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specified for this project (CRS-2 on linear street segments and CRS-2P in cul-de-sacs). <br />Alternatives: <br />Alternative #1 — Motion to adopt Resolution #18-125 approving Change Order #1 for 2018 Crackseal and Sealcoat <br />Improvements, Improvement Project #18-04. <br />Funding Source: <br />The low bid submitted by Pearson Brothers was $434,699.22. After adding 14% indirect costs for administrative <br />(5%), engineering (7%), finance (1%), and legal (1%) costs, total project costs were $495,557.11. These <br />improvements are proposed to be funded using the $500,000 budgeted annually for pavement crackseal and <br />sealcoat projects. This would leave $4,442.89 unspent if final project costs equal the bid amount. All unspent funds <br />could be spent by Public Works for additional street patching in 2018. <br />Approving Change Order #1 will increase project costs by an estimated $2,858.25, resulting in an estimated total <br />construction cost of $437,557.47, and a total estimated project cost of $498,815.52. This would still leave a surplus <br />of $1,184.48. <br />Recommendation: <br />City staff recommends Alternative #1. <br />Staff believes the benefit received by using CRS-2P oil on all sealcoated streets will far outweigh the additional <br />minimal cost. In addition, approving Change Order #1 will not result in estimated project costs exceeding the <br />available budget for this work. This will also allow Staff to evaluate the effectiveness of using CRS-2P oil on future <br />sealcoat projects. <br />Action: <br />Adopt Resolution #18-125 approving Change Order #1 for 2018 Crackseal and Sealcoat Improvements, <br />Improvement Project #18-04. <br />Attachments <br />Resolution 18-125 <br />Change Order #1 <br />Form Review <br />Inbox Reviewed By Date <br />Kurt Ulrich Kathy Schmitz 06/21/2018 03:59 PM <br />Tim Gladhill Tim Gladhill 06/21/2018 04:07 PM <br />Form Started By: Bruce Westby Started On: 06/19/2018 10:31 AM <br />Final Approval Date: 06/21/2018 <br />