Agenda - 06-15-2010 - 4r - Laserfiche WebLink

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F1 Following a value engineering process which reduced the amount of kitchen equipment to be purchased from the general contractor, the amount of the award to Morlando Construction Company is $802,470. If the Board chooses to award the bid to Morlando, a minimum of $78,559 will be available in the budget to purchase additional equipment. Staff also anticipates utilizing the used market for suitable equipment, and can purchase new equipment utilizing the unit prices provided by Morlando in its bid. Further, staff will continue to seek additional grant funding and contributions for the purchase of equipment. Estimated revenues based on a cash flow statement presented to the BOCC as part of the Business Plan allow for reduced first year operating costs that might need to be covered from grant funds. The revised $75,000 in first year operating costs has been adopted based on discussions with the Tobacco Trust Fund and staff is currently seeking approval from the Tobacco Trust Fund to reallocate funds from operating funds, as previously agreed, to renovation costs. Therefore this bid award will be contingent upon written approval from the Tobacco Trust Fund of the change in allocations. FINANCIAL IMPACT: As the Board will recall, $1,127,319 in grant funding has been awarded from the NC Agricultural Development and Farmland Preservation Trust Fund, the Tobacco Trust Fund, the Golden Leaf Foundation, the US Housing and Urban Development- Economic Development Initiative, and the Rural Advancement Fund International- Tobacco Communities Program. First year operating costs, un- foreseen conditions, and design costs supported by the grant funds total $246,690 which leaves $880,629 available for renovation and equipment. This project is currently funded entirely with grant funds. Construction and essential equipment $802,470 Design Costs & owner responsibilities $121,690 Funds reserved for additional equipment & unforeseen conditions $128,159 Estimated first year costs $75,000 Total grant funds available no County funds $1,127,319 RECOMMENDATION(S): The Manager recommends the Board; • Award the bid to Morlando Construction, LLC in the amount of $802,470 for renovation work for the Piedmont Food and Agricultural Processing Center contingent upon approval from the Tobacco Trust Fund for reallocation of funds; • Authorize the County Manager to execute the contract subject to County Attorney review on behalf of the Board; and • Authorize the Manager to sign necessary change orders to the extent of the project budget for renovation as well as new and /or used equipment.