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C7L-Approve Phase III Work Order Normandy Shores Fountain ProjectCOMMISSION ITEM SUMMARY Condensed Title: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO APPROVE THE PHASE I!! WORK ORDER FOR THE NORMANDY SHORES FOUNTAIN PROJECT UTILIZING THE COMPETITIVELY BID NATIONAL JO]NT POWERS ALLIANCE COOPERATIVE CONTRACT FOR CONSTRUCTION SERVICES WITH THE GORDIAN GROUP. Maximize Miami Beach as a World Class Destination. Streamline the Delivery of Services through all Su Data (Surveys, Environmental Scan, etc: N/A Since the fall of 2012, the City has been without a methodology for expediting construction and infrastructure projects. This is especially problematic for smaller projects and projects related to unplanned emergency work for which releasing independent solicitations is not operationally feasible and causes unnecessary delays. To address this problem, as authorized by Florida Statutes, the Finance and City-Wide Projects Committee (the "Committee") endorsed a recommendation by the Administration to utilize the indefinite quantity contract (lQC) for construction services to expedite the delivery of construction projects under $250,000 or for emergency projects as approved by the City Manager. The Committee's endorsement of the IQC process for small and emergency projects was approved by the City Commission on April 23,2014. The IQC process is similarto the JOC process previously used by the City butwith tighter controls, including a limit on design, additional competition on certain items and a small project threshold that limits exposure. The IQC process is used extensively by the local, state and federal governmental agencies throughout the United States to expedite the delivery of construction projects. The City, as a govemmental agency member, is authorized to utilize the IQC contract for construction services competitively awarded by the National Joint Powers Alliance (NJPA) to the Gordian Group. ln an effort to expedite the restoration of the Miami Beach Normandy lsle Fountain, located at7802 Rue Vendome, which is a part of a North Beach revitalization initiative, the NJPA IQC contract was utilized to procure the necessary construction services because this project was originally estimated below the $250,000 threshold. To further expedite the project, it was divided into phases as follows:. Phase I - Demolition Phaseo Phase ll - Materials Ordering Phaser Phase lll - Final Construction Phase However, during the process of demolishing parts of the existing structure (Work Order Phase I - Demolition Phase) to make way for the renovations, it was revealed that much of the original infrastructure, specifically the plumbing and electrical systems, were deteriorated beyond repair, and new electrical, plumbing, structural and tile work needed to be replaced. The tile work alone, which has been ordered pursuant to Work Order ll (Materials Phase), is historic and had to be custom made to match the existing. Therefore, this project is now expected to exceed the $250,000 threshold limit approved by the City Commission for projects through the NJPA IQC contract award. Accordingly, in order to move forward with the completion of this project and in efforts to meet the proposed completion date of October 1,2014, approval is required to exceed the $250,000 project threshold limit by $50,000, which includes $40,000 of additional work and $10,000 for project contingency, for a project total not to exceed $300,000. The cost of the project is within budget. CONCLUSION The Administration recommends approving the Resolution authorizing the City Manager to approve Work Order lll (Final Construction Phase) for the final phase of the Normandy Shores Fountain renovation project. ADMINISTRATION RECOMMENDATION The Administration recommends aoorovino the Resolution. Financial lnformation : Source of Funds: Amount Account 1 300,000.00 307-2850-000676 - 71"' Fountain Renovation 2 OBPI Total Financial lmpact Summary: Fountain NJPA - Summary.doc AGENDA i.* C7 t'{s MIAMIBTACH EL,TE 7'a?