R2007-57 AUTHORIZING CHANGE ORDER

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1 , COUNCIL COMMUNICATION FORM Engineering & Infrastructure Memorandum NO. 2007-16 Apri19, 2007 TO: Honorable Mayor Osborne and City Council FROM: Steve Garm City Manager �C� �j� �� Richard G. rley, P.E.,Director of Ei�gin�ering & I astructure Matthew C. ewell P.E. Cit En i � � � Y g � SUBJECT: Green Street Water Main Replacement Change Order City Project 06-10 SUMMARY RECOMMENDATION: It is recommended by staff that the City Council approve the attached resolution authorizing a change order to the Green Street Water Main Replacement, City Project 06-10 in the amount of $165,000 to replace the water main in Green Street, between Monroe Street and Van Dyke Street. The resolution authorizes the City Manager and the Director of Engineering & Infrastructure to increase the existing $498,425 contract amount by$165,000 to a maximum of $663,425. BACKGROUND: On October 2, 2006 the City Council authorized a contract with Bodine Services of Decatur to replace the water line in Green Street between Monroe Street and Main Street. This project is coming to a conclusion. Staff is currently completing a design to replace the water main in Green Street west of Monroe Street to Van Dyke Street. Bodine Services is agreeable to a change order to increase quantities on the current project sufficient to complete the replacement of the water main in Green Street, west of Monroe, under the current contract and utilizing the low bid prices from the 2006 project. Issuing a change order has several benefits: 1. If the City issues a change order, there is no risk of higher costs if the project is bid later this year. The supplier has indicated a price increase of about 10% for the upcoming year. It is also expected that labor costs may increase by about 3%. 2. Bodine is performing well on the current project. 3. The administrative costs of preparing bid quality plans, issuing bid packages, approving contracts etc, are reduced. The recommended change order cost of$165,000 is approximately 33% of the current $498,425 Green Street Water Main Replacement contract.