On March 12, 2018, the City Council awarded SID 1401 - Molt Road Turn Lane Improvements to CMG Construction, LLC in the amount of $208,300.  Change order #1 for $3,528.75 was issued to address unanticipated soil conditions under the existing culvert.  Change order #2 is for additional milling and asphalt due to the existing road section being insufficient and not constructed as expected.  Change order #2 will increase the cost of the project by $80,205.50 which is more than the 10% signing authority of the City Administrator.  The total cost of the project including the two change orders will be $292,034.25.  

The Council may:

• Approve change order #2 to CMG Construction, LLC in the amount of $80,205.50.

The following bids were received and evaluated for SID 1401.
 

CMG Construction, LLC	Amount
Original Contract	$208,300.00
Change order #1	$3,528.75
Change order #2	$80,205.50
Total Contract	$292,034.25

Special Improvement District bonds and cash contribution from Falcon Ridge, LLC. will fund the original contract amount and change order #1.  Change order #2 will be funded using arterial fees as it is addressing an insufficiency that was discovered in the existing roadway.  The consulting engineer will be required to share in the cost of the change order.

Staff recommends the City Council approve change order #2 for SID 1401 - Molt Road Turn Lane Improvements to CMG Construction, LLC in the amount of $80,205.50.