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CITY COMMISSION AGENDA ITEM |
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Department: |
Finance |
Commission Meeting Date: April 16, 2019 |
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Staff Contact: |
Jeremy Willmoth, Finance Director Matt Bond, Project Manager |
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Recommendations/Options/Action Requested: |
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Authorize the City Manager to rescind purchase order #018725, issued to Pavers, Inc. for Reconstruction of East 9th Street (2018 CIP# PW17E66), and reissue the remaining funds to the surety, Westfield Insurance Company. Authorize the issuance of a check in the amount of $203,264.68 to Westfield Insurance Company. |
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Executive Summary: |
The bid for the East 9th Street Project was awarded to Pavers, Inc. in June 2018 for $2,079,114.30. The current contract amount is $2,222,903.69. The work completed to date totals $1,262,410.08 and is 57% of the contract amount. The project is substantially complete between New Hampshire and the alley east of Connecticut. Active construction is ongoing between New Jersey and Pennsylvania. The remainder of the project begins at the alley east of Connecticut and extends to New Jersey.
The legal counsel for RD Johnson Excavating Inc. emailed City Staff on February 25, 2019 with a claim that their client had not received payment for work performed on the project and requested copies of the project contract and payment bond. The email also stated that counsel was hopeful for a quick resolution to the situation. City staff provided legal counsel with the requested information. On March 11, 2019 legal counsel for RD Johnson contacted City staff seeking verification of payment for pay estimates associated with the project. Staff provided information confirming the City had paid all pay estimates on time and in full, less retainage.
The City’s direct communication with the surety’s counsel, Westfield Insurance Company, began on March 26, 2019. Since that time, the City has worked with the surety to resolve the current situation and ensure the project’s completion.
On April 5, 2019, Pavers Inc. provided copies of signed lien releases for all sub-contractors except RD Johnson Excavating Inc. The lien releases indicated that all sub-contractor accounts were paid commensurate with work performed to-date.
Pavers, Inc. submitted the current payment application in the amount of $203,264.68 for work completed through March 21, 2019. The City reviewed the application and determined the amount is acceptable for work completed.
Under the conditions of the performance bond issued with the project if the contractor does not pay subcontractors for work performed, the surety will pay the same amount in any amount not exceeding the amount of the obligation, together with interest as provided by law. Paver’s Inc. has provided a letter indicating this payment and all future payments shall be directed to the surety and shall require consent of the surety. |
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Strategic Plan Critical Success Factor |
Innovative Infrastructure and Asset Management Core Services Sound Fiscal Stewardship |
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Fiscal Impact (Amount/Source): |
Directing funds to the surety instead of directly to the contractor does not change the fiscal impact to the City. The project was approved in the 2018 Adopted Budget (2018 CIP# PW17E66) and is funded by General Obligation debt. |
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Attachments: |
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Previous Agenda Reports: |
Approve change order 2 in the amount of $86,865.62 to Pavers, Inc. for work performed on Capital Improvement Project PW17E66CIP, E. 9th Street from New Hampshire Street to Pennsylvania Street. Staff Memo & Attachments
Approve Change Order No. 1, in the amount of $54,605.97, to Pavers, Inc. for work performed on CIP PW17E66CIP, E. 9th Street Project, from New Hampshire Street to Pennsylvania Street. Staff Memo Correspondence - Added 10/16/18
Award Bid No. B1832 for CIP No. PW17E66 - East 9th Street, New Hampshire Street to Pennsylvania Street, Street, Sidewalk, and Storm Sewer Construction, to Pavers, Inc. in an amount of $2,079,114.30. Bid Memo & Attachments
Receive review of final design plans for E. 9th Street (CIP #PW17E66) and authorize staff to solicit competitive bids for the project upon completion of easement acquisition and utility relocation. Staff Memo & Attachments |
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(for CMO use only) |
☐TM ☐DS ☐CT ☒BM |