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R7F-Negotiate Amendment No 1 Maintenance Of 1100 Block Of Lincoln Road MallCOMMISSION ITEM SUMMARY Condensed Title: A Resolution Of The Mayor And City Commission Of The City Of Miami Beach, Florida, Authorizing The City Manager To Negotiate Amendment No. 1 To The Management Agreement With UIA Management, LLC., Dated January 13, 2010, For The Maintenance Of The 1100 Block Of Lincoln Road Mall; Said Amendment Electing The Option, Pursuant To Section 23 Of The Management Agreement, To Expand The Scope Of Said Agreement To Cover Management And Maintenance OfThe Entire Length Of Lincoln Road, From Collins Avenue To West Avenue, Including Side Streets Between Lincoln Lane (North And South); Further Waiving, By 5/71h Vote, The Competitive Bidding Requirement, Finding Such Waiver To Be In The Best Interest Of The City, And Augmenting Dev~loper's Management And Maintenance Responsibilities To Also Require The Provision Of Security Services Within The Designated Area; Further Providing That The Final Negotiated Amendment Shall Be Brought Back To The City Commission For Approval. Key Intended Outcome Supported: Improve cleanliness of Miami Beach rights-of-ways, especially in business areas. Supporting Data (Surveys, Environmental Scan, etc.): Existing Maintenance Agreement with UIA Management, LLC dated January 13, 2010 for the maintenance of the 1100 block of Lincoln Road. Issue: I Shall the Mayor and City Commission approve the Resolution? Item Summary/Recommendation: Section 23 of the UIA Management Agreement states: "The City and Manager (UIA), by mutual written agreement, can expand scope of Agreement to cover management of maintenance of other sections of Lincoln Road and/or the future Lincoln Park." Since security services are not part of the current UIA Agreement, a 5/71 h vote of the City Commission is needed to waive competitive bidding requirements. On February 24, 2011, the Finance and Citywide Projects Committee (FCWPC) approved proceeding with the expansion of the UIA Agreement to remainder of Lincoln Road and SoundScape Park. The item regarding the outsourcing of maintenance services was withdrawn from the July 13, 2011 Commission Meeting since it was the Administration's understanding that several Lincoln Road property owners had some concerns. It is the Administration's current understanding the recently created Lincoln Road Property Owners Assoc. supports the outsourcing of maintenance services to UIA. At the September 14,2011, Commission Meeting, an item requested by Commissioner Wolfson, regarding a letter in reference to expanding the UIA Agreement resulted in a referral to FCWPC and also the item was referred to the State Attorney's Office. Thus far, a response from the State Attorney's Office is still pending. At its December 6, 2011 meeting, the FCWPC: 1) directed the Administration to provide information regarding the positions that would be eliminated by the outsourcing of Lincoln Road maintenance services, and if any of those positions would be retiring in near future, and 2) recommended that a workshop be held to discuss the Lincoln Road maintenance. On January 10, 2012, the workshop was held at the Miami Beach Community Church to present an overview of maintenance services provided by the various City Divisions, and possibility of outsourcing of maintenance services. In general, business owners did not appear comfortable with outsourcing maintenance, but several did express that if the City were to pursue outsourcing, it should be done via a competitive process. Several of those present expressed satisfaction with City provided services & recognized that the City should continue to improve existing services. Several of the owners expressed their support for outsourcing as a way of increasing value and enhancing services. Although the concept of appointing a Mall Manager was favorably received, opinions varied as to whether the position should be a City employee or an outside manager. On February 1, 2012, the owner of 420 Lincoln Road is scheduled to meet with UIA to discuss concerns regarding the expansion of maintenance services through the UIA Agreement. The results of that meeting will be communicated at the Commission Meeting. The Administration is seeking direction on how to proceed with the provision of maintenance services. The maintenance options are: 1) Status Quo-no change; 2) Status Quo with enhancements; 3) Amend UIA Agreement to provide current services; 4) Amend UIA Agreement to provide enhanced services; 4) Issue Request for Proposals (RFP) for provision of existing services, RFP could include alternates for enhanced services. 24,2011 Financial Information: Source of Funds: I J <Amount .. >'I ·'' ' .········ ..... •· ' Account· '' <'•:>.: :·.· •·· ',ji. OBPI l''rotal I I Financial Impact Summary: City Clerk's Office Legislative Tracking_: Fred H. Beckmann ext. 6012 Directot -8-12\Lincoln Road Mall Maintenance SUMM 2012-02-0B.docx M.IAMI BEACH 469 AGENDA 1TEM -----'R_1_i== __ DATE z-g---12.