Consider Change Order #1 for City Improvement Project #13-13, Armstrong Boulevard Trail Extension – Alpine Drive to 161^st Avenue

Purpose:
The purpose of this case is to request City Council approval of Change Order #1 adding a missing "Common Borrow" pay item to the Armstrong Boulevard Trail Extension project. Attached is a copy of the Change Order as prepared by Bolton & Menk, Inc.

Background:
On November 12, 2013 the City Council awarded a contract to North Metro Asphalt & Contracting in the amount of $186,141.02 to construct City Improvement Project 13-13, Armstrong Boulevard Trail Extension – Alpine Drive to 161^st Avenue.  Funding for this project includes up to $100,000 in grant funds awarded through the Minnesota DNR's Local Trail Connections program.

The construction plans for this project, which were prepared by Bolton & Menk, Inc. include numerous grading related pay items.  During construction it was discovered that the plans are missing a Common Borrow pay item.  This pay item allows the contractor to be paid for importing clean backfill material to the project site to fill voids created during common excavation and tree root removal operations.  Bolton & Menk estimates the missing Common Borrow pay item quantity to be 1,620 cubic yards (loose volume).

The project schedule will remain unchanged as a result of this item.  The project is scheduled to be completed within the next week or two, depending on weather.  The City Council will therefore be asked to approve final payment during the June 24, 2014 regular City Council meeting which will allow the City to meet the project deadlines outlined in the DNR grant agreement and thereby encumber the awarded grant funds.

No notifications are required for this case.

Observations:
Staff has reviewed Bolton & Menk's estimated quantity for the added Common Borrow pay item and believes 1,620 cubic yards (loose volume) is a reasonable estimate for this project.

The proposed Change Order unit price of $12 per cubic yard of Common Borrow was negotiated with the Contractor. This unit price includes all costs associated with loading, hauling and placing the common borrow material that was salvaged from a City stockpile.  Staff believes this represents a fair unit price for this pay item.
 
If this Change Order is approved in the amount of $19,440, the total contract cost will increase from $186,141.02 to $205,581.02 which is still significantly less than the engineer's estimate of $221,881.50.

If this Change Order is not approved, the contractor will likely not accept the final quantities and payment amount which will jeopardize the City's ability to meet the deadlines outlined in the grant agreement to encumber the awarded DNR grant funds.

Alternatives:
Alternative #1 - Motion to approve Change Order #1 in the amount of $19,440.00 for City Improvement Project #13-13; Armstrong Boulevard Trail Extension – Alpine Drive to 161^st Avenue.

Alternative #2 - Motion to table approval of Change Order #1 for City Improvement Project #13-13; Armstrong Boulevard Trail Extension – Alpine Drive to 161^st Avenue to June 24th pending additional information as follows; _____________.

This action may be taken if the City Council wants additional information to be presented on Change Order #1 at the June 24th regular City Council meeting, prior to approving final payment for this project.  This alternative should still allow the City to meet the project deadlines outlined in the grant agreement and encumber the awarded grant funds.

Alternative #3 - Motion denying Change Order #1.

This action would likely result in an inability to meet the project deadlines as outlined in the grant agreement and would therefore jeopardize the City's ability to encumber the awarded grant funds.  This alternative is not recommended.

Funding for this project includes up to $100,000 in grant funds awarded through the Minnesota DNR Local Trail Connections program, with the remainder of the funding to be obtained through local match funds.  The local match funds are currently identified to come from the Park Trust Fund.  If Change Order #1 is approved, Park Trust Funds will be used to fund all project costs over and above the awarded grant funds.

Staff recommends approving Change Order #1 in the amount of $19,440.00 to avoid project delays and ensure that the awarded DNR grant funds can be encumbered to help pay for this project.

Motion to approve proposed Change Order #1 in the amount of $19,440.00 for City Improvement Project #13-13; Armstrong Boulevard Trail Extension – Alpine Drive to 161^st Avenue.