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HomeMy WebLinkAbout2006-26149 ResoRESOLUTION NO. 2006-26].49 , 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 REPAIR AND MAINTENANCE INCLUDING, WITHOUT LIMITATIONS, THE REPLACEMENT OF AIR CONDITIONING SYSTEMS, ROOF REPLACEMENT, AND PRESSURE CLEANING, WATERPROOFING, AND PAINTING REQUIREMENTS OF THE MIAMI CITY BALLET BUILDING, A CITY OWNED FACILITY LOCATED AT 2200 LIBERTY AVENUE, MIAMI BEACH, FLORIDA; 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 REPAIR AND MAINTENANCE PROJECTS; PROVIDED FURTHER, THAT THE TOTAL AMOUNT OF THE AFORESTATED REPAIR AND MAINTENANCE PROJECTS SHALL NOT EXCEED $740,000 WITHOUT THE PRIOR APPROVAL OF THE CITY COMMISSION. WHEREAS, at its February 8, 2006 meeting, the Mayor and City Commission adopted Resolution No. 2006-26125, that approved the purchase of the Miami City Ballet building, located at 2200 Liberty Avenue, Miami Beach, Florida (the Building); and WHEREAS, the Resolution provided for the City to fund approximately $740,000 for imminent major capital repair and replacement needs of the Building, which consist of: roof replacement ($500,000); the replacement of five rooftop air conditioning units ($175,000); and pressure-cleaning, waterproofing, and painting of the building exterior ($65,000); and WHEREAS, the Administration has determined that due to the existing condition of the Building and in order for the City to properly continue to maintain the Building, the aforestated repair and maintenance projects need to be completed in an expeditious manner; and WHEREAS, it is the Administration's intent to secure the construction work relative to said projects utilizing the City's Property Management Director, who is a licensed general contractor, and his staff; and WHEREAS, additionally, the Administration, through the Property Management Director, acting as General Contractor above, may require the need for the acquisition of goods and services which may exceed the $25,000 threshold correctly 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 Property Management Director has a need to augment his existing resources for goods and services, in excess of $25,000, the projects will be placed on hold or delayed significantly; and WHEREAS, the Property Management Director, as the general contractor, will be taking on the responsibility of the completion of the aforestated vital repair and maintenance 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, finding such waiver to be in the City's best interest and hereby enabling the Administration, through its Property Management Director acting as General Contractor, to procure the required goods and services to complete the projects, on an expedited basis; and WHEREAS, notwithstanding the Mayor and City Commission's waiver herein of the competitive bidding requirement, the Property Management Director, utilizing the resources of the Procurement Division, would institute an "expedited" bidding process to ensure the integrity of the process and, while not formal competitive bidding, a process that 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; and WHEREAS, additionally, the Administration would recommend that the Mayor and City Commission waive formal competitive bidding subject to the terms and conditions set forth below. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA AS FOLLOWS: . The Mayor and City Commission hereby waive, by 5/7ths vote, the formal competitive bidding requirements, finding such waiver to be in the best interest of the City, relative to the City's (through its Property Management Director serving as the General Contractor) completion work relative to the ongoing repair and maintenance including, without limitation, the replacement of air conditioning systems, roof replacement, and pressure cleaning, waterproofing, and painting on the Miami City Ballet building, a City owned facility located at 2200 Liberty Avenue.. 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 necessary goods and services relative to the aforestated repair and maintenance projects. 3. All documents referenced herein 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 to the City. c) d) All fees and costs negotiated should be competitive with fees and charges for similar work in the South Florida area. Appropriate provisions addressing insurance requirements (naming the City as an additional insured), indemnification and hold harmless in favor of the City, and payment and performance bonds. All scope of services and/or work required shall be prepared in conjunction with and reviewed by the 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 available meeting. o The total amounts of contracts, agreements, purchase orders, and change orders to be executed pursuant to the approvals set forth herein shall not exceed the total appropriated amount of $740,000, as set forth in this Resolution, without the prior approval of the Mayor and City Commission. . 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, as in said process, as possible. PASSED AND ADOPTED THIS , AtteSt: ~ ~ Ci'l~ CLERK Robert Parcher 8th day of Marc .~ ? ,2006. R David Dermer APPROVB3 ASTO FORM & LANGUAGE & FOP. EXECUTION C~Attome~.~. Date Condensed Title: A Resolution waiving formal competitive bidding requirements and authorizing the Property Management Director to award all contracts and change orders relative to air conditioning system replacements, roof replacement, and pressure cleaning, waterproofing, and painting requirements at the Miami City Ballet Building. Key Intended Outcome Supported: IWell Maintained Facilities Issue: Shall the City waive competitive bidding requirements and authorize the Property Management Director to award all contracts and change orders relative to air conditioning system replacements, roof replacement, and pressure cleaning, waterproofing, and painting requirements at the Miami City Ballet Buildin~l? Item Summary/Recommendation' In order to expedite the completion of time-sensitive projects in the Miami City Ballet Building, 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 air conditioning system replacements, roof replacement, and pressure cleaning, waterproofing, and painting requirements at the Miami City Ballet Building. The estimated total cost for these projects is $740,000. Any contracts awarded in excess of $25,000 by the Property Management Director will be brought to the City Commission for ratification. The waiver of competitive bidding requirements is in the best interest of the City because: · Expedited completion of critical capital renewal and replacement work · Cost reduction of project material by direct purchase · No General Contractor or subcontractor's overhead and profit · Project scheduling flexibility · Proven record of performance, time and budget The Administration recommends approval of the Resolution. Advisory Board Recommendation: Financial Information: 2: 3 OBPI Total Financial Impact Summary: City Clerk's Office Legislative Tracking: IBrad A. Judd; Property Management Director n-Offs: MiAMiBEACH AGENDA ITEM 7.5 DATE MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez, City Manager March 8, 2006 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 REPLACEMENT OF AIR CONDITIONING SYSTEMS, ROOF REPLACEMENT, AND PRESSURE CLEANING, WATERPROOFING, AND PAINTING REQUIREMENTS OF THE MIAMI CITY BALLET BUILDING; 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 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, OQO. O0, 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. (emphasis added) Inasmuch as the City's Property Management Di'rector I~as been approved as the General Contractor for these projects, at times there will be a need for the acquisition of goods and services that may exceed the $25,000 bidding threshold. Therefore, 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. 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. The following are reasons why the waiver of competitive bidding is in the best interest of the. City: · Expedited completion of critical capital renewal and replacement work. The Miami City Ballet building has experienced repeated loss of air conditioning and the five rooftop air conditioning units must be replaced as soon as possible to prevent a potential catastrophic failure during the summer months. The roof replacement and the painting and waterproofing of the building were identified by the City's facilities condition assessment consultant as priority capital renewal and replacement items. By using the City's in-house General Contractor services, these projects can be accomplished much faster. · Cost Reduction of Project Materials. By utilizing in-house General Contractor services, the City will have the ability to purchase the r~ajority 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 will 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 will 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 for the 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 Fountain Enhancement project, the Pinetree Park GO Bond project, the Fire Station #2 Maintenance Facility GO Bond project, the renovation of the VCA and 555 Buildings, ADA compliance projects Citywide, and multiple major renovations to the City Hall, 21 Street Cbmmunity Center, and the Historic City Hall Building. Each of these projects was completed on or below the estimated budget for the projects. 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 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 relative to air conditioning system replacements, roof replacement, and pressure cleaning, waterproofing, and painting requirements at the Miami City Ballet Building; 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. JMG:BCM:FHB:BAJ Commission ItemstMarch 8, 20061Ratify GC approval Miami City Ballet Building MEMO. doc