Title
RESOLUTION AMENDING CONTRACT C23263 WITH KTM PAVING, INC. FOR THE DECC HOT WATER PIPE REPAIR, INCREASING THE AMOUNT BY $60,998.43 FOR A NEW TOTAL OF $143,641.17.
Body
CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to amend contract C23263 with KTM Paving, Inc. for the DECC hot water pipe repair project, increasing the amount by $60,998.43 for a new total of $143,641.17, payable from 540-0920-1499-5530 (steam, steam department, steam non-operating, improvements other than buildings).
Statement of Purpose
STATEMENT OF PURPOSE: This resolution will authorize an increase in the contract with KTM Paving, Inc. for the DECC hot water pipe repair project by $60,998.43 for a new contract total of $143,641.17.
Duluth Energy Systems supplies the DECC with hot water through a direct buried pre-insulated piping system. The pipe is installed below the water table and began to fail. KTM Paving was issued a contract in the amount of $82,642.74 for excavation work related to replacing existing pipe with improved piping material. Once excavation began, more damage was found than originally anticipated, which required additional excavation and repairs to the parking area and a larger reinforced concrete slab. In addition, the soil which was to be re-used did not meet specifications, so new material was required.
This increase is necessary for the additional work required to repair the unforeseen damages caused by the failing pipe joints.