Committee approves change order for TH-371/Willow Street roundabout with higher per-ton cost

Public Works Director Habegors presented change order number 2 for improvement project 20 313 — the Trunk Highway 371/Willow Street roundabout — explaining that the originally listed subcontractor, Anderson Brothers, is ineligible under MDOT guidance and that Landware submitted a replacement proposal using Knife River.

Habegors said the unit price for this job is significantly higher than the Beach/Oak Ridge item because the roundabout’s estimated tonnage is larger. "This price here is $21.32 per ton," he said, and the estimated amount is about 29,000 tons. He recommended approval of the second change order; staff noted this is the second change order submitted but the first change order is still being processed.

Committee members asked whether scheduling conflicts and the number of projects Landware has underway affected performance. Habegors said both projects are "right on schedule" and reiterated that the difference in pricing relates to quantity and local contractor availability. Several members raised broader procurement concerns: if a subcontractor becomes ineligible or defaults, should the prime contractor or the city absorb resulting cost increases? One committee member called for staff to review contract wording and for the city attorney to weigh in.

A motion to approve change order number 2 was moved, seconded and approved by the committee; the chair announced the motion carried. The transcript does not record individual vote names. Staff said the earlier change order (the "first" change order) is still being processed and will appear in a future council meeting.