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Resolution 2020-31403R E S O L U T IO N N O . 2 0 2 0 -3 1 4 0 3 A R E S O L U T IO N O F T H E M A Y O R A N D C IT Y C O M M IS S IO N O F T H E C IT Y O F M IA M I B E A C H , F L O R ID A , A P P R O V IN G , IN S U B S T A N T IA L F O R M , A M E N D M E N T N O . 2 T O T H E P R O F E S S IO N A L S E R V IC E S A G R E E M E N T , D A T E D M A Y 2 8 , 2 0 1 9 , B E T W E E N T H E C IT Y A N D S F M S E R V IC E S , IN C . (S F M ), F O R J A N IT O R IA L S E R V IC E S C IT YW ID E ; S A ID A M E N D M E N T : (1 ) A P P R O V IN G , E F F E C T IV E J A N U A R Y 2 5 , 2 0 2 0 , A D D IT IO N A L S IT E S A N D S E R V IC E S , IN T H E A M O U N T O F $1 4 6 ,3 8 1 P E R Y E A R , IN C R E A S IN G T H E T O T A L C O N T R A C T A M O U N T T O $2 ,7 9 5 ,5 6 7 .0 3 P E R Y E A R ; (2 ) A P P R O V IN G A D D IT IO N A L S E R V IC E S IN R E S P O N S E T O C O VI D -1 9 P A ND EM I C , F O R F IS C A L YE A R 2 0 1 9 - 2 0 2 0 O N L Y , IN T H E A M O U N T O F $3 2 5 ,5 2 8 .3 1 ; A N D (3 ) M E M O R IA LI Z IN G T H E LI V IN G W A G E IN C R E A S E U N D E R T H E C IT Y 'S LI V IN G W A G E O R D IN A N C E , E F F E C T IV E J A N U A R Y 1 , 2 0 2 0 ; A N D F U R T H E R A U T H O R IZ IN G T H E C IT Y M A N A G E R A N D C IT Y C L E R K T O E X E C U T E T H E F IN A L A M E N D M E N T . W H E R E A S , on Ju ly 26 , 2017 , the M ayor and C ity C om m ission approved the issuance of R e q u e st fo r Pro p o sa ls (R FP ) N o. 2017 -0 70-JC fo r Ja nitorial Serv ices, City-w ide (the RFP); and WHEREAS, on O cto be r 18 , 2018 , the M a yor and the C ity C om m ission accepted the re co m m end a tion of the C ity M ana ger, pursua nt to R FP N o. 2017-070-JC , to enter into sim u lta ne o u s ne g o tia tio n s w ith A ble B usiness S e rv ices, Inc., and S FM Serv ices, Inc.; and further a u th o riz e d the C ity M a n a g er to se lect a firm that w ill serv e as the prim ary contractor, w ith the re m ain ing firm to serv e as the se condary co ntractor; and WHEREAS, on M ay 16 , 2019 the C ity M ayor and City Clerk executed a Pro fessional S e rv ic es A g re em en t w ith A ble B usiness Se rvices, Inc. (A ble) to serve as the prim ary contractor fo r C ity garag es (Z o n e 4) and C ity pa rks (Z one 6) and serv ing as the secondary contractor fo r Z o n es 2 an d 3 ; an d WHEREAS, on M a y 28 , 2019 the C ity M a yor and City Clerk executed a Professional S e rv ic e s A g re e m ent w ith S FM Se rvices, In c. (S F M ) to serv e as the prim ary contractor fo r Zones 2 an d 3 an d se rv in g as the se condary contractor fo r C ity garages (Z one 4) and City parks (Zone 6 ); a n d WHEREAS, on Se pte m be r 30 , 2019 the C ity term inated the Pro fessional Services A g re e m ent w ith A ble B u sin e ss Serv ices, Inc.; and WHEREAS, on A pril 22, 20 20 the M a yor and C ity Com m ission adopted R esolution No. 2 0 2 0 -3 12 2 7, ap p rovin g , in su bstantial fo rm , A m e ndm ent N o. 1 to the A greem ent; said am en d m ent expa ndin g the scope of the A greem e nt by: (1) retro activel y approving the City M a n a g e r ap p rova l, da ted M a y 10, 2019 , fo r add itio nal serv ices in the am ount of $68,688; (2) re tro a ctive ly a p p ro vin g, eff ective Jan uar y 5, 20 20, the tra nsfer of janitorial services fo r the City ga ra g e s (Z o ne 4 ) an d C ity pa rks (Z o ne 6) fr om A ble Business S ervices, Inc. (original prim ary co ntra cto r fo r Zo nes 4 an d 6) to C O N T RA C T O R, in the am ount of $1,4 10 ,309.28 per year, in c re a s in g th e c o n tra c t a m o u n t to $2 ,5 3 1 ,2 8 6 .0 3 p e r y e a r; (3 ) a p p ro v in g a d d itio n a l s ite s a n d s e r v ic e s , in th e a m o u n t o f $1 1 7 ,9 0 0 .0 0 p e r y e a r, fo r a to ta l c o n tra c t a m o u n t o f $2 ,6 4 9 ,1 8 6 .0 3 p e r y e a r , s u b je c t to a d d itio n s o r d e le tio n s a p