I2. Expenditure SourceCITY OF City of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997
ALISPELL
Telephone (406) 758-7000 Fax - (406) 758-7758
REPORT TO: Doug Russell, City Manager
FROM: Rick Wills, Finance Director
SUBJECT: Expenditure source for previously approved appropriation
MEETING DATE: June 20, 2022
BACKGROUND:
At a regular meeting on December 6, 2021, the City Council approved a change order request for
the Kalispell Parkline. The total change order request amount of $252,315.66 addressed a
number of issues and included $25,000 for impact fees.
The December 6 memo stated the planned funding would come from the West Side Tax
Increment Financing debt service fund; however, it has been determined that there will not be
adequate funding in the debt service fund prior to the fiscal year end to make this transfer and
maintain our West Side TIF bond covenants.
To fund the project change order, we are recommending using the Community Development
Miscellaneous special revenue fund to cover the previously approved change order in the amount
of $252,316. The preliminary budget accounted for this change. However, depending upon the
timing of work completion and the associated billing, the special revenue fund may require a
budget amendment for Fiscal Year 2022, which, if necessary, would come before council at a
later date.
RECOMMENDATION: It is recommended that the Kalispell City Council make a motion
to pay for the $252,315.66 from the December 6, 2021,
appropriation out of the Community Development Miscellaneous
special revenue fund, rather than the Debt Service Fund as initially
recommended.
FISCAL IMPACT: This action will change the source of funds from the Westside Tax
Increment Financing (TIF) Debt Service Fund to the Community
Development Miscellaneous fund. Resources are available in the
fund and this change was discussed during budget work sessions
and has been accounted for in the preliminary budget for FY23.
ALTERNATIVES: Decline request.
ATTACHMENT: December 6, 2021, agenda item
Development Services
201 1st Avenue East -
CITY OF
Kalispell, Montana 5991
KALISPELL Phone (406) 758-7940
Report To: Doug Russell, City Manager
From: Jarod Nygren, Development Services Director
Subject: Kalispell Parline Change Order
Meeting Date: December 6, 2021
BACKGROUND: The Council awarded the construction of the Kalispell Parkline on May 3,
2021. Award of the Kalispell Parkline included the base bid plus additive alternates for a total of
$7,507,882.10, plus construction administration. At that time no contingency for changes in the
project were included in the BID award, which is typically 10% of the overall project costs. As
the project has progressed there has been a number of changes that need to be addressed as the
changes put the overall project cost over the Council approved amount. The total change
order request amount is for $227,315.66. The change order addresses a number of items outlined
in the attached KLJ (project engineer) memo, with an explanation of the project changes and cost
breakdown of each item.
Additionally, we need to add the costs for water impact fees for the connection of 2-3/4" and
2-2" water services lines. The impact fees total approximately $25,000.00 and would be in
addition to the change order amount outlined above.
RECOMMENDATION: It is recommended that Council make a motion to approve the change
order in the amount of $227,315.66 and impact fee payment amount of $25,000.00 for a total of
$252,315.66.
FISCAL EFFECTS: There will be an increase in overall construction costs of the
Kalispell Parkline in the amount of $252,315.66. Funding of the change order and impact
fee can be processed by transferring the total amount from the Westside Tax Increment
Financing (TIF) Debt Service Fund.
ALTERNATIVES: Do not approve the change order request.
ATTACHMENTS: KLJ Memo
Change Order No.3
< KLI
1830 31' Avenue East Suite 303
Ka l i sp el I, MY 59901-5 778
406 755 2763
KLJENG.COM
12/1/2021
Jarod Nygren
Development Services Director
City of Kalispell
201 1st Ave E
Kalispell, MT 59901
Re: Change Order #3 Kalispell Trail and Complete Street Project
Dear Mr. Nygren:
Attached is the proposed Change Order #3 for the Kalispell Trail and Complete Street project. The
following items are included in change order. Each item includes a brief explanation of the cost.
Painting Steel Structures (Bridge): Estimated quantity was lower than the complete area. The completed
quantity exceeded the bid quantity by 25%.
Class A Pier Repair: Estimating the extent of repairs were limited to visual observation due to fact the
bridge was an active railroad and in the drive path of US Hwy 2. The completed quantity exceeded the bid
quantity by 25%.
Conductor -Copper AWG3-600V: Replaced #4-gauge wire with #3-gaug wire due to voltage drop issue.
Timer Switch: To prevent unauthorized use of the power outlets, timer switches were added to control
outlet use.
Hwy 93 Inlaid Tape: MDT changed their striping standard on Main St./Hwy 93 from epoxy to inlaid tape
after the bid was awarded.
Light Poles on Hwy 93: MDT requires light poles that meet AASTO 2015 standards. The bid specification
referred to AASTO 1996 standard.
Landscaping — Upsizing mainline pipe and adding 11 irrigation zones: Pressure required to properly
operate the irrigation system with 2-inch mainline pipe at the connection point was near the minimum
number of 50 psi. Therefore, to ensure a proper functioning system and accommodate the potential loss
of pressure from future users, the 2-inch mainline was replaced with 3-inch pipe. In addition, 11 more
irrigation zones were added to improve system function after review of irrigation calculations.
,( KLI
Landscaping — Rail Landscape Divider: Differences in field conditions versus anticipated conditions during
design resulted in changes to the rail landscape divider and how the dividers were installed. Changes
resulted in additional costs for materials and installation.
