Sletten Construction has submitted Change Order #8 (final) for the Empire Parking Garage project.  The $764,268.32 change order is exclusively related to the weather delays that the company experienced last winter, specifically October 2013 through March 2014.  As shown in the attached cover letter and exhibits, the winter set multiple records for moisture and temperature.  Sletten was able to work throughout the period except for a few bitterly cold days.  However, many days were spent removing snow, covering forms and concrete and heating them to protect them from freezing.  This resulted in higher costs and slower project completion.  The reason the change order is being submitted several months after completing the garage is because staff and project managers insisted that Sletten produce detailed explanations and invoices to substantiate the extra expenses.  Collecting that information, submitting it and reviewing it took several weeks longer than anticipated. 

There are no viable alternatives to approving the change order.  Sletten completed the work and has produced detailed records to document the extra cold weather costs.  If the Council disapproves the change order, staff and Sletten can attempt to negotiate a different cost, but given the details provided by Sletten, it will be difficult to arrive at a substantially different cost number.     

The base contract was $11,500,000 and increased to $12,957,013.29. with seven change orders.  Most of those changes were Owner requested additions to the project or were known elements of the project that staff initially planned to have other contractors perform.    The total project budget, including  revenues from bonds and downtown TIF cash, was $15,403,000.  There are sufficient funds in the TIF account for this change order.   

Staff recommends that the City Council approve Empire Parking Garage Change Order #8 with Sletten Construction for $764,268.32.