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2005-25857
RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, WAIVING, BY 5/7THS VOTE, THE
FORMAL COMPETITIVE BIDDING REQUIREMENTS, FINDING SUCH
WAIVER TO BE IN THE BEST INTEREST OF THE CITY, AND
AUTHORIZING THE CITY MANAGER, THROUGH HIS DESIGNEE,
WHO SHALL BE THE CITY'S PROPERTY MANAGEMENT DIRECTOR,
A LICENSED GENERAL CONTRACTOR, TO SELECT, NEGOTIATE,
AND AWARD ALL CONTRACTS, AGREEMENTS, PURCHASE
ORDERS, AND CHANGE ORDERS FOR THE PURCHASE OF ALL
NECESSARY GOODS AND CONSTRUCTION SERVICES RELATIVE
TO THE ONGOING CAPITAL REPAIRS, MAINTENANCE, AND
REPLACEMENT OF THOSE CERTAIN PUBLIC FACILITIES, AS MORE
SPECIFICALLY DESCRIBED IN THIS RESOLUTION; PROVIDING
THAT ALL DOCUMENTS BE REVIEWED BY THE APPROPRIATE
MEMBERS OF THE ADMINISTRATION AND CITY ATTORNEY'S
OFFICE, AND WHICH SHALL CONTAIN THOSE MINIMUM TERMS
AND CONDITIONS AS SET FORTH IN THIS RESOLUTION; AND
FURTHER AUTHORIZING THE CITY MANAGER AND/OR THE MAYOR
AND CITY CLERK TO EXECUTE ANY AND ALL AGREEMENTS
RELATIVE TO THE AFORESTATED PROJECTS.
WHEREAS, on February 23, 2005, the Mayor and City Commission approved
Resolution No. 2005-25832, which provided funding requirements relative to the
ongoing repair and maintenance of the following public facilities: replacement of two air
conditioning units at Fire Station No.1; the Public Works Operations Yard air
conditioning replacement; water sealing of the Police Building; water sealing of the Old
City Hall building; the Historic City Hall Restoration Project; and the domestic water line
replacement at Fire Station No.1; and
WHEREAS, the Administration has determined that, due to the existing
condition of the aforestated public facilities, the repair and maintenance issues relative
to said facilities need to be addressed in an expeditious manner; and
WHEREAS, it is the Administration's intent to secure the work relative to the
ongoing capital repair and maintenance of the aforestated public facilities utilizing the
City's Property Management Director, who is a licensed General Contractor; and
WHEREAS, accordingly, the Administration, through the Property Management
Director, acting as General Contractor, may require the need for the acquisition of
goods and services, which may exceed the $25,000 threshold within the City Manager's
discretion; and
WHEREAS, as a result of the time needed to complete the formal bid processes
(i.e. 90-120 days), each time that the Administration has a need to augment its existing
resources for goods and services in excess of $25,000, the aforestated repair and
maintenance projects will be placed on hold or delayed significantly; and
WHEREAS, pursuant to Section 2-367(e) of the City Code entitled, Rejection of
bids; negotiation; waiver of competitive bidding, the City Commission, upon written
recommendation of the City Manager, may by resolution, adopt by a five-sevenths vote
of the City Commission, a waiver of competitive bidding, when the City Commission
finds such waiver to be in the best interest of the City; and
WHEREAS, the Property Management Director, acting as the General
Contractor for the City, will be assuming the responsibility for the capital repair,
replacement, and maintenance work related to the aforestated projects; and
WHEREAS, in order to diligently prosecute the required work to timely complete
the projects, the Administration would recommend that the Mayor and City Commission
waive, by 5/7ths vote, the formal competitive bidding requirements, relative to enabling
the City Manager, with the Property Management Director acting as General Contractor,
to procure the required goods and services to complete the capital repair, maintenance
and replacement projects relative to the aforestated public facilities on an expedited
basis; and
WHEREAS, notwithstanding the Mayor and City Commission's waiver of the
competitive bidding requirement, the Property Management Director, utilizing the
resources of the Procurement Division, intends to institute an "expedited" bidding
process, to ensure the integrity of the process and, while not formal competitive bidding,
this process would still act to procure for the City the highest quality of goods and
services at the least expense to the City, and endeavor to obtain as full and open
competition, within that expedited framework, as possible
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA AS FOLLOWS:
1. Upon recommendation of the Administration, the Mayor and City Commission
find that the capital repairs, replacement and maintenance of those public
facilities, as identified in this Resolution, is of vital importance and needs to be
undertaken as expeditiously as possible. Accordingly, the Mayor and City
Commission hereby waive, by 5/7ths vote, the competitive bidding
requirement, finding such waiver to be in the best interest of the City, for the
following projects: 1) The replacement of two air conditioning units at Fire
Station #1; 2) The replacement of the air conditioning Public Works
Operations Yard; 3) The water sealing and painting of the Police Building; 4)
The water sealing and painting of the Old City Hall Building; 5) The Historic
City Hall Restoration Project; and 6) the replacement of the domestic water
lines at Fire Station #1.
