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• r STAFF ORIGINATOR: CITY COUNCIL MEETING DATE: TOPIC: ACTION REQUIRED: BACKGROUND AGENDA ITEM 6C Michael Grochala December 18, 2006 Resolution No. 06 -216, Approving Change Order No. 2, Legacy at Woods Edge Phase 2 — Streetlighting Improvements Simple Majority On April 24, 2006 the City Council awarded the Legacy at Woods Edge Phase 2 — Street lighting Improvements contract to W.H. Response. The current approved contract amount, including construction ($486,200.84) and 15 year maintenance agreement (145,800.00) is $632,000.84. The installed lighting system will be extended along Lake Drive from Town Center Parkway to Apollo Drive in conjunction with the Lake Drive improvement project. 20 lights are proposed to be installed on the east side of road adjacent to the new trail. WH Response has proposed to complete the work in accordance with the existing unit prices including the cost per unit for the 15 year maintenance agreement. The total for change Order No. 2 is in the amount of $132,737.07. The total revised contract amount, with the change order is $764,737.91. The change order represents a 21% increase in the contract amount. Change orders cannot exceed 25% of the original contract amount. RECOMMENDATION The City has been notified by the lighting manufacturer to expect a 7% increase in material costs in 2007. Additionally, it is more efficient to have the new lights serviced under the existing maintenance agreement with W. H. Response. As such, staff is of the opinion that it is in the best interests of the City to modify the existing contract with W.H. Response to include this work. Staff is recommending the adoption of Resolution No. 06 -216, Approving Change Order No.2 in the amount of $132,737.07. ATTACHMENTS • 1. Resolution No. 06 -216 2. Change Order No. 2