Minutes - Council Work Session - 10/23/2012

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because the City already has traffic control, right -of -way permits, and NPDES Permits that are under the prime contractor's name In this case, he recommended the Council approve a change order instead of going out for quotes. Councilmember Wise asked about the project cost savings since there will not be a cul -de -sac north of his store. Interim Engineer Nelson stated there will be a project cost savings for not constructing the cul- de -sac of about $5,000 to $6,000. 2.03: Consider Change Order #5 — Sunwood Drive Development Manager Lazan reviewed the staff report and previous HRA approval of soft costs associated with this effort and direction to staff and the Development Team to outline and present hard costs at a future meeting. The work included in Change Order #5 is public watermain, public sanitary sewer, and common stormwater mains (excusive of infiltration facilities). This work is covered under the current NPDES permit so it is geographically part of the same project area. If approved, construction of these deep utilities will commence almost immediately and be available for connection by Lots 4 and 5 per the HRA agreement with those buyers. Development Manager Lazan noted the bid law precludes the City from adding to their contract or creating a new project in excess of $100,000 without going out for bids. He had asked the contractor whether utilities could be included under this project and a quote was received of $99,999.70. These costs are in line with the estimates prepared and provided to the buyer of Lots 4 and 5, who will be responsible for their pro rata share. The funding would be accomplished by having the HRA pay and add it to the project cost within COR TWO, as originally contemplated. Or, there could be an agreement reached between the City and HRA to barter as previously done with the soil provided from HRA property to the project resulting in significant cost savings ($11 /yard versus $2 /yard). Development Manager Lazan stated a second option is to consider this utility work in exchange for the soil provided for Armstrong Boulevard. He explained that since receiving the quote, he talked to North Pine Aggregate and developed an alternate proposal in case the Council feels this bid is too close to $100,000 maximum. Development Manager Lazan stated in the alternate proposal, he had removed the storm sewer work, which resulted in a deduct of $34,225 and bid estimate of $65,774. If approved, it would enable deep utility work to be completed quickly, allows Lot 5 to start construction without having to tear up the site, and stay on schedule for construction this fall. Councilmember Wise asked if Scenario #2 would cost another $55,000. Development Manager Lazan explained it would provide sanitary sewer, watermain, and storm sewer piping as shown on the exhibit being displayed. He had arrived at the lower price of $65,774 by removing storm sewer from the project, which could be installed by the Lot 5 user and credited to closing costs. City Attorney Goodrich asked Development Manager Lazan whether he will get another quote. City Council Work Session / October 23, 2012 Page 8 of 11