HomeMy WebLinkAboutSummary FormAGENDA ITEM SUMMARY FORM
FILE ID:
- /.9N
Date: 12/20/11 Requesting Department: CIP
Commission Meeting Date: 1/12/12 District(s) Impacted:
Type: ® Resolution ❑ Ordinance ❑ Emergency Ordinance n Discussion Item ❑ Other
Law Department
Matter ID No.
11-2200
Subject: Resolution authorizing the City Manager to award and execute a contract with Kerney and Associates,
Inc., for the Central Chilled Water Plant and Cooling Design Project at the Miami Hyatt Regency.
Purpose of Item:
To accept the bid and authorize execution of a construction contract with Kerney and Associates, Inc., the lowest
responsive and responsible bidder, pursuant to Invitations to Bid No. 11-12-008, received December 9, 2011, for the
Central Chilled Water Plant and Cooling Design Project at the Miami Hyatt Regency (Project), in the amount of
$3,680,500, for the scope of work, plus a ten percent owner contingency amount of $368,050, for a total not to exceed
award value of $4,048,550. Funds in the amount of $2,024,275 are to be allocated from Sustainable Initiatives Project No.
41-410004 and funds in the amount of $2,024,275 provided by the Hyatt are to be appropriated to Capital Improvements
Project No. B-40181
Background Information:
Ordinance No. 13045, adopted December 11, 2008, amending Chapter 18, Article III, of the Code of the City of Miami,
Florida, as amended, the "Procurement Ordinance," enacted a new Section 18-117 entitled "Economic Stimulus Awards
and Agreements". Said Ordinance authorized the City Manager to advertise for, receive, review, reject, evaluate responses
and award contracts for the listed projects in an "Attachment A" of said Ordinance. "Attachment A - 10/13/11 Revised",
identifies this project specifically. In accordance with this Ordinance, on November 9, 2011, the Capital Improvements
Program issued an Invitation to Bid No. 11-12-008 for the Central Chilled Water Plant and Cooling Design Project at the
Miami Hyatt Regency.
Two (2) bids were received by the Office of the City Clerk on December 9, 2011, however, did not comply with the
requirement set forth in subsection (c) of Ordinance 13045, which stipulates that "at least three bids are received from
responsive and responsible bidders." The scope of work included the replacement of the chillers at Miami Hyatt Regency
identified as Base Bid A and the installation of the Cooling Towers identified as Base Bid B.
Continued...
Budget Impact Analysis
NO Is this item related to revenue?
YES Is this item an expenditure? If so, please identify funding source below.
General Account No:
Special Revenue Account No:
Project No: 41-410004 & B-40181
NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact:
CIP NA
$4,048,550
Final Approvals
(SIGN AND DATE)
Budges
Risk Management N/
Dept. Director
City Manager
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If using or receiving capital .
'Grants. _ N/A
Purchasing
Chief
The City of Miami (City) and Miami Center Associates entered into an Operations and Maintenance Agreement (O&M
Agreement) dated December 12, 1984 by and between the City and Miami Center Associates, Ltd., predecessor -in -
interest to Hyatt Equities, LLC (Hyatt). The O&M Agreement sets forth the operation and maintenance obligations of
the City and Hyatt as to their primary areas of responsibility as set forth therein, and as required under the lease
between the City and Hyatt, dated September 13, 1979, as amended (Lease). Pursuant to Sections 7.3 and 7.4 of the
Lease, the City is obligated to provide a working chiller and related equipment for the Miami Hyatt Regency and the
James L. Knight Convention Center (Center) to remain operational.
The three centrifugal chillers, cooling tower, and related equipment are currently 29 years old and have reached their
useful life expectancy. The replacement of the cooling tower and chiller is necessary for the proper operation and
maintenance of the Miami Hyatt Regency and James L. Knight Convention Center. Per the O&M Agreement and
Letter Agreement dated November 16, 2011 between the City and Hyatt, the City and the Hyatt are each responsible
for fifty percent (50%) of the Project cost, which includes the purchase and installation of three centrifugal chillers, a
cooling tower and associated equipment.
The City will complete its fifty percent (50%) share of the Project cost utilizing an Energy Efficiency and Conservation
Block Grant which is part of the federal American Recovery and Reinvestment Act (ARRA) of 2009.The Hyatt will
pay its fifty percent (50%) share of the Project cost into Capital Improvements Project No. B-40181.
Capital Improvements Program has determined Kerney and Associates, Inc. to be the lowest responsive and responsible
bidder. The City Manager requests authorization to execute a contract with Kerney and Associates, Inc., in the amount
of $3,680,500, for the scope of work, plus a ten percent owner contingency amount of $368,050, for a total not to
exceed award value of $4,048,550. Funds in the amount of $2,024,275 are to be allocated from Sustainable Initiatives
Project No. 41-410004 and $2,024,275 provided by the Hyatt are to be appropriated to Capital Improvements Project
No. B-40181.
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