Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving And Authorizing The Appropriate City Officials To Execute Change Order No. 5 With Lanzo Construction Co., Florida, In The Amount Of $78,643.08 For The Royal Poinciana Utility Improvement Project Resulting From Changes To The Design And Additional Work Requested By The Community Redevelopment Agency; Authorizing Payment By Utilizing Funds Remaining In The Water Main Contingency Resulting In No Net Change To The Contract Amount In Accordance With Section 38.48(C) Of The Procurement Code (Change Orders).
Strategic Plan Focus
Infrastructure & Facilites
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
The City’s water distribution system consists of over 600 miles of pipelines with diameters ranging from 2 inches to 36 inches. The 2007 Water System Master Plan identified the need to replace aging infrastructure throughout the City and install additional infrastructure to improve the level of service within the City’s water system. The Citywide Water Main Replacement Program as outlined in the 2007 Water System Master Plan prioritizes the replacement of the water mains based on the age of the pipelines, type of pipe material, repeated pipeline breaks in the areas, and water quality issues. The Water Main Replacement Program identified the need to replace old water distribution infrastructure and install 4-inch diameter through 24-inch diameter water mains within the area surrounded by Sheridan Street to Hollywood Boulevard and between North Federal Highway and North 21st Avenue, referred to as the “Royal Poinciana Utility Improvement” project.
On June 5, 2019, pursuant to Resolution No. R-2019-159, the City Commission authorized the execution of a contract with Lanzo Construction Co., Florida (“Contractor”) for construction services related to the Royal Poinciana Utility Improvement project, in the amount of $22,867,926.25, which included a $700,000.00 contingency allowance related to water main replacement.
On February 13, 2020, the Department of Public Utilities (“Department”) executed Field Order No. 1, in the amount of $94,908.03 to compensate for five tasks due to unforeseen conditions. On May 22, 2020, the Department executed Field Order No. 2 in the amount of $28,088.72 to compensate for two tasks due to unforeseen conditions. On February 18, 2021, the Department executed Field Order No. 3 in the amount of $11,748.99 to compensate for two tasks due to unforeseen conditions. On May 4, 2021, the Department executed Field Order No. 4 in the amount of $31,147.76 to compensate for three tasks due to unforeseen conditions and design change. These field orders were authorized by the Director of the Department and paid under the Owner’s Contingency (water) line item in accordance with past practices. The remaining water main contingency in the project is $534,106.50.
During the construction of the water main improvements, it was determined that the existing 16-inch water main on Polk Street, West of US1, needed to be connected to the new 24-inch water main installed at the intersection of Polk Street and 19th Avenue to loop and optimize the water distribution system, resulting in a design change (“Task 1”). Additionally, the Community Redevelopment Agency (“CRA”) requested that nine reinforced concrete slabs be installed to support garbage dumpsters in the alleyway north of Hollywood Blvd., between 19th Avenue and 20th Avenue (“Task 2”).
As a result, the Department requested a proposal for Change Order No. 5 from the Contractor to address Task 1 and Task 2. Tetra Tech, Inc., as the engineer of record and construction manager, and Department staff evaluated the scope of Change Order No. 5, negotiated the prices and have determined that the cost in the amount of $78,643.08 ($57,082.93 for Task 1, and $21,560.15 for Task 2), is reasonable and in accordance with industry standards. Task 1 of Change Order No. 5, in the amount of $57,082.93, will be funded by the remaining water main contingency item and task 2 of Change Order No.5, in the amount of $21,560.15, will be funded by the CRA.
Section 38.48(C) of the Procurement Code provides that all change orders that the City Manager is not authorized to approve must be formally approved by the City Commission. This agenda item seeks approval of execution of Change Order No. 5 with the Contractor in the amount of $78,643.08, and authorization of payment by utilizing funds remaining in water main contingency item and CRA funds resulting in no net change to the contract amount.
There is no impact to the original project schedule.
Fiscal Impact:
Funding for this project was included in the amended FY 2022 Capital Improvement Plan and is available in account number 442.409901.53600.563010.001170.000.000. Expenses for the concrete slab improvements (task 2) will be reimbursed by the CRA from account number 166.669901.55200.563010.000018.000.000.
The Department of Public Utilities staff will manage this project. No additional staff is needed as a result of this project.
Recommended for inclusion on the agenda by:
Feng (Jeff) Jiang, Assistant Director, Department of Public Utilities
Keith Moran, Deputy Director, Department of Public Utilities
Vivek Galav, Director, Department of Public Utilities
Gus Zambrano, Assistant City Manager/Sustainable Development
Attachments
Resolution - Royal Poinciana Utility Improvements Change Order No. 5
Change Order No. 5 - Royal Poinciana Utility Improvements Change Order No. 5