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HomeMy WebLinkAbout20100607 - VI-03 MEMO To: Honorable Mayor and City Council From: Nick Egger – City Engineer Date: May 26, 2010 Approve Change Order Authorization Policy for 2010 Infrastructure Improvements Re: Council is requested to adopt a change order authorization policy for the 2010 Infrastructure Improvements project that would grant staff authorization to approve change orders up to $25,000 in value to keep the project moving. All change orders would subsequently be brought before the City Council at their earliest meeting after the change order is executed. The Council approved such a policy last year for the 2009 Industrial Park Improvements project, which proved to be quite effective in keeping the project moving along in a situation where the schedule was compressed. Overall, staff has negotiated four change orders with the contractor for the Industrial Park project, some of which were actually a reduction to the value of the contract. In total, the four change orders resulted in an overall increase to the contract value of about $1,700, or about 0.08% of the contract value. 2009 Industrial Park Improvements Change Order Summary Change Date Items Value Order 1 9/16/2009 Lighting, Ravine Materials -$6,473.04 2 11/9/2009 Storm Sewer, Lighting Components $10,192.93 3 12/17/2009 Trail Paving, Traffic Markings -$2,452.50 4 1/13/2010 Tree Stump Removal $440.00 Net Total Increase $1,707.39 Contract Value $2,229,790.98 Change Orders as Percentage of Contract Value 0.077% Council Action Requested Council is requested to authorize administrative approval by the Engineering Department of change orders up to a value of $25,000 per occurrence for the 2010 Infrastructure Improvements project. All administratively approved change orders would be brought before the City Council at the earliest Council meeting thereafter.