HomeMy WebLinkAboutInv# APP 3 - Unitec, Inc. - 04/28/2023 (5)CITY OF DANIA BEACH
PUBLIC SERVICES DEPARTMENT
MEMORANDUM
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DATE: May 2, 2023
TO: Ana M. Garcia, ICMA-CM, City Manager
Candido Sosa-Cruz, ICMA-CM, Deputy City Manager
VIA: Frank DiPaolo, CPA, CGMA, SHRM-CP, Chief Financial Officer
FROM: Fernando J. Rodriguez, Public Services Director
Dincer Akin Ozaydin, P.E., Deputy Director/City Engineer
RE: APPROVAL OF A UNITEC, INC. CHANGE ORDER FOR THE “UNDERGROUNDING OF BEACH
ELECTRICAL SERVICES” PROJECT
Request
The Public Services Department (PSD) is requesting approval of a Change Order for $47,292.30
for Unitec’s Inc. Contract after the fact. This Change Order addresses the installation of (2) new
tankless gas water heaters, a new gas line, plumbing, electrical, restoration tasks, all which Unitec
did not include in the original contract.
Background
As part of the ongoing project, ITB-2021-020, "Undergrounding of Beach Electrical Services,"
awarded to Unitec Inc. via Resolution No. 2021-164 for $289,137.00, our team encountered
unforeseen circumstances during the installation of the new electrical panel. Upon inspection,
we discovered that the original water heater tank and the electrical panel would be in the same
room. Per code regulations, this is not permissible and the life safety implications of this issue
dictated that PSD proceeds with the installation work without delay.
The installation of the new tankless gas water heaters, a new gas line, and new plumbing, as well
as emergency permitting for gas and plumbing, were required to ensure public safety and well -
being. Obtaining three outside bids for this work was not feasible due to the following reasons:
1. The project could not progress, as the code requires adequate space in the utility
room for the new panels, which could not be relocated elsewhere. Any delays in
addressing this issue would have resulted in the contractor incurring cost overruns
and potentially submitting delay claims to the city. Additionally, the restaurant served
by the utility could not afford to be without power or hot water during this process,
making swift resolution critical. Furthermore, completing the project before hurricane
season was essential to avoid outages and to remove the poles from the beach,
minimizing potential hazards.
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RE: APPROVAL OF A UNITEC, INC. CHANGE ORDER FOR THE “UNDERGROUNDING OF BEACH
ELECTRICAL SERVICES” PROJECT
2. The room was under the contractor’s control, and introducing a third-party contractor
to the project site causes potential disputes between contractors. Assigning site work
outside the contract could lead to delays, resulting in delay claims by the primary
contractor. Ensuring uninterrupted service for the restaurant and timely completion
of undergrounding before hurricane season were top priorities.
3. Relocation of the water heaters was attempted but proved unfeasible due to space
constraints. The time spent attempting relocation contributed to the urgency of the
situation and the need to avoid further delays.
The procurement request exceeds the 10% contingency provided for under the underlying
contract and was not contemplated within the scope of the original procurement. Staff have been
advised to obtain quotes for such services in the future or to initiate a new procurement process
in order to ensure timely compliance within the City’s procurement policy.
As a result, we proceeded with the installation work, under the existing contractor, to ensure
public safety and avoid potential delays and cost overruns.
Budgetary Impact
Funding for this Change Order is currently available in the Beach Revitalization Phase II account number
301-72-60-572-63-10.
Recommendation
PSD recommends approval of a Change Order in the amount $47,292.30 with Unitec, Inc.
Funding Approval:
_____________________________
Frank DiPaolo, CPA, CGMA, SHRM-CP, Chief Financial Officer
Approval:
___________________________
Ana M. Garcia, ICMA-CM, City Manager