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8.8 CO1 Elevated Water Tank CITY OF SALINA REQUEST FOR COMMISSION ACTION DATE TIME 03/22/93 4:00 P.M. AGENDA SECTION: Administration ORIGINATING DEPARTMENT: APPROVED FOR NO. 8 Water and Wastewater AGENDA: 8 BY: Don Hoff BY: Item Change Order No. i for Elevated Water Tank, Project No. 92-865. Back~round The contract to construct a 500,000 gallon elevated water tank near the intersection of Cloud St. and Narkley Rd. was signed on November 23, 1992. In the past, water tower construction projects were exempt from Kansas sales taxes. The project specifications for this tower did not include sales tax. However, a recent ruling by the Kansas Department of Revenue based on a change in the tax laws removed the tax exempt status from water tower projects. This change order includes the applicable Kansas sales tax not included in the original contract documents. The Contractor, CBI Na-Con, Inc., has determined the applicable Kansas sales tax on materials, equipment, tools, and consumables on this $391,090 project to be $13,425. Recommendation It is recommended the City Commission approve Change Order No. i for Project No. 92-865 in the amount of $13,425.00. COMMISSION ACTION MOTION BY SECOND BY TO: CHANGE ORDER LOCATION: Salina~ Kansas PROJECT NO.: 92-865 PROJECT: ELEVATED WATER TANK CHANGE ORDER NO.: ONE (1) CONTRACTOR: CBI NA-CON~ INC.~ 601W 143RD STREET~ PLAINFIELD~ ILLINOIS 60544 THIS AGREEMENT, made and entered into this day of MARCH , 1993, by and between the CITY OF SALINA, KANSAS, Owner, and the above named Contractor, modifies the existing contract dated November 23~ 1992 , under the above subject, project and project number in the following particulars to wit: 1. The specifications and drawings for certain street improvements in the City of Salina, Kansas, dated October - 1992 ,. are hereby amended in the following particulars only; all other terms and conditions remain unchanged. {a) Prior to the submittal to the bid proporal, several bidders requested a clarification of the specifications relating to the tax status of this project. (b) CBI Na-Con, Inc. and all the other bidders were advised by the Owner not to include Kansas Sales Tax in their bid proposals. In the past, similar water tower projects were tax exempt. The State of Kansas, however, recently denied a request for a tax exemption certificate for this project. {c) The scope of this Change Order No. i involves compensating the Contractor, CBI Na-Con, Inc. for Kansas sales tax (6.90%) on this project. This compensation amount shall be paid for at a lump sum price as Bid Item No. 3, "Kansas Sales Tax." CHANGE ORDER PAGE 2 ITEM UNIT NO. DESCRIPTION QUANTITY UNIT PRICE TOTAL 13,425.00 13,425.00 3. KANSAS SALES TAX I L.S. ~ $~ 13,425.00 CHANGE ORDER TOTAL: $ ~ 2. Additional time for completion by reason of this change 0 days. 3. All other terms and conditions of the contract to remain unchanged. OWNER, FIRST PARTY CONTRACTOR, SECOND PARTY THE CITY OF SALINA, KANSAS CBI NA-CON, INC. BY: BY: ,'~,:::z~z~-~' ~ ~ MAYOR David A. Seykot~ Contracting Engineer (Office or position of signer) Attest: CITY CLERK