On October 11, 2016, Council awarded a bid to Hardy Construction,Inc. in the amount of $507,901.80 to construct landscape improvements at Yellowstone Kelly Interpretative Site.  The Billings Chamber of Commerce has raised funds for the construction of this project in the amount of $449,000.00 in cash on hand and pledges.  At the October 11 meeting, staff informed Council that the bid exceeded available funds and some value engineering would be done to align project costs with donations.  Change Order #1, which is a deduction of $159,193.44, will adjust the contract price to be within the funding.  If approved, the new contract price will be $348,708.36.
Since this Change Order exceeds 10% of the total cost and also exceeds $100,000, the City Administrator does not have signing authority for it and it is submitted to Council for consideration and approval.  

City Council may:

• Approve Change Order #1 for a new contract price of $348,708.36, or;
• Disapprove Change Order #1 and provide guidance to Staff.

Change Order #1 is a deduction to the contract amount with Hardy Construction, Inc. and therefore will not have a financial impact to the City. 

Staff recommends that Council approve Change Order #1, decreasing the amount of the contract by $159,193.44 for a new contract price of $348,708.36.