Amendment No. 1 to the Agreement Between CMB and SFM SERVICES, INC. 22
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AMENDMENT NO. 1
TO
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE CITY OF MIAMI BEACH, FLORIDA
AND
SFM SERVICES, INC.
This Amendment No. 1 ("Amendment") 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 79th Avenue, Hialeah Gardens, FL 33016 (the "CONTRACTOR"), is entered
into thisl8th day of August , 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, in order to improve and maintain acceptable levels of cleanliness in the
City, additional City facilities have been identified, to be added to the scope of the
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Agreement pursuant to Section 49, requiring an increase to janitorial personnel, service
days and hours; and
WHEREAS, pursuant to Section 49 ("ADDITIONAL SERVICES") of the RFP,
additional locations, which were not part of the scope of the RFP, were incorporated
through a City Manager approval(the"City Manager Approval"), dated May 9, 2019, in the
amount of$68,688.00; 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
Manager approval, dated May 10, 2019, for additional services in the amount of$68,688;
(2)retroactively approving, effective January 5, 2020, the transfer of janitorial services for
the City garages (Zone 4) and City parks (Zone 6) from Able Business Services, Inc.
(original primary contractor for Zones 4 and 6)to CONTRACTOR, increasing the contract
amount to $2,531,286.03 per year; (3) approving additional sites and services, in the
amount of$117,900.00 per year, for a total contract amount of $2,649,186.03 per year,
subject to additions or deletions approved by the City Manager, as authorized by this
Amendment; and (4) authorizing the City Manager or his designee to reduce the service
levels covered by the Agreement.
NOW THEREFORE, in consideration of the mutual promises and conditions
contained herein, and other good and valuable consideration, the sufficiency of which is
hereby acknowledged, the City and CONTRACTOR hereby agree to amend the
Agreement as follows:
1. ABOVE RECITALS.
The above recitals are true and correct and are incorporated as part of this
Amendment.
2. MODIFICATIONS.
The Agreement is hereby modified (deleted items stems ough and inserted
items underlined) as follows:
(a) The City Manager Approval is hereby retroactively approved as of the date of
their execution; to wit: May 9, 2019, incorporated herein by reference and
attached hereto as Exhibit"1".
(b) Effective January 5, 2020, Exhibit "B" (Pricing Schedule) to the Agreement is
hereby amended to reflect the new pricing for all zones, as more particularly
set forth in Exhibit"B-1", incorporated herein by reference and attached hereto.
(c) Effective January 5, 2020, Exhibit "C" (Location Staffing Hours) is hereby
amended by adding Exhibit "C-1" to the Agreement, incorporated herein by
reference and attached hereto, as part of composite Exhibit "C", reflecting
additional location staffing hours.
(d) Section 49 "ADDITIONAL SERVICES" of Section 0200 "INSTRUCTIONS TO
RESPONDENTS & GENERAL CONDITIONS", of the RFP (Attachment B to
the Agreement)is hereby deleted in its entirety and replaced, as follows:
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49. MODIFICATION OF SITES AND SERVICE LEVELS
• ADDITION OF SITES AND/OR SERVICES BY THE CITY: The City
Manager may request additional goods, services or facilities ("items")
(collectively, "Additional Services"). Any proposals for Additional
Services must be approved by the City Manager or his designee, in
writing, prior to being implemented, and memorialized by an
amendment to the Agreement, executed by the City Manager and
CONTRACTOR. A request for temporary Additional Services may be
memorialized in writing by the City Manager's designee pursuant to an
e-mail directed to CONTRACTOR. Any payment adjustment in
connection with a request for Additional Services or temporary
Additional Services shall be calculated based upon the per service rate
set forth in Exhibit"B", or the proration of said rate, as applicable. The
total amount of the Additional Services or temporary Additional
Services may not exceed $100,000,or such greater amount as may be
approved by the City Commission for each contract year.
• DELETION OF SITES AND/OR REDUCTION OF SERVICES BY THE
CITY: The City Manager reserves the right to temporarily or
permanently delete existing sites and/or services (including number of
personnel or hours of service)at existing sites(collectively, "Reduction
of Services"). Any permanent Reduction of Services requested by the
City Manager or his designee, shall be memorialized by an amendment
to the Agreement, executed by the City Manager and CONTRACTOR.
A request for a temporary Reduction of Services may be memorialized
in writing, pursuant to an e-mail sent to CONTRACTOR. The payment
adjustment in connection with a Reduction of Services or temporary
Reduction of Services shall be calculated based upon the per service
rate set forth in Exhibit"B", or the proration of said rate, as applicable.
