Title
Consider a memorandum/resolution authorizing the execution of Change Order No. 2 with Choice Builders, LLC for the Conder and AA Lane Park Drainage Improvements reducing the overall contract amount by $71,462.78.
Body
DATE: January 8, 2024
TO: Kent Cagle, City Manager
FROM: Edwin Revell, Executive Director of Development Services
SUBJECT: Consider a memorandum/resolution authorizing the execution of Change Order No. 2 with Choice Builders, LLC the Conder and AA Lane Park Drainage Improvements reducing the overall contract amount by $71,462.78
BACKGROUND AND FINDINGS:
On November 29, 2022, City Council awarded a construction contract to Choice Builders, LLC in the amount of $597,113.00, for the Conder Park and AA Lane Park Drainage Improvements project. A prior change order (Change Order #1), which was approved administratively in accordance with local and state laws, increased the contract amount by $27,167.00 to repair an existing damaged storm pipe within the AA Lane Park Parking lot. This final change order (Change Order #2) will reduce the contract amount by $71,462.78 after accounting for the final project quantities associated with this project. The resultant final total contract price will be $552,817.22.
Change Order #2 represents the final changes necessary to mitigation drainage issues, reduce erosion and sedimentation problems and complete other minor improvement. The scope of this change order includes the adjustments to the individual bid items as measured in the field during construction.
As the overall net reduction of the contract from Change Order No. 2 is $71,462.78 and is a single change order that will decrease the overall contract by $50,000 or more, in accordance with the state and local bidding laws, City Council authorization is necessary.
THE ALTERNATIVES CONSIDERED:
1. Delay the completion and project close out for the project and not authorize the final change order.
2. Authorize the execution of Change Order #2 with Choice Builders, LLC for the construction of the Conder and AA Lane Park Drainage Improvement Project in the amount of a reduction of $71,462.78.
Which alternative is recommended? Why?
Staff recommends alternative 2, which is to authorize the City Manager to execute Change Order #2 with Choice Builders for the construction of the Conder and AA Lane Park Drainage Improvement Project in the amount of a reduction of $71,462.78. This will allow the city to close out the project and free the excess funds to be used towards another active Drainage CIP project as needed.
CONFORMITY TO CITY POLICY:
This item conforms to state and local policies.
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
This is a reduction change order to the contract in the amount of $71,462.78.
Is this a one-time or recurring expenditure?
This is a one-time occurrence.
Is this expenditure budgeted?
N/A
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this expenditure?
Yes
RECOMMENDATION:
Staff recommends alternative 2, which is to authorize the City Manager to execute Change Order #2 with Choice Builders, LLC for the construction of the Conder and AA Lane Park Drainage Improvement Project in the amount of a reduction of $71,462.78. This will allow the City to close out the project and free the excess funds to be used towards another active Drainage CIP project as needed.
DEPARTMENTAL CLEARANCES:
Legal
Finance
Purchasing
Development Services
ATTACHED SUPPORTING DOCUMENTS:
Request
Change Order No. 2
Worksheet
Presentation