Kadrmas, Lee & Jackson Engineering (KLJ), the designer and consultant for W.O. 04-12, Alkali Creek Road Maintenance and Slope Reconstruction, has submitted Change Order Number Seven (CO #7) to modify the contract with CMG Construction associated with the project referenced above. CO #7 involves reconciling labor and materials  quantities used through the date of Substantial Completion.  No additional time is requested, but added costs result from the changes, as outlined below.

A large portion of CMG's contract is based on unit price bids.  Substantial Completion was achieved September 17, 2010, so actual quantities are now known for everything installed and constructed up to that date.  CO #7 reconciles the quantities compared to the bid estimates.  Some quantities have increased, while others have decreased.  CO #7 is not a "FINAL" reconciling change order, as Final Completion of the project will not be reached until the spring of 2011.  There is a possibility of a few of the quantities being reconciled further after the work is completed and W.O. 04-12 achieves Final Completion.

Change Order No. Seven creates an increase of $50,340.00 to the contract amount. CO #7 results in a project change order total of $280,656.19. As approved by City Council on July 26, 2010, the City Administrator is authorized to execute change orders totaling up to $233,655.80 for this project, but CO #7 exceeds that limit, so Council approval is now needed.

The Council may:

• Approve Change Order No. 7 to CMG Construction's contract for W.O. 04-12; or
• Not approve Change Order No. 7.

This project is being funded by Arterial fees and a grant approved by HB 645 and funded from ARRA funds. CO #7 represents an addition to the project’s costs. The approved project budget includes a contingency to pay for circumstances characteristic with those depicted in CO #7. All funds from HB 645 have been expended, but there are still adequate funds available to cover the additional costs. The majority of the previous change orders were due to extending the multiuse path further than designed and adding more landscaping, which were both desired by the City but removed early in the project due to construction cost estimates.  After bids were received, there was budget remaining to add these two important features.  The table below summarizes the financial impact to the project.

ORIGINAL CONSTRUCTION CONTRACT: $1,336,558.00

                                        Amount                     % of Contract       Total % of Contract 
Change Order 1            $ 133,154.88                   9.96%
Change Order 2            $   25,082.54                   1.88%
Change Order 3            $    (5,167.00)                -0.39%   
Change Order 4            $   30,712.00                   2.30%
Change Order 5            $   46,533.77                   3.48%
Change Order 6            $            0.00                   0.00%
Change Order 7            $   50,340.00                   3.77%
----------------------------------------------------------------------------------------------------------------------
TOTALs to date:            $ 280,656.19                                               21.00%

Staff recommends that Council authorize the Mayor to execute Change Order No. 7 to the contract with CMG Construction, in the amount of $50,340.00, for W.O. 04-12--Phase 3, Alkali Creek Road Maintenance and Slope Reconstruction.