p ro v e d b y th e C ity M a n a g e r, a s a u th o riz e d b y th is A m e n d m e n t ; a n d (4 ) a u th o r iz in g th e C ity M a n a g e r o r h is d e s ig n e e to re d u c e th e s e rv ic e le v e ls c o v e r e d b y th e A g r e e m e n t; a n d WHEREAS, the Agreement is subject to the City's Living Wage Ordinance per Appendix "A" Section 7 of the RFP; and WHEREAS, on October 18, 2017, the Mayor and City Commission adopted Ordinance No. 2017-4143, which amended certain provisions of the City's Living Wage Ordinance (the "Ordinance") as codified in Sections 2-407 through 2-41 O of the City of Miami Beach Code of Laws and Ordinances (the "City Code"), providing for proposed increases in the hourly living wage rate and health benefit paid by service contractors covered under the Ordinance to their covered employees with the proposed increases to be phased in over a three year period, commencing on January 1, 2018, as follows: • Effective January 1, 2018, covered employees must be paid a living wage rate of no less than $11.62 per hour with health care benefits of at least $2.26 per hour, or a living wage rate of no less than $13.88 per hour without health care benefits; and • Effective January 1, 2019, covered employees must be paid a living wage rate of no less than $11. 70 per hour with health care benefits of at least $2. 74 per hour, or a living wage rate of no less than $14.44 per hour without health care benefits; and • Effective January 1, 2020, covered employees must be paid a living wage rate of no less than $11.78 per hour with health care benefits of at least $3.22 per hour, or a living wage rate of no less than $15.00 without health care benefits; and WHEREAS; each year, as part of the annual budget process, the City Commission considers whether or not it desires to revise or maintain the proposed living wage rates via the Ordinance; and WHEREAS; at its September 25, 2019 meeting, the Mayor and City Commission, following the recommendation from the Finance and Citywide Projects Committee (FCWP), at the April 19, 2019 FCWP meeting, adopted the final budget for the fiscal year 2020, that included a living wage enhancement, effective January 1, 2020; and WHEREAS, in order to assure that covered service contractors doing business with the City continue to comply with the provisions of the Ordinance, as amended, the Administration is recommending amending the Agreement, memorializing the change in rates; and WHEREAS, pursuant to Section 49 ("ADDITIONAL SERVICES") of the Agreement, additional locations and services may be added to the scope of the Agreement by the City Manager, in an amount not to exceed $100,000; however, any services exceeding the City Manager's authority shall require the approval of the City Commission; and W H E R E A S , in order to im p rove and m aintain acceptable levels of cleanliness in the City, ad ditio n al site s an d serv ice s ha ve been added to the scope of the A greem ent, increasing the co n tra ct am ou nt by $14 6 ,381 pe r year, fo r a total co ntract am ount $2,795,567.03 per year; and WHEREAS, ad d itio n a l se rvices have bee n im plem ented in order to m itigate the spread of in fe ction in resp o n se to C O V ID -19 fo r fiscal yea r 2019-2020, in the am ount of $325,528.31; and WHEREAS, the C ity M a n a ge r recom m ends the appro val, in substantial fo rm , of A m endm ent N o . 2 to the A g ree m ent, a co p y of w hich is inco rpo rated herein by reference and attached to this R e solu tio n as E xh ib it ''1". NOW, THEREFORE, BE IT DUL Y RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the M ayor and City Com m ission hereby ap p ro v e , in su b sta ntia l fo rm , A m e nd m ent N o. 2 to the A greem ent; said am endm ent: (1) ap p ro ving, eff ective Ja n uary 25, 2020 , additio nal sites and serv ices, in the am ount of $146,381 pe r ye a r, in c re a sin g the tota l contract am o unt to $2,79 5,567.03 per year; (2) approving additional se rv ic e s in re sp o nse to C O V ID -19 pa ndem ic in the am ount of $325,528.31 fo r fiscal year 2019- 20 2 0 on ly; and (3 ) m em oria lizing the living w age increase under the City's Li ving W age O rd in an c e , eff ective Ja n uary 1, 20 20 ; and furt he r authorize the City M anager and City C lerk to exe cute the final am en d m en t. PASSED AND ADOPTED this 16" da y of September 2020. 