To approve an increase to the current awarded contract amount of $1,636,719 by $299,350 for a total contract amount of $1,936,069 for Arterial Concrete Repair Custer Road - Spring Creek Parkway to Hedgcoxe Road, Project No. PW-S-00068, from Vernara LLC for the Public Works Department; and authorizing the City Manager to execute all necessary documents. (Contract No. 2025-0321-B; Change Order No. 1) Approved

On July 28, 2025, City Council approved RFB No. 2025-0321-B for Arterial Concrete Repair Custer Road - Spring Creek Parkway to Hedgcoxe Road, Project No. PW-S-00068, for the Public Works Department to Vernara LLC in the amount of $1,636,719.

Public Works recommends the approval of Change Order No. 1, increasing the current awarded contract amount of $1,636,719 by $299,350, for a total contract amount of $1,936,069 to Vernara LLC for Arterial Concrete Repair Custer Road - Spring Creek Parkway to Hedgcoxe Road Project, No. PW-S-00068.

This change order is for additional quantities of contract items that are necessary to complete arterial concrete repairs identified in the field by Public Works staff during construction. Additional repairs are required due to further deterioration of the pavement and drainage issues discovered during project progress that were not evident during inventory.

These repairs are necessary to ensure the street is repaired in preparation for the future asphalt overlay placement. Typically, estimates for concrete repairs are within 10% - 15% of the actual street repairs needed within the project limits. In this case, the estimate was about 18% lower than the actual repairs needed. This change order will not increase the per unit costs of the work being performed. Funding for this change order will come from funds available for arterial street repairs.

If this change order is not approved, the remaining area will be added to the upcoming Custer Road project from Hedgcoxe Road to State Highway 121 planned to bid in Spring 2026. The City would be at risk for higher per unit costs and a prolonged construction process.

Funding for this item is budgeted in the FY 2025-26 Street Improvement CIP. The first change order to the contract with Vernara LLC for Arterial Concrete Repair Custer Road - Spring Creek Parkway to Hedgcoxe Road, Project No. PW-S-00068, in the total amount of $299,350 will leave a balance of $263,332 for future expenditures.

Approval of this item will support the City's Strategic Plan Critical Success Factor of being an Excellent, Innovative, and Accountable City Government.