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