AGENDA MEMORANDUM

Meeting Date: April 13, 2009

From:                          Mike Thornton, Purchasing Manager

Subject:                      Purchase requisition 40840 to Hewitt Power and Communication for utility construction services under an existing fixed unit price contract

Staff Recommendation:

Staff recommends approval of purchase requisition 40840 to Hewitt Power and Communications for utility construction services for an estimated total amount of $375,694.43.

Analysis:

The City is set to begin the construction phase of relocating the electric and communications utilities on Highway 441 from Perkins to Griffin in preparation for the widening of the highway by FDOT.  The city’s overhead utilities along this corridor will be relocated.  The relocation will involve construction of new overhead facilities as well as underground facilities.

The City has an existing fixed unit price contract with Hewitt Power and Communications for underground utility construction services.  This contract includes pricing for all tasks required by our utility to install underground electric power and communications services.

The underground work will include directional boring for the installation of 3-inch plex-duct conduit, installation of concrete vaults, installation of concrete pads, pedestals, pad mount transformers, and pulling electric wire into the conduit.  Based on the relocation design by our Electric Department engineers, the estimated cost for the underground utility construction will be:

Electric Utility             $335,309.82 (includes a $43,736.06 contingency)

Communications         $  40,384.61

Total               $375,694.43

Communications will be piggybacking the underground conduit pulls being done for electric.  They will be paying an ‘adder’ cost to pull an additional 3-inch orange conduit with the 3 conduits being bored and pulled for the electric utility.

The estimated costs are for labor and equipment provided by the contractor.  The City provides all material from our inventory for this construction and is not included in these estimates.  The Purchasing Division requested area utilities provide a copy of their underground construction contracts for price comparison.  We received only one response from Kissimmee Utility Authority (KUA).  The unit prices on our existing contract are in line and in most cases were lower than those in the KUA contract.

Options:

1.  Approve the purchase requisition to Hewitt Power and Communications; or

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

The utility relocation project is being funded by the Highway 441/27 Community Redevelopment Agency (CRA).  The Electric and Communications Utilities will incur the initial expense and then be reimbursed after the funds are received from the draw down against the CRA bond anticipation note.

Submission Date and Time:    4/9/2009 9:27 AM____

Department: _Electric Department______ Prepared by:  _Mike Thornton________                      Attachments:         Yes____   No ___X___ Advertised:   ____Not Required ___X___ Dates:   __________________________                      Attorney Review :       Yes___  No ____ _________________________________            Revised 6/10/04

Reviewed by: Dept. Head ________ Finance  Dept. ___________JB_____                                    Deputy C.M. ___________________                                          Submitted by: City Manager ___________________

Account No. _041-1099-531.63-10__ _045-5099-539.63-10__ Project No. __410004_____________                       __ 450002_____________ WF No. _____WF0425977 / 002___                _____WF0584032 / 001___ Budget  ______________________ Available _____________________