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Page 6 PC South — Approval of Contract for Construction BCC Meeting — July 16, 2013 July 8, 2013 Through Egret Marsh's operation, staff has concluded that its Duperon fine screen FlexRake is not well-suited for harvesting algae. Staff is currently working with a local conveyor/screening system manufacturer to design a simple prototype replacement for the Egret Marsh harvest rake. It is our intent to install a similar harvest screen at PC South. We have used a budget figure of $200,000 for this harvest screen in the above table. D. Construction Contingency Fee Reserve It is often necessary to issue change orders to accommodate unforeseen conditions. Therefore, staff recommends the Board authorize a contingency fee reserve equal to approximately 5% of the Close Construction and Felix Associates bids, and authorize staff to use the reserve for change orders as deemed necessary by staff, up to the amount of the reserve. This will allow staff to make rapid construction decisions and avoid untimely construction delays. The recommended contingency fee reserve amount is $351,000.00. E. Hydromentia, Inc. License Fee Hydromentia, Inc. is apparent patent holder of algal turf scrubber (ATS) technology associated with the algal nutrient removal facility. Hydromentia originally required the County pay a $380,000 fee for the right to use the ATS technology at PC South (equal to the technology fee it required for the Egret Marsh ATS). Staff protested this amount in a May 30, 2013 letter to Hydromentia, included herein as Attachment L. Hydromentia now agrees to reduce the license fee to $190,000 if the County agrees to certain conditions listed in a June 19, 2013 response letter, included herein as Attachment M. Hydromentia requires the County to agree to and sign the June 19 letter and return one executed copy to its Ocala office. Hydromentia will then prepare a license agreement. The license agreement will be presented as a future Commission Agenda Item once the County Attorney Office and Hydromentia have successfully completed negotiations. Absent litigation, PC South cannot be constructed without payment of the license fee and approval of a license agreement. Hydromentia will restrict the use of the ATS technology to the PC South site, meaning if the County desires to construct another ATS system, it must pay Hydromentia another license fee and enter into another license agreement. F. Available Grant Funds for Construction The County has two grant contracts for construction: 1. FDEP Section 319(h) Grant No. G0353 = $750,000.00 2. FDEP Grant Agreement No. LP31010 =$156,000.00 Total Grant Construction Funding = $906,000.00 6 F:\Public Works\KeithM\Stormwater Projects\PC South Construction\Agenda Items\Agenda - PC South Recommendation of Bid n Award for Construction.doc L