3. RATIFICATION.
Except as amended herein, all other terms and conditions of the Agreement shall
remain unchanged and in full force and effect. In the event there is a conflict
between the provisions of this Amendment and the Agreement, the provisions of
this Amendment shall govern.
THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.
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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: DocuSigned by:
DocuSigned by:
[Kaf ati. f, l'V'A.ln a.h
By: 24A05013ADDC4P5
67FDACBC5105408...
Rafael E. Granado, City Clerk • Dan Gelber, Mayor
I
„��,, APPROVED AS TO
``�A1 E3FORM S LANGUAGE
, 4 FOR EXE TION
IiICORPTOP,ATED; ti. k llz. 1
''',;9 .,,` "'',.,:;�0_ City At:orneyAO Date
8/18/2020 I 3:08', •11 -5DT
Date
FOR CONTRACTOR: SFM SERVICES, INC.
ATTEST:
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Print Name -rint Name
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Date Date
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• Exhibit"1"
CITY MANAGER APPROVALS
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MI AM f BEACH REQUEST FOR CITY MANAGER APPROVAL
PROCUREMENT DEPARTMENT 2017-070-1C,JANITORIAL SERVICES
R,, quested.Actlon,
Piggyback Approval _ Award of ITO
Contract Execution Request for Contract Term Renewal
I Change Order Approval XXX Other:Additional Services
Request approval to add additional janitorial services locations to be performed under the agreement,pursuant to RFP 2017.070-JC,
for•.nitorial services,and ursuant to Resolution No.2018-30535.
Wh is requestetfacFlon necessary?'
Pursuant to the authority granted in Resolution 2018-30535,on February 14,2019,the City Manager approved final negotiations with
the two short-listed firms,Able Business Services and SFM Services,and awarded the zones to each firm as follows:
Primary Contractor - Secondary Contractor—
Zone 2 SFM Services Able Business Services
Zone 3 SFM Services Able Business Services
Zone 4 Able Business Services SFM Services
Zone 6 Able Business Services SFM Services
However, subsequent to the City Manager's approval noted above, the Property Management Department determined that the
following five(5)locations were inadvertently not included in the sites negotiated with the short-listed firms,including:1)Fire Station
#2 Administration;2)Fire Station#2,Rescue;3)Unidad Builiding;4)Biscayne Point Guardhouse;and,5)North Building,
Each of these locations fall within the janitorial zones awarded to SFM Services;therefore,staff further negotiated with SFM Services
to include these five(5)locations in the agreement resulting in the following additional costs to be included in the agreement with
SFM Services:
1)Fire Station#2 Administration- $2,373.00 per month
2)Fire Station#2,Rescue- $1,026.00 per month
3)Unidad Builiding- $1,349.00 per month
4)Biscayne Point Guardhouse- $488.00 per month
5)North Building- $488.00 per month
The added sites represent additional annual costs of$68,688
Additionally,staff believes it is prudent to establish a predetermined rate for when janitorial staff is needed for special events(e.g.
Memorial Day Weekend, 4"of July,Art Basel Week Art Deco Weekend,Spring Break,and New Year's Eve, among others).SFM
Services and Able Business Services have agreed to a special event rate of$22.96 per hour.
In summary,this item seeks the City Manager's approval for the following:
1. Add the five sites noted above to the agreement with SFM Services at an annual cost of$68,688.
2. Add a special events rale of$22.96 per hour to the agreements with Able Business Services and SFM Services.
_ -...-. .. _.�"--PreViotis'Action(s). _ ._ - .
N/A
Authority
Resolution No.2018-30535
Fiscal Impact
$68,688 annually In additional janitorial services required under the agreement,resulting in a total annual fiscal impact of$1,091,521,
for Zone 2 and Zone 3.All funds have been previously approved by Budget.Please see fiscal impact chart below:
toralon ' Awe°rd4Origitta'tiscaftmJtt t AnnualGp5r'forA>15�tlaretS`Ites ~iRe sedF�crtlSrrip r,
Zone 2 and Zone 3 SFM 5 1,022,833.00 I .568,688 $1,091,521.00
Term
Initial three 3 ears,with two(2)additional 1 one ar renewals.
City Manager Approval,February 14,2019;Attachment A,SFM Services Pricing for Additional Sites
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SERVICES, INC.
Wednesday, May 01,2019 Re:Janitorial Services
Santiago Sellan
City of Miami Beach
1833 Bay Rd.
Miami Beach,FL. 33139
Dear Santiago:
Pursuant to your request and site inspections,below please find our estimate to provide the following
janitorial services in the City of Miami Beach for the following costs.
