26 - Church Street Construction Contract Close OutItem 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.
The contract retainage less the liquidated damages brings the final payment to RDC to
$105,941.97.
BUDGET: Funding is available in the 2017 Street Bond Fund.
RECOMMENDATION: Approve of the final payment and contract close out for Richard Drake
Construction on the 2017 Street Bond Improvements to Church Street from Clarksville to Hearne.