R2006-04 APPROVING CONTRACT AMENDMENT

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. � COUNCIL COMMUNICATION FORM Engineering& Infrastructure Memorandum NO. 2006- 07 January 11, 2006 TO: Honorable Mayor Osborne and City Council , FROM: Steve Garm ity Manager Stephen Sw n, P. E.,Director of Engineering & Infrastructu Matthew C.N well, P. E., City Enginee�,G,�,.,� �� SUBJECT: Country Manor Street Reconstruction Cost Overrun City Project O1-07 SUMMARY RECOMMENDATION: It is recommended by staffthat the City Council approve the attached resolution approving an increase to the contract amourrt with Beniach Construction Co., Inc., for Country Manor Street Reconstruction, City Project 01-07. The resolution authorizes the Mayor to increase the existing $434,974.76 contract amount by $55,702.04 for a maximum of$490,676.80 for the work that was necessary to complete the project, and the City Clerk to attest. BACKGROUND: On July 18, 2005, the City Council authorized a contract with Beniach Construction Co. Inc., to reconstruct some of the streets in the Country Manor subdivision, on the east side of the City. Sta.ff recommended, and the Council approved, the contract to construct concrete pavement ($389,974.76) rather than asphalt pavement ($343,512.94) both of which were bid as contract options. The City Council authorization also included a change order to replace 100% of the curb and gutter along Powers Lane and Country Manor Court. Work commenced in August and was substantially completed in November, 2005. The final project cost was appro�mately $55,702.04 in excess of the $434,974,76 originally authorized by the City Council. At the City Council meeting held on December 19, 2005, City Councilman Laegeler requested follow-up information regarding the cost overrun. 1. Was the cost overrun related to the choice of pavement type? Would it have occurred if the asphalt pavement option was chosen?