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Department of Finance - Division of Procurement & Contracts
Reference: Award of Formal Solicitation Fiber Installation Project #99918 & 93148
To: Mayor Kenneth J. Kreutzer and Members of City Council
Through: Philip A. Rodriguez, City Manager
Prepared By: David Guo, IT Director, Curtis Pollock, Assistant IT Director and Estella Gallegos, Procurement Specialist
CC: Ron Lay, Finance Director and Amber Gibbs, Procurement & Contracts Manager
Date Prepared: March 4, 2019
PURPOSE
Requesting City Council approval of Change Order #2 for the Fiber Installation Project. Pursuant to Municipal Code, all change orders to construction contracts shall be processed through the office of the Procurement Manager... all Change orders greater than fifty thousand dollars ($50,000.00) per contract or twenty-five percent (25%) of the original contract amount shall be approved by the City Council...
STRATEGIC FOCUS AREA
Safe, Active and Engaged Community
Supportive, Sustainable Infrastructure
BACKGROUND/HISTORY
The City Council awarded the Fiber Installation project to Paonia, LLC on July 17, 2018 in the amount of $707,085.20. Change Order #1, in the amount of $118,740.00 was approved by the City Manager on December 10, 2018 as it was not 25% of the original contract amount. This change order included extending fiber to Erger's Pond and Cell One of the Ken Mitchell project, to aid in monitoring and running the facility. Change Order #2, in the amount of $112,456.05 includes engineering services for each of the eight (8) phases of the original project which were not included in the original bid. The amount of both change orders is $231,196.00 which is greater than 25% of the original contract amount thus requiring City Council approval.
FINANCIAL IMPACT
Funding was approved in the 2019 Adopted Budget, and no amendment is needed.
STAFF RECOMMENDATION
Finance, in working with IT, recommends that Change Order #2 to the Fiber Installation Project be approved in ...
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