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17 - UTILITY ROAD CHANGE ORDERItem No. 17 memorandum TO: Mayor & City Council FROM: John Godwin, City Manager SUBJECT: UTILITY ROAD CHANGE ORDER DATE: March 8, 2016 BACKGROUND: Project B2 includes new water and sewer lines on 28`h through 32nd Streets north of Bonham, among other areas. This contract was awarded to Pittard last year, including a bid alternate to cover the streets with a relatively new and unique thin layer of asphalt, called micro - surfacing. An alternative to resurface the roads more fully, using a hot mix asphalt overlay, was not authorized at the time in an effort to minimize costs. STATUS OF ISSUE: However, since that time, we believe the more expensive alternative is the only practical way to move forward. These older streets are in horrible shape from the extensive excavations and need as much repair as we can reasonably provide. Going back to the original bid numbers, deleting the thin coating, and adding the full hot mix gutter -to- gutter overlay, will result in a net cost increase of $99,500. We have bladed the streets using in -house equipment and manpower to decrease our overall cost. BUDGET: Funding will come from 2013 utilities bond sale proceeds. RECOMMENDATION: Approve change order.