2, D a n G elber, M ayor ATTEST: R afa el - K APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION %/«Cr tho " f\ City Attorney~f Dote AM ENDM ENT NO . 2 TO PRO FESSIO NA L SERVICES AG REEM ENT BETW EEN THE CITY OF MIA M I BEACH, FLO RIDA AND SFM SERVICES, INC. This Amendment No. 1 ("Am en dment") to the Professional Services Agreement, dated May 28, 2019, by and between the CITY OF MIAMI BEACH, FLORIDA, a municipal corporation organized and existing under the laws of the State of Florida, having its principal place of business at 1700 Convention Center Drive, Miami Beach, Florida 33139 (the "City"), and SFM SERVICES INC., a Florida for profit corporation, whose address is 9700 NW 79" Aven ue, Hialeah Gardens, FL 33016 (the "CONTRA CTOR"), is entered into this day of , 2020. RECITALS WHEREAS, on July 26, 2017, the Mayor and City Commission approved the issuance of Request for Proposals (RFP) No. 2017-070-JC for Janitorial Services, City- wide (the RFP); and WHEREAS, on October 17, 2018, the Mayor and the City Commission adopted Resolution No. 2018-30535, accepting the recommendation of the City Manager, pursuant to RFP No. 2017-070-JC for Janitorial Services, to enter into simultaneous negotiations with Able Business Services, Inc. and SFM Services, Inc.; and further authorizing the City Manager to select a firm that will serve as the primary contractor, with the remaining firm to serve as the secondary contractor; and WHEREAS, on May 16, 2019 the City Mayor and City Clerk executed a Professional Services Agreement with Able Business Services, Inc. (Able) to serve as the primary contractor for City garages (Zone 4) and City parks (Zone 6) and serving as the secondary contractor for Zones 2 and 3; and WHEREAS, on May 28, 2019 the City Mayor and City Clerk executed a Professional Services Agreement with SFM Services, Inc. (SFM) to serve as the primary contractor for Zones 2 and 3 and serving as the secondary contractor for City garages (Zone 4) and City parks (Zone 6); and WHEREAS, on September 30, 2019 the City terminated the Professional Services Agreement with Able Business Services, Inc.; and WHEREAS, on October 1, 2019, SFM Services Inc. absorbed Zones 4 and 6, as secondary contractor; and WHEREAS, on January 5, 2020, the janitorial services for the City garages (Zone 4) and City parks (Zone 6) were transferred from Able Business Services, Inc. to SFM Services Inc. as the primary contractor; and WHEREAS, on April 22, 2020 the Mayor and City Commission adopted Resolution No. 2020-31227, approving, in substantial form, Amendment No.1 to the Agreement; said amendment expanding the scope of the Agreement by: (1) retroactively approving the City EXHIBIT II \ I I M a n a g e r a p p ro v a l, d a te d M a y 1 0, 2 0 1 9 , fo r a d d itio n a l s e rv ic e s in th e a m o u n t o f $6 8 ,6 8 8 ; (2 ) re tro a c tiv e ly a p p ro v in g , e ff e c tiv e J a n u a ry 5 , 2 0 2 0 , th e tra n s fe r o f ja n ito ria l s e rv ic e s fo r th e C ity g a r a g e s (Z o n e 4 ) a n d C ity p a r k s (Z o n e 6 ) fr o m A b le B u s in e s s S e rv ic e s , In c . (o r ig in a l p r im a r y c o n tra c to r fo r Z o n e s 4 a n d 6 ) to C O N T RA C T O R , in th e a m o u n t o f $1 ,4 10 ,3 0 9 .2 8 p e r y e a r , in c re a s in g th e c o n tra c t a m o u n t to $2 ,5 3 1 ,2 8 6 .0 3 p e r y e a r; (3 ) a p p ro v in g a d d itio n a l s ite s a n d s e rv ic e s , in th e a m o u n t o f $1 1 7 ,9 0 0 .0 0 p e r y e a r, fo r a to