It is recommended that the City Council:
  
1. Authorize the transfer of $412,000.00 from the Water and Sewer Operating Fund to the Water Capital Projects Fund in the amount of $70,000.00 and Sewer Capital Projects Fund in the amount of $342,000.00;
  
2. Adopt the attached appropriation ordinance increasing the estimated receipts and appropriations in the Water Capital Projects Fund in the amount of $70,000.00 and in the Sewer Capital Projects Fund in the amount of $342,000.00 from available funds; and
  
3. Authorize the City Manager to execute Change Order No. 2 in the amount of $412,000.00 to City Secretary Contract No. 37269 with Conatser Construction TX, LP, for Water and Sanitary Sewer Main Replacement on East Rosedale Street, Contract 3, Unit II, thereby increasing the contract amount to $4,570,516.00.

On June 17, 2008, (M&C C-22875) the City Council authorized the City Manager to execute a contract in the amount of $4,158,516.00 with Conatser Construction TX, LP, for the Water and Sanitary Sewer Main Replacement on East Rosedale Street, Contract 3, Unit II.  The contract was subsequently revised by Change Order No. 1 administratively approved by the City Manager on March 18, 2009, that provided additional time on the project for delay involved with obtaining a railroad permit from Union Pacific Railroad.
  
The project includes the installation of water and sanitary sewer mains on Rosedale Street (Mansfield Highway to Riverside Drive), Riverside Drive (East Rosedale Street to Avenue C), Avenue D (Riverside Drive to 500 feet east) and Freeman Street (Mansfield Avenue to White Street).
  
During water and sewer main installation on the identified streets, unstable subgrade material that was encountered necessitated the installation of flowable fill material to stabilize and prevent collapse of segments of the streets.
  
Staff considers the Change Order amount to be fair and reasonable and recommends approval.
  
M/WBE - Conatser Construction TX, LP, is in compliance with the City's M/WBE Ordinance by committing to 20 percent M/WBE participation on the total project.
  
The project is located in COUNCIL DISTRICT 8.