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Commission approves $6.9 million cap for Lift Station 6 rehab; commissioners ask vendor to explain price jump
Summary
The Hallandale Beach City Commission approved a $6,284,435 bid for rehabilitation of Lift Station 6 and authorized a 10% contingency, while directing staff to press the contractor for explanations of cost increases over the earlier estimate.
The Hallandale Beach City Commission on Aug. 6 voted 5-0 to award the FY2024–25 Lift Station 6 rehabilitation rebid to Southern Underground Industries Inc. for $6,284,435 and authorized a 10% contingency for a total not to exceed $6,912,878.50.
Commissioner Pat Butler raised concern that the bid was far higher than the city's earlier estimate. "The original opinion of probable cost was 2,300,000. So, the bid came back... 3 times what the original opinion of probable cost was," Butler said before moving to approve the award while directing staff to seek additional explanation from the vendor.
City Manager Dr. Earl said the higher cost traces in part to shifting project allocations and prior grant reallocations. He told commissioners the Lift Station 6 item had been tied to the Oasis project and to state and federal funds; when timing required it, the city reallocated some grant money and pulled this station separately. "Broward County actually agreed, and so this lift station is currently now on a bypass," Dr. Earl said, adding the county expected the permanent construction to proceed.
The commission approved Butler's motion with the explicit instruction that staff and the awarding department return to the vendor to negotiate and to identify drivers of the increase before construction begins.
Background and next steps
Commissioners and staff described Lift Station 6 as an aging facility: Butler noted it is 54 years old. Dr. Earl summarized prior grant activity and a temporary bypass arrangement with Broward County intended to keep an associated project, Oasis, on its schedule. Department staff said they will follow up with Southern Underground Industries to ask for price clarifications and possible savings before finalizing work orders.
The contract award includes the 10% contingency authorized by the commission. The motion passed unanimously; staff will report back to commissioners with negotiation outcomes or recommended contract adjustments.
Ending
The commission did not set an alternative dollar amount; instead, it approved the award while directing staff to return with negotiation results and clarifying information about the cost increase. No construction schedule was set in the public discussion.
