Title
MOTION TO RATIFY THE CITY MANAGER’S APPROVAL OF A CHANGE ORDER TO THE UTILITY WORK BY HIGHWAY CONTRACTOR AGREEMENT WITH THE STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION IN THE AMOUNT OF $3,281.60, PROVIDING ADDITIONAL FUNDING FOR UTILITY ADJUSTMENTS ALONG PINES BOULEVARD FROM I-75 TO EAST OF NW 118 AVE.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City’s Code of Ordinances is titled “PROCUREMENT PROCEDURES, PUBLIC FUNDS.”
- Section 35.15 defines CHANGE ORDER. Changes, due to unanticipated conditions or developments, made to an executory contract, which do not substantially alter the character of the work contracted for, and which do not vary so substantially from the original specifications as to constitute a new undertaking. The changes must reasonably and conscientiously be viewed as being in fulfillment of the original scope of the contract rather than as departing therefrom. Further, the changes, when viewed against the background of the work described in the contract and the language used in the specifications, must clearly be directed either to the achievement of a more satisfactory result or the elimination of work not necessary to the satisfactory completion of the contract.
- Section 35.28 of the City's Code of Ordinances is titled "CHANGE ORDERS."
- Section 35.28(B) states that "Notwithstanding the provisions of (A) above, 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 December 6, 2023, the City Commission adopted proposed resolution 2023-R-46, approving an agreement with the Florida Department of Transportation (FDOT) to perform adjustments to City-owned water and sewer utilities. These adjustments are associated with FDOT’s upcoming project to construct improvements to Pines Blvd. from the I-75 North on-ramp to East of NW 118 Ave.
2. FDOT estimated the cost of the adjustments to be $30,430.40 which included 2% for allowances and 10% for contingencies. In accordance with the agreement, City Staff issued a check to FDOT in that amount on January 2, 2024. The agreement contained provisions stating that any portion of the funding not used for this work will be refunded to the City and that, likewise, an increase in the cost of the work will be at the City’s expense.
3. In February 2024, FDOT opened bids for the road project and the low responsive and responsible bid amount for the City’s utility adjustments was $33,712.00, including 2% for construction engineering and inspection and 10% for contingencies. This is an increase of $3,281.60, or 10.8%, over FDOT’s original estimated cost.
4. On March 28, 2024, FDOT notified Utilities Department Staff that, in accordance with the project agreement, the City may opt to remove the utility adjustment work from FDOT’s bid and perform it separately, or to fund the additional $3,281.60 and allow FDOT’s contractor to perform this work. FDOT also notified Staff that they needed the City’s decision by April 1, 2024, and payment of additional funds by April 10.
5. Staff has reviewed the vendor’s submittal and concludes that it is still in the City’s best interest to provide the additional funding and allow FDOT’s contractor to perform the work.
6. Staff advised the City Manager of the situation and, in order to accommodate FDOT’s schedule, on April 3, 2024 the City Manager approved Staff’s recommendation to pay the additional $3,281.60 and continue the utility adjustment agreement with FDOT for this project.
7. Staff recommends for the City Commission’s ratification of the City Manager's approval of a change order to the Utility Work by Highway Contractor Agreement with the State of Florida Department of Transportation in the amount of $3,281.60, providing additional funding for utility adjustments along Pines Boulevard from I-75 to east of NW 118 Ave.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $3,821.60
b) Amount budgeted for this item in Account No: $3,821.60 is available in Account No. 471-533-6032-546150-0000-000-0000- (R&M Land Bldg & Improvement)
c) Source of funding for difference, if not fully budgeted: Not Applicable.
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.