2002-24848 Reso
RESOLUTION NO. 2002-24848
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, SETTING A PUBLIC HEARING,
PURSUANT TO SECTION 255.20(1)(a)(9), FLORIDA STATUTES, TO
CONSIDER WHETHER IT IS IN THE PUBLIC'S BEST INTEREST TO
UNDERTAKE CONSTRUCTION SERVICES, RELATIVE TO THE
LINCOLN ROAD LIGHTING AND FOUNTAIN RENOVATION PROJECT,
SAID PROJECT HAVING AN ESTIMATED COST OF $900,000.00,
USING THE CITY'S PROPERTY MANAGEMENT DIRECTOR, A
LICENSED GENERAL CONTRACTOR, AS THE GENERAL
CONTRACTOR FOR THE PROJECT AND WHO, AS THE CITY
MANAGER'S DESIGNEE, SHALL SELECT, NEGOTIATE, AND AWARD
ALL CONTRACTS, AGREEMENTS, PURCHASE ORDERS, AND
CHANGE ORDERS FOR THE PURCHASE OF ALL NECESSARY
GOODS AND SERVICES RELATIVE TO SAID PROJECT.
WHEREAS, the Mayor and City Commission, at its July 26, 2000 meeting,
adopted Resolution Number 2000-24029, which appropriated funds, in the amount of
$50,000, to Corzo, Castella, Carballo, Thompson, and Salman (C3TS) for architectural
and engineering services for surveys of the existing lighting and the development of
construction documents for general lighting and fountain enhancements on Lincoln
Road (the Project); and
WHEREAS, based on the finding of the surveys, the Mayor and City
Commission, at its June 6, 2001 meeting, adopted Resolution Number 2001-24461,
which appropriated additional funds, in the amount of $62,000, to C3TS for the
completion of architectural and engineering services and to complete all construction
documents required to obtain the required building permits for the Project; and
WHEREAS, the Project architectural/engineering plans have been completed
and approved by the Historic Preservation Board and the City's Building Department for
the required building permits; and
WHEREAS, it is the Administration's intent to secure the construction work
relative to the aforestated Project utilizing the services of the City's Property
Management Director, who is a licensed General Contractor; and
WHEREAS, pursuant to Section 255.20(1 )(a)(9), Florida Statutes, when the
governing board of a local government (in this case, the City of Miami Beach) seeks to
prosecute a public construction project using its own services, employees, and
equipment, finding that it is in the public's best interest to do so, the Mayor and City
Commission must first hold a public hearing, advertised at least fourteen (14) days prior
to the date of same.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that a public hearing,
pursuant to Section 255.20(1 )(a)(9), Florida Statutes, to consider whether it is in the
public's best interest to undertake construction services, relative to the Lincoln Road
Lighting and Fountain Renovation Project, said Project having an estimated cost of
$900,000.00, using the City's Property Management Director, a licensed General
Contractor, as the General Contractor for the Project and who, as the City Manager's
designee, shall select, negotiate, and award all contracts, agreements, purchase orders,
and change orders for the purchase of all necessary goods and services relative to said
Project, is hereby called to be held before the Mayor and City Commission in their
Chambers on the Third Floor of City Hall, 1700 Convention Center Drive, Miami Beach,
Florida on May 29, 2002, and the City Clerk is hereby authorized and directed to publish
appropriate Public Notice of the said Public Hearing in a newspaper of Miami Beach, at
which time and place all interested parties will be heard.
PASSED and ADOPTED this 8th day of
May
,2002.
Attest:
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CITY CLERK
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CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
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Condensed Title:
A Resolution setting a public hearing to consider whether to undertake lighting and fountain renovations on
Lincoln Road using the City's Property Management Director as the General Contractor and authorizing
him to award all contracts relative to the project.
Issue:
Shall the Mayor and the City Commission set a Public Hearing for the above?
Item Summary/Recommendation:
It is in the best interest of the City to utilize the Property Management Director as the General Contractor,
who is able to select, negotiate and award all contracts necessary (construction and professional)
connected with the Lincoln Road Lighting and Fountain Enhancement Project. The following are reasons
why the waiver of competitive bidding is in the best interest of the City: 1) Cost Reduction of Project
Materials; 2) Savings of General Contractor and Subcontractor's Overhead and Profit; 3) Project
Scheduling to Accommodate Merchants and Special Event Needs, 4) Proven Track Record,
Advisory Board Recommendation:
I N/A
Financial Information:
Amount to be expended:
Finance Dept.