2. The City Manager, through his designee, who shall be the City's Property
Management Director, is authorized to select, negotiate, and award all
contracts, agreements, purchase orders, and change orders for the purchase
of all ongoing capital repairs, maintenance and replacement of those certain
public facilities, as more set forth in this Resolution.
3. All documents referenced above shall be reviewed by the appropriate
members of the Administration and City Attorney's Office prior to execution
and shall contain, at a minimum, the following terms and conditions:
a) Time of completion of the work in question;
b) Fees, costs, and other charges shall be negotiated to be competitive with
fees and charges for similar work in the South Florida area;
c) Appropriate provisions addressing insurance requirements,
indemnification and hold harmless in favor of the City, and payment and
performance bonds;
d) All scope of services and/or work required shall be prepared in conjunction
with and reviewed by the City Administration;
4. All contracts, agreements, purchase orders, and change orders over $25,000
shall be executed by the Mayor and City Clerk, and shall be ratified by the
Mayor and City Commission at its next regular meeting;
5. The total amounts of contracts, agreements, purchase orders, and change
orders to be executed for the projects set forth in this Resolution shall not
exceed the appropriated amount of $1,347,070 from the Capital Renewal
Replacement Fund, and $2,000,000 from the Miami-Dade GO Bond Fund,
without the prior approval of the Mayor and City Commission.
6. Notwithstanding the waiver of competitive bidding herein, the Property
Management Director, utilizing the City's Procurement Division, shall use his
best efforts, through an "expedited" bidding process, to assure that the
highest quality of goods and services, at the least expense to the City, is
obtained, and endeavor to obtain as full and open competition with the
"expedited process" as possible.
PASSED AND ADOPTED THIS
,2005.
MAYOR
David Dermer
T:\AGENDA\2005\Apr2005\Consent\Capital Renewal GC Approval Reso.doc
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
CITY OF IV!IAMI BEACH
COMMISSION ITEM SUMMARY
m
~
Condensed Title:
A Resolution of the Mayor and City Commission of the City of Miami Beach, Florida, waiving by 5/7ths vote, the formal
competitive bidding requirements, finding such waiver to be in the best interest of the City, and authorizing the City
Manager's designee, who shall be the Property Management Director, a licensed general contractor, to select, negotiate,
and award all contracts, agreements, purchase orders, and change orders for the purchase of all necessary goods and
services (construction and professional) relative to all the FY 05 capital renewal and replacement fund projects (authority
was ranted reviousl to re lace the floor at Fire Stations 1 and 3 .
Issue:
Shall the City authorize the City Manager's designee, who shall be the Property Management Director, a licensed general
contractor, to select, negotiate, and award all contracts, agreements, purchase orders, and change orders for the
purchase of all necessary goods and services (construction and professional) relative to FY 05 capital renewal and
reolacement fund oroiects.