/r444 g MIAMIBEACH City of Miomi Beoch, 1700 Convention Center Drive, Miomi Beoch, Florido 33139, www.miomibeochfl.gov COMMISSION MEMORANDUM TO:Mayor Philip Levine and Members FROM: Jimmy L. Morales, City Manager DATE: July 23,2014 SUBJECT: A RESOLUTION OF THE MA AND CIry GOMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE GIry MANAGER TO APPROVE THE PHASE III WORK ORDER FOR THE NORMANDY SHORES FOUNTAIN PROJECT UTILIZING THE COMPETITIVELY BID NATIONAL JOINT POWERS ALLTANCE (NJPA) COOPERATTVE CONTRACT FOR CONSTRUCTION SERVICES WITH THE GORDIAN GROUP. ADMINISTRATION RECOMMENDATION The Administration recommends approving the Resolution. KEY INTENDED OUTCOME Maximize the Miami Beach brand as a world class destination. Streamline the delivery of services through all departments. FUNDING 307-2850-000676 - 7 1"1 Fountain Renovation - $300,000 BACKGROUND Prior to October, 2012, the City acquired construction services for many small or emergency construction projects through a Job Order Contracting process. Job Order Contracting (JOC) is a contracting methodology that enables facility owners to accomplish a large number of repairs, maintenance and construction projects with a single, competitively bid contract. ln doing so, JOC eliminates the time and expense of completing the normal design-bid-construct cycle for each project. Prior to the award of JOC contracts, the City selects one of several available comprehensive catalogs of construction tasks established by one of several national organizations, such as RS Means or the Gordian Group. The catalogs contain almost every imaginable construction task possible and a unit of measure and cost for each construction task. Contractors are required to competitively bid an adjustment factor (e.g. 1.15) to be applied to a comprehensive catalog of almost every imaginable construction tasks established by one of several national organizations, such as RS Means or the Gordian Group, with pre-set unit prices. The prospect of continuing work keeps the contractor motivated to provide timely, responsive, and high quality work. Since the fall of 2012, the City has been without a methodology for expediting construction and infrastructure projects. This is especially problematic for smaller projects and projects related to unplanned emergency work for which releasing independent solicitations is not operationally feasibte and causes unnecessary delays. To address this problem, as authorized by Florida 445 Commission Memorandum -Normandy lsle Fountain NJPA Page 2 of 2 Statutes, the Finance and City-Wide Projects Committee (the "Committee") endorsed a recommendation by the Administration to utilize the indefinite quantity contract (lQC) for construction services to expedite the delivery of construction projects under $250,000 or for emergency projects as approved by the City Manager. The Committee's endorsement of the IQC process for small and emergency projects was approved by the City Commission on April 23,2014. The IQC process is similar to the JOC process previously used by the City but with tighter controls, including a limit on design, additional competition on certain items and a small project threshold that limits exposure. The IQC process is used extensively by the local, state and federal governmental agencies throughout the United States to expedite the delivery of construction projects. The City, as a governmental agency member, is authorized to utilize the IQC contract for construction services competitively awarded by the National Joint Powers Alliance (NJPA) to the Gordian Group. ln an effort to expedite the restoration of the Miami Beach Normandy lsle Fountain, located at 7802 Rue Vendome, which is a part of a North Beach revitalization initiative, the NJPA IQC contract was utilized to procure the necessary construction services because this project was originally estimated below the $250,000 threshold. To further expedite the project, it was divided into phases as follows:o Phase l* Demolition Phaseo Phase ll - Materials Ordering Phaseo Phase lll- Final Construction Phase However, during the process of demolishing parts of the existing structure (Work Order Phase I - Demolition Phase) to make way for the renovations, it was revealed that much of the original infrastructure, specifically the plumbing and electrical systems, were deteriorated beyond repair, and new electrical, plumbing, structural and tile work needed to be replaced. The tile work alone, which has been ordered pursuant to Work Order ll (Materials Phase), is historic and had to be custom made to match the existing. Therefore, this project is now expected to exceed the $250,000 threshold limit approved by the City Commission for projects through the NJPA IQC contract award. Accordingly, in order to move forward with the completion of this project and in efforts to meet the proposed completion date of October 1, 2014, approval is required to exceed the $250,000 project threshold limit by $5O,OOO, which includes $40,000 for additional work and $10,000 for project contingency, for a project total not