Commission approves Union Town Square change orders, adjusts contractor billing approach

The City of Union Commission on Oct. 6 approved changes to the Union Town Square construction contract intended to reduce future contractor markups and align purchasing to save sales tax.

Mayor Larry Solomon told the Commission that follow-up meetings with project parties resulted in an agreement that future change orders will be billed at 5% contract profit rather than the previously discussed 15%. Public Works Director Paul Kremer asked the Commission to approve change order number one in the amount of $90,204.06; the motion passed 4-0 (Commissioners Bine, Eldridge and Tuyn plus the mayor voting yes; Commissioner Mefford absent).

Kremer also explained change order number five will change how the city pays for certain materials: rather than passing purchases through the general contractor, the city will issue direct purchase orders and write vendor checks, which Kremer said reduces the contract amount paid to Mark Spaulding Construction Company by roughly $4.7 million. Commissioner George Eldridge moved approval of change order five and Commissioner Doug Bine seconded; the motion passed 4-0.

The Commission discussed potential additional costs related to electrical service: Kremer said Duke Energy’s work to provide power may require replacing a planned single-phase transformer with a three-phase unit, which could produce another change order; the Commission deferred a final decision to the October Caucus meeting. CAO Amy Safran presented slideshow photos showing the previously approved playground equipment for the park.

The approvals alter procurement and accounting for the Town Square project and direct the administration to continue monitoring future change orders and utility-related cost adjustments.