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N_rl INDIAN RIVER COUNTY, FLORIDA BOARD MEMORANDUM TO: Joseph A. Baird, County Administrator THROUGH: Christopher R. Mora, P. E. Public Works Director FROM: Qom. James D. Gray, Jr. Cn\rr`' V Coastal Engineer SUBJECT: Sector 3 Beach Restoration Project Change Order No. 4 - Fuel Cost- Increase Ranger Construction Industries, Inc. DATE: March 8, 2011 DESCRIPTION AND CONDITIONS On February 2, 2010, the Board of County Commissioners awarded a contract to Ranger Construction Industries, Inc. (Ranger) to construct the Sector 3 Beach Restoration Project. The project was to utilize sand from upland sand sources. The sand was to be mined, processed and then hauled in trucks to the beach. Based on Ranger's bid dated August 3, 2009, the Board awarded a contract to Ranger in the amount of $7,270,807. On March 23, 2010, the Board approved Change Orders #1 and #2 which boosted the total construction contract price from $7,270,807 to $10,319,234. Change Orders #1 and #2 were requested by the contractor due to additional costs associated with dredging, sand processing / testing and increased sand volumes required to fill the beach template. At the 03-23-2010 meeting, Ranger stated that the remaining sand to be provided for the project would be "locked -in" at the price of $15.66 per cubic yard, with no further price increases for the life of the project. On October 19, 2010, the Board approved Change Order #3 which allowed Ranger to charge the County a partial payment for stockpiled sand at the mine. Change Order #3 did not increase the overall contract price, which remained at $10,319,234. In a recent letter (dated March 4, 2011), Ranger now contends that since the time of bid (August, 2009), there have been unforeseeable and substantial increases in the cost of fuel. They have requested the attached Change Order #4 in the amount of $303,480. FAPublic Works\CRM\My Documents\Coastal\Beach Sector 3 Change Order #4 BCC 03-15-201 l.docx 116