Memorandum

City of Lawrence

Public Works Department

TO:	Dave Corliss, City Manager Debbie Van Saun, Asst. City Manager
FROM:	Dena Mezger, Asst. Public Works Director
CC:	Charles Soules, Public Works Director
Date:	July 31, 2007
RE:	August 7, 2007 Agenda Item

Please include the following item on the City Commission consent agenda for consideration at the August 7, 2007 meeting:

Approval of Change Order No. 2 (FINAL) for Kasold – Bob Billings Pkwy to 22^nd St. This is the final construction contract change order covering all outstanding items. Total change order amount is $144,507.43.

Project History.  Resolution No. 6647 was approved on May 2, 2006 authorizing issuance of $5,110,000 in general obligation bonds for engineering, construction and inspection work on the Kasold reconstruction project.  Preliminary engineering had been performed prior to that action, funded from the Capital Improvement Reserve fund. The construction contract was initially bid on March 21, 2006. However, all bids were rejected. The project was re-bid on April 25, 2006 and awarded to RD Johnson Excavating Company on May 2 2006 for a total amount of $5,483,332.90. Change Order No. 1 for the construction contract was approved on October 3, 2006 for $81,859.50. Resolution 6726 was approved on June 12, 2007 authorizing issuance of an additional $300,000 in bonds for construction change orders and an incentive payment for early completion.

Project Details.

Major construction items included in Change Order No 2 were presented at the time the additional bonding resolution was approved. Included are:

· Mill & overlay, repairs, signal loop replacement, traffic control and striping for Kasold from 22nd St, where the original project ended, and Clinton Parkway.

· Upgraded pavement marking material that will last 2-3 times longer than the originally specified materials.

· Replacement of median/island at 22^nd St that was removed to accommodate commercial traffic during construction.

· Additional special sod, fencing and landscaping for residents along the project.

Project Status.  The project was complete as of July 6, 2007, 92 days ahead of schedule.  The contractor has qualified for the full incentive, or bonus, payment of $100,000 for the project.

Project Funding. The project is funded from capital improvement reserve funds (for initial engineering work), general obligation bond proceeds and Utility Department funding (for the waterline portion of the project). Construction change orders totaled 4.13% of the original contract amount. Final project costs from all funding sources are summarized as follows:

Construction Costs

     Original Contract

Street & Storm Sewer                                    $4,786,999.61

Waterline                                                      $   696,333.29

     Change Orders

          Street & Storm Sewer                                     $  221,852.95 

          Waterline                                                       $      4,513.98

     Total Construction Contract                                  $5,709,699.83

     Incentive for Early Completion                                       $   100,000.00

                                                                              $5,809,699.83

Other Project Costs

Engineering                                                           $  429,475.43

Legal Fees                                                               $      1,170.00

Land/Easement Acquisition                                                 $    38,836.00

Streetlight Costs – paid to Westar                              $   20,895.87

Construction Administration (testing, misc)                $     2,120.77

                                                                             $  492,498.07

TOTAL PROJECT COST                                           $6,302,197.90

Action Request.  Public Works staff requests approval of Change Order No. 2 (FINAL) in the amount of $144,507.43.

Respectfully Submitted,

Dena E. Mezger, P.E.

Asst. Public Works Director

Attachment – Change Order No. 2