- City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Commission FROM' Jorge M. Gonzalez, City Manager $fut J,<Aq DATE: February 8, 2012 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO NEGOTIATE AMENDMENT NO. 1 TO THE MANAGEMENT AGREEMENT WITH UIA MANAGEMENT, LLC, DATED JANUARY 13, 2010, FOR THE MAINTENANCE OF THE 1100 BLOCK OF LINCOLN ROAD MALL; SAID AMENDMENT ELECTING THE OPTION, PURSUANT TO SECTION 23 OF THE MANAGEMENT AGREEMENT, TO EXPAND THE SCOPE OF SAID AGREEMENT TO COVER MANAGEMENT AND MAINTENANCE OF THE ENTIRE LENGTH OF LINCOLN ROAD, FROM COLLINS AVENUE TO WEST AVENUE, INCLUDING SIDE STREETS BETWEEN LINCOLN LANE (NORTH AND SOUTH); FURTHER WAIVING, BY 5/7TH VOTE, THE COMPETITIVE BIDDING REQUIREMENT, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY, AND AUGMENTING DEVELOPER'S MANAGEMENT AND MAINTENANCE RESPONSIBILITIES TO ALSO REQUIRE THE PROVISION OF SECURITY SERVICES WITHIN THE DESIGNATED AREA; FURTHER PROVIDING THAT THE FINAL NEGOTIATED AMENDMENT SHALL BE BROUGHT BACK TO THE CITY COMMISSION FOR APPROVAL. ADMINISTRATION RECOMMENDATION Provide direction and guidance to the City Manager BACKGROUND On March 14, 2007, the City Commission adopted Resolution No. 2006-26422, approving a Development Agreement between the City and UIA Management, LLC, (UIA) for the design, development, and construction of certain improvements to the 1100 Block of Lincoln Road, in conjunction with the project being developed by MBeach1, LLP, an affiliate of UIA, at 1111 Lincoln Road, Miami Beach. Section 52.6 of the Development Agreement provides that (i) a comprehensive annual maintenance program and schedule be prepared by the Design Architects for City for successful future maintenance of the "urban glade" features of the Project (as defined in the Development Agreement}, including ponds, water features, indigenous plants and trees and special lighting; (ii) such program and schedule shall be approved by City staff and relevant City agencies; and (iii) Manager (UIA) shall provide oversight of such program and schedule as part of a separate agreement to be entered into with City. In January, 2010, the City Commission approved the execution of the Management Agreement 470 City Commission Memorandum -Lincoln Road and Soundscape Management Agreement February 8, 2012 Page 2 ofB for Maintenance of 1100 Block of Lincoln Road between the City of Miami Beach and UIA, for the maintenance of improvements to the 1100 block of Lincoln Road Mall. Under the Maintenance Management Agreement, UIA has provided maintenance, repair and replacement of the water features, landscaping, trees, Pedra Portuguesa stone pavement, lighting, electrical equipment, mechanical systems and sanitation services on the 1100 Block of Lincoln Road. The purpose of the Agreement was to evaluate the benefits received by consolidating oversight and management of all maintenance activities under a single entity as an attempt to control costs, while improving levels of service and response time. To date, the general consensus is that the contract has been successfully executed. On February 24, 2011, the Finance and Citywide Projects Committee (FCWPC) approved proceeding with the expansion of the UIA Agreement to the remainder of Lincoln Road and SoundScape Park. The item regarding the outsourcing of maintenance services for Lincoln Road and SoundScape Park was withdrawn from the July 13, 2011 Commission Meeting since it was the Administration's understanding that several Lincoln Road property owners had some concerns with the outsourcing. It is the Administration's current understanding that this may no longer be the case and that the recently created Lincoln Road Property Owners Association supports the outsourcing of maintenance services to UIA. At the September 14, 2011, Commission Meeting, an item (R9F), requested by Commissioner Wolfson, regarding a letter in reference to the maintenance contract for Lincoln Road, was discussed. A Motion by Commissioner Wolfson to refer the item to the Finance and Citywide Projects Committee (FCWPC) was seconded by Commissioner Gongora and unanimously approved. A second Motion made by Vice-Mayor Tobin to refer the item to the State Attorney's Office was seconded by Commissioner Libbin and unanimously approved. Thus far, a response from the State Attorney's Office is still pending. At its December 6, 2011 meeting, the FCWPC: 1) directed the Administration to provide information regarding the positions that would be eliminated by the outsourcing of Lincoln Road maintenance services, and if any of those positions would be retiring in the near future, and 2) recommended that a workshop be held to discuss the maintenance of Lincoln Road. In a memorandum dated December 8, 2011, Commissioner Weithorn requested information on various Lincoln Road maintenance related items regarding copies of work orders (WOs) presented to Commissioner Weithorn at the December 6, 2011 FCWPC meeting by Mr. Richard McKinnon, President of Communications Workers of America, Local 3178. A copy of the LTC (without attachments), dated January 23, 2012, submitted in response to Commissioner Weithorn's memorandum, is included as Attachment C. On January 10, 2012, a workshop was held at the Miami Beach Community Church meeting hall to present to Lincoln Road business and property owners an overview of the current maintenance services provided by the various City Divisions, as well as to discuss the possibility of outsourcing of current and enhanced maintenance services. In general, business owners did not appear comfortable with outsourcing the maintenance work, but several did express that, if the City were to pursue the outsourcing of maintenance services, it should be done through a competitive bidding process. Several of those present expressed general satisfaction with City provided services and recognized that the City should continue to improve existing maintenance services. Several of the owners expressed their support for outsourcing services as a way of increasing value and enhancing services. One of the owners noted that the Lincoln Road Property Owners Association is in favor of outside management of services. Although the concept of appointing a Mall Manager was favorably received, opinions varied as to whether the position should be a City employee or an outside manager. 