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Change Order No. 6 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: $3,500,000.00)
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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 Milton. No increase in purchase order amount of $7,100,000.00.
Change Order No. 4 in the amount of $4,000,000.00 was approved by the Board on April 8, 2025, to cover additional invoices that were received for Debris Removal due to Hurricane Milton. The purchase order increased from $7,100,000.00 to $11,100,000.00.
Change Order No. 5 was a no-cost administrative change to add the notes to Finance Plus for Change Order No. 4 that were not saved when the change order was processed.
Hernando County Department of Public Works has requested Change Order No. 6 in the amount of $3,500,000.00 to cover any additional invoices that come in for Debris Removal due to Hurricane Milton before finalization of the Purchase Order. Change Order No. 6, in the amount of $3,5000,000.00, would increase the purchase order to $14,600,000.00.
FINANCIAL IMPACT
Funding, in the amount of $3,500,000.00, would be allocated to:
Fund: 0011- General Fund, Department: 40011 - General Fund Disaster, Account: 5303401 - Contracted Services, Project: Milton24.
The negative variance showing on the attached financial statement will correct upon Budget Amendment No. 2025-087 applying $6,376,901 to the disaster department from the emergency reserves; hence, the negative variance showing of (5,124,770.20) would update to show a positive variance of $1,252,130.80, upon it being booked. Due to that, the attached budget amendment updates the contract services account with the “present budget” amount of $9,077,070 to show what the amended budget will end up being. Budget Amendment 2025-087 was approved at the April 8, 2025, meeting via Legistar (LS) 15668.
There are other Legistar items with applicable disaster related change orders coming forward too. Those changes are summarized in the attached “GF Disaster Summary” to reference the amounts and LS items. Those LS items are incorporated into the attached BA2025-113, along with cleanup of the applicable accounts.
BA2025-113 would utilize $2,614,798 from:
Fund: 0011 - General Fund, Department: 05981 - Contingencies Reserve, Account: 5909981 - Budget Res-Stabilization.
According to the Budget Policy No. 29-01, use of the stabilization reserve requires a supermajority vote by the Board of County Commissioners.
Federal Emergency Management Agency (FEMA) reimbursement is anticipated; however, the amount and time frame of reimbursement is unknown, currently. Upon receipt of funding from FEMA, those dollars would be used to restore the reserve balances.
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.
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RECOMMENDATION
It is recommended the Board approve Change Order No. 6 in the amount of $3,500,000.00 for Purchase Order No. 25000052 bringing the total purchase order amount to $14,600,000.00. It is further recommended the Board approve attached associated Budget Amendment 2025-113.