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�- Ordinance
File Number: 16-00834
City Hall
3500 Pan American
Drive
Miami, FL 33133
www.mlamlgov.com
Final Action Date:
AN ORDINANCE OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S),
AMENDING CHAPTER 18/ARTICLE III OF THE CODE OF THE CITY OF MIAMI,
FLORIDA, AS AMENDED, ENTITLED "FINANCE/CITY OF MIAMI PROCUREMENT
ORDINANCE", MORE PARTICULARLY BYAMENDING SECTION 18-89, ENTITLED
"CONTRACTS FOR PUBLIC WORKS OR IMPROVEMENTS", TO ADD A NEW
SECTION FOR THE USE OF A PREQUALiFICATION POOL OF CONTRACTORS
FOR CITY OF MIAMI ("CITY") CONSTRUCTION PROJECTS, AS A COMPETITIVE
SEALED BIDDING METHODOLOGY; APPROVING A PILOT PROGRAM FOR THE
ESTABLISHMENT OF A PREQUALIFICATION POOL OF CONTRACTORS FOR
CITY CONSTRUCTION PROJECTS, AS SPECIFIED IN EXHIBIT "A", ATTACHED
AND INCORPORATED, FORA PERIOD OF TWO (2) YEARS; AUTHORIZING THE
CITY MANAGER TO MAKE ANY AMENDMENTS NECESSARY TO THE PILOT
PROGRAM AS DEEMED IN THE BEST INTEREST OF THE CITY; CONTAINING A
SEVERABILITY CLAUSE, PROVIDING FOR AN EFFECTIVE DATE AND SUNSET
PROVISION,
WHEREAS, Florida Statute § 255,20 titled "Local bids and contracts for public construction works;
specification of state -produced lumber", subsection (1) states "the county, municipality, special district,
or other political subdivision may establish, by municipal or county ordinance or special district
resolution, procedures for conducting the bidding process"; and
WHEREAS, the City of Miami's ("City") Office of Capital Improvements and Transportation
Program and Department of Public Works, have an extensive list of upcoming construction projects;
and
WHEREAS, the competitive sealed bidding methodology of a pre-quallfication pool of contractors
for construction projects is not stated in the Code of the City of Miami, Florida, as amended, ("City
Code"); and
WHEREAS, the goal of the pilot program for the establishment of a prequalification pool of
contractors for City construction projects ("Pilot Program"), is to create an open prequalification pool
("Pool") of experienced and pre -qualified contractors for Vertical and Horizontal construction projects
under a tiered system based on discipline and project dollar thresholds; and
WHEREAS, the benefits of establishing this Pool are three -fold. This process will•
1) Save time and money in the procurement process, through the issuance of Invitation to
Quote ("ITQ"), mini competitions, within the Pool, when the need arises, which will be based solely on
lowest price, since the contractors in the Pool are already prequalified, as opposed to issuing individual
open competitive solicitations for each project;
2) Prevent unqualified contractors from participating in the bidding process, thus ensuring that
the lowest bidder is already prequalified to perform the work; and
3) Reduce the risk of poor contractor performance, through an annual evaluation and renewal
of Pool members' qualifications and their'participation in the Pool; and
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WHEREAS, the Pilot Program will be in place for two (2) years commencing on the date that the
Pool is established; and
WHEREAS, upon the conclusion of the two (2) year period, the Pilot Program shall automatically
sunset, unless the City Commission extends the Pilot Program, or permenantly establishes the
program;
NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI,
FLORIDA:
Section 1. The recitals and findings contained in the preamble to this Ordinance are adopted by
reference and incorporated as if fully set forth in this Section.
Section 2, Chapter 18/Article III of the City Code, is amended in the following particulars: {1}
"CHAPTER 18
FINANCE
ARTICLE 111. CITY OF MIAMI PROCUREMENT ORDINANCE
Sec, 18-89. Contracts for public works or improvements.
('a) Any public work or improvement may be executed either by contract or by the city labor
force, as may be determined by the city commission. There shall be a separate accounting
as to each work or improvement. Before authorizing the execution by the city labor force of
any work or improvement or phase thereof, the city manager shall submit to the city
commission a description of the anticipated scope of work and related cost estimates.