471 City Commission Memorandum -Lincoln Road and Soundscape Management Agreement February 8, 2012 Page 3 ofB On February 1, 2012, the owner of 420 Lincoln Road is scheduled to meet with UIA management to discuss concerns regarding the expansion of Lincoln Road maintenance services through the Management Agreement for Maintenance of 11 00 Block of Lincoln Road between the City and UIA. The results of that meeting will be verbally communicated at the City Commission Meeting. ANALYSIS With the exception of the 1100 block of Lincoln Road (between Lenox Avenue and Alton Road), City of Miami Beach personnel from three divisions -Property Management, Sanitation and Greenspace Management, with limited support from temporary labor, provide maintenance services for the entire length of Lincoln Road -from Collins Avenue to West Avenue, including the side streets between Lincoln Lane North and Lincoln Lane South. Maintenance services for the 1100 Block are provided under the Management Agreement with UIA. Refer to Attachment "A" for a map of Lincoln Road maintenance service area. Section 23 of the UIA Management Agreement states that: "The City and Manager (UIA), by mutual written agreement, can expand the scope of this Agreement to cover management of the maintenance of other sections of Lincoln Road and/or the future Lincoln Park." Since security services are not part of the current Agreement with UIA, a 5/?th vote of the City Commission is necessary to waive competitive bidding requirements, finding such waiver to be in the best interest of the City. Maintenance I security services provided or managed by City personnel are as follows: • Parks and Recreation Dept. Greenspace Management Division -A total of five City personnel support the following maintenance activities: -Turf mowing, trimming and edging (30/year) -Shrub and ground cover pruning (12/year) -Weed control (40/year) -Tree/palm pruning (2-3/year) -Date palm seed removal (4-6/year) -Mulch application (2/Year); daily irrigation system checks (5 days, weekly) and repairs as needed -Flower installations (3/Year) with additional plants also installed -Turf fertilization (3/year) -Shrub/ground cover granular fertilization (3/year) -Liquid fertilization (minors) (4/year) -Tree/palm fertilization (3/year) -Litter removal (supplemental to Sanitation Division) once per day, 5 days weekly -Integrated pest management. • Sanitation Division - A total of 13 City personnel and three temporary laborers support the following maintenance activities daily from 6:30a.m, to 11:30 p.m.: -Pressure cleaning of all hard surfaces, with scrubber overlapping pressure cleaners, as well as area garbage cans (5 days, weekly, 15-day rotation) -Seven-day litter control from 6:10 a.m. to 11:30 p.m., including blowing and sweeping the walkways and emptying garbage and recycling containers -Reporting of deficient conditions for follow-up or corrective work by other divisions 472 City Commission Memorandum -Lincoln Road and Soundscape Management Agreement February 8, 2012 Page4 ofB -Close work with Code Enforcement, Police and Homeless Outreach Team to support a cleaner and safer environment for tourists, residents and business owners. • Property Management Division - A total of six City personnel support the following maintenance activities: -Painting of all structures, retaining walls and "piano keys"; -Service and maintenance of all decorative, landscaping and pedestrian street lighting; -Maintenance of all electrical service points for vendors; -Cleaning and chemical treatment of fountains/water features, as well as repair and maintenance of associated electrical, pumping and plumbing systems. The equivalent of three of the six employees -an Electrician, a Municipal Service Worker Ill, and a Painter are dedicated to maintain other RDA district facilities outside of the Lincoln Road service area; therefore, only three of the six employees will be impacted. • Police Department -Contracted security services provide two daily shifts I 7 -day coverage; each shift staffed by two guards. Split shifts are from 6:00am to 2:00pm and 6:00 pm to 2:00 am. Over the course of the past eighteen (18) months, UIA has met expectations under the terms and conditions of the Management Agreement. General consensus is that the levels of maintenance, oversight, and repair for the contracted portion of Lincoln Road Mall compare favorably to other Mall areas maintained by City forces. Average scores from the City's Cleanliness Index & Assessment Program's recent surveys for Lincoln Road are as follows: From FY1 O/Q2(1) through FY11/Q4: • Lincoln Road, excluding the 1100 block: 1.6 • Lincoln Road, 1100 block only: 1.4 (1) VIA Management contract for 1100 Block maintenance commences Cleanliness index scores provide an objective measurement of performance ranging from 1.0 (Very clean) to 6.0 (Very Dirty) and include assessment of litter, litter/garbage cans and dumpsters, organic material and fecal matter. The results of the assessments are used to monitor the impact of recently implemented initiatives to target areas for future improvements and assure the quality of services. Should the City Commission consider outsourcing the maintenance of Lincoln Road Mall, via amending the UIA agreement or through the issuance of an RFP, the expectation would be that the costs of the outsourcing agreement would not exceed the avoidable costs of the approved Fiscal Year 2011/12 Budget for supporting Lincoln Road maintenance and security services. Any new or additional scope of work and/or services would require the approval of a funding increase through the budget process. The objective of any outsourcing negotiations would be to secure additional and/or enhanced service levels at a cost equivalent to, or less than, the avoidable costs of the approved Fiscal Year 2011/12 Budget for supporting Lincoln Road maintenance and security services. 