The City Chip Seal project is part of the ongoing Street Preventative Maintenance Program supported by the City Council since 1985. The chip seal contract provides chip sealing of approximately 13 miles of various streets throughout the city.  The contract was awarded to Knife River - Billings in the amount of $420,810.22.  There is a desire to chip seal all of the paved areas at the City Water Plant.  Knife River - Billings has agreed to chip seal this area for a cost of $.15/square foot, and the approximate area is 380,000 square feet.  The total cost of Change Order #1 is $57,000.00 and will be paid out of water funds.  Change Order #1 is more than 10% of the contract and as such must be approved by City Council.  This work will be completed in July of 2010.  

The Council may:
• Approve Change Order #1 to WO 10-03, City Chip Seal in the amount of $57,000.00; or
• Do not approve Change Order #1 to WO 10-03, City Chip Seal.
 

Funding for WO 10-03, 2010 Street Maintenance City Chip Seal, is provided from Gas Tax Funds, however this change order will be paid from Water Funds due to the location of the work. The original contract was for $420,810.22.  With the approval of change order #1, the new contract amount will be $477,810.22.  

Staff recommends that Council approve Change Order #1 for the 2010 Street Maintenance City Chip Seal Project with Knife River - Billings in the amount of $57,000.00.