ta l c o n tra c t a m o u n t o f $2 ,6 4 9 ,1 8 6 .0 3 p e r y e a r, s u b je c t to a d d itio n s o r d e le ti o n s a p p ro v e d b y th e C ity M a n a g e r , a s a u th o r iz e d b y th is A m e n d m e n t; a n d ( 4 ) a u th o riz in g th e C ity M a n a g e r o r h is d e s ig n e e to re d u c e th e s e rv ic e le v e ls c o v e re d b y th e A g re e m e n t; a n d WHEREAS, pursuant to Section 49 ("ADDITIONAL SERVICES") of the Agreement, additional locations and services may be added to the scope of the Agreement by the City Manager, in an amount not to exceed $100,000; however, any services exceeding the City Manager's authority shall require the approval of the City Commission; and WHEREAS, the Agreement is subject to the City's Living Wage Ordinance per Appendix "A" Section 7 of the RFP; and WHEREAS, on October 18, 2017, the Mayor and City Commission adopted Ordinance No. 2017-4143, which amended certain provisions of the City's Living Wage Ordinance (the Ordinance") as codified in Sections 2-407 through 2-410 of the City of Miami Beach Code of Laws and Ordinances (the City Code"), providing for proposed increases in the hourly living wage rate and health benefit paid by service contractors covered under the Ordinance to their covered employees with the proposed increases to be phased in over a three year period, commencing on January 1, 2018, as follows: • Effective January 1, 2018, covered employees must be paid a living wage rate of no less than $11.62 per hour with health care benefits of at least $2.26 per hour, or a living wage rate of no less than $13.88 per hour without health care benefits; and • Effective January 1, 2019, covered employees must be paid a living wage rate of no less than $11. 70 per hour with health care benefits of at least $2. 7 4 per hour, or a living wage rate of no less than $14.44 per hour without health care benefits; and • Effective January 1, 2020, covered employees must be paid a living wage rate of no less than $11.78 per hour with health care benefits of at least $3.22 per hour, or a living wage rate of no less than $15.00 without health care benefits; and WHEREAS; each year, as part of the annual budget process, the City Commission considers whether or not it desires to revise or maintain the proposed living wage rates via the Ordinance; and WHEREAS; at its September 25, 2019 meeting, the Mayor and City Commission, following the recommendation from the Finance and Citywide Projects Committee (FCWP), at the April 19, 2019 FCWP meeting, adopted the final budget for the fiscal year 2020, that included a living wage enhancement, effective January 1, 2020; and WHEREAS, on September 16, 2020, the Mayor and City Commission adopted Resolution No. , approving, in substantial form, Amendment No.2 to the Agreement; said amendment: (1) approving, effective January 25, 2020, additional sites and services, in the amount of $146,381 per year, for a total contract amount of $2,795,567.03 per year; (2) approving sites and services in response to the COVID-19 pandemic, in the amount of $325,528.31 for fiscal year 2019-2020; and (3) memorializing the living wage increase, as of January 1, 2020. Page 2 of6 N O W T H E R E F O R E , in consideration of the m utual pro mises and conditions contained herein, and other good and valuable consideration, the sufficiency of which is hereby acknow ledged, the City and CO NTRA CTO R hereby agree to amend the Agreem ent as fo llow s: 1. ABOVE RECIT ALS. The above recitals are true and correct and are incorporated as part of this Am endm ent. 2. MODIFICATIONS. The Agreem ent is hereby modified (deleted item s struck thro ugh and inserted item s underlined) as fo llow s: (a) Exh ibit "C" (Location Staffing Hours) is hereby am ended by adding Exhibit 'C- 2" to the Agreem ent, incorporated herein by reference and attached hereto, as part of com posite Exhibit "C", reflecting additional services