.14o04t1 ,F113.aeitcy1 'jrV91it.:fbr;Cosf �' Ai;�iftrxLCost; �
Fire Station#2 Admin S days per week _ $2,373.00 $28,476.00
Fire Station#2 Rescue 5 days per week_ $1,026.00 $12,312.00
•
Unidad Buildin. 5 days per week $1,349.00 $16,188,00
Bisca ne Point Guardhouse 5 days per week $488.00 $5,856.00
North Buildin+ 15 days per week $488.00 $5,856.00
Notes:
o Above rates based on current Miami Beach Living Wage pay rate of$14.44 per hour.
o Above rates based on specifications stated in RFP 2017-070-JC
Respectfully Submitted,
9adartee
Christian Infante
President
9700 V.W.79"'Avenue,Hialeah Gardens,Fl.33016•Phone:(305)81S-2424 Fax:(305)818-2428•
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M i AMI BEACH REQUEST FOR CITY MANAGER APPROVAL
?ROC REMENT CEPARTAtEV-
Regtested Action
Piggyback Approval ' Award of ITQ •
Contract Execution Request for Contract Term Renewal
Change Order Approval X I Other
SELECTION OF FINAL PROPOSER(S)DEEMED TO OFFER THE BEST OVERALL TERMS AND SERVICE TO THE CITY,PURSUANT •
TO RESOLUTION NO.2018-30535 FOR
REQUEST FOR PROPOSALS RFP)NO.2017-070-JC,JANITORIAL SERVICES •
Why is refjuosted action necessary?
On October 17, 2018, the City Commission,through Resolution No. 2018-30535,approved the recommendation of the City Manager,
pursuant to Request for Proposals (RFP) No. 2017-070-JC, for Janitorial Services,which authorizes the Administration to enter into
simultaneous negotiations,with Able Business Services,Inc.,as the top ranked proposer,and SFM Services,Inc.,as the second ranked i •
proposer.
On November 28,2018,the first negotiation meeting was conducted with Able Business Services,Inc.,and SFM Services,Inc. During this
meeting,both proposers were provided with an overview of the Best and Final Offer(BAFO)process,including the cost proposal structure
• and BAFO proposal submittal timelines, Additionally, staff discussed the following nine (9) negotiation areas: 1) Being wage, 2)
staffing/transition plan,3)traininglsupervision,4)equipment,supplies and paper products,5)employee backgrounds,6)service frequencies,
7)quality control,8)interviews of incumbent contractor's staff,and 9)cost.The Administration requested that both proposers consider and
respond to these nine(9)key areas for the purposes of the BAFO proposal,
On December 21,2018,the City received BAFO proposals from Able Business Services,Inc.,and SFM Services,Inc.On January 14,2019, •
at the request of the Property Management Department,the Administration conducted a teleconference meeting with both firms to clarify
certain portions of the BAFO submittals.The pricing analysts pursuant to the BAFO proposals is Included in Attachment A.
After reviewing the results of the submitted BAFO proposals,the Property Management Department has determined that: •
1. SFM Services, Inc, has provided the City the best overall proposal for Zone 2 and Zone 3,when the following areas are
considered: 1)combination of pricing,2)services,and 3)terms. Further,the Properly Management Department determined that
SEM provided a better proposal that addressed supervision and allocation of personnel,quality assurance and control, and a
robust transition plan.
With respect to the personnel and transition plan,SFM will4taitor a seamless transition plan for each City facility.SFM operators•
follow a step-by-step guide for transitioning,Including identifying key resources for transition tasks,accountab,lily for transition
team members by reporting the completion of tasks to the City,establishing a base of communication between SFM and City staff,
and successful service implementation.SFM will set up an expectations meeting with City staff to establish parties'goats and
expectations for the first ninety(90)days of services.During this meeting communications channels will be identified,Invoicing
structure discussed, Introduction to individual roles and responsibilities, storage areas for equipment delivery and placement
identified,the inspection report will be standardized,and cultural integration addressed.
Additionally,SFM will allocate and recruit staff for the City's service by way of SFM's 700 employees in the local market,and will
place advertisements locally,if required.SFM will also identify and select project supervisor candidates by performing a 2-panel
Interview process, followed by application review, job offer, orientation, criminal background and drug screening, and 1-9
• verification. Further,SFM will provide employee training to each staff member assigned to the City.This training will include
btocdborne pathogens, terminal cleaning, OSHA-based chemicals training, floor care training, restroom maintenance, sexual
harassment training,silprtrip/fall prevention,lifting trainIng,closures procedures,and hazard communication
SFM has also committed to a vigorous program of environmental conservation and sustainability through their corporate and
operational practices.SFM will promote and maintain a recycling program throughout the duration of the contract.SFM will conduct
a waste audit within each zone and further refine their recycling plan for the City based on the audit outcome.
