AGENDA #4h
TO: Mayor and Town Council
FROM: W. Calvin Horton, Manager
SUBJECT: Authorization for Manager to Approve Change Orders for Southern Fire Station #5 Construction Contract
DATE: November 26, 2001
The following resolution would authorize the Town Manager to execute a change order with Resolute Building Company, Inc., which would have the cumulative effect of increasing the contract by more than $50,000.
On November 27, 2000, the Town Council authorized the award of a contract to Resolute Building Company in the amount of $750,925 for the construction and general contractor duties associated with Fire Station #5. Anticipated completion date for the project is December 18th, 2001.
A 1982 Town Council policy authorizes the Manager to prepare, approve, and enter into construction contracts that have change orders and amendments to construction contracts that do not cumulatively exceed the bid originally approved by the Council by more than 10% of the original contract amount, or $50,000, whichever is less, and provided that there is an appropriation sufficient for the contract amendment. The 10% limitation on the contract awarded to Resolute Building Company is $75,093; therefore, the Council must approve change orders when they exceed $50,000.
To date, four (4) change orders have been approved by the Town Manager:
Change Order #1 changed the completion date by three calendar days to compensate for delays in initial soil testing and had no monetary change.
Change Order #2 increased the original contract sum by $35,320 to remove unsuitable soils at the building site and deal with the sub-surface water flow discovered during excavation.
Change Order #3 increased the contract by $2,984 to construct a passive drainage system to move the sub-surface water flow away from the building site.
Change Order #4 increased the contract by $11,600 to make 7 minor changes in the original station design, bringing the revised contract amount to $49,904 above the original price.
After these change orders, $23,177 remains in the project’s contingency account.
We anticipate at least two more changes to the Resolute contract prior to completion of the project that would be included in a Change Order #5. One change would be an upgrade in the plaster finish in the apparatus bay to better withstand the moisture from washing the trucks there, at a cost of $1,500. The second change would cost $6,839 and would improve the buffering along the US 15-501 side of the station to compensate for the clearing associated with the NCDOT road widening project. The cost of the landscaping would be taken from the $10,000 that Capkov Ventures, Inc. paid in exchange for the Town’s dedicating a sewer easement along its border with US 15-501.
With the inclusion of the anticipated Change Order #5, the Resolute Building contract would increase by $58,243 representing a 7.75% increase over the original price. Although we do not anticipate further change orders, the possibility exists. Progress schedule calls for Fire Station #5 to be completed prior to the next Council meeting in January. Therefore, we recommend that the Town Council authorize the Town Manager to approve Change Order #5 described above and up to $10,000 more if it is necessary to complete the project and it is within the project budget.
A RESOLUTION AUTHORIZING THE TOWN MANAGER TO CONTINUE THE CONTRACT WITH RESOLUTE BUILDERS, INC. (2001-11-26/R-7)
WHEREAS, the Town of Chapel Hill has entered into a contract with Resolute Builders, Inc., as the general contractors of Fire Station #5 for $750,925; and
WHEREAS, during the construction of the Fire Station, change orders totaling $49,906 have been approved by the Town Manager; and
WHEREAS, anticipated change orders will cause the contract to exceed the original contract price by more than $50,000;
NOW, THEREFORE, BE IT RESOLVED BY THE Council of the Town of Chapel Hill that the Town Manager is authorized to approve a change order for the two anticipated changes for additional plantings and plaster upgrade in the apparatus bay for an approximate total of $8,339. In addition, the Town Manager is authorized to approve unanticipated change orders of up to an additional $10,000 if it is necessary to complete the project and it is within the project budget.
This the 26th day of November, 2001.