Board delays action on change order and payment request for lead service-line replacements pending DNR review and more documentation

The Board of Public Works discussed a proposed change order and a pay estimate related to replacement of lead service laterals with Community Infrastructure Partners but did not take final action May 27, opting to wait for additional documentation and state approval.

Staff described a requested change order tied to price increases from 2024 to 2025 and a shift from partial service-line replacements to full-service replacements. The contractor is seeking an additional $900 per lateral for the approximately 853 full-service replacements being performed, according to the meeting discussion. Staff also noted that, because the project is a state-funded project, the Department of Natural Resources (DNR) must approve the change order before the city may move forward.

The packet included a pay estimate request of $240,310.90 that staff said would be submitted to the DNR for reimbursement. Board members asked whether the change order would fit within remaining contingency funds and noted a remaining contingency figure of $630,000 in the packet; one member said the packet also showed the change order amount had already been included in a revised total contract figure, though meeting participants sought clarification.

Several members recommended tabling the matter so a City representative and a contractor representative (5 Star) could be present to answer questions and to allow review of the original contract terms. The board voted to table the change order and related pay estimate until the next meeting; no approval or payment authorization was made.