To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Dan Sailer, Public Works Director
Ross Stanley, Project Manager
Title
Resolution Approving an Amendment to the Construction Contract with Morton Electric, Inc. for the Downtown Pedestrian Lighting Project
Body
________________________________________________________________________________
Executive Summary
The purpose of this memo is to obtain approval (Resolution) to increase encumbered funds for Purchase Order #2923 (Attachment A) from $401,390 to $457,880 (an increase of $56,490). Purchase Order #2923 encumbers funds for the construction contract between the Town and Morton Electric, Inc. (Morton) for the Downtown Pedestrian Lighting Project.
This is a federal grant award project with $300,700 in federal funds for construction. The Town is required to provide a 20% match, which is $60,000 toward construction, and cover any additional amounts over the combined total. In order to cover the funds for the contract and this amendment, the Town’s contribution is $157,180 for a total project encumbrance of $457,880.
As construction has progressed, it has been determined that additional work must be completed to deliver the project as designed. The additional costs can be categorized into two categories, Traffic Control Management and additional wiring, as outlined in the discussion section. This increase amount is projected to complete the balance of the project.
Discussion
As with any construction project, changes in the anticipated total cost are common. Typically, the risk of these cost changes are addressed by providing a “Town Managed Contingency” within construction Purchase Order Agreements. Standard contingency amounts for construction contracts typically fall in the range of 8-10% of total construction costs and are used to mitigate unforeseen conditions and additional costs. This project has presented two specific challenges that will exceed the current 10% contingency amount. The known additional costs originate from: Traffic Control Management, and additional wiring contract quantity adjustments. The costs are illustrated below on Table 1.
During construction, it was discovered that the existing wiring between power supplies and pull boxes is in poor condition. Not replacing it would risk malfunction of new lights, either at time of activation or in the near future. It is most cost effective to replace the existing wiring now while a contractor is mobilized.
Additional traffic control days is needed due to the contractor having agreed not to charge extra for an overrun of days of traffic control management, however CDOT informed the Town that we must pay the contractor for the extra days otherwise risk a claim by the traffic control subcontractor.
Table 1: Amendment Cost Summary
Amendment request because of net overrun on bid quantities:
Additional Wiring $38,610
Additional Traffic Control Management $33,880
Net Underruns on remaining bid items ($16,000)
Amount of Amendment request $56,490
History of Past Town Council, Boards and Commissions
A resolution (2024-087) approving a construction contract with Morton was unanimously approved by Town Council on August 20th, 2024. The current resolution was also unanimously recommended for Town Council approval by Public Works Commission.
Budget Impact
It is proposed that $56,490 be added to Purchase Order #2923 for a total encumbrance of $457,880. The additional amount will increase the contract for Traffic Control Management and Additional Wiring as described above. The additional $56,490 will be funded by the Traffic Safety Improvements account # 120-3175-431.75-25 with a current balance of $420,000. This increase amount is projected to complete the balance of the project. Staff plans to recommend a 2024 carryforward in this account in the amount of $213,000 to support this funding request and complete safety projects begun in 2024.
Staff Recommendation
Staff recommends Town Council approve the Resolution as introduced by title.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Attachments
Resolution
Exhibit 1: Amendment Agreement
Exhibit 2: Amendment Schedule