(b) All contracts for public works or improvements in excess of $25,000.00 shall be awarded to
the lowest responsive and responsible bidder after public notice on the basis of competitive
sealed bidding methods, as provided herein or as provided in applicable Florida Statutes,
whichever is determined to be in the best interest of the city. For contracts for public works
and improvements in excess of $25,000.00 where it is both practicable and advantageous
for the city to specify all detailed plans, specifications, standards, terms and conditions so
that adequate competition will result and award may be made to the lowest responsive and
responsible bidder principally on the basis of price; provided, however, when a responsive,
responsible non -local bidder submits the lowest bid price, and the bid submitted by one or
more responsive, responsible local bidders who maintain a local office, as defined in City
Code section 18-73, is within 15 percent of the price submitted by the non -local bidder, then
that non -local bidder and each of the aforementioned responsive, responsible local
bidder(s) shall have the opportunity to submit a best and final bid equal. to or lower than the
amount of the low bid previously submitted by the non -local bidder. Contract award shall be
made to the lowest responsive, responsible bidder submitting the lowest best and final bid.
In the case of a tie in the best and final bid between a local bidder and a non -local bidder,
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contract award shall be made to the local bidder.
Notwithstandinq the foregoing, the City Manager may establish a pool of pre -qualified
contractors for the City of Miami construction projects ("Pilot Program"). The Prequalification Pool of
Contractors for City of Miami Construction Protects Pilot Program ("Pool"), will participate in an
expedited, competitive sealed bidding process, as identified in Exhibit "A", which is deemed as being_
incorporated by reference herein.
Notwithstanding the foregoing, the city manager may waive competitive sealed procurement
methods by making a written finding, supported by reasons, that a valid emergency exists or that there
is only one reasonable source of supply, which finding must be ratified by an affirmative vote of
four-fifths of the city commission after a properly advertised public hearing. When competitive sealed
procurement methods are waived, other procurement methods as may be prescribed by ordinance
shall be followed, except for the cone of silence provisions.
(c) Public notice shall be in accordance with the applicable Florida Statutes.
(d) Award.
(1) All contracts for public works or improvements which do not exceed $25,000.00 shall be
awarded on the basis of competitive negotiations,
(2) All contracts for public works or improvements of $25,000.00 or more shall be
awarded by the city manager only upon certification of the results of the evaluation and the
bid tabulation by the chief procurement officer as being in compliance with competitive
sealed procurement methods or in accordance with applicable Florida Statutes,
(3) All contracts in excess of $100,000.00 must be approved by the city commission
upon recommendation by the city manager. The decision of the city commission shall be
final
(4) The city commission or the city manager shall have the authority to reject any or all bids
or portions of bids, and re -bid or elect not to proceed with the project.
(5) When it becomes necessary in the opinion of the city manager to make alterations or
modifications in a contract for any public work or improvement which increases the contract
to a total amount in excess of $100,000.00, such alterations or modifications shall be made
only when authorized by the city commission upon the written recommendation of the city
manager. No such alteration shall be valid unless the price to be paid for the work or
material, or both, under the altered or modified contract shall have been agreed upon in
writing and signed by the contractual party and the city manager prior to such authorization
by the city commission.
(6) Copies of the city manager's award shall be delivered to the director of the
department of public works and to the chief procurement officer.
(7) The city manager shall submit to the city commission on a monthly basis a list of
contracts for public works or improvements awarded by the city manager.
(e) Community small business enterprise ("CSBE" ).
(1) Except where state or federal law, regulations, or grant requirements mandate to the
contrary, and subject to reservations or limitations provided in state, federal, or city laws,
regulations, or grant requirements, respondents must assign a minimum of 15 percent of
the contract value to a respondent or to a construction related enterprise currently certified
by Miami -Dade County as a Community Small Business Enterprise ("CSBE"). Respondents
shall place a specific emphasis on utilizing local small businesses from within the city's
municipal boundaries. The adoption of these provisions in the procurement ordinance of the
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city will be deemed an adoption by the city, as herein modified, and as may be amended
from time to time of the Miami -Dade County Community Small Business Enterprise
("CSBE") Program, as set forth in section 10-33,01, section 10-33.02, Miami -Dade County
Code. The definitions, program components, subcontractor goals, contract measures,
certification requirements, enforcement and administrative remedies from section 10-33.02,
of the Miami -Dade County Code, as amended, are deemed as being incorporated by
reference herein.