473 City Commission Memorandum -Lincoln Road and Soundscape Management Agreement February 8, 2012 PageS ofB Should the Commission wish to consider amending the existing UIA Maintenance Agreement, the Administration would proceed to negotiate an amendment that extends the management oversight provided by UIA to the entirety of Lincoln Road from Collins Avenue to West Avenue, including side streets (between Lincoln Lane North and Lincoln Lane South). UIA would then obtain a minimum of three bids from local companies for the services that will be expanded to the remainder of Lincoln Road Mall, review the bids, and be ready to start negotiations with the City should this option be approved by the City Commission. Upon conclusion of said negotiations, the Administration would bring the proposed amendment to the City Commission for consideration and approval prior to execution of an agreement. Following the February 24, 2011 approval by FCWPC to proceed with the expansion of the UIA Agreement to the remainder of Lincoln Road and SoundScape Park, preliminary discussions were held with UIA on various enhancement and service options such as: • Providing a full-time Mall Manager to coordinate maintenance activities, • Offering enhanced levels of service by increasing maintenance resources on as as- needed basis, • Increasing plant replacement frequency, • Setting higher standards for maintaining the various amenities that comprise the Mall area, and • Augmenting Mall security by increasing the hours of daily coverage from 16 hours per day to 24 hours per day. These discussions didn't come to final fruition since the outsourcing item was pulled from a subsequent City Commission meeting as noted previously. Nevertheless, increasing security and providing a single point of contact for all maintenance activities should improve the overall appearance and condition of the Mall features. Twenty-four hours per day surveillance by trained security guards will reduce the defacing of City property, thereby freeing up maintenance resources to concentrate on performing preventive maintenance in lieu of corrective maintenance (reacting to damage, graffiti and acts of vandalism). Whether procured via an amendment to the UIA Agreement, an RFP, or dedicated City employee, providing a single point of contact for all Lincoln Road Mall maintenance and repairs, via a dedicated Mall Manager, would offer improved coordination and supervision of the workforce where attention to details will be a priority. It should also be understood that any additional resources required for the provision of new and/or enhanced services would need to be approved through the budget process. It should be clear that the role of any outside group or agency contracted to perform maintenance services on Lincoln Road is exclusive of any involvement in the development of a "future vision" for Lincoln Road, as part of that maintenance role. It should also be noted that any provider of maintenance services will have no direct involvement in the administration of the City's policies, codes, or capital investment process. Any future capital enhancements and improvements to Lincoln Road will follow the City's established process, wherein a Basis of Design Report (BOOR) is drafted with the input of all interested parties and residents and subsequently submitted for review and approval by the FCWPC and the City Commission. A proposed marketing plan, promoting Mall destinations that would include the use of social media and an application accessible by smart mobile devices that will help direct patrons of the Mall to their desired location, assist with parking, and promote special events was discussed with UIA during the preliminary discussion held in 2011. The Lincoln Road Property Owners Association has pledged to match City annual revenues received from the Lincoln Road Adshell advertising panels ($85,000 projection for 2011) in support of the proposed marketing plan. The 474 City Commission Memorandum -Lincoln Road and Soundscape Management Agreement February 8, 2012 Page 6 ofB development of the marketing application would be accomplished independently of any potential Management and Maintenance Agreement from the outsourcing of services. The majority of the employees providing maintenance in Lincoln Road fall under the Municipal Service Worker (MSW) classification. The MSW and other positions could be absorbed within vacant positions throughout the various City Divisions. None of the City employees in budgeted positions assigned to the maintenance of Lincoln Road are anticipated to retire in the near future. Should the City Commission recommend that the maintenance services be outsourced, these employees could easily be transferred. Attachment B provides a listing of the City staff positions budgeted for the provision of maintenance services on Lincoln Road. The disposition of City staff impacted by the privatization of the maintenance of the remainder of Lincoln Road Mall will be handled in accordance with provisions of the various Collective Bargaining Agreements governing those positions as follows: • Section 9.2 of the current contract between the City and the American Federation of State, County and Municipal Employees, AFSCME Local No. 1554, stipulates that "No AFSCME unit position will be impacted between May 1, 2010 through September 30, 2010. Further, no employee covered under the AFSCME Bargaining Unit will be separated from the City for reasons other than discipline or voluntary separation for the period of time between October 1, 2010 through September 30, 2011 (Fiscal Year 2010-2011} and October 1, 2011 through September 30, 2012 (Fiscal Year 2010-2011}. In the event that there is an impact to a position in FY 2011-2012, the impacted employee shall be offered a position with the City. The City will offer the impacted employee a position for which they meet the minimum qualifications. If that impacted employee's hourly rate is above the maximum hourly rate of the position offered, that employee will remain at their hourly rate even if that hourly rate exceeds the maximum hourly rate of the position offered. In addition, recall rights will be in place for two (2) years from date of impact. 