Background:
The Main Tanks Transmission Main Phase 2B project is the second phase of completing a transmission main that runs from the Castlerock Booster Station to the Main Tanks site. The Main Tanks Transmission Main Phase 2B project was awarded to Freiday Construction, Inc. on June 16, 2026 in the amount of $2,013,570 funded through the Water Expansion Fund. Due to the need to include Survey and Staking in the scope of work because of staffing changes within the survey department, Change Order No. 1 was necessary. As such on August 4, 2026 Change Order No. 1 was approved by the City Council in the amount of $9,000, increasing the total contract amount to $2,022,570.
The original contract included a hard dig allowance of 500 CY. The contractor, Freiday Construction, Inc., has utilized the full 500 CY allowance and continues to encounter hard dig conditions. Change Order No. 2 increases the hard dig allowance from a total of 500 CY to a total of 2,500 CY. The increased allowance is intended to accommodate anticipated hard dig conditions during the remainder of the project. The full allowance may not be utilized, as actual quantities will depend on the conditions encountered during construction.
In addition to the increased hard dig allowance, Change Order No. 2 increases the asphalt pavement replacement quantity from 1,147 SY to 1,500 SY and establishes a new bid item for 1,225 SY of asphalt pavement replacement without slurry backfill. The original asphalt pavement replacement quantity was calculated for a 4 foot wide trench. However, the project addenda specified to use a 5.5 foot wide trench, resulting in an underestimated asphalt replacement quantity. Furthermore, due to the deteriorating condition of the existing asphalt pavement, saw-cutting operations have caused additional crumbling beyond the anticipated pavement replacement limits. As a result, additional asphalt pavement replacement is required to accommodate the revised trench width and restore the areas affected by construction.
Change Order No. 2 increases the contract amount by $500,000 for the hard dig allowance and $106,455 for asphalt quantity for a total of $606,455. This results in a revised contract amount of $2,629,025. The project has an approved budget of $3.5 million, and sufficient funds are available within the existing project budget to accommodate the proposed change order.
Change Order No. 2 increases the contract amount by a total of $606,455 for a revised contract amount of $2,629,025 and will be funded through the Water Expansion Fund.
Staff recommends approval.
Mayor and City Council move to approve Change Order No. 2 for Main Tanks Transmission Main Phase 2B in the amount of $606,455.