(2) Five percent of the bid amount shall be retained by the city for the CSBE
participation requirements until said requirements are fulfilled and verified by the city
manager or authorized designee as being fulfilled within six months of contract completion;
failure to satisfactorily meet, document, and present to the city manager or authorized
designee the Community Small Business Enterprise ("CSBE") requirements within six
months of contract completion shall result in the forfeiture of the retained amount to the
city. This five percent retainage is included within the ten percent retainage normally
withheld by the city.
(3) The respondent selected as the contractor shall have a third party independently verify
and certify compliance with these requirements on a quarterly basis, Said third party shall
be unaffiliated with the respondent and be properly licensed under the provisions of F.S.
chs. 454, 471, 473, or 481. The person performing the verification shall have a minimum of
two years of prior professional experience in contracts compliance, auditing, personnel
administration, or field experience in payroll, enforcement, or investigative environment.
The cost for this verification and certification shall be included in the related contract costs.
Community small business enterprise ("CSBE") requirements shall apply only to contracts with
a contract value greater than $100,000,00 and with an on-site labor component greater than or equal
to 25 percent of the contract value.
These CSBE requirements shall apply to any competitively procured contract under this section
unless:
• It meets one of the exclusion provisions noted above;
• The city manager or designee deems the requirements unfeasible prior to issuance of the
competitive selection document in which case the requirements of this section will be stated as
not being applicable in the competitive selection document;
• It Is disallowed by federal or state law;
• Funding sources require alternate, contradictory or specifically exclude CSBE participation
requirements;
• These requirements are waived by the city commission by resolution, prior to issuance of the
competitive solicitation document, upon written recommendation of the city manager or
manager's designee, when the commission finds this is to be in the best interest of the city, in
which case the requirements of this section will be stated as not being applicable in the
competitive selection document.
(f) Local workforce participation requirements.
(1) Except where state or federal law, regulations, or grant requirements mandate to the
contrary, and subject to reservations or limitations provided in state, federal, or city laws,
regulations, or grant requirements, respondents must employ the following minimum
percentage requirements for on-site labor from persons residing within Miami -Dade County
(an individual whose primary place of residence is within Miami -Dade County), for the
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duration of the project. City construction contracts with a construction cost of up to
$250,000.00 shall have no local workforce participation requirement, Construction contracts
with a construction cost of $250,000.00 or more but less than $500,000,00 shall have a
minimum local workforce participation requirement of ten percent. Construction contracts
with a construction cost of $500,000,00 or more but less than $750,000.00 shall have a
minimum local workforce participation requirement of 15 percent, Construction contracts
with a construction cost of $750,000.00 or more but less than $4,000,000.00 shall have a
minimum local workforce participation requirement of 20 percent. Construction contracts
with a construction cost of $4,000,000.00 or more shall have a minimum local workforce
participation requirement of 40 percent, "Construction costs" as referenced herein shall
mean the total or estimated cost to the owner of all elements of the project being awarded,
including, at current market rates, (with reasonable and customary allowance for overhead
and profit), the costs of labor and materials, and any equipment or supplies that have been
specified in the competitive solicitation document, but not including compensation for the
architect, engineer, landscape architect, surveyor, mapper, or similar professional
consultants. 'Local workforce participation requirements must be met by new hires and
"laborer" as referenced herein shall mean a person as defined by F.S. § 713,01, who is
retained by the contractor, All local workforce participation percentage requirements listed
above shall be applied on the construction project's on-site labor force. The contractor shall
strive to employ a minimum of 50 percent of the aforementioned minimum local workforce
participation percentage requirements from within the city commission district where the
project is located (e,g. if the project is in District X and the minimum local participation
percentage requirement is ten percent then the contractor shall make its best efforts to
employ a minimum of five percent of the required local workforce from District X), The
county residency of the onsite labor component will be subject to verification by the issuing
department,
(2) Five percent of the bid amount shall be retained by the city for the local requirements
until said requirements are fulfilled and verified by the city manager or authorized designee
as being fulfilled within three months of contract completion. Failure to satisfactorily meet,
document, and present to the city manager or authorized designee the local workforce
participation requirements within three months completion after the project has reached
final completion, shall result in the forfeiture of the retained amount to the city, This five
percent retainage is included within the ten percent retainage normally withheld by the city
and will comply with percentages specified in F.S. § 218,735.