11 • Section 9.3 of the current contract between the City and the Communications Workers of America, CWA Local No. 3178, stipulates that " ... for the time period covering from October 1, 2010 through September 30, 2012, no employee covered under the CWA Bargaining Unit shall be separated from the City for reasons other than disciplinary, voluntary separation, or whose position is reclassified due to changes in job duties. Individuals whose positions are eliminated from the budget (or are impacted as a result of the elimination of a position in the budget, (bumping)) will be placed in a position with the City. 11 The current termination clauses for default and convenience contained in the existing City/UIA Management Agreement for Maintenance of 11 00 Block of Lincoln Road (Sections 1 0 and 11, respectively) would continue to be in effect should the City Commission approve an amendment to the City/UIA agreement for the management of maintenance and security services for the Lincoln Road Mall. In addition, any renewals or extensions of such agreement would be subject to the availability of annual appropriations. CONCLUSION The Administration is seeking direction on how to proceed with the provision of maintenance services for the Lincoln Road Mall, from Collins Avenue to West Avenue and including the side streets, between Lincoln Lane North and Lincoln Lane South. The maintenance options to be considered are the following: 475 City Commission Memorandum -Lincoln Road and Soundscape Management Agreement February 8, 2012 Page 7 ofB 1. Status Quo -With the exception of the 11 00 block of Lincoln Road (between Lenox Avenue and Alton Road), City personnel from Property Management, Sanitation and Greenspace Management Divisions, with limited support from temporary labor, to continue to provide previously described existing maintenance for the entire length of Lincoln Road -from Collins Avenue to West Avenue, including the side streets between Lincoln Lane North and Lincoln Lane South. Police Dept. would continue to manage security services contract. Maintenance services for the 11 00 Block would continue to be provided under the existing management agreement with UIA Management, LLC. 2. Status Quo with Enhancements -Same as Option 1, but with the opportunity to consider adding resources, during the budget process, to provide for any approved enhancements, such as a professional Mall Manager position and expanded security, or additional/expanded maintenance services. 3. Negotiate Amendment 1 to the existing agreement with UIA Management, LLC maintaining existing service levels -Expand scope of UIA agreement to provide maintenance and security services, equivalent to those currently being provided by City personnel, to the entire length of Lincoln Road, from Collins Ave. to West Ave., including side streets between Lincoln Lane North and Lincoln Lane South. 4. Negotiate Amendment 1 to the existing agreement with UIA Management, LLC to expand existing service levels -Same as Option 3, but with the opportunity to consider adding resources, during the budget process, to provide any approved enhancements, such as a professional Mall Manager position and expanded security, or additional/expanded maintenance services. 5. Issue publicly advertised Request for Proposals (RFP) for the provision of maintenance and security services a. Scope -The scope of the RFP would be for the provision of the existing maintenance and security services currently being provided by City personnel for the entire length of Lincoln Road-from Collins Avenue to West Avenue, except for the 1100 block of Lincoln Road (between Lenox Avenue and Alton Road), including the side streets between Lincoln Lane North and Lincoln Lane South. The RFP could include alternate items for any approved enhancements b. Resources -The avoidable costs of the FY 2011/12 Budget for supporting Lincoln Road maintenance and security services. c. Procurement Process -The RFP process is comprised of the following steps: 1) Commission authorizes the issuance of RFP; 2) Upon receipt of authorization, Procurement Division issues publicly advertised RFP; 3) Procurement Division reviews submittals for responsiveness; 4) Evaluation committee reviews responses, interviews candidate firms, and makes recommendation to City Manager; 5) City Manager reviews recommendation and forwards his own recommendation to City Commission for authorization to award; 6) If Commission approves, then Administration negotiates with recommended firm; and 7) If required, negotiated contract would be brought back to the City Commission for approval prior to execution. 476 City Commission Memorandum -Lincoln Road and Soundscape Management Agreement February 8, 2012 Page 8 of8 Attachments: A: Map of Lincoln Road maintenance service area 8: List of Lincoln Road City staff positions C: Lincoln Road Maintenance LTC (without attachments) JMG/DRB/FHB T:\AGENDA\2012\2-8-12\Lincoln Road Mall Maintenance MEMO 2012-02-0S.docx 477 RESOLUTION NO. ____ _ A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO NEGOTIATEAMENDMENTN0.1 TO THE MANAGEMENT AGREEMENTWITH UIA MANAGEMENT, LLC, DATED JANUARY 13, 2010, FOR THE MAINTENANCE OF THE 1100 BLOCK OF LINCOLN ROAD MALL; SAID AMENDMENT ELECTING THE OPTION, PURSUANT TO SECTION 23 OF THE MANAGEMENT AGREEMENT, TO EXPAND THE SCOPE OF SAID AGREEMENT TO COVER MANAGEMENT AND MAINTENANCE OF THE ENTIRE LENGTH OF LINCOLN ROAD, FROM COLLINS AVENUE TO WEST AVENUE, INCLUDING SIDE STREETS BETWEEN LINCOLN LANE (NORTH AND SOUTH}; FURTHER WAIVING, BY 5/7TH VOTE, THE COMPETITIVE BIDDING REQUIREMENT, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY, AND AUGMENTING DEVELOPER'S MANAGEMENT AND MAINTENANCE RESPONSIBILITIES