For Zone 2 and Zone 3,the pricing difference between the two proposers was determined to be nominal.SFh1's price for Zone 2 is
$8,000 higher and Zone 3 pricing Is 913,000 higher than Able's,respectively.However,Property Management has determined
that,when both cost and services are considered,SEM Is a better value for these zones,given that SFM provided a more robust
personnel,quality control and transition plan.
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2. Able Business Services, Inc., provided the City the best overall proposal for Zone 4 and Zone 6 (Attachment A), when a
combination of pricing and services are considered.Specifically,Able provided a better proposal in dedicated service hours and
responding to emergencies at the heavily used facilities in these zones.
With respect to Able's dedication of service hours to Zone 4,it will dedicate an impressive 320 hours per week to service all
garages including utilizing three(3)shills per day in seven(7)of the highest demand locations,.and 2 shifts per day at the
remaining three(3)locations.Concerning Zone 6,Able will dedicate 641 hours per week for City parks and reslrooms.Dedicated '
porters will be utilized at Flamingo Pool Facility,Muss Park,South Pointe Park,Lummus Park.Normandy Shores,Normandy Isle '
Park,and North Shore Park,among others.
Additionally,Able has committed to set aside$30,000,for the duration of the contract term,to be used for the hiring benefit of
special needs persons,including displaced veterans from the City of Miami Beach community.Able has committed that the costs
associated with hiring and supervising these individuals will be their goodwill contribution to the community and the City of Miami
Beach.
For Zone 4 and Zone 6,Able's pricing represents a significant difference In cost to the City,and Is an overall better value therein.
For Zone 4 alone,Able offered pricing that is$416,000 fess than that offered by SFM.Similarly,Able's pricing for Zone 6 Is
$243,000 less than offered by SFM.Given the vast pricing separation between Able and SFM for Zone 4 and Zone 6,Property
Management determined that Able was the clear and best value for(hese respective zones.
•
Further, Properly Management Staff believes that splitting the City's janitorial zones between these two(2)contractors will enable the
contractors to respond more promptly,and with greater effectiveness,than If a single contractor were to be awarded all zones,and will allow
• the City to have a backup contractor in the event that either was to default.The respective distribution of awards per zone to each contractor
provides for a cost effective and fiscally responsible solution.In the event that either contractor is not meeting the services,terms and City's
standards of cleanliness and performance,the award will be transferred to other contractor.
In anticipation of improvement to present services,and based on the recommended levels of services and terms as provided in RFP No.
2017.070•JC,the City budgeted$2,903,000.00 for Janitorial services citywide,for FY 2019.In consideration of cost,the proposed annual
total of$2,120,809.36(Attachment A)for all respective zones,results in a$128,353.92 projected reduction in the City's janitorial costs,when
compared to the City's FY 2018 Janitorial expenditures of$2,249,163.28;and an overall$782,190.64 savings to the City's FY 19 budget
Therefore,staff recommends that the City Manager approve,pursuant to RFP No.2017.070-JC,for Janitorial Services,the award of Zone 2
and Zone 3 to SFM Services,Inc.,as the primary contractor,and to Able Business Services.Inc.,as the secondary contractor for Zane 2
and Zone 3:and approve the award of Zone 4 and Zone 6 to Able Auslness Services,Inc..as the primary contractor,and to SFM Services,
Inc.,as the secondary contractor far Zone 4 and Zone 6.
previous Action(s) •
Resolution No.2018.30535
Authority
Resolution No.2018.30535 •
Fiscal Impact
$2,120,809.36
Term
Initial three 3 ars,with two 2)additional(1 one ••ar renewals.
Attachments •
Resohj K No.2018.30535
AltapiS •ntA:Recommendation Anal s .1
Approval
ead: Procure l:•%• ACM(a' 1� City .nager: _
` ►• 4
Da'9 7, • Date: je, gist' Date: / 1
, J
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Attachment A:Recommendation Analysis BAFO RFP 2017-070-1C Janitorial Services
Loca t Recommendation Fiscal Impact Total
Zone 2 5FM 788,39440
1022.833.00
Zone 3 SFM 234,439.00
Zone 4 Able 334.288.7&
1,097,976.36
Zone 6 Able 5 763 687.60
il$12gOgg.40.0:td2A20;809.36; S 2,120,869.36
Individual Zone Pricing Comparison•BAFO
1.9sAlke ,talte SFM
Zone 2 S 780,104.00 44,0SIONatedlaWstra.