(3) For contracts with a bid amount between $1,000,000,00 and $2,000,000.00, the
contractor shall be required to hold one job fair within the local community for the purpose
of encouraging local workforce participation. For contracts with a bid amount greater than
$2,000,000,00, the respondent shall be required to hold two job fairs within the local
community for the purpose of encouraging local workforce participation. The contractor
shall coordinate job fairs and hiring initiatives with South Florida Workforce or a similar
state chartered regional workforce development board acceptable to the city manager.
(4) Bid and proposal documents to which a local workforce participation requirement
goal has been applied shall require the contractor to develop and submit to the city, within
30 days of notification of award of the construction contract, a workforce plan (plan)
outlining how the goal will be met and containing the following information and elements
required by this section. The plan shall specify the total number of persons that will be used
by the contractor, broken down by trade and labor category, minimum qualifications for
each category, and the number of persons to be utilized in each category. The plan shall
identify by name, address, and trade category of all persons proposed to perform work
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under the contract currently on the contractor's payroll or positions to be hired by the
contractor, who reside within Miami -Dade County. The city will not enter into the contract
until it receives the contractor's plan and deems the plan acceptable. An updated plan shall
be submitted to the city's project manager on a monthly basis. In the event that during the
contract period a new hire or a person identified in the plan as meeting the local workforce
participation requirement goal is replaced, the city may require the contractor to
immediately identify the replacement. Notwithstanding anything to the contrary above, the
contractor may be relieved from the requirements of this provision, in part or in whole, if
such contractor can demonstrate that it has utilized its best efforts to achieve the goal in
accordance with the prescribed provisions under this section.
(5) The respondent shall have a third party independently verify and certify compliance with
these requirements on a quarterly basis. Said third party shall be unaffiliated with the
respondent and be properly licensed under the provisions of F,S, ch. 454, 471, 473, or 481.
The person performing the verification shall have a minimum of two years of prior
professional experience in contracts compliance, auditing, personnel administration, or field
experience in payroll, enforcement, or investigative environment. The cost for this
verification and certification shall be included in the related contract costs.
The city shall consider the contractor's adherence to the city's local workforce participation
requirements within the past three years in making any future contract awards to which this section
applies. The solicitation documents will include the contractor's past compliance with these
requirements of the city.
Local participation requirements shall apply only to public works or improvements contracts
with a contract value greater than $250,000.00 and with an on-site labor component greater than or
equal to 25 percent of the contract value.
These local workforce participation requirements shall apply to any competitively procured
contract under this section unless:
It meets one of the exclusion provisions noted above;
• The city manager or designee deems the requirements unfeasible prior to issuance of the
competitive solicitation document, in which case the requirements in this section will be stated
as not being applicable in the competitive solicitation document;
• It is disallowed by federal or state law or grant requirements;
Funding sources require alternate, contradictory or specifically exclude or disallow local
workforce participation requirements;
• These requirements are waived by the city commission by resolution, prior to issuance of the
competitive solicitation document, upon written recommendation of the city manager or
manager's designee, when the commission finds this is to be in the best interest of the city, in
which case the requirements of this section will be stated as not being applicable in the
competitive selection document.
*11
Section 3. If any section, part of a section, paragraph, clause, phrase, or word of this Ordinance is
declared invalid, the remaining provisions of this Ordinance shall not be affected.
Section 4. This Ordinance shall become effective immediately after final reading and adoption
thereof and apply to solicitations which have not closed, and for which addenda may be timely used.
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{2)
Section 5. The Pilot Program for the establishment of a prequalification pool of contractors for City
of Miami construction projects, as specified in Exhibit A, attached and incorporated, is approved for a
period of two (2) years, commencing on the date that the Pool is established, with a sunset provision.
Section 6, The City Manager is authorized {3) to make any amendments to the Pilot Program as
deemed in the best interest of the City,
OVY AS TO F4RM AN CORRECTNESS:
TY ATTORN EY
Footnotes:
{1) Words and/or figures stricken through shall be deleted. Underscored words and/or figures shall be
added. The remaining provisions are now in effect and remain unchanged. Asterisks indicate omitted
and unchanged material,
{2) This Ordinance shall become effective as specified herein unless vetoed by the Mayor within ten
(10) days from the date it was passed and adopted. if the Mayor vetoes this Ordinance, it shall
become effective Immediately upon override of the veto by the City Commission or upon the effective
date stated herein, whichever is later.
{3) The herein authorization is further subject to compliance with all requirements that may be imposed
by the City Attorney, including but not limited to those prescribed by applicable City Charter and Code
provisions.
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