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6. NEW BUSINESS (Cont'd) j. Ch n e Order No. 3 to Rehabilitation Contract No. 54. Southeast Project E -7: Commission approval was requested of Change Order No. 3 to Rehabilitation Contract No. 54, with Barany Sheet Metal & Heating Company, for an increase in contract amount of $255.00, (Contract: $6:,072.50), or an amended contract total- of: $6,327.50, for rehabilitation work at: 628 East Indiana Avenue,- Southeast Pr ject E -7. During the course of the contract, the hot water heater has begun to leak, causing a serious health and safety problem: Staff re ommends_ the approval for the replacement of the water heater. Tha replacement is a 52 gallon. electric water heater according to city code, in amount of $255.00 including installation. Mot,ion was made by Mr. Wiggins, seconded by Mr. Cira and carried, fo the approval of Change Order No. 3 to Rehabilitation Contract No 54, with Barany Sheet Metal & Heating Company, for an increase in contract amount of $255.00, with an amended' contract total of: $66327.50. Commissioner Robinson asked if the others ever have had the feel- ing sometimes that the contractors might have bid these jobs too cheap and that sometimes all these extras they have is to compen- sa e for their low quote or something? The Chair agreed-that is a possibility. Commissioner Cira replied that he.has also had that thought before himself and knows how they feel about it. Mr. Larry Ford, WSJV -TV Reporter, asked the Commissioners what they are going to do about it and also shouldn't the work schedule be closer to the inspections? Commissioner Cira said they have brought this up before and the staff advises they can't do it. Commission Legal Counsel, Mr. Kevin J. Butler, advised on Item 6 , on the Agenda, we should be seeing some improvement in that respect, as those are the newer contracts and are on the new program. The others noted as Rehabilitation Contract Nos., e.g., 48 54 above, etc., are on the old Southeast Program. On the ne program approved, the contractors are picking up the schedules an procedures that are to be used. (SECD /PR /CS- 1/02). Commissioner Wiggins raised the question on the prices of the elec- tr c water heaters. On the new program, the change order request on 6 -L, the water heater replacement is $185.00, whereas on this change order we are paying $255.00. Mr. Brownell said he also raised that question and requested Mr. Crighton'to explain the difference. Mr. Crighton advised he talked to our cost estimator a little while ago on why the wide variation in price, and he ad- vised that the average cost for electric water heaters was $270 - $2 5. The price itself depends on the general contractor's markup, who puts it in for him, the type of liner, the duration of the war - ra ty on the unit, where it is purchased obviously, and if there is an3 additional work required for the plumbing system to facilitate installation. A number of factors are involved. Also, the price quoted from Bailey Electric of $185.00 is a very good price and he ga a us a break. - 10 - C.O. NO. 3 TO CONTRACT NO. 54 AP- PROVED, SOUTHEAST E -7