Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving And Authorizing The Appropriate City Officials To Execute A Contract With Cardinal Contractors, Inc. For Construction Services Related To Deep Injection Wells No. 3 And No. 4 Pump Station In The Amount Of $112,299,970.00; Approving And Authorizing The Appropriate City Officials To Execute An Authorization To Proceed For Work Order Number B&C 22-02 With Brown And Caldwell For Additional Services To Provide Construction Administration Services For This Project For An Amount Not To Exceed $5,179,402.00.
Strategic Plan Focus
Infrastructure & Facilities
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
The City of Hollywood has historically disposed of treated effluent from its Southern Regional Wastewater Treatment Plant (“SRWWTP”) using a combination of water reclamation and reuse as well as disposal via discharge to deep injection wells and an outfall to the Atlantic Ocean. Section 403.086(10), Florida Statutes, sets forth the Legislature’s findings relating to the discharge of domestic wastewater through ocean outfall, and established scheduled milestones whereby the City of Hollywood must modify use of its ocean outfall for the discharge of secondarily treated effluent. Under the statute, by December 31, 2025, and the City must achieve cumulative reductions in phosphorus and nitrogen nutrients discharged, eliminate the discharge of secondary effluent to the ocean with limited exceptions that allow the discharge of peak wet weather flows.
The Deep Injection Wells No. 3 and No. 4 Pump Station project is required to facilitate a diversion of effluent from the existing ocean outfall to a network of four deep injection wells, of which two are in the final stages of construction. This project is a key step in virtually eliminating continued routine use of the outfall for disposal of effluent.
On November 26, 2019, the Department of Public Utilities (“Department”) advertised a statement of qualifications for design and construction administration services for the Deep Injection Wells No. 3 and No. 4 Pump Station project in accordance with the procedures set forth in Section 287.055, Florida Statutes entitled “Consultants’ Competitive Negotiation Act” (“CCNA”), and the City’s Procurement Code.
Due to the COVID-19 pandemic and in accordance with State law, on April 1, 2020, the City Manager approved a professional engineering consultant services agreement with Brown and Caldwell (“B&C”), the highest-ranked firm selected through the Request For Qualification (“RFQ”) process, for design, permitting and bidding services for the Deep Injection Wells No. 3 and No.4 Pump Station project in the amount not to exceed $4,246,570.00 pursuant to RFQ No. 19-9119A and based upon the attached Memo No. CM-20-016. B&C completed the design of Deep Injection Wells No. 3 and No. 4 Pump Station and the City obtained a construction permit from Florida Department of Environmental Protection (“FDEP”) on April 9, 2021.
On November 30, 2021, Notice of Bid Availability for Bid No. F-4696-21-OT was posted on the City’s website, advertised, and sent to 5,967 firms and viewed by 45 vendors on Bidsync.com in accordance with Section 38.43 of the City’s Procurement Code. Bid No. F-4696-21-OT was opened at 3:00 p.m. on Monday, January 31, 2022, and only one Bid proposal was received with the following result:
Bidder Bid Amount
Cardinal Contractors, Inc. $114,404,970.00
B&C, the Department and Procurement staff thoroughly evaluated the Bid for responsiveness and responsibility, and after evaluation, Cardinal Contractors, Inc. was determined to be the lowest responsive and responsible bidder. B&C, the Department and Procurement staff conducted value engineering evaluation with Cardinal Contractors, Inc. and agreed on savings in the amount of $2,105,000.00 by allowing utilization of factory restrained joins for ductile iron piping and epoxy lined body and stainless steel 316 disc for butterfly valves. On January 31, 2022, a Notice of Intent to Award was posted on the City’s website and on BidSync.com, and resulted in no bid protests.
There is an allowance for undefined conditions in the amount of $3,000,000.00, an allowance for permit in the amount of $500,000.00, materials testing allowance in the amount of $250,000.00 and third party special inspection allowance in the amount of $250,000.00 included in the total contract price of $112,299,970.00.
Section 2.5 of the Professional Services Agreement dated April 8, 2020, provides for additional services such as the construction administration services that are beyond the basic services being provided for under the project. The Department requested a proposal from B&C to provide construction administration services for the project. B&C submitted a proposal to provide technical construction administration services in the amount not to exceed $5,179,402.00. Department staff evaluated the scope and fee proposal, and have determined that the negotiated fee is fair and reasonable and in accordance with industry standards.
This agenda item seeks approval of execution of the attached contract with Cardinal Contractors, Inc., in the amount of $112,299,970.00 for construction services related to Deep Injection Wells No. 3 and No.4 Pump Station, and to execute the attached Authorization to Proceed, in accordance with additional services provision of the Professional Services Agreement dated April 8, 2020, for Work Order No. B&C 22-02 with Brown and Caldwell for construction administration services in the amount not to exceed $5,179,402.00.
The estimated time to complete the project will be 28 months from the Notice to Proceed date.
Fiscal Impact
The total estimated cost for construction of Deep Injection Wells No. 3 and No.4 Pump Station is approximately $133,430,000.00. This amount includes the technical administration services referenced above, contingencies, FPL related and asset management plan costs of approximately $21,130,030.00.
A portion of the funding for this project was approved through the FDEP Clean Water State Revolving Fund (“SRF”) Program in the amount of $36,000,000.00 and under the Drinking Water SRF Program in the amount of $58,339,251.00 including Capitalized Interest and Loan Service Fees. The City intends to request an additional funding in the amount of $40,114,400.00 through the FDEP SRF Program, which includes capitalized interest and loan service fees.
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
Vivek Galav, Director, Department of Public Utilities
Gus Zambrano, Assistant City Manager/Sustainable Development
Attachments:
• Resolution - SRWWTP IWs Pump Station
• Award Recommendation Letter - SRWWTP IWs Pump Station
• Bid Tabulation - SRWWTP IWs Pump Station
• Contract - SRWWTP IWs Pump Station
• PowerPoint Presentation - SRWWTP IWs Pump Station
• Bid Proposal - SRWWTP IWs Pump Station
• Memo CM-20-016 - SRWWTP IWs Pump Station
• Agreement- SRWWTP IWs Pump Station
• ATP - SRWWTP IWs Pump Station
• Consultant Proposal - SRWWTP IWs Pump Station