The Community Development Division is managing the Kings Green Phase IV Project that is installing site improvements in the final phase of the King's Green Subdivision.  The City Council awarded the construction contract to Knife River on October 24, 2011. Shortly after the contract was awarded, staff realized the installation of sidewalks had inadvertently been left out of the design and original bid documents. The addition of sidewalks resulted in Change Order #1, for $26,434.40 or 10.95% of the contract, which the City Council approved at their January 9, 2012, meeting. Change Order #2, for $2,876.03, or 1.2% of the contract, became necessary when Knife River found a storm drain connection shifted horizontally and vertically. This section of pipe has been relaid and the connection made. Also, due to the shallow depth of the storm drain near the existing manhole and inlets to the north, the contractor had to field fit the manhole and existing inlets together with some additional concrete and cutting work. Because the City Administrator's signing authority is the lower of $100,000 or 10% of the contract for cumulative project change orders, the City Council is being asked to approve this and any subsequent change orders on the Kings Green Phase IV Project.

The City Council may:

1.  Approve Change Order #2.
2.  Not approve Change Order #2.

A total of $389,043 was budgeted for this project in the Affordable Housing Fund in the FY 2011/2012 budget. Because of the favorable construction bid price ($241,388.30), staff anticipates that the completed project will be under budget, even with the two change orders to date.

Staff recommends that the City Council approve the King's Green Phase IV Change Order #2 for $2,876.03.