With the construction of the Windridge Estates Phase 1 Water and Sanitary Sewer Rehabilitation Project nearing the end, need for additional effort to restore the existing neighborhood roadway pavement has been realized. Through the duration of construction, heavy construction equipment has caused the existing pavement to unravel beyond what was expected, making additional and more comprehensive repairs unavoidable. A full width pavement repair was considered and deemed to be more cost effective than our traditional trench repair and a micro-surface (asphaltic slurry) treatment, as originally intended. Therefore, a change order is proposed to delete the items in the contract associated with trench repair and offset those savings with a more robust, full-width pavement replacement instead. As a result, the difference represents an additional net cost of $337,005.  In our preparation for this decision, staff solicited quotes from KIK Underground, LLC, (the current contractor working there now) and Reynolds Asphalt and Construction Company (a different contractor through an ILA) for comparison purposes for full width pavement repairs to all the asphalt streets. The quotes provided may be seen in the table below:

Quotes were evaluated based on price, time of completion, and the logistics of introducing a new contractor to the project (added complexity and possible conflict). In the final analysis, the quote provided by KIK Underground represents the best value to the City, even though their absolute price is higher. As with all capital projects, time of completion for this work was considered in addition to cost, with the differential in time proposed, affecting the overall perceived value of the proposal. As with all other bids on our capital projects, the value of the time differential between the proposers was calculated by adding the value of a calendar day, based on the original contract value, to the proposed quote with a longer delivery time. As a result, the two proposals were normalized in the attached Normalized Quote Evaluation Chart to show the best value overall, considering time for completion as well as absolute price.  The value of each day was estimated to be $2,000 in value and added to the Reynolds Asphalt and Construction Company quote, since they indicated it would take them 30 days longer to complete. After evaluating quotes in this manner, executing a change order with KIK Underground for full-width asphalt pavement repairs represents the best value.

The table below shows the net change in project value after the deduction in line items associated trench repair item have been removed:

The funding needed for this change order is already within the project budget and within the limits allowed by law for a change order to an existing contract.

Staff recommends that the Council Authorize the City Manager to Execute a Change Order with KIK Underground, LLC, for the Windridge Estates Phase 1 Water & Sanitary Sewer Replacement Project in the Amount of $337,005.

I make a motion to authorize the City Manager to execute a change order with KIK Underground, LLC, for the Windridge Estates Phase 1 Water & Sanitary Sewer Replacement Project in the amount of $337,005.