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HomeMy WebLinkAbout2005-25857 Reso 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: p~p~"m~f<H. h'ijctQr< 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