Item Coversheet

OLD BUSINESS  4.

COMMITTEE MEMORANDUM

TO: Finance and Citywide Projects Committee Members


FROM:
Jimmy L. Morales, City Manager


DATE: June 28, 2019


SUBJECT:DISCUSSION REGARDING THE BUDGET ADVISORY COMMITTEE MOTION THAT THE CITY OF MIAMI BEACH COMPLETE A FACILITY CONDITION ASSESSMENT

HISTORY:

On March 13, 2013, the Mayor and City Commission approved Resolution No. 2013-28155, awarding the agreements for Facilities Condition Assessment (FCA) to Nova Engineering and Environmental, LLC (Nova) and VFA, Inc. (VFA), pursuant to Request for Qualifications (RFQ) No. 56-11/12. The purpose of the FCA is to conduct field inspections and document the condition of various buildings and assets owned by the City. From the information gathered a report is developed for each asset that includes a current and projected future asset replacement cost, and a full condition report of all systems that support the asset within its envelope. The FCA also projects timelines for equipment replacement based on current condition during the assessment and expected lifecycle.

 

All this information combined generates the Facility Condition Index (FCI), a ratio of deferred maintenance costs and the Asset Replacement Value for each asset. The FCI measures the facility’s overall condition via an evaluation rating of excellent, good, fair, or poor. A monetary investment value is associated with this score to bring the FCI to a more desirable rating.

 

In 2014, the City conducted a Facilities Condition Assessment with VFA. Approximately 97 assets were evaluated and their FCI scores noted. As capital replacements are conducted to facilities, the VFA database is updated and scores adjusted to reflect the information provided. However, in order to accurately capture a facility’s condition an assessment should be conducted every five years per industry standards.  

 

On May 11, 2011, the Mayor and City Commission approved Resolution No. 2011-27654 authorizing the sole source purchase for annual maintenance of Cityworks software. Furthermore, it was implemented for the Miami Beach Convention Center and Property Management.

 

In an attempt to streamline the delivery of services throughout all departments, on March 1, 2017, an upgrade in the not to exceed annual amount of $66,000.00 for three years was done to Cityworks in order to utilize the software’s new options such as its mobile applications, CCTV and MicroPaver interfaces. 


ANALYSIS:

Currently, the Property Management Department utilizes VFA as one of the tools for capital planning and Cityworks as the computerized maintenance management system (CMMS) for work order requests, emergencies, and scheduled maintenance. The data within VFA has become dated since the last assessment was in 2014 with the understanding that every five years a re-assessment would be due.

 

In order for VFA or any other facility condition assessment software to truly become the capital planning tool that will accurately enable forecasting of long-term renewal, other capital costs, and the prioritization of those investments based on the City’s vision, it needs to also capture and reflect the data generated by the CMMS system.

 

Unfortunately, Cityworks and VFA do not integrate with one another and the day to day information is lost. In turn this leaves the Department vulnerable to costly assumptions of replacements, emergencies, and poor investment of already limited resources.

 

On May 8, 2019, the Mayor and City Commission approved the issuance of Request For Proposals (RFP) 2019-201-JC: Computerized Maintenance Management System, that will provide the capability to proficiently track, manage, and report the status of asset maintenance while providing real time views of ongoing work. The awarded vendor will be able to integrate with VFA and avoid any human error of accurately, and timely data input to reflect a real time FCI.

 

In addition to the new CMMS software, the Property Management Department will continue to hold internal biweekly project meetings with the Department’s Facility Capital Project Coordinators and the Facility Zone Managers. These meetings are held as round table discussions to review and assess facility needs, current projects, and address potential new capital projects (renewal or replacement) based on field condition inspections and observations. Though these valiant efforts, the daunting task of bridging the information gap between capital project planning and daily maintenance, becomes a highway of information exchange and the catalyst for proper capital planning through lifecycle management.

 

With a portfolio as diverse as the one managed by Property Management, it is crucial that budget decisions are based on tangible measurable data. This will allow for accurate forecasting of the capital renewal and replacement program budget supported by lifecycle replacement standards that are captured in real time.

 

The life expectancy of the components that make up facilities, also defined as assets, is established by following the Building Owners and Managers Association (BOMA) life expectancy, maintenance performed, and observed years remaining. The intention behind the gathering of all of this data is so that the funding for the replacement of these assets can be gradually acquired on a yearly basis, much like special assessments work for condominiums. Once the asset comes within 10 years of being due for replacement, the projected cost for the date of replacement (calculated by RSMeans with an adjustment factor) will be divided and added to the annual budget to be set aside. Being able to utilize this information and plan accordingly sets the platform that aligns organizational needs with the right information, at the right time, for the right budget decisions.

 

After reviewing the capabilities of other reputable facility condition assessment companies, such as, FoScore, ReVision, and Sightlines it was to the City’s best interest to move forward with VFA, now Accruent. Accruent, currently maintains data of the conditions of all city-owned buildings from the assessment conducted in 2014. Additionally in 2017, the Parks and Recreation Department also conducted a reassessment utilizing Accruent for all the facilities they manage. While facilities conditions assessments may be provided by a number of firms, conducting the FCA with Accruent poses several advantages. Accruent offers negotiated pricing through the National IPA Contract. The proposal provided is within the appropriated budget. Further, Accruent can conduct the FCA starting this summer, with an estimated completion date of January 2020. Given the time sensitive nature to conduct the FCA, as well as the budgetary constraints, it is in the City’s best interest to proceed with utilizing National IPA Contract #R161801.

 

The goal is to have a platform that integrates the data holistically for capital planning and facility management systems to accurately define metrics that will provide clarity and recommendations for the annual budgeting for current and future needs.



CONCLUSION:

The following is presented to the members of the FCWPC for discussion regarding Administration’s direction in researching and acquiring the best tools enabling a methodical facility condition assessment process that shows how data is collected, facility replacement values are derived, and cost data is developed.


ATTACHMENTS:
DescriptionType
BAC Presentation for LifecycleOther