The request is for the City Council to approve a deductive Change Order in the amount of $98,631.92 in respect to the Recreation and Aquatic Center Improvement Project and additionally to authorize the final contract payment in the amount of $110,802.22 to Hennessey Construction Services.

Prior to the commencement of the Recreation and Aquatics Center Improvement Project a project budget in the amount of $1,857,965.00 was established and a portion of the funds were dedicated to owners contingency. The specific amount of the owner’s contingency on the project is $85,027.00.  At the conclusion of the project the amount of funding left as a balance in the contingency account is $47,582.92.  As a result this amount will be held by the City and deducted from the maximum guaranteed price of the project.

Additionally, over the course of the implementation of the project there were opportunities to make value related decisions that provided for an efficiency in either time or materials.  The result of those value related decisions is also reflected in the form of a savings to the project budget. In this occurrence the savings to the city is in the amount of $51,049.00.

Therefore the total amount of the deductive change order is $98,631.92.

Since the project has now been completed it is furthermore appropriate to authorize the final payment.