CITY OF HALLANDALE BEACH

MEMORANDUM

DATE:                        October 29, 2008

TO:                 D. Mike Good, City Manager

FROM:            William M. Brant, P.E., Director, Public Works, Utilities and Engineering

SUBJECT:     Request to Award Contract Amendment for Utilities Construction –

BP 04/024; 04/028

PURPOSE:

Pursuant to Chapter 23, Section 23-111(11), Change Orders, request authorization to approve a contract amendment with Giannetti Contracting Corporation in the amount of $1,989,328 based upon current contract prices, to construct water and wastewater transmission improvements in the Golden Isles and Beach areas. 

BACKGROUND:

On March 18, 2008, the City Commission awarded ReBid Number FY 2006-200-001-01, Pump Station 8 Diversion Force Main to SW 2^nd Avenue, to Giannetti Contracting Corporation for $812,552.60.  The City had received a total of 11 bids for this project.  While the 10 highest bids ranged from $1,040,490 to $1,592,030, Giannetti’s bid was 22% lower than the second lowest bid.

Giannetti Contracting Corporation demonstrated competence and professionalism in their timely completion of the force main installation project.  The City is very satisfied with the quality of work in this project.

DISCUSSION:

Consultants and staff have determined that there are several additional essential improvements that must be made to the City’s water and wastewater transmission systems in order to provide the needed water pressures and the water and wastewater capacity for future growth.  The improvements include three subaqueous crossings, two of which are under the Intracoastal Waterway. 

The force main project previously awarded to Giannetti basically consisted of two types of work:  installation of utility mains by open trench construction and installation of utility mains by directional boring.  The latter type of work was used to install a pipeline under the FEC railroad.  Open trench construction and directional boring are also the two components of the proposed utilities project which will continue the City’s utility improvement program.

Staff contacted two of the other contractors that bid on the original project and found that contract prices have not changed significantly since the bids were submitted earlier this year.  One contractor indicated a willingness to reduce its bid prices by up to 5%; the other indicated its bid on the project today would be approximately the same as, if not slightly higher than, the original submitted.

It is in the best interest of the City to do a Change Order to the current purchase order, utilizing the unit prices submitted by Giannetti in the original bid for completion of the additional work.  In addition to saving money, utilization of Giannetti would also save a considerable amount of time, enabling the work to commence sooner than anticipated.  Finally, the fact that Giannetti proved to be competent and professional in its first project gives additional assurance of the anticipated success of the proposed project.

If approved, sufficient funding in the amount of $2,086,786 is available in the following capital improvement projects:

Number Name Balance Cost

033501            Sewer Capacity Improvement           $   680,098                  $   601,417

892003            Water Distribution Upgrade                $1,406,688 $1,387,911

TOTAL:          $2,086,786                  $1,989,328

RECOMMENDATION:

Pursuant to Chapter 23, Section 23-111(11), Change Orders, request authorization to approve a contract amendment with Giannetti Contracting Corporation in the amount of $1,989,328 based upon current contract prices, to construct water and wastewater transmission improvements in the Golden Isles and Beach areas. 

Prepared By:  _____________________

                                                                                                  Earl S. King, III

                                                                                       Deputy Director of Public Works,

                                                                                              Utilities and Engineering

Reviewed:

_______________________________                                                          __________

D. Mike Good, City Manager                                                                           Date

_____Approved                _____Disapproved                _____Hold for Discussion

Comments:  ____________________________________________________________