PURPOSE:

To request City Council approval of the final change order for Bid Schedule No. 1135 (Sidewalk Repair Project).

BACKGROUND:

Bid Schedule No. 1135 was advertised for construction bids on January 10, and January 14, 2004.  A bid opening was held on February 17, 2004.  KALBAN Inc. of Sun Valley, California submitted the lowest bid of $457,493.83, 24.4 percent below the engineer�s estimate of $605,000.00.  The contract was awarded to KALBAN Inc. on March 30, 2004 and construction proceeded from May to July, 2004.

ANALYSIS:

Between April and July, 2004, concrete prices rose dramatically (see attached June 3, 2004 memorandum.)  To take advantage of the low unit prices included in Bid Schedule 1135, Public Works staff directed the contractor to repair over 24,000 additional square feet of uplifted sidewalks using Bid Schedule 1135's original contract unit prices, bringing the total contract up to the budgeted amount of nearly $605,000.

FISCAL IMPACT:

This change order results in a total increase of $146,911.47 in the contract price (32.1% above the original contract price), for a revised contract amount of $604,405.30, which is still below the engineers estimate.  Sufficient funding for this increase is available in Account No. 370.PW21A.70002.0000.13748.

RECOMMENDATION:

Staff recommends that the City Council adopt the proposed resolution approving the final change order for Bid Schedule No. 1135, the Sidewalk Repair Project.

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