Title
MOTION TO APPROVE THE FIRST AMENDMENT TO THE AGREEMENT WITH INTERCOUNTY ENGINEERING, INC., TO REHABILITATE SEWER LIFT STATIONS IN THE AMOUNT OF $743,830.79 FOR ALL THE REMAINING WORK TO BE PERFORMED AT MLS NO. 4, LS 25, LS 29, AND LS 39 WHICH INCLUDES $102,938 IN CONTINGENCY.
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)(5) states, “Utilization of other governmental agencies’ contracts.”
- 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 June 5, 2024, the City Commission approved the City of Pembroke Pines to piggyback agreement BID 22-17-03-MS between City of Sunrise and Intercounty Engineering, Inc.
2. The Utilities Department identified nine (9) wastewater lift stations with deteriorated concrete wet wells, requiring rehabilitation and repairs. These lift station numbers were Master Lift Station (MLS) 4, LS 25, LS 29, LS 30, LS 39, LS 55, LS 56, LS 82 and LS 109.
3. The City Commission authorized $384,664 consisting of an estimate of $367,726 and a contingency of $16,938, for completion of this work pursuant to Section 35.18(C)(5) of the City’s Code of Ordinances.
4. To date the Contractor has completed five (5) of the nine (9) lift stations, one (1) Master Lift Station (MLS 4) is underway, and three (3) additional lift stations remain to be completed (LS 25, 29 and 39).
5. The amount of contract funding expended to date is $380,559.41, which is $4,104.59 less than the original total contract amount with contingencies due to overruns at two stations - LS 30 and MLS 4.
6. LS 30 had an overrun in quantities required due to unforeseen conditions including a significant leak at the bottom of the wet well and additional time of bypass pumping while addressing this unexpected problem. LS 55, 56, 82, and 109 has slight underruns in cost, and served to mitigate some of the LS 30 overruns, but an additional $32,287.50 was necessary to complete it all considering.
7. Upon commencement of work on Master Lift Station No. 4, the City encountered significant structural impacts (which were unforeseen) that required significant additional effort and enlisting a structural engineer to prescribe restorative work and the extension of bypass pumping for the assessment, consuming the remaining contract funds with exception of about $4,104.59.
The remaining work at Master Lift Station 4 is estimated at an additional $202,373.79 which includes $20,000 in contingency.
Work for LS 25, 29 and 39 has not begun, however, due to the overruns experienced to date, the Utilities Department recommends the inclusion of an additional contingency on top of the original estimate for each of the remaining lift stations for a total of $156,793 to complete these three Lift Stations.
The breakdown for the estimated additional work is as follows:
|
Remaining Work |
|
Lift Station 4 |
$182,373.79 |
|
Lift Station 4 Contingency |
$20,000.00 |
|
Subtotal |
$202,373.79 |
|
|
|
|
Lift Station 29 |
$29,099.00 |
|
Lift Station 29 Contingency |
$30,000.00 |
|
Subtotal |
$59,099.00 |
|
|
|
|
Lift Station 25 |
$28,629.00 |
|
Lift Station 25 Contingency |
$20,000.00 |
|
Subtotal |
$48,629.00 |
|
|
|
|
Lift Station 39 |
$33,065.00 |
|
Lift Station 39 Contingency |
$16,000.00 |
|
Subtotal |
$49,065.00 |
For a total additional cost estimate of $359,166.79 which includes a contingency of $86,000. The new value of the contract is thereby $743,830.79, which includes a contingency in the amount of $102,938.
8. Due to the nature of the work the estimates provided are solely for estimating purposes. The approval of this piggyback is an approval of line-item pricing to be used at the discretion of the Utilities Department to complete the work at the identified lift stations.
9. The Utilities Department recommends commission approves the first amendment to the agreement with Intercounty Engineering, Inc., to rehabilitate sewer lift stations in the amount of $743,830.79 for all the remaining work to be performed at MLS No. 4, LS 25, LS 29, and LS 39 which includes $102,938 in contingency.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $359,166.79, which includes an owner's contingency in the amount of $86,000
b) Amount budgeted for this item in Account No: 471-535-6021-663122-0000-000-0000
c) Source of funding for difference, if not fully budgeted: Upon commission approval, a budget adjustment of $359,167 will be requested from account 471-535-6021-663122-0000-000-0000 to complete the remaining three lift stations
d) 5 year projection of the operational cost of the project:
|
|
Current FY |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
Revenues |
N/A |
N/A |
N/A |
N/A |
N/A |
|
Expenditures |
$743,830.79 |
N/A |
N/A |
N/A |
N/A |
|
Net Cost |
$743,830.79 |
N/A |
N/A |
N/A |
N/A |
e) Detail of additional staff requirements: Not Applicable
FEASIBILITY REVIEW:
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