Item Summa IRecommendation:
In order to expedite the completion of the projects outlined in the Capital Renewal and Replacement Resolution # 2005-
25832, adopted by the Mayor and City Commission on February 23, 2005, and in the best interest of the City, the
Administration recommends that the Mayor and City Commission adopt the Resolution allowing the Property
Management Director to serve as the General Contractor of Record and further authorize the Property Management
Director to select, negotiate, and award all contracts, agreements, purchase orders, and change orders for the purchase
of all necessary goods and services (construction and professional) relative to all the FY 05 capital renewal and
replacementfund projects (authority was granted previously to replace the floor at Fire Stations 1 and 3. (See Attached
List). Any contracts awarded in excess of $25,000 by the Property Management Director will be brought to the City
Commission for ratification.
The Administration recommends a roval of the Resolution.
Advisory Board Recommendation:
I n/a
Financial Information:
Source of
Funds:
Finance Dept.
1,347,070
Capital Renewal/Replacement
Projects Total
(see attached List)
2,000,000
Historic City Hall
(Miami-Dade GO Bond)
3,347,070
Cit Clerk's Office Le islative Trackin :
Brad A. Judd, Property Management Director
Si n-efts:
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AGENDA ITEM ~ 7B
--
DATE l.f -J..O-&
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miami-beach.fl.us
To:
From:
Subject:
COMMISSION MEMORANDUM NO.
Mayor David Dermer and
Members of the City Commission
Date: April 20, 2005
Jorge M. Gonzalez \"....r x---
City Manager () U
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, WAIVING BY 5/7THS VOTE, THE FORMAL
COMPETITIVE BIDDING REQUIREMENTS, FINDING SUCH WAIVER TO BE
IN THE BEST INTEREST OF THE CITY, AND AUTHORIZING THE CITY
MANAGER'S DESIGNEE, WHO SHALL BE THE PROPERTY MANAGEMENT
DIRECTOR, A LICENSED GENERAL CONTRACTOR, TO SELECT,
NEGOTIATE, AND AWARD ALL CONTRACTS, AGREEMENTS, PURCHASE
ORDERS, AND CHANGE ORDERS FOR THE PURCHASE OF ALL
NECESSARY GOODS AND SERVICES (CONSTRUCTION AND
PROFESSIONAL) RELATIVE TO ALL THE FY 05 CAPITAL RENEWAL AND
REPLACEMENT FUND PROJECTS PROVIDING THAT ALL DOCUMENTS BE
REVIEWED BY THE APPROPRIATE MEMBERS OF THE ADMINISTRATION,
CITY ATTORNEY'S OFFICE, AND CONTAINS MINIMUM TERMS AND
CONDITIONS AS SET FORTH IN THIS RESOLUTION; AND FURTHER
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE ANY AND ALL
AGREEMENTS RELATIVE TO THE AFORESTATED PROJECTS.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The work specified consists of all labor, machinery, tools, means of transportation, supplies,
equipment, materials, and services necessary for the design, specifications development,
construction documents, permitting, and construction work required for the completion of the
projects.
Section 2-366 of the City Code, entitled Contract Procedures, states that all supplies and
equipment, except as otherwise provided in this division, when the estimated cost thereof shall
exceed $25,000.00, shall be purchased by formal, written contract and/or purchase order from
the lowest and best responsible bidder, after due notice inviting proposals; however, the City
Commission shall have authority to waive execution of formal contract in cases where it deems
it advisable to do so.
Commission Memorandum
Capital Renewal land Replacement Projects
February 23, 2005
Page 2 of 3
If the City's Property Management Director is approved as the General Contractor for these
project, at times there will be a need for the acquisition of goods and services that may exceed
the $25,000 bidding threshold. As a result of the time needed to complete formal bid
processes (i.e. 90-120 days) each time that Property Management Division has a need to
augment its existing resources for goods and services in excess of $25,000, these
important projects will be placed on hold or delayed significantly. Pursuantto Section 2-367(e)
of the City Code entitled Rejection of bids; negotiation; waiver of competitive bidding, the City
Commission, upon written recommendation of the City Manager, may by resolution adopt by a
five-sevenths vote of the City Commission a waiver of competitive bidding when the City
Commission finds such waiver to be in the best interest of the City.
