2007-26592 ResoRESOLUTION NO. 2007-26592
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 ASSISTANT PUBLIC
WORKS DIRECTOR FOR OPERATIONS, 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 FISCAL YEAR 2006-2007
CAPITAL RENEWAL AND REPLACEMENT FUND PROJECTS, AND,
SPECIFICALLY RELATED TO THE ONGOING CAPITAL REPAIRS,
MAINTENANCE AND REPLACEMENT PROJECTS LISTED IN
ATTACHEMENT NO. 1 TO 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 MAYOR AND
CITY CLERK TO EXECUTE ANY AND ALL AGREEMENTS RELATIVE TO
THE AFORESTATED PROJECTS.
WHEREAS, on September 21, 2006, the Mayor and City Commission approved
Resolution No. 2006-26334, which provided funding relative to the Fiscal Year 2006/2007
Capital Renewal and Replacement Projects, as set forth in Attachment No. 1 to this Resolution
(the Projects); and
WHEREAS, the Administration has determined that, due to the existing condition and
requirements of the aforestated Projects, the Projects have a need to be completed in an
expeditious manner; and
WHEREAS, it is the Administration's intent to secure the construction work relative to
the Projects utilizing the Assistant Public Works Director for Operations, who is an experienced
licensed general contractor; and
WHEREAS, the Administration, through the Assistant Public Works Director for
Operations, acting as the City's general contractor, may require the need for the acquisition of
goods and Construction 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 the Assistant Public Works Director for Operations has a need to augment
the City's existing resources for goods and services in excess of $25,000, the Projects would 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 adopted by afive-sevenths vote of the City
Commission, approve a waiver of competitive bidding when the City Commission finds such
waiver to be in the best interest of the City; and
WHEREAS, the Assistant Public Works Director for Operations, as the general
contractor, will be taking on the responsibility of the completion of the Proiects: and
Agenda Item C 7 S
Date_ 7 //-0 7
WHEREAS, in order to diligently prosecute the required work to timely complete the
Projects, the Administration would recommend that the Mayor and City Commission hereby
waive, by 5/7ths vote, the formal competitive bidding requirements, relative to enabling the
Administration, through the Assistant Public Works Director for Operations acting as the City's
general contractor, to procure the required additional goods and construction services to
complete the Project, on an expedited basis; and
WHEREAS, notwithstanding the Mayor and City Commission's waiver herein of the
competitive bidding requirement, the Assistant Public Works Director for Operations, utilizing the
resources of the Procurement Division, will institute an "expedited" bidding process to ensure
the integrity of the process and, while not a formal competitive bid, 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 an open competition as possible, within that expedited
framework; and
WHEREAS, 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:
1. 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 the Assistant Public Works Director for Operations
serving as the general contractor) completion of the work on the Fiscal Year
2006/2007 Capital Renewal and Replacement Projects and other projects as set
forth in Attachment 1 to this Resolution.
2. The City Manager, through his designee, who shall be the Assistant Public Works
Director for Operations, is authorized 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 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. All fees and costs negotiated should
be competitive with fees and charges for similar work in the South Florida area.
c) 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.
d) 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.
5. 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
appropriated amount for a particular project, as same is set forth Attachment No. 1 to
this Resolution, without the prior approval of the Mayor and City Commission.
6. Notwithstanding the waiver of competitive bidding herein, the Assistant Public Works
Director for Operations, 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, to the extent reasonably possible.
PASSED AND ADOPTED THIS 11th day of
Attest:
~' (,~1~'~' ~
CITY CLERK
Robert Parcher
T:\AGENDA\2007\ju11107\Consent\FY 06-07 Capital Renewal and Replacement GC Approval RESO.doc
APPROVED AS TO
=ORM 8~ LANGUAGI
7 U
ate
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution 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 Assistant
Public Works Director for Operations, 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 06/07 Capital Renewal and Replacement Projects
and other on oin ca ital re airs, maintenance and re lacement ro~ects s ecificall listed in Exhibit 1.
