI received twenty-nine JOC contracts worth approximately
$12.5 million (between 2008 and October 2010) before David Mancini left the company and
another 30 contracts worth in excess of$2.6 million (between October 2008-2013) when Paul
and Lisa Jankowski assumed 100%ownership of the company.
2009–present ,RMI, Pierre Landrin and Almani Marketing)
According to my interview with Lisa Jankowski on November 11, 2013, she stated that she has
never met Pierre Landrin and only learned of the payments to Almani and the specifics of the
City of Miami Beach JOC program after she hired a forensic accountant to examine the books
and records after her brother's departure from RMI. Moreover, according to the company's
records there were no payments to Almani Marketing after August 11, 2010. Disputes between
David Mancini and Lisa and Paul Jankowski can be traced back to 2009,but the most significant
events were David Mancini's letter of resignation dated on or about September 15, 2010 and his
last day in the office on October 8,2010.
In the most compelling evidence documenting the Jankowskis' lack involvement with Pierre
Landrin and Almani Marketing comes from David Mancini's response to a question posed to
him during his sworn statement on August 29, 2012. On page 27, beginning on line 5, David
Mancini is asked the following questions:
Q. And other than Albert Dominguez while you were still at Ric-Man did anybody else
work directly with Pierre Landrin?
A. No
Q. Your sister did not?
A. No for sure she did not
Q. To your knowledge does she even know who Pierre Landrin is?
A. I don't think she knows who Pierre(Landrin) is.
j An exchange between Pierre Landrin and the Assistant State Attorney at Landrin's sworn
statement of October 9, 2012 furthers supports the conclusion that Lisa Jankowski never did
business with Pierre Landrin. Landrin was questioned about his relationship with Ric-Man
Construction. Specifically, Landrin is asked the following question(See page 133,beginning on
line 16:
Q. How is Ric-Man Construction related to the other two companies that I just
mentioned?(RMI and DMSI)
A. They're brothers.
Q. And is there a sister involved somewhere?
A. I don't think the sister is involved in the construction company. I just know there's a
sister somewhere in the mix, I don't know where she falls in.
This further supports the assertion that Lisa Jankowski never met Pierre Landrin, nor did she
ever engage in any business transactions with him.
As far as other principals or employees of RMI are concerned after David Mancini gave up his
interest in the company, another portion of Landrin's sworn statement is useful as well. (See
page 71,beginning on line 7:
Q. Did you deal with anybody else but him(David Mancini)at Ric-Man International?
A. He was my primary contact.
Q. Was there another contact?
A. Sometimes it was Albert Dominguez.
The above excerpts from sworn statements, along with company records show that the last
payment to Almani Marketing was written while David Mancini owned a 50% share of RMI
when he effectively controlled the company's operations insofar as the City of Miami Beach was
concerned. It is clear that Paul and Lisa Jankowski were never involved in the decision to utilize
the services of Almani Marketing when the company was initially retained and had no business
dealing ith Almani Marketing after David Mancini left the company in October of 2010.
� � r y
Rene Castillo Interview
Rene Castillo, who currently serves as President of RMI and who served as General Manager
during David Mancini's tenure stated in his November 14, 2013 interview that he was never
formally introduced to Pierre Landrin and never dealt with him directly at any point in time in
his many years with RMI. Castillo mentioned that that he was aware of an individual who fit the
description of Pierre Landrin who would occasionally stop by the office to pick up checks
(apparently his consulting fees). Castillo stated that at one point he questioned Albert
Dominguez, Project Manager for RMI and then Project Manager for DMSI, about the services
that Almani was providing RMI and whether these services were of value to RMI. Furthermore,
during the interview he asserted that he strenuously objected to a large payment that was due
Almani (and he claimed that he signed the check under pressure from David Mancini) which
conveniently coincided David Mancini's separation from the company. The records reflect that a
check in excess of$35,000 was paid to Almani Marketing in August of 2010 or approximately
two months before the Jankowskis' bought out Mancini's interest in RMI. Castillo
acknowledged in his interview that he did speak to Lisa Jankowski about the payout of$35,000
to Almani, but this occurred after David Mancini no longer had an ownership interest in the
company.
