Montana Lines, Inc. was hired to reconstruct the traffic signal at Poly Drive and Virginia Lane.  In addition to the signal reconstruction, the contractor was required to install ADA improvements (ramps, sidewalk, striping, signal pushbuttons, etc.).  The City used the federally-funded Community Transportation Enhancement Program (CTEP) to offset some of the costs.  The contract was awarded in June 2015 with the contract completion date in July 2015.  Change order #1 was approved shortly after executing the contract because it was determined that additional sidewalk needed to be replaced immediately west of the intersection along the Shadow Lawn Estates subdivision due to condition.  By including the work in the contract with Montana Lines, this allowed the City to maximize the use of the CTEP funding.  However, the amount of additional work caused the cost of the project to go above the City Administrator's 10% change order authority.  As such, the Council must act on this reconciling change order.  Reconciling change orders are done at the end of every project and it "reconciles" the actual quantity of work with the estimated quantity of work.  All contracts have reconciling change orders because quantities always change during construction, even if only slightly.  Reconciling change orders are unique in that the work has already been performed instead of typical change orders where approval is required before work is done.

City Council may approve the reconciling change order to Montana Lines, Inc. for the work that has been completed.  There are no viable alternatives due to the unique nature of reconciling change orders.

The original contract plus previous change orders for this project was for $371,554.26. The reconciling change order is in the amount of $12,045.56 which brings the total contract to $383,599.82.  Adequate funding is available in the project budget for this change order.

Staff recommends approval of the reconciling change order to Montana Lines, Inc. in the amount of $12,045.56.