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Mounds View City Council March 22, 1999 <br />Regular Meeting Page 28 <br /> <br />Council Member Marty suggested the change order limit be changed to 5 percent. <br /> <br />Mayor Coughlin inquired if Council Member Marty would care to offer this as a friendly <br />amendment, and requested Director of Public Works Ulrich speak to this issue. <br /> <br />Director of Public Works Ulrich stated the change order percentage, which varies somewhat by <br />project and agency requirements, is utilized for unforeseen situations that occur on the job. He <br />explained that if they were to begin excavating land that is currently park land, and determined <br />that between the 20 foot soil borings, 40 or 50 yards of asphalt had been dropped in, this <br />contingency would authorize him to have the ability to allow the contractor to proceed. He <br />stated he did not anticipate that the contract or the amount of the lineal concrete in curb and <br />gutter would change. He added that he did not anticipate any additional costs in terms of the <br />holding pond or storm sewer, or anything of that nature. He advised that the change order was <br />merely a formality in the plan. <br /> <br />Director of Public Works Ulrich stated if there are any significant changes in the plan, the matter <br />should come back before the Council, because they would also have to obtain an addendum from <br />the contractor who was awarded. He indicated that if an item comes forward that results in <br />having to have the job rebid, and would significantly alter the bid price, they would have to go <br />back to the contractor to determine if they were willing to rebid the job. He stated that in this <br />case, Council approval would also be required. <br /> <br />Council Member Marty stated he would feel more comfortable if the Council was informed if the <br />amount exceeded $23,000, rather than $46,000, because in his opinion, $46,000 was a significant <br />amount of money. He pointed out that even $23,000 could be significant, if it proceeded in the <br />same manner as the Community Center, and began to get out of hand. He stated he did not <br />foresee this occurring, however, he would like to be apprised of any changes. <br /> <br />Director of Public Works Ulrich suggested the Council stipulate that any significant change to <br />the plan that would affect the bid amount be brought back before the Council for additional <br />approval. <br /> <br />Mayor Coughlin stated this would preferable to setting an arbitrary amount. <br /> <br />Director of Public Works Ulrich explained that the contingency amount is set, simply to insure <br />that the project continues to move forward. He stated if they were to set a contingency of $100, <br />that may be sufficient, however, if the actual difference is $200, and staff has to obtain approval <br />from the Council in order to proceed, the project must wait possibly two to three weeks to obtain <br />that approval. <br /> <br />Mayor Coughlin added that having worked in the construction field, he was aware that they deal <br />with the hidden costs, cost overruns, change orders, and the like. He stated he recognized the <br />need for language of this nature, if only to provide that they, as the Council do not have to spend <br />hour after hour discussing these matters. <br /> <br />Council Member Marty stated he would be satisfied with a $23,000 contingency. He indicated <br />he would not desire to halt the work on this project for every small issue that may come forward. <br /> <br />Director of Public Works Ulrich stated this was acceptable.