TO ALSO REQUIRE THE PROVISION OF SECURITY SERVICES WITHIN THE DESIGNATED AREA; FURTHER PROVIDING THAT THE FINAL NEGOTIATED AMENDMENT SHALL BE BROUGHT BACK TO THE CITY COMMISSION FOR APPROVAL WHEREAS, Lincoln Road Mall is one of the premier pedestrian destinations in Miami Beach, attracting residents and tourists from all over the world; and WHEREAS, the maintenance of Lincoln Road Mall, from Collins Avenue to West Avenue, is of paramount importance to the c01tinued vitality of this international destination; and WHEREAS, UIA Management, LLC presently provides management and maintenance services to the 1100 Block of Lincoln Road Mall under a Management Agreement with the City dated January 13, 2010 (the Agreement); and WHEREAS, Section 23 of the Agreement provides an option for the expansion of the scope to include other areas of the Lincoln Road Mall; and WHEREAS, at its regular meeting on February 24, 2011, the Finance and Citywide Projects Committee reviewed a proposal to expand UIA Management, LLC's management and maintenance obligations under the Agreement to include the entire length of Lincoln Road Mall, from Collins Avenue to West Avenue, and all the side streets between Lincoln Lane (north and south); and WHEREAS, the Committee recommended authorizing the City Manager to proceed with negotiating an amendment to the Agreement, to include management and maintenance of this additional area; and WHEREAS, the Agreement does not include security services; however, the Administration also recommends that it would be in the best interest of the City to include security services as part of the new expanded scope of services, thereby necessitating a 5/71h vote of the City Commission, to waive formal bidding procedures for adding security services to the scope of the proposed Amendment. 478 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 authorize the City Manager to negotiate Amendment No. 1 to the Management Agreement with UIA Management, LLC, dated January 13, 2010, for the maintenance of the 1100 block of Lincoln Road Mall; said Amendment electing the option, pursuant to section 23 of the Management Agreement, to expand the scope of said Agreement to cover management and maintenance of the entire length of Lincoln Road, from Collins Avenue to West Avenue, including side streets between Lincoln Lane (north and south); further waiving, by 5/ih vote, the competitive bidding requirement, finding such waiver to be in the best interest of the City, and augmenting developer's management and maintenance responsibilities to also require the provision of security services within the designated area; further providing that the final negotiated amendment shall be brought back to the City Commission for approval. PASSED AND ADOPTED this_ day of ___ , 2012. ATTEST: CITY CLERK MAYOR JMG/DRB/FHB T:\AGENDA\2012\2-8-12\Lincoln Road Mall Maintenance RESO 2012-02-0B.doc 479 < +J ~ (J) .E u til .j...l +J < PROPOSED MAINTENANCE SERVICE AREA TO BE OUTSOURCED ~ CD o:: I '» i ~n" u~~ ~u ·~/~~~ ~ 5: X 0 ~ 0 -1 I "' ~ ~-1 17th. ST. ---~ID@.=~aEKE~-~ ·""w~ I' ':DDIDUIUILJUIUR ~~.~ "" Ill 1 111' 00 oo., ' 16th.ST. . DO DDQ w ~ w ~I o: on ~~ i I i D D ~ LJ 1lJJlj ~ ' ~ 15 ST. JlNOLA WAl ill..=~ ~ . ~ ~ """"' ;, . ~ LlilllJ uu uu lll d u I ~ lj'IV~~[h , 1 D DO 14 s DQDD " 14 ~ sr ~ Attachment B LIST OF CITY POSITIONS ASSIGNED TO LINCOLN ROAD Sanitation Operations Supervisor MSW Ill MSW II MSWI Temp TOTAL Tree Trimmer MSWII MSWI TOTAL Electrician Painter MSWII TOTAL Sanitation 1 2 6 7 3 19 Parks & Recreation 1 3 1 5 Property Management 1 1 1 3 F:\WORK\$ALL\(1) EMPLOYEE FOLDERS\FIORELLA SARMIENTO\list of City Positions assigned to LR 481 GSA AFSCME AFSCME AFSCME N/A AFSCME AFSCME AFSCME CWA CWA AFSCME Attachment C ~ MIAMI BEACh RECFtVFO 10\2 JAN 24 PM 12: \ 0 OFFICE OF THE. CITY MANAGER TO: FROM: DATE: CITY CLERK'S OFF ICE Deede Weithorn, Commissioner Jorge M. Gonzalez, City Manager \~/ January 24, 2012 () CJ SUBJECT: Lincoln Road Maintenance MEMO //001-2012 This memo is provided in reply to your request for information dated December 8, 2011, regarding copies of work orders (VVOs) presented to you at the December 6, 2011 meeting of the Finance and Citywide Projects Committee (FCWPC), by Mr. Richard McKinnon, President of Communications Workers of America (CWA), Local 3178. The WOs were presented at the moment when Item No.9 of the FCWPC agenda (Discussion on Outsourcing of Lincoln Road Mall Maintenance Services) was up for discussion. Mr. McKinnon was accompanied by Jonathan Sinkes, CWA Local3178 Secretary, and Donald Kelley, electricians in the City's Property Management Division. Mr. Sinkes and Mr. Kelley perform maintenance activities throughout the City, including Lincoln Road. Background With the exception of the 1100 block of Lincoln Road (between Lenox Avenue and Alton Road), City of Miami Beach personnel from three divisions -Property Management, Sanitation and Greens pace Management, with limited support from temporary labor, provide maintenance services for the entire length of Lincoln Road -from Collins Avenue to West Avenue, including the side streets between Lincoln Lane North and Lincoln Lane South. Maintenance services for the 1100 Block have been provided under a management agreement with UIA Management, LLC (UIA) since its approval at the January 13, 2010 Commission Meeting. At this meeting, it was discussed that if the agreement was a success, it may open other opportunities in the future. In addition, the agreement has an option by which the City and UIA by mutual agreement could expand the type services encompassed under the 11 00 block of Lincoln Road agreement to other sections of Lincoln Road and the future Lincoln Park, now named Miami Beach Soundsdcape. The services provided by UIA have been consistent without any significant complaints and minor oversight and