added to the scope of the A greem ent in connection with the CO VID-19 pandemic for fiscal year 2019-2020. (b) Effective January 25, 2020, Exhibit "C" (Lo cation Staffing Hours) is hereby am ended by adding Exhibit 'C-3" to the Agreem ent, incorporated herein by reference and attached hereto, as part of com posite Exhibit "C", reflecting additional locations and services added to the scope of the Agreement. (e) Based upon the approved City budget for FY 2019-2020, effective Jan uary 1, 2020, fo r calendar year 2020 and beyond, CO NTRA CTO R will invoice the City, on a monthly basis, an additional $0.56 per hour for employees working under the Agreem ent to cover the increase in the m inimum wage rate, on a monthly basis, based upon the applicable m inimum wage rate of $15.00 per hour, plus $0.06 per hour for related payro ll taxes. Sim ilarly, the increase in the m inim um wage for calendar year 2021 shall be subject to approval, by the City Commission, during the 2020-2021 fiscal year budgetary process. Should the City Commission appro ve the living wage fo r calendar year 2021, CO NTRA CTO R shall be compensated an additional $0.15 per hour fo r em ployees working under the Agreement to cover the increase in the m inim um wage rate, on a monthly basis, based upon the applicable m inim um wage rate of $15.15 per hour, plus $0.02 per hour fo r related payro ll taxes. 3. RATIFICATION. Except as am ended herein, all other term s and conditions of the Agreement shall rem ain unchanged and in full fo rce and effect. In the event there is a conflict betw een the pro visions of this Am endm ent and the Agreement, the provisions of this Am endm ent shall govern . THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK. Page 3 of6 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their appropriate officials, as of the date first entered above. FOR CITY: CITY OF MIAMI BEACH, FLORIDA ATTEST: By: Rafael E. Granado, City Clerk Jimmy L. Morales, City Manager Date FOR CONTRA CTOR: SFM SERVICES, INC. ATTEST: By: Secretary President Print Name Print Name Date Date Page 4 of6 Ex hib it "C -2 " Page 5 of6 EXHIBIT "C-3" Page 6 of6 R e s o lu ti o n s -C 7 y MIAMI BEAC H COMMISSION MEMORA NDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: September 16, 2020 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, IN SUBSTANTIAL FORM, AMENDMENT NO. 2 TO THE PROFESSIONAL SERVICES AGREEMENT, DATED MAY 28, 2019, BETWEEN THE CITY AND SFM SERVICES, INC. (SFM), FOR JANITORIAL SERVICES CITYWIDE; SAID AMENDMENT EXPANDING THE SCOPE OF THE AGREEMENT BY: (1) REAFFIRMING THE LIVING WAGE RATES, EFFECTIVE JANUARY 1, 2020,AS FOLLOWS: $11.70 PER HOUR WITH CONTRIBUTIONS TOWARDS HEALTH BENEFITS OF AT LEAST $3.22 PER HOUR, AND $15.00 PER HOUR WITHOUT BENEFITS; (2) RETROACTIVELY (EFFECTIVE JANUARY 25, 2020) APPROVING ADDITIONAL SITES IN THE AMOUNT OF $146,381 PER YEAR; (3) APPROVING ADDITIONAL SITES AND SERVICES IN RESPONSE TO COVID-19 PANDEMIC IN THE AMOUNT OF $210,000 FOR FISCAL YEAR 2019-2020; SAID AMENDMENT INCREASING THE CONTRACT AMOUNT BY A TOTAL OF $356,381 PER YEAR, FOR A TOTAL CONTRACT AMOUNT OF $3,005,567 PER YEAR; AND FURTHER AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE THE FINAL AMENDMENT. RECOMMENDAT ION The Administration recommends adopting the Resolution. BACKGROUND/HISTORY On October 17, 2018, the City adopted Resolution No. 2018-30535 accepting the Administration's recommendation pursuant to Request for Proposal (RFP) No. 2017-070-JC, to simultaneously negotiate with Able Business Services Inc. and with SFM Services, Inc. the first and second ranked proposers respectively, for janitorial services. Said resolution further authorized the City Manager to select a primary contractor and a secondary contractor, based on the determination of the final negotiated proposals that offered the City the best combination of pricing and service. Consequently, on May 16, 2019, the City Mayor