to exceed $300,000. CONCLUSION The Administration recommends approving the Resolution authorizing the City Manager to approve Work Order lll (Final Construction Phase) for the final phase of the Normandy Shores Fountain renovation project. L r- ur rvr v#c)J J F/A D/r K T:\AGENDAT/dh4tuU\Public Woks\Normandy Fountain. Memo.docx 446 RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO APPROVE THE PHASE III WORK ORDER, IN THE NOT TO EXCEED AMOUNT OF $5O,OOO, FOR THE NORMANDY SHORES FOUNTAIN PROJECT UTILIZING THE COMPETITIVELY BID NATIONAL JO!NT POWERS ALLIANCE (NJPA) COOPERATTVE CONTRACT FOR CONSTRUCTION SERVICES WITH THE GORDIAN GROUP. WHEREAS, prior to October,2012, the City acquired construction servlces for many small or emergency construction projects through a Job Order Contracting process; and WHEREAS, Job Order Contracting (JOC) is a contracting methodology that enables facility owners to accomplish a large number of repairs, maintenance and construction projects with a single, competitively bid contract; and WHEREAS, since the Fall of 2Q12, the City has been without a methodology for expediting construction and infrastructure projects; and WHEREAS, to address this problem, the Finance and Citywide Projects Committee (the "Committee") endorsed a recommendation by the Administration to utilize the indefinite quantity contract (lOC) for construction services to expedite the delivery of construction projects under $250,000 or for emergency projects, as approved by the City Manager; and WHEREAS, the Committee's endorsement of the IQC process for small and emergency projects was approved by the City Commission on April 23,2014; and WHEREAS, the IQC process is used extensively by the local, state and federal governmental agencies throughout the United States to expedite the delivery of construction projects; and WHEREAS, on January 15, 2014, via Resolution # 2014-28462, the City Commission authorized the Administration to utilize cooperative awards by National Joint Powers Alliance (NJPA) pursuant to Section 2-369 of the Miami Beach City Code, which authorizes the City Manager to make awards exceeding $25,000 when said award is resulting from cooperative agreements; and WHEREAS, the City, as a governmental agency member, is authorized to utilize the IQC contract for construction services competitively awarded by NJPA to the Gordian Group; and WHEREAS, in an effort to expedite the restoration of the Normandy lsle Fountain, located at 7802 Rue Vendome, which is a part of a North Beach revitalization initiative, the NJPA IQC contract was utilized to procure the necessary construction services because this project was originally estimated below the $250,000 threshold; and WHEREAS, to further expedite the project, it was divided into phases as follows: Phase l- Demolition Phase Phase ll- Materials Ordering Phase Phase lll- Final Construction Phase; and 447 WHEREAS, during the process of demolishing parts of the existing structure (Work Order Phase I - Demolition Phase) to make way for the renovations, it was revealed that much of the original infrastructure, specifically the plumbing and electrical systems, were deteriorated beyond repair, and new electrical, plumbing, structural and tile work needed to be replaced; and WHEREAS, the tile work alone, which has been ordered pursuant to Work Order Il (Materials Phase), is historic and had to be custom made to match the existing; and WHEREAS, this project is now expected to exceed the $250,000 threshold limit approved by the City Commission for projects through the NJPA IQC contract award; and WHEREAS, accordingly, in order to move fonvard with the completion of this project and in efforts to meet the proposed completion date of October 1, 2014, approval is required to exceed the $250,000 prolect threshold limit by $50,000, which includes $40,000 of additional work and $10,000 for project contingency, for a project total not to exceed $300,000. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY GOMMISSION OF THE CITY OF MIAMI BEAGH, FLORIDA, that the Mayor and City Commission hereby authorize the City Manager to approve the Phase lll work order, in the noth to exceed amount of $50,000, for the Normandy Shores Fountain Project Utilizing the competitively bid National Joint Powers Alliance (NJPA) cooperative contract for Construction Services with The Gordian Group. PASSED AND ADOPTED this ATTEST: day of 2014. Rafael E. Granado, City Clerk Philip Levine, Mayor APPROVED AS TO FORM & IANGUAGE & FOR E)(ECUTION { e',*. 'f Z-\ 448 THIS PAGE INTENTIONALLY LEFT BLANK 449