Title
MOTION TO APPROVE CHANGE ORDER NO. 20231282 IN AN AMOUNT NOT TO EXCEED $19,290, FOR ADDITIONAL HOURS NEEDED TO COMPLETE THE WATER TREATMENT PLANT BUILDING IMPROVEMENTS AND RENOVATIONS DESIGN.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City’s Code of Ordinances is titled “PROCUREMENT PROCEDURES, PUBLIC FUNDS.”
- Section 35.18 of the City's Code of Ordinances is titled "COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED; EXCEPTIONS."
- Section 35.18(C) states that "Only the following situations are exempt from the competitive bid and competitive proposal requirements of this section:"
- Section 35.18(C)(2) states “Contracts for professional services involving peculiar skill, ability, experience or expertise, which are in their nature unique and not subject to competitive bidding, or competitive proposals, are exempt from this section; however, state laws, such as the Consultants’ Competitive Negotiation Act of the state statutes, as may be amended from time to time to the extent applicable, shall be followed.”
- 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."
- 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 necessarily to the satisfactory completion of the contract."
- Section 35.25(A) states that "a purchase of, or contract for, commodities or services that is estimated by the Chief Procurement Officer to cost $5,000 or less, maybe purchased either in the open market without newspaper advertisement and without observing the procedures prescribed by § 35.19, or in accordance with the competitive bidding procedure prescribed by § 35.19, as deemed appropriate by the Chief Procurement Officer."
- 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 March 9, 2023, Lakdas/Yohalem Engineering, Inc. (Lakdas) submitted a proposal to the City for engineering design and pre-construction services associated with Water Treatment Plant (WTP) building improvements and renovations in the amount of $24,985.
2. On April 17, 2023, Purchase Order no. 20231282 was issued and work commenced accordingly. As construction progressed, field conditions revealed unforeseen circumstances requiring additional inspections/reviews, inclusive of design changes, all of which have exhausted the original estimated values of the proposal.
3. On July 9, 2025, the City requested Lakdas submit a supplemental proposal for Construction Engineering & Inspection Services (CEI) that are required to complete the project. Lakdas submitted a supplemental proposal for the remaining CEI work for an amount not to exceed $19,290. These CEI services follow the design phase, and do not increase the Construction Costs relative to these services.
4. Staff recommends City Commission approve change order No. 20231282 in an amount not to exceed $19,290, for additional hours needed to complete the water treatment plant building improvements and renovations design.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $19,290
b) Amount budgeted for this item in Account No: None
c) Source of funding for difference, if not fully budgeted: Upon City Commission’s approval $19,290 will be moved from Account no. 471-533-6031-663993-0000-000-0000- (Improvements - Other) to account 471-533-6031-662000-0000-000-0000- (Buildings)
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.