involvement from the City. The Administration is presently exploring opportunities to expand the outsourcing of Lincoln Road maintenance services as a way to maximize value and service delivery efficiency through a balanced utilization of in-house and outside resources. Analysis This section will address the specific WOs presented at the December 6th FCWPC meeting as well as specific questions and issues requested in your memo. Please refer to Attachment 1. Mr. McKinnon represented at the FCWPC meeting that the Property Management Division (PMD) had not been able to do maintenance work on Lincoln Road due to unavailability of parts. It needs to be clarified that none of the 14 employee WOs presented by Mr. Sinkes and Mr. Kelley were related to Lincoln Road maintenance activities. Of the fourteen items presented, WO 66072 was a duplicate of WO 66071. Of the thirteen actual WOs, none involved life safety issues and were all related·to 482 LTC Response to Commissioner Weithom 2011-12-08 Memo January 24, 2012 Page2of4 parks, parking garages, the Police Station and the Bass Museum. A total of 67.5 work-hours were actually charged for work performed by PMD employees on the 13 WOs that were referenced. Maintenance records reflect WOs # 65861 and 65872 as being completed. The WO percent completion ranged from 0% (non-stock parts that need to be special ordered or rented, such as circuit boards, scissors lifts and bucket trucks, equipment) to 100%. In some cases, a large portion of the work was completed but some out-of-stock parts had to be ordered in order to complete the job. In most cases, purchase order requisitions were submitted in late October, electronic approval to purchase were received by Property Management on December 1, and following confirmation of vendor receipt of blanket purchase orders, parts were ordered on December 7. Please refer to Attachment 2 for a detailed breakdown of the 13 WOs and their current status. All 13 WOs presented have been completed and the electrical supervisor confirmed that none were of an emergency/life-safety nature. Please refer to Attachment 3 for the Employee Daily Field Worksheets listing yYOs that employees worked during the peri_od of time that CWA claims employees could not complete work on Lincoln Road, due to unavailability of parts, including the previously mentioned 13 WOs. Generally, WO requests are received viae-mails, phone calls, or by maintenance staff reporting the deficiency. In the case of WOs associated with emergency or life safety issues, when the WO is called in, the supervisor is contacted by office staff via two-way radio and a crew is dispatched immediately. All work orders are entered into an automated WO system and database, where they are tracked and issued, on an on-going basis, to the respective shop supervisors. The supervisors establish and schedule the work priority and issue WOs to their technicians accordingly. As a point of reference, a total of 9,591 WOs were completed by PMD during FY 2010/11 (see Attachment 4); 319 of these WOs were specific to Lincoln Road and 125 completed by the electrical department (see Attachment 5). Typically, WOs are completed within five days. In November of 2011, a total of 759 WOs were completed by PMD; of the 759 WOs, 15 were completed by the electrical shop within five days (see Attachment 6). Expenditures for parts totaling $36,740, of which $10,579 were for materials used by the electrical department. For a listing of open WOs, as of Dec. 30, 2011, please refer to Attachment 7. It should be noted that the WOs presented by CWA at the December 6, 2011 FCWPC meeting were worked on during the transition from the previous fiscal year. The priority for the City during the transition is to upload the new budget and, therefore, deal with new requisitions on an as-needed basis due to the very high volume of new requisitions generated at the beginning of the fiscal year. However, emergency or priority requisitions are approved on an expedited mode when requested by a department. In addition, the supervisors and the property management director have City-issued Purchase Cards that are available, if necessary, to deal with the procurement of parts, materials, and services required for emergency and life/safety WOs. The following responses address your specific questions from the December 8, 2011 email: • Was Fred Beckmann, Director, Public Works Department; Kathie Brooks, Director, Office of Budget and Performance Management; or your staff in the City Manager's Office aware of these requests for supplies and/or their funding? If not, who was the highest ranking employee in the above-mentioned departments and offices that was aware of these requests? Neither Mr. Beckmann, nor Ms. Brooks or City Manager's Office staff were aware of these requests for supplies. Under standard operating procedures, unless there is an emergency or life threatening issue that cannot be resolved at the division director level, and require senior management support, there would be no reason for the PWD or OBPI 483 LTC Response to Commissioner We/thorn 2011-12-08 Memo January 24, 2012 Page3 of4 directors to be made aware of these requests for supplies and/or funding. In the case of the 13 WOs discussed at the FCWPC meeting, the electric department supervisor was the highest-ranking staff person to be aware of the WOs and made the determination that they were not of an emergency I life-threatening nature. In addition, the electrical technicians that were assigned to the WOs did not report to the electrical supervisor that any of the 13 WO requests were of an emergency /life-threatening nature. • Who denied the allotting of supplies or their funding and why? No one denied the allotting of supplies or their funding fo.r the required Lincoln Road repairs. It is appropriate to address allegations that