Amendment No. 2 to the PSA with SFM Services, Inc. DocuSign Envelope ID:A3E5BE49-2FBF-4AD8-8229-444C770263D1 n �r? ,+i ' •1,t,.F•
1 eso020 31 4.03
AMENDMENT NO. 2
TO
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE CITY OF MIAMI BEACH, FLORIDA
AND
SFM SERVICES, INC.
This Amendment No. 2 ("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 this20th day of OCTOBER 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 (the "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 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, in the amount of
Page 1 of 5
DocuSign Envelope ID:A3E5BE49-2FBF-4AD8-8229-444C770263D1
$1,410,309.28 per year, 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; 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 requires 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 $2.74 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,on September 29, 2020, the Mayor and City Commission adopted the
final budget for the fiscal year 2021, effective January 1, 2021; and
WHEREAS, on September 16, 2020, the Mayor and City Commission adopted
Resolution No. 2020-31403, 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 $146,381.00 per year, for a total contract amount of
$2,795,567.03 per year; (2) approving additional services in response to the COVID-19
pandemic, in the amount of $325,528.31, for fiscal year 2019-2020 only; and (3)
Page 2 of 5
DocuSign Envelope ID:A3E5BE49-2FBF-4AD8-8229-444C770263D1
memorializing the living wage increase, under the City's Living Wage Ordinance effective
January 1, 2020.
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 etFusk-thceu# and inserted
items underlined)as follows:
(a) Effective January 25, 2020, Exhibit "C" (Location Staffing Hours) is hereby
amended by adding Exhibit 'C-2" to the Agreement, incorporated herein by
reference and attached hereto, as part of composite Exhibit "C", reflecting
additional locations and services added to the scope of the Agreement.
(b) Based upon the approved City budget for FY 2019-2020, effective January 1,
2020, for calendar year 2020 and beyond, CONTRACTOR will invoice the City,
on a monthly basis, an additional $0.56 per hour for employees working under
the Agreement to cover the increase in the minimum wage rate, based upon
the applicable minimum wage rate of$15.00 per hour, plus $0.06 per hour for
related payroll taxes.
(c) Based upon approved City budget for FY 2020-2021, effective January 1, 2021,
CONTRACTOR will invoice the City, on a monthly basis, and additional $0.15
per hour for employees working under the Agreement to cover the increase in
the minimum wage rate, based upon the applicable minimum wage rate of
$15.15 per hour, plus $0.0165 per hour for related payroll taxes.
3. RATIFICATION.
Except as amended herein, all other terms and conditions of the Agreement shall
remain unchanged and in full force and effect. In the event there is a conflict
between the provisions of this Amendment and the Agreement, the provisions of
this Amendment shall govern.
THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.
Page 3 of 5
DocuSign Envelope ID:A3E5BE49-2FBF-4AD8-8229-444C770263D1
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their appropriate officials, as of the date first entered above.
FOR CITY: CITY OF MIAMI BEACH, FLORIDA
ATTEST:
DocuSigned by: DocuSigned by:
By. rafat,l, . araan,a.1.e itoxy &Watt s
24A05043ADOC4BS... 2.864484.940.704436
Rafael E. Granado, City Clerk JimL. Morales, City Manager
10/20/2020 I 4:13 PM EDT
Date
FOR CONTRACTOR: SFM SERVICES, INC.
ATTEST:
/
By /1i/
Secrt'ary1 (1 t
Print Name Print Name
IIS-‘S--;$%0 1Q—AS—P.O
Date Date
:: Ti'
Page 4 of 5
DocuSign Envelope ID:A3E5BE49-2FBF-4AD8-8229-444C770263D1
RESOLUTION NO. 2020-31403
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: (1)APPROVING,
EFFECTIVE JANUARY 25, 2020, ADDITIONAL SITES AND SERVICES, IN THE
AMOUNT OF $146,381 PER YEAR, INCREASING THE TOTAL CONTRACT
AMOUNT TO $2,795,567.03 PER YEAR; (2) APPROVING ADDITIONAL
SERVICES IN RESPONSE TO COVID-19 PANDEMIC, FOR FISCAL YEAR 2019-
2020 ONLY, IN THE AMOUNT OF $325,528.31; AND (3) MEMORIALIZING THE
LIVING WAGE INCREASE UNDER THE CITY'S LIVING WAGE ORDINANCE,
EFFECTIVE JANUARY 1, 2020; AND FURTHER AUTHORIZING THE CITY
MANAGER AND CITY CLERK TO EXECUTE THE FINAL AMENDMENT.
