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Change Order No. 3 to Emergency Purchase Order With CTC Disaster Response, Inc., for Emergency Debris Removal Services Due to Hurricane Helene for Department of Public Works (Contract No. 24-TF00708/AP; Amount: $750,000.00)
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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. 24001023 was originally issued for $100,000.00.
Change Order No.1 in the amount of $50,000.00 was approved by the Board on 12/17/2024 to allow for continued Debris Removal due to Hurricane Helene. Purchase order increased from $100,000.00 to $150,000.00.
Change Order No. 2 was a no cost administrative change to correct verbiage on the purchase order approved by CPO. Purchase order remained at $150,000.00.
Hernando County Department of Public Works has requested change order No. 3 in the amount of $750,000.00 to cover any additional invoices that come in for Debris Removal due to Hurricane Helene before finalization of the Purchase Order. Change order No. 3, in the amount of $750,000.00, would increase Purchase Order to $900,000.00.
FINANCIAL IMPACT
Funding, in the amount of $750,000.00 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 to LS 15671 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 total: $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 taken out 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, Florida Statutes.
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RECOMMENDATION
It is recommended the Board approve Change Order No. 3 in the amount of $750,000.00 for Purchase Order No. 24001023 bringing the total purchase order amount to $900,000.00.