Raise backflow preventer at 5th Ave WN and 4th Ave EN: Plan set called for backflow preventers installed
below ground. City standard requires backflow preventers installed above ground.
Cage and cement base for backflow preventer (2): To discourage vandalism, cages are proposed to encase
each backflow preventer. The design did not include cages over the backflow preventers. Price reflects
the installation of 2 cages and concrete pads.
EdgePro Paver Restraint: Pavers lack horizontal support. The EdgePro Paver Restraints will provide
horizontal support along with additional vertical support for pavers in Cherry and Depot Plazas in
additional to pavers along the sidewalk along Main Street/Hwy 93.
The impact fees for the connection of 2 — %" and 2 — 2" water service lines were not included in the bid.
The impact fees total approximately $25,000. This fee is not included in the change order since the prime
contractor did not pay the impact fees.
Sincerely,
Mark Rohweder, PE, PIMP
Project Manager
Enclosure(s): Change Order #3
Project #: 1824-01074
cc: File
Change Order No. 3
Date of Issuance: 12/7/2021
Effective Date: 11/17/2021
Project: Kalispell Trail and Complete Street Owner: Owner's Contract No.:
City of Kalispell na
Contract: Kalispell Trail and Complete Street
Date of Contract: 5/11/2021
Contractor: Sandry Construction Company LLC Engineer's Project No.:
1824-01074
The Contract Documents are modified as follows upon execution of this Change Order:
Description:
DECREASE
INCREASE
(In Contract Price)
(In Contract Price)
1.
Painting Steel Structures
$0
$63,825.00
2.
Class A Pier Repair
$0
$49,800.00
3.
Conductor -Copper AWG3-600V
$0
$4,424.63
4.
Timer Switch
$0
$2,225.25
5.
Hwy 93 Inlaid Tape
$0
$22,137.00
6.
Light Poles on Hwy 93
$0
$16,757.11
7.
Landscaping — Upsizing mainline pipe and
$0
$42,341.05
adding 11 irrigation zones
8.
Landscaping — Rail Landscape Divider
$0
$6,628.60
9.
Raise backflow preventer at 5t1' Ave WN and 4'1'
$0
$3,245.24
Ave EN.
10.
Cage and cement base for backflow preventer
11.
EdgePro Paver Restraint
$0
$9,661.30
TOTALS:
$0.00
$227,315.66
NET
CHANGE IN CONTRACT PRICE
$0.00
$227,315.66
Attachments/Justification (list documents supporting change):
1. Field quantity did not match bid quantity.
2. Extent of center pier repair was larger and deeper than estimated.
3. Replaced 94 gauge wire with 93 due to voltage drop issue.
4. Added timer switches to outlets.
5. MDT changed their striping standard on Hwy 93 from epoxy to inlaid tape after bid was awarded.
6. MDT requires light poles that meet AASTO 2015 standards. Bid referred to AASTO 1996 standard.
Kalispell Trail and Complete Street Change Order #3 Form C-941
Project Description: Infrastructure construction Pagel of 3
Project # 1824-01074
7. Pressure required to properly operate the irrigation system with 2 inch mainline pipe at the irrigation connection
point was near the minimum. Therefore to ensure a proper functioning system and accommodate loss of pressure
from future users, the 2 inch mainline was replaced with 3 inch pipe. In addition, 11 more irrigation zones were
added to improve system function after review of irrigation calculations.
8. Differences in field conditions versus anticipated conditions during design resulted in changes to the rail landscape
divider and how the dividers were installed. Changes resulted in additional costs for materials and installation.
9. Plan set showed backflow preventers below ground. City standard is for above ground installation of backflow
preventers.
10. Plan set does not include cages over the backflow preventers. Price reflects the installation of 2 cages and concrete
pads.
11. Pavers lack horizontal support. The EdgePro Paver Restraint will provide horizontal support along with additional
vertical support for pavers in Cherry and Depot Plazas in additional to pavers along the sidewalk along Main
Street/Hwy 93.
Kalispell Trail and Complete Street Change Order #3 Form C-941
Project Description: Infrastructure construction Page 2 of 3
Project # 1824-01074
CHANGE IN CONTRACT PRICE: CHANGE IN CONTRACT TIMES:
Original Contract Price: Original Contract Times: ❑ Working days ® Calendar days
$7,507,882.10 Substantial completion (days or date): June 1, 2022
Ready for final payment (days or date): September 30, 2022
Increase from previously approved Change Increase from previously approved Change Orders
Orders No. 1 to No. 2: No. 1 to No. 1:
$98,107.12 Substantial completion (days): n/a
Ready for final payment (days): n/a
Contract Price prior to this Change Order: Contract Times prior to this Change Order:
$7,605,989.22 Substantial completion (days or date): n/a
Ready for final payment (days or date): n/a
Increase of this Change Order: Increase of this Change Order:
$227,315.68 Substantial completion (days or date): n/a
Ready for final payment (days or date): n/a
Contract Price incorporating this Change Order: Contract Times with all approved Change Orders:
$7,833,304.90 Substantial completion (days or date): June 1, 2022
Ready for final payment (days or date): September 30, 2022
RECOMMENDED:
By:
Engineer (Authorized Signature)
Date:
ACCEPTED:
By:
Owner (Authorized Signature)
Date:
Approved by Funding Agency (if applicable):
ACCEPTED:
By:
Contractor (Authorized Signature)
Date:
Date:
Kalispell Trail and Complete Street Change Order #3 Form C-941
Project Description: Infrastructure construction Page 3 of 3
Project # 1824-01074