the City did not provide supplies and/or denied a purchase by examining the example WOe provided at the FCWPC meeting in the proper context of standard operating procedures, priorities and temporary funding issues. Although for a limited period of time, purchases on non-emergency/life-safety items were delayed, that should not be construed as a denial to purchase, nor that the PMD technicians did not have other WOs that they could be working on -as evidenced by Attachment 3. • What process is followed by maintenance employees when requesting supplies? When maintenance employees require parts, materials, or supplies, technicians will first check in-house inventory and if the item is not in stock then the technician has the ability to go to a local vendor (electrical, air conditioning, plumbing, painting & general maintenance) under existing blanket purchase orders (BPO) and procure the needed part(s). Where a part has to be special ordered, a longer lead-time is to be expected. If the needed part is from a vendor for which there is not an existing BPO, then the priority need of the part determines the purchasing procedure: 1. For routine purchases, a purchase order requisition will be generated and processed in according to City internal policies and procedures. 2. For emergency or life-safety related purchases up to $5,000, the parts/materials are purchased via a City-issued Visa "P-Card". P-Cards for purchases up to $5,000 are issued to the Property Management director. P-Cards for purchases up to $2,500 are issued to the maintenance superintendent, the five supervisors and one technician under each of the five supervisors, as well as the three building technicians and two administrative staff. P-Cards are used only for emergency purposes. 3. For emergency or life-safety related purchases greater than $5,000, the Property Management director will make a direct request to the Procurement Division director for the emergency purchase. • Are maintenance employees allowed to utilize blanket purchase orders or procurement cards ("p-cards') to obtain supplies from City approved vendors? If so, why were the supplies not purchased? • Yes. Please refer to above response. If maintenance employees were unable to fulfill their duties, how was their working hours occupied? At no time were maintenance employees unable able to fulfill their duties. In fact, the electrical technicians charged· 67.5 hours of productive work to the 13 WOs presented. (Please refer to Attachment 6 for a detailed breakdown of WOs completed by the electrical shop for Lincoln Road). 484 LTC Response to Commissioner We/thorn 2011-12-08 Memo January 24, 2012 Page4of4 Although not specifically requested in your memo, a list of City positions assigned to Lincoln Road is included as Attachment 8. This information was requested at the December 6, 2011 FCWPC meeting. Should the City Commission recommend that maintenance services for the remainder of Lincoln Road Mall be outsourced, the disposition of City staff impacted by any outsourcing actions would be handled in accordance with provisions of the various Collective Bargaining Agreements governing those positions. Although not requested in your memo of December 8, 2011, we have also attached the City Clerk's response to CWA public records request #6373 providing information on the preliminary analysis conducted by City staff to determine the feasibility of outsourcing the maintenance of the Lincoln Road Mall to UIA Management (see attachment 9}. Conclusion An examination of the representations made by CWA at the FCWPC meeting indicate that - although there are always opportunities to improve processes and procedures -at no time were emergency/life-safety issues not properly addressed, nor maintenance staff left with unproductive hours. None of the WO presented by the CWA representatives at the FCWPC meeting were associated with Lincoln Road maintenance work. It should be noted that PMD records show that any inferences made by the CWA Union representatives as to the electricians' inability to perform work on Lincoln Road based, were found to be unsubstantiated. The nature of any property management organization, especially one with over 200 facilities and 4,000,000 square feet to maintain, is such that there is always a backlog of routine work orders needing to be completed. The absence of a backlog would suggest overstaffing and/or the authorization of excessive overtime. · A process already exists and is used to handle the purchase of materials for emergency/life safety or priority WOs during th\3 transition between fiscal years. Space limitations within the existing Property Management facilities restrict the amount of inventory of the most commonly used repair and replacement parts that can be maintained at any given time. The proposed new facility, currently under design, should address this condition by providing adequate parts and materials storage areas and electronic inventory control systems. I hope this adequately answers your questions. Should you need additional information, please contact my office. Attachment 1 -Commissioner Weithorn Memo Dated Dec. 8, 2011 Attachment 2 -Status of WOs Presented at Dec. 8, 2011 FCWPC Meeting Attachment 3 -Employee Daily Field Worksheets Listing WO Assignments Attachment 4 -PMD Completed WO Summary FY 201 0/11 Attachment 5 -PMD Completed Lincoln Road WOs FY 2010/11 Attachment 6 -Listing of All WOs Completed in November, 2011 Attachment 7-Listing of Open WOs Greater than 10 Days, as of 12-30-11 Attachment 8-Listing of City Employees Assigned to Lincoln Road Attachment 9-Response to CWA request #6373, dated December 29, 2011 DRB/FHB F:\WORK\$ALL\(1) EMPLOYEE FOLDERS\CANO\Lincoln Road Maintenance\LTC-LINCOLN ROAD MAINT 2012-01-12 (final draft).doc CC: Mayor and Commissioners 485 THIS PAGE INTENTIONALLY LEFT BLANK 486