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Consent Item ?E Indian River County, Florida Department of Utility Services Board Memorandum Date: June 17, 2021 To: Jason E. Brown, County Administrator From: Vincent Burke, PE, Director of Utility Services Prepared By: John M. Boyer, PE, Utilities Engineer Subject: North County Water and Sewer Project Phase 2 Bid No. 2021019, Change Order #1 — Increased Materials Cost Background: On January 29, 2021, the Indian River County (IRC) Purchasing Department opened sealed contractor's bids for the North County Water and Sewer Project Phase 2. The Board of County Commissioners (BCC) awarded the bid to Centerline, Inc., (Centerline) during the .April 20, 2021, meeting. Prior to the April 20, 2021, BCC meeting, Centerline showed good faith in IRC and the project by holding their bid price past the required 60 days. However, material prices, specifically PVC pipe, have now increased to the point where Centerline has asked for an increase. Analysis: Indian River County Department of Utility Services (IRCDUS) staff is aware of the recent rapid increase in the cost of construction materials. A one-time update of the requested contract unit prices to market prices is warranted. Staff recommends the contract with Centerline for the North County Water and Sewer Phase 2 be modified by change order (see attached). Summary: Original Contract Price: $3,881,269.00 Change Order #1 (Market Adiustment): $ 159,297.70 Total Contract: $4,040,566.70 Funding: Much of the project cost will be covered by grart funds from the Florida Department of Environmental Protection (FDEP), the Indian River Lagoon National Estuary Program (IRLNEP), and the St Johns River Water Management District (SJRWMD). The remainder will be paid for by Optional Sales Tax funds and assessment funds. Funds for the water portion of the project are derived from the assessment levied against the benefiting properties. 65 Page 1 of 2