Placement: Consent Agenda
Action Requested: Motion / Vote
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Ratify Amendments #1 - #3 and Approve Amendment #4 to Contract #20170160 for the Maintenance & Repair for Water & Wastewater Treatment Facilities.
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Submitted By: Robyn Holder, CPPB, Procurement Management Division (PMD).
Strategic Plan Link: The City's Goal of high-quality infrastructure and facilities.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Robyn Holder, CPPB (PMD).
2. Parties: City of Port St. Lucie and AM Construction Group, Inc.
3. Purpose: To provide for a price adjustment to maintain continuity of services, support market aligned labor costs, and ensure the Contractor’s ability to meet the Utility Systems Department’s (“USD”) operational and emergency needs.
4. New/Renewal/Modified: Modified.
5. Duration: The Contract was awarded on 02/26/2018 and is currently scheduled to expire on 2/26/2028.
6. Benefits to Port St. Lucie: To ensure the USD continues to have reliable access to a qualified contractor capable of responding quickly to emergency & operational needs.
7. Cost to Port St. Lucie (Annual and Potential): 10% rate increase is estimated which will bring the total annual expenditures to approximately $4,000,000.00 annually. All future expenditures will be identified in the approved budget for each fiscal year.
Presentation Information: N/A.
Staff Recommendation: Move that the Council ratify Amendments #1 - #3 and approve Amendment #4 to Contract #20170160 for the Maintenance & Repair for Water & Wastewater Treatment Facilities.
Alternate Recommendations:
1. Move that the Council amend the recommendation and ratify Amendment #1 - #3 and approve Amendment #4 to Contract #20170160.
2. Move that the Council not ratify Amendments #1 - #3 nor approve Amendment #4 and provide staff with direction.
Background: AM Construction Group, Inc. is currently under contract to provide general construction, rehabilitation, and repair services for existing water and wastewater facilities, covering a wide range of tasks including emergency response, equipment replacement, structural restoration, system cleaning, and installation or repair of specialized process equipment.
Amendment #4 - The USD requests approval to move forward with a 10% labor rate adjustment. This adjustment is necessary to maintain continuity of services, support market-aligned labor costs, and ensure the Contractor’s ability to meet the USD’s operational and emergency needs.
Approving the labor rate increase will ensure the USD continues to have access to a qualified contractor capable of responding quickly to emergencies and operational needs. The increase will also allow AM Construction Group, Inc. to retain and deploy specialized personnel trained in complex water and wastewater environments, supporting the timely completion of critical rehabilitation projects. By maintaining continuity of services, the USD can avoid project delays, higher long-term costs, and potential risks to system reliability, service delivery, and regulatory compliance.
Amendment #3 provided for a 5% price adjustment to the labor rates for the period beginning 9/1/2023 to the present.
Amendment #2 provided for the 5-year renewal period through 2/26/2028.
Amendment #1 provided for the addition of a new pay item and a 1.2% price adjustment for the period beginning 3/1/2019.
Issues/Analysis: Council approval is needed for Amendment #4. Since the previous Amendments were under the threshold requiring City Council approval pursuant to City Code of Ordinances, Section 35.09(b) and its predecessor ordinance. Because the price increase in Amendment #4 surpasses that threshold, staff is requesting approval under Sections 35.09(b) and (c). Staff has reviewed the Amendments and finds them to be fair and reasonable.
Financial Information: Funds are appropriated in the various Utility Operational & CIP Funds.
Special Consideration: N/A.
Location of Project: Various locations throughout the Utility Service Area including all water and wastewater sites.
Attachments:
1. Amendment #4 signed.
2. Amendment #3.
3. Amendment #2.
4. Amendment #1.
5. Original Contract.
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 26131-03.
Legal Sufficiency Review:
Reviewed by Alyssa Lunin, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.