Title
MOTION TO APPROVE AN AMENDMENT TO THE AGREEMENT WITH FLORIDA DESIGN DRILLING, LLC. FOR WELL REHABILITATION SERVICES, UTILIZING PRICING ESTABLISHED IN BROWARD COUNTY’S SOLICITATION NO. PNC2127733B1, IN THE AMOUNT OF $201,200, INCREASING THE CONTRACT TO AN AMOUNT NOT TO EXCEED $346,200, WHICH INCLUDES $5,720 FOR PAYMENT AND PERFORMANCE BONDS, AND AN OWNER’S CONTINGENCY OF $32,580, PURSUANT TO SECTION 35.18(C)(5) OF THE CITY’S CODE OF ORDINANCES.
Summary Explanation and Background
- 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 regarding "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) of the City’s Code of Ordinances states that “Commodities or services that are the subject of contracts with the state its political subdivisions or other governmental entities including the United States Government, are exempt” from the competitive procurement process.
- 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 $100,000, shall require the approval of the City Commission, regardless of whether the competitive bidding or competitive proposal procedures were followed."
- Section 35.28 of the City's Code of Ordinances is titled "CHANGE ORDERS."
- Section 35.28(B) states that "Notwithstanding the provisions of division (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 10% of the original contract amount or $25,000.
SUMMARY EXPLANATION AND BACKGROUND:
1. On April 16, 2025, the City Commission approved a piggyback agreement, not to exceed $145,000, utilizing Broward County’s solicitation No. PNC2127733B1 for Well rehabilitation services, on an as-needed basis.
2. To date, the following proposals have been authorized utilizing this agreement:
|
Work Authorizations |
Amount |
|
Well 10 Column Pipe Replacement |
$73,050.00 |
|
Well 2 New Pump |
$56,150.00 |
|
Well 5 Emergency Parts |
$8,232.75 |
|
Total |
$137,432.75 |
Leaving a balance available of $7,567.25.
3. Typically, because the wells’ steel tubing is mechanically sealed and located underground, the full extent of the required repairs cannot be determined until the tubing is removed from the casing pipe and dismantled.
4. The Utilities Department wishes to continue utilizing the Broward County solicitation for the inspection and remediation of the City’s wells. Florida Design Drilling, LLC has consistently demonstrated strong expertise and reliable performance, providing significant value to the City.
5. Florida Design Drilling has provided proposals to rehabilitate Wells #4 & #9. The Utilities Department is also requesting an additional 20% contingency in the value of $32,580. The contingency is for any emergencies that arise in the rehabilitation of Wells 4 and 9 or for the rehabilitation of an additional well, should there be sufficient funds remaining.
|
Proposed Work |
Amount |
|
Well 4 |
$101,750.00 |
|
Well 9 |
$61,150.00 |
|
Subtotal |
$162,900.00 |
|
20% Contingency |
$32,580.00 |
|
P&P Bonds |
$5,720.00 |
|
Total |
$201,200.00 |
The new value of the contract would be $346,200, which includes $5,720 for payment and performance bonds, and an owner’s contingency in the amount of $32,580.
6. The Utilities Department recommends the City Commission approve an amendment to the agreement with Florida Design Drilling, LLC. for Well rehabilitation services, utilizing pricing established in Broward County’s solicitation no. PNC2127733B1, in the amount of $201,200, increasing the contract to an amount not to exceed $346,200, which includes $5,720 for payment and performance bonds, and an owner’s contingency of $32,580, pursuant to Section 35.18(C)(5) of the City’s Code of Ordinances.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $201,200 which includes $5,720 for payment and performance bonds, and an owner’s contingency of $32,580.
b) Amount budgeted for this item in Account No: Funds will be available in Account no. 471-533-6031-663250-0000-000-0000 (Water Well)
c) Source of funding for difference, if not fully budgeted: Not Applicable.
d) 5 year projection of the operational cost of the project
|
|
April 2025-August 2026 |
|
|
|
|
|
Revenues |
|
|
|
|
|
|
Expenditures |
$346,200 |
|
|
|
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Net Cost |
$346,200 |
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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.