Cey Intended Outcome
Well Maintained Facilities
Supporting Data (Surveys, Environmental Scan, etc.): 81 % of Residents rated the appearance &
maintenance of City's public buildings as excellent or good; 84% of residents rated Capital Improvement
Projects as excellent or good; Capital Improvement Projects is a key driver of City services for tax dollars
paid and contributes to residents overall Quality of Life.
Issue:
Shall the City authorize the Assistant Public Works Director for Operations, 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 the aforestated
projects?
Item Summa /Kecommendation:
Upon the retirement of the Property Management Director, the Assistant Public Works Director for
Operations, a licensed General Contractor has been assigned responsibility to manage all Renewal and
Replacement and other capital projects. In order to continue the work of projects outlined in the FY 06/07
Budget for Capital Renewal and Replacement Projects adopted by the Mayor and City Commission on
September 21, 2006, and other ongoing capital projects listed in Exhibit 1. The Administration considers
to be in the best interest of the City that the Mayor and City Commission adopt the Resolution allowing the
Assistant Public Works Director for Operations to serve as the General Contractor of Record and further
authorize the Assistant Public Works Director for Operations 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 the FY 06-07 Capital Renewal and Replacement Projects and
other ongoing capital repairs, maintenance and replacement projects specifically listed in Exhibit 1.
the Resolution.
______
Adviso Board Recommendation:
N/A
Financial Information:
Source of Amount Account Approved
Funds: 1 N/A
2
3
4
OBPI Total
Financial Impact Summary:
Ci Clerk's Office Le islative Trackin
Robert T. Halfhill, Property Management Director Ext 2984
Si n-Offs•
Department Director Assistant C' anager City Manager
FHB JMG
~' ~ U
T:WGENDA\2007yu11107\Consent\FY 06-07 Capital Renewal and Replacement GC Approval SUM.doc
/\ ~\ ,~ ~ ~~ ~ AGENDA ITEM G 7 S
f~ ,(~ DATE 7~I~ O 7
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor David Dermer and Members of the City Commission
./
FROM: City Manager Jorge M. Gonzalez ~
DATE: July 11, 2007
SUBJECT: 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 ASSISTANT
PUBLIC WORKS DIRECTOR FOR OPERATIONS, 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 THE
FISCAL YEAR 06-07 CAPITAL RENEWAL AND REPLACEMENT FUND
PROJECTS AND THE ONGOING CAPITAL REPAIRS, MAINTENANCE
AND REPLACEMENT PROJECTS SPECIFICALLY LISTED IN THIS
RESOLUTION; PROVIDING THAT ALL DOCUMENTS BE REVIEWED BY
THE APPROPRIATE MEMBERS OF THE ADMINISTRATION, 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 authorization to award contracts by the Property Management Director subject to
ratification by the Mayor and City Commission has been approved annually since
FY2004/2005. Upon the retirement of the Property Management Director, all Renewal
and Replacement Capital Projects are now managed by the Assistant Public Works
Director for Operations who is also an experienced licensed General Contractor. This
is a request that the same authority to approve contracts and purchases for
construction and professional services be granted to the Assistant Public Works
Director for Operations, these contracts subject to ratification by the City Commission.
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. Specific projects are listed in Exhibit 1.
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, 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 to be in the best interest of the City.
If the City's Assistant Public Works Director for Operations is approved as the General
Contractor for projects listed in Exhibit 1 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. 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.
Any contracts in excess of $25,000 awarded by the Assistant Public Works Director for
Operations will be brought to the City Commission for ratification.
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.
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.
Another benefit of an in-house General Contractor is the ability to schedule the
different phases and/or trades for the projects according to City needs. Under
outsourced contractual agreements, the construction schedule is inflexible in
accommodating unforeseen needs of the City without a change order which results in
additional costs. In-house contracting would provide more flexibility in scheduling to
accommodate City special needs.
JMG/RCM/FHB/RTH
T:WGENDA\2007\ju11107\Consent\FY 06-07 Capital R and R GC Approval MEMO.doc
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