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INDIAN RIVER COUNTY <br />SOLID WASTE DISPOSAL DISTRICT <br />BOARD MEMORANDUM <br />/60 <br />Date: <br />To: <br />February 1, 2019 <br />Jason E. Brown, County Administrator <br />From: Vincent Burke, P.E., Director of Utility Services <br />Through: Jennifer Hyde, Purchasing Manager <br />Prepared By: Himanshu H. Mehta, P.E., Managing Director, Solid Waste Disposal District <br />Subject: Change Order No. 2 to Thalle for Owner Direct Purchase of Materials for the Landfill <br />Construction Project (Bid #2018025) <br />DESCRIPTIONS AND CONDITIONS: <br />On April 10, 2018, the Indian River County (IRC) Solid Waste Disposal District (SWDD) awarded Bid No. <br />2018025 to Thalle Construction Company (Thalle), Inc. of Hillsborough, North Carolina, for the <br />construction of the Landfill Segment 3 Cell 2 Expansion, Segment 2 Partial Closure and Landfill Gas System <br />Expansion project. The total contract price of the award was $16,034,260.00 and included an Owner Direct <br />Purchase (ODP) provision allowing SWDD to directly purchase materials in order to save taxes. <br />ANALYSIS: <br />On January 22, 2019, Thalle and our engineer, CDM Smith, submitted a deductive change order in the amount <br />of $2,659,127.14 whereby SWDD has realized a net tax savings of $142,570.31 by purchasing materials <br />directly in accordance with contract documents. Upon Board approval, the adjusted contract price is <br />$13,375,132.86. <br />FUNDING: <br />The Segment 3 Cell 2 Expansion and Segment 2 Partial Closure projects are funded from separate revenue <br />sources; specifically, the closure cost is paid from an escrow account long established per Florida <br />Department of Environmental Protection (FDEP) requirements, and the expansion cost comes from <br />assessment and user fees. <br />CDGD, 2018025 oTHALLE CONSTRUCTION COMPANY, Q <br />DESCRIPTION <br />ACCOUNT <br />AMOUNT <br />Construction —Segment 3 Cell 2 Expansion <br />411-169000-17025 <br />-$ 1,285,174.35 <br />Construction — Segment 2 Closure <br />411-239006 (Escrow) <br />-$ 1,373,952.79 <br />Grand Total Base Bid Item Nos. 1-7 <br />($2,659,127.14) <br />RECOMMENDATION: <br />Solid Waste Disposal District staff recommends that its Board approve and authorize the Chairman to <br />execute the change order No. 2 for a deductive change order in the amount of $2,659,127.14 for the <br />Segment 3 Cell 2 Expansion, Segment 2 Partial Closure and Landfill Gas System Expansion project. <br />ATTACHMENT: <br />1. CDM Smith Letter of Recommendation and Change Order Form <br />@BCL@400EC812.docx <br />150 <br />Page 1 of 1 <br />