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 18, 2018, the Mayor and the City Commission accepted the
recommendation of the City Manager, pursuant to RFP No. 2017-070-JC, to enter into
simultaneous negotiations with Able Business Services, Inc., and SFM Services, Inc.; and further
authorized 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 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, in the amount of $1,410,309.28 per year,
DocuSign Envelope ID:A3E5BE49-2FBF-4AD8-8229-444C770263D1
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; 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$2.74 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
DocuSign Envelope ID:A3E5BE49-2FBF-4AD8-8229-444C770263D1
WHEREAS, in order to improve and maintain acceptable levels of cleanliness in the City,
additional sites and services have been added to the scope of the Agreement, increasing the
contract amount by$146,381 per year, for a total contract amount$2,795,567.03 per year: and
WHEREAS, additional services have been implemented in order to mitigate the spread of
infection in response to COVID-19 for fiscal year 2019-2020, in the amount of$325,528.31; and
WHEREAS,the City Manager recommends the approval, in substantial form, of Amendment
No. 2 to the Agreement, a copy of which is incorporated herein by reference and attached to this
Resolution as Exhibit"1",
NOW,THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby
approve, 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, increasing the total contract amount to$2,795,567.03 per year; (2)approving additional
services in response to COVID-19 pandemic in the amount of$325,528.31 for fiscal year 2019-
2020 only; and (3) memorializing the living wage increase under the City's Living Wage
Ordinance, effective January 1, 2020; and further authorize the City Manager and City Clerk to
execute the final amendment.
PASSED AND ADOPTED this 16`h day of September 2020.
Dan Gelber, Mayor
ATTEST:
jL4Rafael . G Yado, CI rk
ROV AS T
FORM L ANGU,-\GE
FOR E_>:EC ION
514U tt Aug 4#/202d
DocuSign Envelope ID:A3E5BE49-2FBF-4AD8-8229-444C770263D1
Exhibit "C-2"
Page 5 of 5
DocuSign Envelope ID:A3E5BE49-2FBF-4AD8-8229-444C770263D1
SEM
Services, Inc.
January 25. 2020
Adrian Morales
City of Miami Beach
1833 Bay Rd.
Miami Beach. FI. 33139
Dear Adrian:
The purpose of this letter is to explain the rationale for retro-active billings for services rendered prior to
December 31.2019 in conjunction with the Professional Services Agreement Between the City of Miami Beach
and SFM Services. Inc. for Janitorial Services pursuant to RFP 2017-070-JC dated May 28. 2019 and as
amended on January 5. 2020.
Our contract pricing was based on Exhibit IA Revised Scope of Services Sections C2-C3.05. It has come to our
attention the original scope of services for certain locations were changed at the request of the City of Miami
Beach. The locations,adjusted schedules,and proposed retroactive billing amounts are summarized below:
,Coca Flamingo Park North Shore Unidad
Mon-Fri.7AM-2:30PM& Mon-Fri 8:OOAM-3:OOPM&
R-, e' 2:30PM-10:OOPM 3:OOPM-9:OOPM. Mon.to Fri.9:OOAM-11:30AM&
Sat.&Sun.8:OOAM-9:OOPM Sat&Sun 9AM-5PM 1:00P(y1 to 2:00PM
[Re, isgd - ua Arno $123,109.10 $104,030.62 $22,166.00
t)F gt 'A t ialG4�iot igigg $37,176.36 $49,560.68 $16,188.12
AA7tjOPICA 11t -`f 7P
Sets ,:.Le:Le 1 . $85,932.74 $54,469.94 $5,977.88
Wee yfes (MECM Ct7p
tE=.Ike RI X2M $1,652.55 $1,047.50 5114.96
` a Da -tie?•-"ti ed
G Gd (IC a 10/1/2019 10/1/2019 11/15/2019
Eff.ftZa2Gle to
a Jag/9 13.00 13.00 6.57
Retro Bill 2:1 •T,�3/= 521,483.19 $13,617.49 $755.45
We have also attached to this letter written communication from City of Miami Beach personnel requesting the
changes to the service levels.
We appreciate the opportunity to service the iconic City of Miami Beach. If you have any questions regarding
this matter,please feel free to contact me directly at 305.525.9442.
Sincerely,
Christian Infante
President
9700 NW 7'.Pt Ave.Hialeah Gardens.Fl.3001618.- .
Ph:305.518.1617 Fax:305.818.3510