TITLE
title
Change Order No. 4 to Emergency Purchase Order With CTC Disaster Response, Inc., for Emergency Debris Removal Services Due to Hurricane Milton for Department of Public Works (Contract No. 24-TF00708/AP; Amount: $4,000,000.00)
body
BRIEF OVERVIEW
On July 30, 2024, the BOCC approved award of Contract No. 24-TF00708/AP to CTC Disaster Response, Inc., for an estimated amount of $7,200,000 for Three (3) years and estimated annual amount of $2,400,000.00.
Purchase Order No. 25000052 was originally issued for $100,000.00.
Change Order No. 1 was requested to increase contract pricing to $14.00 per cubic yard due to market adjustment. No increase in Purchase Order amount of $100,000.00.
Change Order No.2 in the amount of $7,000,000.00 was approved by the Board on December 17, 2024, to allow for continued Debris Removal due to Hurricane Milton. Purchase order increased from $100,000.00 to $7,100,000.00.
Change Order No.3 was a no-cost administrative change to correct Finance Plus total amounts per line not to exceed $999,999.99 per line due to Hurricane Helene. No increase in Purchase Order amount of $7,100,000.00.
Hernando County Department of Public Works has requested change order No. 4 in the amount of $4,000,000.00 to cover any additional invoices that come in for Debris Removal due to Hurricane Milton before finalization of the Purchase Order. Change Order No. 4, in the amount of $4,000,000.00, would increase the purchase order to $11,100,000.00.
FINANCIAL IMPACT
Funding, in the amount of $4,000,000.00 will be encumbered to:
Fund: 0011 - General Fund, Department: 40011 - General Fund Disaster, Account: 5303401 - Contracted Services.
FEMA reimbursement is anticipated; however, the amount and time frame of reimbursement is unknown currently.
OMB is moving applicable storm related POs and budget to the General Fund (GF) Disaster department to consolidate the encumbrances and actuals from applicable departments.
An ARPA project budget in the amount of $2,655,196 was approved at a previous meeting toward disaster relief.
A budget amendment attached (BA2025-087) seeks to move budget from:
Fund: 0011 - General Fund, Department: 05981 - Contingencies Reserves, Account: 5909935 - Budget Res-Emergency to the GF Disaster department for budgetary coverage in the full amount of $6,376,901.
That amount, consolidated with the ARPA amount above, totals: $9,032,097 (=6,376,901 + 2,655,196). The Budget Policy requires a supermajority vote for approval.
Upon the Finance Department completing the FY24 year-end audit entries, OMB will “True up” funds and will reconcile the GF disaster budget to encumbrances/actual to ensure the budget agrees with the approved totals.
Lastly, when reimbursement comes in from FEMA, those funds will be put into the GF reserves to reimburse the emergency balance reallocated until reimbursement is received.
LEGAL NOTE
The Board has the authority to act on this item pursuant to Chapter 2, Article V of the Hernando County Code of Ordinances, and Chapter 125, Fla. Statute.
recommendation
RECOMMENDATION
It is recommended the Board approve Change Order No. 4 in the amount of $4,000,000.00 for Purchase Order No. 25000052 bringing the total purchase order amount to $11,100,000.00.
It is further recommended that the board approve Budget Amendment 2025-087 to formally move emergency reserve funding to the GF disaster department via Supermajority approval.