TO: Mayor and City Commission
FROM: Cale Curtis, City Manager
DATE: April 7, 2021
Title
RESOLUTION - APPROVING PAYMENT TO FPL AND VIKING UTILITY SERVICES, INC. IN THE RESPECTIVE AMOUNTS OF $60,099.17 AND $16,750.00 FOR MATERIALS AND LABOR RELATED TO UNDERGROUNDING OVERHEAD DISTRIBUTION LINES IN THE VICINITY OF FIRE STATION # 58 LOCATED AT 600 NORTH ROCK ISLAND ROAD.
Body
BACKGROUND:
On April 22nd 2020, the City Commission approved Resolution No. 20-018 for a right of way consent agreement between FPL and the City. This resolution gave the City permission to perform improvements within the FPL Transmission Easement that were necessary for the reconstruction of Fire Station # 58. Once permission was obtained from FPL, Resolution # 20-091 was adopted and approved on November 4th 2020, and this Resolution authorized approval of Bid # 2020-014, for Contract award to SISCA Construction Services, LLC. (SISCA) to rebuild Fire Station #58.
The contract with SISCA was signed on December 16th 2020, in the amount not to exceed $4,434,285.45. In addition to demolition of the existing building and construction of the new Fire Station, the project scope consists of an asphalt parking area, drainage, dry retention, landscaping and irrigation, lighting and underground utilities within the FPL transmission easement. SISCA is currently obtaining permits for construction and a Notice to Proceed (NTP) is expected to be issued in April. Demolition of the existing structure is expected to begin on June 1st 2021.
A prerequisite for the demolition of the existing Fire Station is the de-energizing and removal of the existing +/- 680 LF of overhead power lines, a section of which is in close vicinity to the existing Fire Station structure. On March 9 2021, FPL presented two options for the City to undertake the requisite work: Option “A” was for FPL to perform the work using a horizontal directional drilling (HDD) contractor at the cost of $119,097.09; Option “B” allowed the City to perform the work using a contractor of their choice, while purchasing materials from FPL at the cost of $60,099.17.
FPL is unable to guarantee that they can engage a HDD contractor to suit the demolition schedule, and therefore Option “A” was eliminated from further consideration. Option “B” requires the City to pay FPL $60,099.17, for materials and obtain a contractor to perform the work. Correspondences from FPL regarding “Overhead to Underground Conversion FS #48, 600 N Rock Island Rd, Margate FL 33063”, and an “Underground Facilities Conversion Agreement (Non -GAF)” are attached to this item (EXHIBIT A); the Agreement will be executed when this item is approved.
The City requested cost estimates from two vendors, one from SISCA who is the main contractor for the Fire Station reconstruction, and one from an FPL approved vendor, Viking Utility Services Inc., (Viking). Viking submitted a proposal to perform undergrounding of FPL’s distribution lines via HDD and open excavation at costs of $16,750.00 and $18,950.00, respectively. Compared to the FPL cost for undergrounding in Option “A” ($119,097.09), the total cost to the City for Option “B” with undergrounding, is $42,247.92 less expensive.
SISCA requested their subcontractor, US Engineering Contractors, to respond to the City’s request and a proposal in the amount of $42,080.00 was submitted. This proposal was much higher that Viking’s price and therefore not considered.
EXHIBIT B illustrates the proposal from Viking for undergrounding ($16,750.00) and open excavation ($18,950.00), and the proposal from US Engineering Contractors ($42,080.00) for open excavation.
Engineering staff is recommending that the City purchase materials from FPL at the cost of $60,099.17 and pay Viking $16,750.00 to install using Horizontal Directional Drilling (HDD) technology. The total cost to the City will be $76,849.17.
FPL submitted payment coupons for $60,099.17 that comprise the following:
1st payment $49,903.03
This payment covers the cost of materials and labor to pull
Cables and terminate phases
2nd payment $2,927.10
This payment covers the cost of removing the existing FPL
pad transformer and relocation of new FPL UG supply
3rd Payment $7,269.04
This payment covers installation of a new
three phase 102/208V three phase pad transformer
Copies of FPL payment coupons are attached in EXHIBIT C.
RECOMMENDATION:
Approve the total payment to FPL in the amount of $60,099.17 in three (3) payments of $49,903.03, $2,927.10, and $7,269.04.
Approve payment to Viking Utility Services Inc. in the amount of Sixteen Thousand Seven Hundred Fifty Dollars ($16,750.00).
FISCAL IMPACT:
As per budget in account 334-6520-522.65-81 (Fire Station 58 Replacement - Construction)
CONTACT PERSON:
DEES Assistant Director - Engineering; Randy L. Daniel, P.E.