Zone 3 220.955.68 IrAtigertateM.g41114:
Zone 4 49:100gSPSOgraqUIA 750,50140 •
Zone 6 .1. ;:'!IaiV3,002.6%46,6:46(2,: S 1.007,460.44
Total 2,099,046.04 5 2,780,774.4
•
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EXHIBIT "B"
PRICING SCHEDULE
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41111 SFM
SERVICES, INC.
Friday. December 6. 2019
Adrian Morales
City of Miami Beach
1833 Bay Rd.
Miami Beach, FL. 33139
Dear Adrian:
SFM Services. inc. is proud to have been selected as one of two Janitorial Service Providers for the
City of Miami Beach. The terms of the contract are memorialized within the Professional Services
Agreement Between the City of Miami Beach and SFM Services, Inc. (Primary Contractor for
Zone 2 and Zone 3. Secondary Contractor for Zone 4 and Zone 6) for Janitorial Services,Pursuant
to RFP 2017-070-JC) dated May 28,2019(Agreement). As outlined in Section 1 the Agreement
prevails over all other documents incorporated and made part of the Agreement by reference.
Subsequent to the initial award, the City of Miami Beach terminated for cause the Primary
Contractor for Zone 4 and Zone 6. The City of Miami Beach requested SFM Services. Inc., as the
Secondary Contractor for the referenced Zones,to provide the"work and services as described in
the RFP and, more Specifically. in Exhibit"A" hereto (the"Services"). Section 4-1 of the
Agreement states Contractor shall be compensated in accordance w ith the rates referenced in
Exhibit B.attached to this letter for reference. Effective October 1. 2019, SFM Services, Inc.
began sere icing Zone 4 and Zone 6.
The City of Miami Beach has requested a price concession as it relates to the pricing outlined
within Exhibit B. As outlined in Section 12.1, the"Agreement cannot be modified or amended
without the express written consent of the parties." Therefore.effective January 5, 2020 SFM
Services Inc.consents to the following modifications to Exhibit B of the Agreement.
Zone I _ Exhibit B Pricing Amended Exhibit B
Pricing_ ,
Zone 2 $788,394.00 5788,394.00 —
Zone 3 $234,439.00 $234,439.00
Zone 4_ 4 $750,501.00 '— $468,447.12— —
Zone 6 $1,007,460.44 $941,862.16
TOTAL $2,780,794.44 $2,433,142.28
This represents a proposed savings of$347,652 to the City of Miami Beach for city-wide Janitorial
Services and is $466,857 less than City budgeted amounts as referenced in Miami Beach
Procurement Department Requested Action related to this Agreement.
EXHIBIT
9700`1.W.79" Avenue.Hialeah Car a 8,.... 5)818-2424 Fax:(305)818-2428•
a
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We appreciate the opportunity to service the iconic City of Miami Beach and look forward to our
continued success.
Respectfully Submitted,
•/!%tel
;istian Tante
!resident
9700 N.W.791°Avenue,Hialeah Gardens,Fl.33016•Phone:(305)818-2424 Fax:(305)818-2428•
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EXHIBIT"C"
LOCATION STAFFING HOURS
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411
SERVICES, INC.
Friday,January 03,2020 Re:Janitorial Services
Santiago Sellan
City of Miami Beach
1833 Bay Rd.
Miami Beach,FL.33139
Dear Santiago:
Pursuant to your request and site inspections,below please find our estimate to provide the following
janitorial services in the City of Miami Beach for the following costs.
Location..',.. Frequency Monthly Cost -; Annual.CostT
Historic City Hall Floors 3,4,5,6 5 days per week $2,941.00 $35,292.00
1755 Meridian Coin Room 151 Floor 5 days per week $935.00 $11,220.00
MDPD Warehouse 1 day per month $225.00 $2,700.00
Notes:
o Above rates based on current Miami Beach Living Wage pay rate of$15.00 per hour.
o Above rates based on specifications stated in RFP 2017-070-JC
Respectfully Submitted,
etiatiaa 7akaate
Christian Infante
President
• EXHIBIT
C.- I
•
9700 N.W.79" Avenue,Hialeah Gardens,Fl.33016•Phone:(305)81S-2424 Fax:(305)818-2428•