Any contracts in excess of $25,000 awarded by the Property Management Director will be
brought to the City Commission for ratification.
The following are reasons why the waiver of competitive bidding is in the best interest of the
City:
. Cost Reduction of Project Materials.
By utilizing in-house General Contractor services, the City will have the ability to purchase
the majority of building materials needed for the project, directly from the manufacturer.
External contractors would be required to purchase these materials from a supply house
that would increase the costs of the purchase of supplies by adding stocking charges, plus
overhead and profit on top of the manufacturer costs. This would provide a substantial
saving to the City on material purchases for the project.
. Savings of General Contractor and Subcontractor's overhead and Profit.
In outsourced projects, general contractors add a typical range of 15-20% on top of project
cost for overhead expenses and profit. By using in-house services, this would be a direct
cost savings to the City for these items. Additionally, as electrical, plumbing, HVAC,
painting, and carpentry could also be provided under in-house services, limited sub-
contractors would be required for the project. This would also provide savings to the City on
overhead and profit costs that would also be required to be paid to the subcontractors.
. Project Scheduling to Accommodate Special Needs.
Under routine contractual agreements, the General Contractor provides a workflow
schedule that is inflexible in accommodating unforeseen circumstances or required change
of workflow without the requirement of a project change order or additional costs. In-house
contracting would provide flexibility of schedules to work with unforeseen circumstances
including special needs, without the need for change orders or extra costs for the project.
. Proven Track Record
Property Management has provided General Contracting services forthe City on many past
projects. These include the construction of the Electrowave facility on Terminal Island, the
design and renovations of the Byron Carlyle Theater, The Lincoln Road Lighting and
Commission Memorandum
Capital Renewal land Replacement Projects
February 23, 2005
Page 3 of3
Fountain Enhancement project, the Pinetree Park GO Bond project, the Fire Station #2
Maintenance Facility GO Bond project, the renovation ofthe VCA and 555 Buildings, ADA
compliance projects Citywide, and multiple major renovations to City Hall, 21 Street
Community Center, and the Historic City Hall Building.
CONCLUSION:
That the Mayor and City Commission adopt the attached Resolution which waives the
competitive bidding requirements, finding such waiver to be in the best interest ofthe City, and
authorizing the City Manager's designee, who shall be the Property Management Director, a
Licensed General Contractor, to select, negotiate, and award all contracts, agreements,
purchase orders, and change orders for the purchase of all necessary goods and services
(construction and professional) relative to all the FY 05 Capital Renewal and Replacement
Fund Projects (See attached List) providing that all documents be reviewed by the appropriate
members of the Administration, City Attorney's Office, and contains minimum terms and
conditions as set forth in this resolution; and further authorizing the Mayor and City Clerk to
execute any and all agreements relative to the aforestated projects. '
T:\AGENDAI2005\Apr2005\Consen/ICapita/ Renewal GC Approval Memo,doc
Capital Renewal and Replacement
Historic City Hall
Replace Floors at Fire Stations 1 and 3
Police Station Emergency Chiller Replacement
Police Gun Range Air Handling Unit
Replacing Two AlC Units at Fire Station 1
Public Works Operations Yard AlC Replacement
Police Station Water Sealing
City Hall Water Sealing
Fire Station 1 Domestic Water Line Replacement
Replace Three Air Handlers at the Police Station
Public Works Fire Alarm System Replacement
Contingency for Unforseen Needs
Total
Miami-Dade GO Bond - Historic City Hall
Total
Acct. #
125.6330.000676
125.6331.069358
125.6332.069358
125.6333.069358
125.6334.069358
125.6335.069358
125.6336.069358
125.6337.069358
125.6338.069358
125.6339.069358
Project Amt.
$ 500,000
$ 120,000
$ 120,000
$ 30,000
$ 40,000
$ 80,000
$ 63,000
$ 63,000
$ 45,000
$ 99,000
$ 10,500
$ 176,570
$
$
$
1,347,070
2,000,000
3,347,070