TO: Honorable Mayor & Members of the North Port Commission
FROM: Peter D. Lear, CPA, CGMA, City Manager
TITLE: Ordinance No. 2017-32, first reading, amending the Fiscal Year 2016-2017 Non-District Budget and Capital Improvement Program and Budget.
Recommended Action
Continue Ordinance No. 2017-32 to second reading on September 26, 2017.
Background Information
Utilities is requesting an amendment to the FY 2017 budget for additional funding in the amount of $645,525 for the construction of the Permanent Aquifer, Storage, and Recovery (ASR) Facility. The amendment utilizes project savings from the U15ASR project in the amount of $252,907. A use of undesignated fund balance of $392,618 from Water Capacity Fees brings the total FY 2017 project budget to $865,525. In Fiscal Year 2018, Utilities proposes an additional $760,000 in funding to complete the project. The total cost of the project is budgeted at $1,625,525.
The Myakkahatchee Creek Water Treatment Plant influent pumping and water treatment for the Aquifer Storage and Recovery Well project bids came in substantially higher than the engineer's opinion of probable cost (EOPC), please see attached showing the EOPC and the apparent low bidder's breakdown. Although some of the pricing from the contractor is variable, as they appear to have moved dollars from other line items, in doing an item by item comparison, most of the difference is in items 2 and 3. Item 2 seems to have been underestimated from the outset as the wet well is 16+ feet deep and its installation adjacent to the Myakkahatchee Creek will involve significant dewatering operations. Item 3, the pump skid, estimate is in line with other projects that we are familiar with over the last couple of years. However, over that same period of time the market has moved from an owner's market to a contractor's market with most contractors being exceedingly busy. The pent-up demand for capital projects that resulted from the Great Recession has no...
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