memorandum

to:                  Roger L. Stancil, Town Manager

from:            Ray (Butch) Kisiah, Parks and Recreation Director

Bill Webster, Assistant Parks and Recreation Director

Kenneth C. Pennoyer, Business Management Director

subject:      Proposed Increase in Change Order Authorization for the Southern Community Park Project

date:            October 27, 2008

PURPOSE

The purpose of this report is to recommend adoption of a resolution that would increase the Manager’s authorized limit to execute change orders by $16,393.  This increase would include a pending change order in the amount of $13,982 and a reserve of $5,000 to cover any final, unexpected expenditures that may arise.

BACKGROUND

On May 9, 2005, the Council approved the Special Use Permit application for the Southern Community Park.  Construction of the park started in June 2007.

On October 15, 2008 the Council increased the park budget by $120,000 to order to pay for playground equipment, signs, and additional landscaping.

DISCUSSION

On May 7, 2007, the Council approved a bid in the amount of $4,708,000 for the Southern Community Park project. At that time, the Council also authorized the staff to process change orders up to $355,000, which totals 7.5% of the construction budget.

Change orders approved so far fall generally in the following categories:

Addition of deceleration lane on Highway 15-501 1                 $65,509

Asphalt Price Index 2                                                                                    19,794

Substitute sod for sprigging athletic fields 3                            39,122

Rock and poor soils                                                                 62,480

Additional stormwater and erosion control measures             70,041

Changes required by utility providers                                      17,409

Additions/changes/improvements to park program 4               78,056

Total                                                                                     $352,411

  1. The deceleration lane was added late in the process and was not designed at the time of bidding.
  2. We used the State asphalt price index in order to avoid speculative and varying asphalt bids at the beginning of the project.
  3. In order to minimize water use during the drought we substituted sod for originally planned sprigging of the three athletic fields. This approach also allows for faster root development and healthier fields once play begins.
  4. These changes included items such as installing in-line hockey court dasher boards, improvements to the park and ride lot tie-in, bore under rather then trench cut Dogwood Aces Drive for a water line, and additional tree protection fencing.

We have negotiated one final change order for $13,982, which we believe will be necessary to complete the project. That change order would pay for enlargement and upgrade of a stormwater basin to allow greater stormwater retention capacity and water quality enhancement.

We are also asking for $5,000 in additional authorization to cover any final unanticipated items. We have no indication at this time that we would need to use the authorization; however, having the authorization would allow us to accelerate closeout of the project in the event that some additional need arises.

The pending change order and proposed increased authorization would together exceed the Council’s authorized change order limit for staff approval of change orders by $16,393.

Current change order authorization                                                 $355,000

Change orders already executed                                                        -352,411

Proposed current change order                                               -13,982

Proposed increased authorization                                             -5,000

Total                                                                                      -$16,393

Potential Budget Impacts: The proposed change order authorization would not require a change to the project budget.

RECOMMENDATION

That the Council adopt the attached resolution which would increase the Manager’s authorized limit to execute change orders for the Southern Community Park project from the current limit of $355,000 to $371,393.