Change Order #1 for $9,875.00 for the Montana Avenue Pipe Bursting project (PBD-014) is presented to the City Council for approval.  This change order covers the cost of providing temporary water service to customers during the Public Works Department Distribution & Collection water main pipe bursting project.  The original contract with Curb Box Specialists was for 63 days at $9,900.00, or $157.14 per day.  This change reflects an additional 79 days at $9,875.00 for approximately $125.00 per day.  This additional time needed was due to pipe bursting equipment failure.  The actual cost for this additional work was not known to staff until such time as an invoice was received by staff from the contractor, Curb Box Specialties, on January 8, 2014.  The original services agreement for $9,900.00 was signed by City Administrator Volek.  City Council policy requires that an increase over 10% of the original amount, regardless of the dollar amount, must be approved by City Council.  Once the exact amount was known, staff prepared the change order and this memorandum for Council approval.

There are no viable alternatives to approving the change order.  The pipe bursting equipment failed during mid-project.  While the City's equipment was being repaired, the equipment vendor brought in a loaner piece of equipment from Milwaukee, Wisconsin, allowing the City to complete the project.

There is adequate funding in the FY2014 water fund budget to cover this change order.  The total project cost will increase from $9,900.00 to $19,775.00 and the total contract time will increase from 63 days to 142 days.  The total cost of Change Orders #1 exceeds 10% of the original contract cost, so City Council approval is required.

Staff recommends that the City Council approve Change Order #1 for the Montana Avenue pipe bursting project with Curb Box Specialists Inc. in the amount of $9,875.00 and increase the contract time by 79 days.