C2E-Exercise Term Renewal Options On Contracts For Routine Operational RequiremeCOMMISSION ITEM SUMMARY
Condensed Title:
REQUEST APPROVAL TO EXERCISE TERM RENEWAL OPTIONS ON CONTRACTS FOR ROUTINE
OPERATIONAL REQUIREMENTS
Key Intended Outcome Suooorted:
Strengthen Internal Controls; Maximize Efficient Delivery of Services
!Supporting Data (Surveys, Environmental Scan, etc.):
Item Summary/Recommendation:
As is customary, many of the City's agreements resulting from competitive solicitations include renewal
clauses that allow for the extension of contract terms for a certain number of renewal periods beyond the
original contract term, as may be stipulated in the solicitation or resulting contract. The renewal periods
allow the City to continue to acquire the necessary goods and services from reputable contractors at prices
established through competitive solicitations. In its due diligence process for consideration of contract
renewal options, the Administration has considered: cost considerations, including any increases to the
CPl-U index by the Bureau of Labor Statistics indicating changes in the supply market pricing conditions,
contractor performance and risk management considerations (e.g., insurance and bonds, as applicable).
Additionally, the contract renewals are applicable to the contract period only and do not alter other terms
and conditions of the contract or the scope of the procurement. Any changes to the scope of the original
contract shall be presented under a separate item individually or require a new procurement process
altogether.
The purpose of this item is to request authority to renew the competitively solicited contracts for routine
operational listed herein, as stipulated in each contract's solicitation. The justification for renewing each is
included with the contract information.
RECOMMENDATION
The Administration recommends that the Mayor and City Commission approve the extension of
aoreement with RBC Capital Markets, LLC.
Advisory Board Recommendation:
Financial Information:
Source of Amount Account
Funds: 1 See below. See below. c 2
3
OBPI Total
Financial Impact Summary: Various budget codes are contained in the referenced contract
expenditures. All expenditures are continqent upon approved budgeted funds being available.
City Clerk's Office Legislative Tracking:
City Manager City Manager
JLM
T:'AGENDA\2014\February\Procurement\February Contract Renewal Summary.doc
C;;lc AGENDA ITEM ___ r-... __
DATE .;J.-/). -/l( MIAMI BEACH
138
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
TO: Mayor Philip Levine and Members
FROM: Jimmy L. Morales City Manager
DATE: February 12, 2014
SUBJECT: REQUEST APPROVAL T
CONTRACTS FOR ROUTIN
ADMINISTRATION RECOMMENDATION
Approve the recommendation.
BACKGROUND
ION MEMORANDUM
EXERCISE TERM RENEWAL OPTIONS ON
OPERATIONAL REQUIREMENTS
As is customary, many of the City's agreements resulting from competitive solicitations include
renewal clauses that allow for the extension of contract terms for a certain number of renewal
periods beyond the original contract term, as may be stipulated in the solicitation or resulting
contract. The renewal periods allow the City to continue to acquire the necessary goods and
services from reputable contractors at prices established through competitive solicitations. In its
due diligence process for consideration of contract renewal options, the Administration has
considered: cost considerations, including any increases to the CPl-U index by the Bureau of
Labor Statistics indicating changes in the supply market pricing conditions, contractor
performance and risk management considerations (e.g., insurance and bonds, as applicable).
Additionally, the contract renewals are appllcable to the contract period only and do not alter
other terms and conditions of the contract or the scope of the procurement. Any changes to the
scope of the original contract shall be presented under a separate item individually or require a
new procurement process altogether.
The purpose of this item is to request authority to renew the competitively solicited contracts for
routine operational requirements listed herein as stipulated in each contract's solicitation. The
justification for renewing each is included with the contract information.
r·· canfracfNumber: ' Renewal Period:
! RFP-20-06/07 ·-................... -............. 3 .... 1 .... 1 ...... 4 ..... t?Q 1 ~. ~.~EQ.':1.9.b. ~!J_.?!?.91 ? ................. _ .
! Title:
' ! [F.i!:l_C1f1(;iC11A9yi~9ry§~_ryi~~.fC?~~ ... fiy13~Ye_C1! .. F:>~~_i9.~LY.Yit_hfiy~9.~.~:.Y~~!B~r113vv§11Qp~iQ~~-
, Contractor:
1 .... B.l?Q .. g.C1.P.i!C1.1 ... M.C1!k.~!~ ........ ~.~g.: ....................................................................... .
- !
;
;
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! Brief Scope: I Financial advisory services which includes financial planning, project financial analysis,
••• .... , ... ,,. .. ,,. .. ,,. .. ,,. .. ,,. .. ,,. .. ,,. .. ,,. .. ,, ••• ,,._, __ ,_~, ... ,._, _____ ,m,,., ... , ... , .... , .... ,,. .. , .......................... ,_, ... , ... ,,, .. ,, ... ,, ....... , ......... ,, ... , •• , .. ,_ ... ROOOHO"HI
I investment management, debt issuance, reporting, evaluation of proposals, development of :
I financial strategy for capital projects taking into consideration the City's short and long term i
; financial needs, available financing options and alternative debt structures, and computer !
: support and modeling for complex financial analysis. The firm will also assist in the selection of :
l il1."-~~!~13!1tb§l!1_~i~_9.!~9'!1~ forth139!Y: ............. . .. ___________ ..................... ···---·-··························-·--_ -·· _ .......... _
! Best Interest Justification: I RBC Capital Markets acts as Financial Advisors for the City's ongoing capital program, including I Water & Sewer Bonds, Stormwater Bonds, Parking Bonds, and with the Line of Credit financing
! program. They are currently assisting the City with the financing plan for the undergrounding of
· the utilities for Sunset Islands 3 & 4, and the Miami Beach Convention Center Expansion
· Project. RBC Capital Markets also provides the City with various other financial advisory
services such as:
139
City of Miami Beach -Commission Memorandum 12
Contract Renewals for Routine Operational Requirements
• Review existing debt structure and financial resources to determine available borrowing
capacity.
• Advise as to market conditions and recommend the timing of the sale of bonds.
• Provide information concerning the structure of proposed financing programs as well as
those used by other issuers.
• Advise on the most efficient structure for each issue.
• Advise as to the advantages and disadvantages of municipal bond issuance or other
credit enhancements.
• Assist in negotiating the interest rates proposed by the underwriters.
• Participate in annual rating agency reviews and updates.
• Schedule and participate in rating agency presentations for financing.
• Review the bond purchase agreement and advise as to its acceptance or rejection in
light of market conditions.
• Assist legal counsel in the preparation and distribution of the Official Statement.
• Arrange for distribution of the Official Statement to bond underwriters and investors in
accordance with the objectives communicated by the City.
Although the City uses RBC Capital Markets on a continuous basis, they are not compensated
, until the City issues bonds. Their fees are part of the cost of issuance that are paid from the
'., ... l?.9.ri.9 ... P.~_q_9-.~~-q~ : ....... ·-· -. --._ .. __ .. _ .. _ .......... ·-----.. -·-·-·-·-······ ,_, -----·-·-·-.. -- ---.. -------.-,-................. -..... -. .. .. .. . ------------· '"' ......... ,. ............. ..
CONCLUSION
The Administration recommends that the Mayor and City Commission approve the extension of
agreelmwith RBC Capital Markets, LLC.
JLM I K I AD
T:IAGEN l'l.\2014\February\Procurement\February 12 Contract Renewal Memo.docx
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