Castillo stated that in his role as General Manager of RMI and then as President, he would
occasionally interact with City officials and personnel, but these interactions did not change
when Mancini left the company. He stated that RMI continued to bid on work through the JOC
program and also through the more formal process. Although RMI was successful in receiving
work within the JOC, the company had no success when attempting to secure business through
the more formal solicitation process. Castillo recalled two solicitations post-Mancini where RMI
was not selected on either occasion. Most recently, Castillo cited RMI's submittal of a proposal
in response to ITB 2013-380-TC (Parkland Island Right-of-Way Improvement) and produced a
letter dated September 10, 2013 from the City Manager to Rene Castillo, President of RMI, that
the City was rejected the company's bid protest and made its recommendation on factors in
addition to price, including the character, integrity, reputation, judgment, experience and
efficiency of the bidder.
Conclusion
After a thorough review of all the evidence, including examining the sworn statements of Pierre
Landrin and David Mancini, interviews with Paul and Lisa Jankowski, Rene Castillo and Theo
Carrasco, the former City of Miami employee in charge of the JOC program for many years, I
find that any relationship that RMI had with Pierre Landrin and/or Almani Marketing ceased in
October 2010 upon the departure of David Mancini from the company. There is no evidence that
shows any contact between Paul and Lisa Jankowski with Pierre Landrin from 2002 to the
present. Additionally, I have no reason to believe based on the materials that I have reviewed
that the Jankowskis ever met with Gus Lopez and the few meetings that Rene Castillo had with
Gus Lopez were simply an attempt on Castillo's part to find out what jobs were in the offmg.
Furthermore, the records also reflect that Castillo was not involved in the decision to retain
Almani Marketing to provide services to RMI and was purposely excluded from these
discussions and decisions.
Consequently, I find that no significant character or integrity issues exist within the existing
configuration of RMI among its current owners or employees that should disqualify the company
from doing business with the City or would hamper RMI's ability to perform in accordance with
contract requirements dictated by the City of Miami Beach. In addition, the actions of RMI since
Lisa and Paul Jankowski assumed full control of the company that are linked to its interfacing
with the City of Miami Beach conform to the provisions established under the City and County
ethics and lobbying laws and related provisions.
"ach(vin-J Pl>
TABULATION SHEET
Design/Build Svcs for ROW Infrastructure
MIAMI B Improvement Program No.88:
$OIICItaLIOn Title: Lower North Bay Road
Solicitation No.: RFP 305-2013-TC
DEPARTMENT OF Due Date: August 19th,2013 @ 3PM
PROCUREMENT MANAGEMENT Prepared By: Sandra M.Rico,Sr.Procurement Specialist
VENDOR: Ric-Man International,Inc. Central Florida Equipment
Rentals,Inc.
CONTACT PERSON: Rene L.Castillo Robert Baer
PHONE NUMBER: 954 426-1042 (305)888-3344
EMAIL ADDRESS: Rcastillo Ric-Manus estimatingCcDcentralfloridaeguip com
Proposal Pricing:
Project Design $467,245.00 $632,000.00
General Conditions $749,000.00 $1,054,937.56
Pavement and Streetscape Construction $3,028,551.10 $1,675,995.02
Water and Sewer Construction $1,679,253.30 $1,882,917.44
Stormwater Collection and Disposal Facility Construction $2,900,513.00 $3,614,164.98
Electrical Construction $111,517.00 $50,000.00
Allowance:Permit Fees $40,000.00 $40,000.00
Consideration for Indemnification of City $25.00 $25.00
Grand Total for All Items: $8,976,104.40 $8,950,040.00
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