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.7 <br />DATE: DECEMBER 15, 1998 <br />TO: JAMES E. CHANDLER <br />COUNTY ADUMSTRATOR <br />FROM: DONALD R. HUBBS, P.E;IRS <br />Ur <br />DIRECTOR OF H TY <br />PREPARED WQ,LIAM F. McCAIN, P.E. <br />AND STAFFED CAPITAL PROJE EN <br />BY: DEPAR ERVICES <br />SUBJECT: NORTH BEACH R.O. PLANT CONVERSION, EQu]PMENT SALE <br />TO THE CITY OF PALM BAY, FLORIDA AND ENGINEERING <br />SERVICES, AMENDMENT NO. 19 IRC PROJECT NO. UW -96 -10 -WC <br />BACKGROUND <br />In December 1997, the Board of County Commissioners approved the negotiations with the City of <br />Palm Bay for surplus water plant equipment from the decommmoned North Beach R.O. Plant. <br />(Please reference the attached agenda item and minurteS). The Utilities Dem has completed <br />negotiations with Palm Bay. The City Council has approved the enclosed agreement for purchase and <br />Utility staff is now seeking Commmon approval to complete the sale. To facAftte a smooth <br />dismantling of the water plant ffip 4mint, staff is also requesting approval of Work Authorization <br />Amendment No. 1 with Camp Drier and McKee, Inc. (CDM) for additional services not originally <br />covered in the Am 3, 1997 Work Authorization. Additional services include review of demolition <br />coordination and documentation oversight, additional plans and specifications preparation <br />required to direct Contractor of proper salvage of equipment to prepare for pick-up by palm Bay. <br />(Please reference attached agenda items of May 13" and June 3rd, 1997, minutes and copy of Work <br />Authorization Amender No. 1). <br />ANALYSIS <br />The proposed sale price to the City of Palm Bay is in the amount of $285,000.00 and is detailed on the <br />attached agreement for review and execution. The original estimated � cost is appro�dmately <br />$900,000.00. The proposed sale price equates to a recovery of approximately $.32 cents on the <br />dollar. Typical bid sales of such equipment range from $.05-.20 cents on the dollar, therefore, the staff <br />of the Utilities Depart is satisfied with the negotiated sales price. The proposed additional <br />services for CDM Work Authorimion Amendment No. 1 amount to $18,000.00, (see attached <br />amendment for details) which reduces the net sale amount to $267,000.00, still above the figure used m <br />the attached financial analysis of $250,000.00. Funding for this project will be from Account No. <br />475-000-169-31200. <br />RECOMMENDATION <br />The staff of the Departmetrt of Utility Services recommends that the Board of County Commissioners <br />approve and execute the proposed Agreement with the City of Palm Bay and Amendment No. 1 with <br />CDM as presented. <br />DECEMBER 22, 1998 <br />55 <br />�o�K 07 rnE 971 <br />