City Council is asked to approve Amendment No. 1 to the City’s professional engineering services contract with Sanderson Stewart for W.O. 16-07 in the amount of $70,760.00.  This contract amendment is for the purpose of providing construction observation, design review and engineering survey associated with an additional horizontal directional drilling bore on the Interstate 90 Water Main Crossing Project.  Compensation related to slowed winter work production rates is also included.
 
These additional engineering costs are necessary due to the initial failed bore attempt by the project Contractor.  Since the required additional engineering is the result of the Contractor’s defective work, these costs are reimbursable to the City under provisions of the City’s construction contract with the project Contractor, Kinkaid Civil Construction.  Kinkaid will pay for these engineering costs as the City of Billings deducts them from payments under the City’s separate project construction contract with Kinkaid.

City Council may:

• Approve Contract Amendment No. 1 with Sanderson Stewart, or;
• Disapprove Contract Amendment No. 1 with Sanderson Stewart.  If the amendment is not approved, the ongoing and necessary level of construction oversight and project engineering being provided by Sanderson Stewart will not continue for the duration of the project.

Contract Amendment No. 1 is in the amount of $70,760.00, and funding has been budgeted in FY16.  The cost of this amendment is fully reimbursable in accordance with provisions in the City of Billings’ contract with Kinkaid Civil Construction.

Staff recommends that Council approve Amendment No. 1 to the City’s professional engineering services contract with Sanderson Stewart for W.O. 16-07 in the amount of $70,760.00.