26 - Church Street Construction Contract Close Out

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Item No. 26 TO: Mayor & City Council Gene Anderson, Interim City Manager FROM: Carla Easton, PE, Engineering & Community Development Director SUBJECT: CHURCH STREET CONSTRUCTION CONTRACT CLOSE OUT DATE: March 11, 2020 BACKGROUND: In May 2017, voters authorized the sale of $9.5 Million in bonds to improve city streets. Church Street was ranked at the top of the list for reconstruction. The improvements included new sanitary sewers, water lines, storm sewers, full depth pavement replacement, curb and gutters, sidewalks, curb ramps, decorative crosswalks, and street lighting. The contract plans and specifications were prepared by Grantham & Associates, and a contract was awarded to Richard Drake Construction (RDC) in July 2018 for an amount of $2,922,117.65 with a contract time of 300 calendar days. In August 2019, Council approved of contract Change Order No. 1 for the addition of asphalt paving on Washington St, Hubbard St, and the small parking lot at Church and Kaufman St intersection, increasing the contract amount by $136,294.65 and bringing the total contract amount to $3,058,412.30. This change order also approved an additional 54 days to the contract time due to inclement weather. Time under this contract commenced on October 1, 2018, so final completion per the contract documents was due on September 20, 2019. STATUS OF ISSUE: RDC has completed all work under this contract and requests final acceptance and release of retainage upon acceptance by the City Council. The final billing for all work completed under this contract is $2,888,839.45. Progress payments have been made in accordance with the contract documents, and the only remaining payment is for the retained amount of $144,441.97. Church Street was substantially complete in December 2019, however the contract also included drainage work along Hearon St, which RDC proposed to do after the holidays. Contract time was suspended through the holidays until they mobilized to Hearon St to complete the drainage, which took 14 days. The total time used to complete the project is 431 calendar days, 77 days over the contract time. Per the contract, liquidated damages can be charged at $500 per day for each day over contract time, therefore RDC owes the city $38,500 in liquidated damages, should the Council want to enforce.