Title
MOTION TO APPROVE A CHANGE ORDER IN THE AMOUNT OF $185,000, INCREASING THE ANNUAL AMOUNT TO CALVIN GIORDANO & ASSOCIATES, INC. FOR THE OPERATION, MAINTENANCE AND MANAGEMENT OF MUNICIPAL FACILITIES AND GROUNDS TO A TOTAL AMOUNT NOT TO EXCEED $6,792,159.40, WHICH INCLUDES AN OWNER'S CONTINGENCY IN THE AMOUNT OF $200,000.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City’s Code of Ordinances is titled “PROCUREMENT PROCEDURES, PUBLIC FUNDS.”
- Section 35.21 of the City's Code of Ordinances is titled "AWARD OF CONTRACT."
- Section 35.21(A) of the City's Code of Ordinances is titled "City Commission approval."
- Section 35.21(A)(1) states, “An initial purchase of, or contract for, commodities or services, in excess of $25,000, shall require the approval of the City Commission, regardless of whether the competitive bidding or competitive proposal procedures were followed.
- Chapter 35.28 of the City’s Code of Ordinances is titled “CHANGE ORDERS.”
- Chapter 35.28(B) states that “Notwithstanding the provisions of division (A), the City Manager is not authorized to approve a change order without authorization of the City Commission where the initial purchase required the City Commission’s approval and where the sum of all change orders issued under the contract exceeds 5% of the original contract amount or $25,000.
SUMMARY EXPLANATION AND BACKGROUND:
1. On October 16, 2013, the City Commission approved to enter into an agreement with Calvin, Giordano & Associates, Inc. for the Operation, Maintenance and Management of Municipal Facilities and Grounds in the amount of $5,867,990 for an initial five (5) year period commencing on November 1, 2013 and ending on October 31, 2018.
2. On February 21, 2018, the City Commission approved an additional (5) year renewal term, commencing on November 1, 2018 and expiring on October 31, 2023.
3. The current annual compensation under the agreement is $6,407,159.40. In addition, there is a $200,000 owner's contingency to cover additional overtime if needed.
4. The Public Services Department is requesting an additional $185,000 for this fiscal year in order to cover an unusual amount of overtime incurred by staff.
5. The additional overtime incurred this year was due to several factors:
- Weekend and night work at the schools during the school year to complete the security offices left incomplete by Kalex Construction at Academic Village and Central Campus. The City is in litigation with Kalex to recoup these costs totaling $293,140.68.
- Overtime required at the end of the summer in order for Public Services to assist ConEngineers to complete the security offices at the East, West, and FSU Campuses. The City has negotiated a change order to recoup these costs in the amount of $69,280.
6. Request Commission to approve a change order in the amount of $185,000, increasing the annual amount to Calvin, Giordano & Associates, Inc. for the Operation, Maintenance and Management of Municipal Facilities and Grounds to a total amount not to exceed $6,792,159.40, which includes an owner's contingency in the amount of $200,000.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $185,000 (total value would increase to $6,792,159.40)
b) Amount budgeted for this item in Account No: Funds have not been allocated within the budget, therefore funds would come from account 001-519-0800-530010-0000-000-0000- (Contingency) .
c) Source of funding for difference, if not fully budgeted: A budget adjustment will be processed for $185,000 from account # 001-519-0800-530010-0000-000-0000-(Contingency) to account #001-519-6001-534982-0000-000-0000 (Function Sourcing - Grounds).
d) 5 year projection of the operational cost of the project Not Applicable.
e) Detail of additional staff requirements: Not Applicable.
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable.
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not Applicable.