Source of
Funds:
c
Sign-Ofts:
Department Director
AGENDA ITEM
DATE
C7T
5'-~ -OJ-
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miami-beach.fi.us
To:
From:
Subject:
COMMISSION MEMORANDUM
Mayor David Dermer and
Members of the City Commission
Date: May 8, 2002
Jorge M, Gonzalez \ ~
City Manager 0 .- c)
A RESOLUTION SETTING A PUBLIC HEARING, PURSUANT TO SECTION
255.20(1)(A)(9), FLORIDA STATUTES, TO CONSIDER WHETHER IT IS IN
THE PUBLIC'S BEST INTEREST TO UNDERTAKE CONSTRUCTION
SERVICES, RELATIVE TO THE LINCOLN ROAD LIGHTING AND FOUNTAIN
RENOVATION PROJECT, SAID PROJECT HAVING AN ESTIMATED COST
OF $900,000, USING THE CITY'S PROPERTY MANAGEMENT DIRECTOR, A
LICENSED GENERAL CONTRACTOR, AS THE GENERAL CONTRACTOR
FOR THE PROJECT AND WHO, AS THE CITY MANAGER'S DESIGNEE,
SHALL SELECT, NEGOTIATE, AND AWARD ALL CONTRACTS,
AGREEMENTS, PURCHASE ORDERS, AND CHANGE ORDERS FOR THE
PURCHASE OF ALL NECESSARY GOODS AND SERVICES RELATIVE TO
SAID PROJECT.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
Section 2-366 of the City Code, entitled Contract Procedures, states that all supplies and
equipment, except as otherwise provided in this division, when the estimated cost thereof
shall exceed $25,000.00, shall be purchased by formal, written contract and/or purchase
order from the lowest and best responsible bidder, after due notice inviting proposals;
however, the city commission shall have authority to waive execution of formal
contract in cases where it deems it advisable to do so. (emphasis added)
Inasmuch as the City's Property Management Division has been approved as the General
Contractor for this project, at times there will be a need for the acquisition of goods and
services that may exceed the $25,000 bidding threshold. Therefore, as a result of the time
needed to complete formal bid processes (i.e. 90-120 days) each time that Property
Management Division has a need to augment its existing resources for goods and services
in excess of $25,000, this important project will be placed on hold or delayed significantly.
Pursuantto Section 2-367(e) of the City Code entitled Rejection of bids; negotiation; waiver
of competitive bidding, the City Commission, upon written recommendation of the City
Manager, may by resolution adopt by a five-sevenths vote of the City Commission a waiver
of competitive bidding when the City Commission finds such waiver to be in the best interest
of the City.
Commission Memorandum
Lincoln Road Lighting and Fountain Renovation Project
May 8, 2002
Page 2 of 3
The following are reasons why the waiver of competitive bidding is in the best interest of the
City:
. Cost Reduction of Project Materials.
By utilizing in-house General Contractor services, the City will have the ability to purchase
the majority of building materials needed for the project, directly from the manufacturer.
External contractors would be required to purchase these materials from a supply house
that would increase the costs of the purchase of supplies by adding stocking charges, plus
overhead and profit on top of the manufacturer costs. This would provide a substantial
saving to the City on material purchases for the project.
. Savings of General Contractor and Subcontractor's Overhead and Profit.
In outsourced projects, general contractors add a typical range of 15-20% on top of project
cost for overhead expenses and profit. By using in-house services, this would be a direct
cost savings to the City for these items. Additionally, as electrical, plumbing, painting, and
carpentry would also be provided under in-house services, limited sub-contractors would be
required for the project. This would also provide savings to the City on overhead and profit
costs that would also be required to be paid to the subcontractors.
. Project Scheduling to Accommodate Merchants and Special Event Needs.
Under routine contractual agreements, the General contractor provides a workflow schedule
that is inflexible in accommodating unforeseen circumstances or required change of
workflow without the requirement of a project change order or additional costs. In-house
construction would provide flexibility of schedules to work with unforeseen circumstances
including special events, and special merchant's needs on Lincoln Road without the need
for change orders or extra costs for the project.
. Proven Track Record
Property Management has provided General Contracting services for the City on many past
projects. These include the construction of the Electrowave facility on Terminal Island, the
design and renovations completed to date on the Byron Carlyle Theater, the Pinetree Park
GO Bond project, the Fire Station #2 maintenance facility GO Bond project, the renovation
of the VCA and 555 Building, ADA compliance projects Citywide, and multiple major
renovations to the City Hall, 21 Street Community Center, and the Historic City Hall
Buildings. Each of these projects was completed on or below the estimated budget for the
projects.
Commission Memorandum
Lincoln Road Lighting and Fountain Renovation Project
May 8, 2002
Page 3 of 3
Recommendation:
That the Mayor and City Commission adopt the attached Resolution which finds to be in
the best interest of the City, undertaking construction services on Lincoln Road lighting and
fountain renovations and authorizing the City Manager's designee, who shall be the
Property Management Director, a Licensed General Contractor, to select, negotiate, and
award all contracts, agreements, purchase orders, and change orders for the purchase of
all necessary goods and services (construction and professional) relative to the project;
providing that all documents be reviewed by the appropriate members of the
Administration, City Attorney's Office, and contains minimum terms and conditions as set
forth in this resolution; and further authorizing the Mayor and City Clerk to execute any and
all agreements relative to the aforestated projects.
JMG:RCM:FB:BJ
T:\AGENDA\2002\MAY0802\CONSENTILincoln Rd Public Hearing.doc