CITY OF HALLANDALE BEACH, FLORIDA

MEMORANDUM

DATE: September 5, 2007

TO:                  D. Mike Good, City Manager            

FROM:            Earl King, Acting Director, DPW/Utilities & Eng.

SUBJECT      Replacement of Pump Station #8 – Bid Rejection

                        (Bid No. FY 2006-2007-001, Contract #1 & 2)                 (BP#04/028)

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PURPOSE

To reject the only bid received in response to the Bid Request No. FY 2006-2007-001 Contract #1, Replacement of Pump Station #8.

BACKGROUND

This Sanitary Sewer Capacity Improvement project entails the rehabilitation of the SE 5 Street Wastewater Lift Station #8, identified as Contract #1.  In addition, the project provides for the installation of Pump Station #8 Diversion Force Main, identified as Contract #2. Staff choose to utilize two contracts instead of one so as not to exclude contractors who specialize in one of the two projects. The lift station was constructed in 1969 and is currently in need of replacement or major rehabilitation and requires additional capacity, due to the escalation of development in the service area. Installation of the diversion force main will provide a more balanced wastewater system by diverting some of the current and future eastern flows to the less burdened western portion of the system. Norman Woliner, Tetra Tech Engineering, Inc. designed the new station and force main, including bid specifications, and can provide construction inspection support, as needed.  Bid advertisement took place on July 6, and July 13, 2007; the pre-bid meeting took place on July 23, 2007, and bid opening was held on August 6, 2007.

DISCUSSION

Several companies showed interest in the project but only one company, Metro Equipment Services, Inc. submitted a bid for Contract #1, Replacement of Pump Station 8, in the amount of $907,269.00.

Given the considerable cost for an outside contractor to perform the lift station replacement and given the City’s knowledge and experience in lift station rehabilitation, the Department of Public Works, Utilities and Engineering, along with assistance from sub-contractors, can provide the rehabilitation of the existing station, rather than the replacement, including the added capacity. Costs for the in-house project will be less that of an outside contractor. In FY 2005-2006 a similar in-house lift station rehabilitation project was undertaken at our NE 4 Ct. lift station and the outcome was positive. Presently the station operates exceptionally well.

This Sanitary Sewer Capacity Improvement project has a total budget of $1,850,000.00

and an additional $200,000.00 in a development agreement from The Villages of Gulfstream Park. Staff will reevaluate the scope of work and simplify the bid specifications for Contract #2, the force main installation, before reissuing the bid.

RECOMMENDATION

The City Commission reject the bid submitted by Metro Equipment Services, Inc. in response to Bid Request No. FY 2006-2007-001 Contract #1, Replacement of Pump Station 8.

Reviewed:

___________________________________                                    _______________

D. Mike Good, City Manager                                                             Date

____ Approved                                ____ Denied                        ____ Hold for Discussion

COMMENTS:  ______________________________________________________________________

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