Community Development is installing site improvements in Phase 4 (final phase) of the King's Green project. On October 24, 2011, Knife River was awarded the contract for site improvements. Shortly after the contract was awarded, it was brought to Staff's attention that the installation of sidewalks was inadvertinently left out of the design and original bid. The addition of curbs and gutters results in a change order with an increase in costs of $26,434.40 or 10.95% of the contract.  This exceeds the City Administrator's signing authority, which is the lower of $100,000 or 10% of the contract.  Community Devleopment wishes to install sidewalks to meet City Code and to match improvements in previous phases.  There is sufficient money in the FY2011-12 budget in the Affordable Housing Fund to finance the increase.  

Council may:

• Approve the Change Order to allow for the installation of sidewalks in the King's Green Phase IV;
• Do not approve the Change Order.  Without the improvements, the lots would violate the City's site development code or individual builders would need to build and pay for the sidewalks.  Those costs would be included in the home sales prices, making the housing less affordable.   

There will be an increase to the overall project of $26,434.40. The additional funding is set aside in the FY2011-12 budget in the Affordable Housing Fund.

Staff recommends that the City Council approve Change Order #1 to allow for the installation of sidewalks in Phase IV of the King's Green project.