and Clerk executed a Professional Services Agreement with Able Business Services Inc. (Able) as the primary contractor for City garages (Zone 4) and City Parks (Zone 6) and serving as the secondary for Zones 2 and Zone 3. Furthermore, on May 28, 2019, the City Mayor and Clerk executed a Professional Services Agreement with SFM Services, Inc. (SFM) as the primary contractor for Page 525 of 1855 Zone 2 and Zone 3 and servi ng as the secondary contractor fo r Zone 4 and Z one 6 (the Agre em ent). O n A pril 22, 2020, th e Ma yor and C ity C om m ission ad opted R esoluti on N o. 2020-3 1227, approving A m endm ent No. 1, which expanded the scope of the Agreement by retroactively approving the transfer of janitorial services for the City garages (Zone 4) and City parks (Zone 6) from Able Business Services, Inc. to SFM Inc. Further, said amendment expanded the scope by incorporating additional facilities which were not defined as part of RFP No. 2017- 070-JC, including new City offices and locations. ANALY SIS Pursuant to Section 49, of the Agreement, "Modification of Sites and Service Levels", the City Manager may request additional goods, services or facilities (items), collectively "Additional Services". In order to improve and maintain sanitary conditions in the City. On January 25, 2020, additional services were requested for facilities thereby requiring an increase to janitorial service days and hours. The total sum of these locations is $146,381 and is more particular1y described in Exhibit A to the proposed Amendment No. 2, attached hereto. Furthermore, as a result of the COVID-19 pandemic, the Centers of Disease Control's (CDC) recommended guidelines to mitigate the spread of infection were implemented. Temporary additional services include decontamination, frequent disinfection of common use areas, and increased sanitation recurrence have required and resulted in an increase in janitorial personnel, service days and hours. The total sum of these services $210,000. Accordingly, an Amendment is necessary to incorporate and memorialize the additional sites and services. Moreover, the Agreement is subject to the City's Living Wage Ordinance per Appendix "A", Section 7 of the RFP. Ordinance No. 2017-4143, attached as Exhibit B hereto, amended certain provisions of the City's Living Wage (the "Ordinance"), whi ch included adjusting and increasing the hourly living wage rate and health benefit paid by service contractors covered under the Ordinance to their covered employees. In accordance to the Ordinance, effective January 1, 2020, covered employees must be paid a living wage rate of no less than $11.78 per hour with health care benefits of at least $3.22 per hour, or a living wage rate of no less than $15.00 without health care benefits. In order to assure that covered service contractors doing business with the City continue to comply with the provisions of the Ordinance as amended, it is necessary to correct the current contract between the City and the Contractor. FINANCIAL INFORMATION CONCLUSION The Administration recommends approving, in substantial form, Amendment No. 2 to the Professional Services Agreement; by expanding the scope of the agreement by. (1) reaffirming the living wage rates, effective January 1, 2020; (2) retroactively (effective January 25, 2020) approving additional sites and services; and (3) approving sites and services in response to the COVID-19 pandemic; said amendment increasing the contract amount by a total of $356,381 per year, for a total contract amount of $3,005,567 per year; and further authorize the City Manager and City Clerk to execute the final amendment. Applicable Area Citywide Page 526 of 1855 ls this a "Residen ts Right to Know"" item , pursuan t to City Code Se cti on 2-142 No Legislative Tracking Property Management Does this item utili ze G.O. Bon d Funds ? No ATTACHMENTS; Description Resolution D Amendment Page 527 of 1855