In October, the City Council approved an $11.5 million design/build contract with Sletten Construction to build the Empire Parking Garage, located in the 2700 block of Montana Ave.  Staff believes that Sletten should perform three tasks that are not in the original contract.  Two were known to be part of the overall project: asbestos abatement in the Windsor Court building, digging the trench and setting a duct bank for utility relocations in the east-west alley, and and an unexpected need to line the sanitary and storm sewer lines in the alley. The City Administrator approved Change Order #1, which added two of the items to the contract but adding the third one exceeds the City Administrator's $500,000 change order approval authority that is establised in City Code Section 13-502.  Change Order #2 covers the utility relocation work and totals $330,000. This work is necessary prior to beginning the Northern Garage demolition because live NWE conductors are too close to the structure, and all overhead utilities would interfere with the planned sky bridge between the hotel and new garage.

There are no viable alternatives to the recommended action.

The funds for the change order are included in the project budget.  However, the sewer rehab work was not anticipated, and costs will have to be reduced in other parts of the project in order to compensate for the extra expense.

Staff recommends the City Council approve the Empire Parking Garage Change Order #2 in the amount of $330,000.