School Board Briefing/Proposed Action Report

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1 School Board Briefing/Proposed Action Report Informational (no action required by Board) Action Report (Board will be required to take action) DATE: April 1, 2016 FROM: Dr. Larry Nyland, Superintendent LEAD STAFF: Dr. Lester Herndon, Associate Superintendent of Facilities & Operations, (206) I. TITLE BEX III: Final Acceptance for Contract P5011, with Absher Construction, for Renovations at Nathan Hale High School Project 2. For Intro April 6, 2016 For Action April 20, 2016 II. WHY BOARD ACTION IS NECESSARY School Board action is needed to accept the work as finally completed prior to the release of the retention. III. FISCAL IMPACT/REVENUE SOURCE All payments have been made to the contractor from BEX III Capital funds. No outstanding invoices remain with the exception of the contractor s retained amount. Fund Contract Amount Change Orders Sales Tax Total Contract Amount Retention BEX III $39,379,212 $5,145,106 $4,229,197 $48,753,515 $0 Accounting Manager Date: Expenditure: N/A One-time Annual Other Source IV. POLICY IMPLICATIONS For purposes of avoiding disputes over the timing of the filing of liens, the School Board should accept the work as complete prior to the release of the retention. V. RECOMMENDED MOTION I move that the School Board accept the work performed under BEX III Public Works Contract P5011, with Absher Construction, as final. VI. BOARD COMMITTEE RECOMMENDATION This motion was discussed at the Operations Committee meeting on March 31, Committee moved the item forward to the full Board with a recommendation for approval. 1 The

2 VII. BACKGROUND INFORMATION This capital renovation project included the following improvements to Nathan Hale High School: Structural and Seismic upgrades New Boilers and Natural Ventilation Cabinets and System Controls New Lighting and major electrical upgrades New water systems and restroom upgrades New exterior envelope, doors, windows, insulation, roofing New Elevator Painting and refurbishment of interiors including white boards and projectors. New asphalt parking lots, landscaping and green roof New Greenhouse The contractor, Absher Construction, has satisfactorily completed the contracted work, and the consulting Architect, Mahlum Architects, is in agreement and recommends acceptance of the completed work. The total project budget is $86,788,080, including this construction contract, contingency, sales tax, consultant fees, bidding/advertising/printing, permits, technology, books, library, furniture, equipment, and associated costs. The School District selected Absher Construction as the GC/CM contractor in the summer of In the summer of 2009, Absher Construction contracted Prime Electric as the electrical subcontractor. Prime Electric submitted four Requests for Equitable Adjustment (REA) in 2010 and one in 2011 for the phased construction project. The parties unsuccessfully mediated the claims in 2012, which eventually resulted in no discussions for two-plus years. Prime Electric then notified the parties in early 2015 that it was interested again in pursuing its claims. The parties then selected Christopher J. Soelling as the mediator. A mediation hearing was held at the offices of Perkins Coie, LLP on August 28, 2015, which resulted in a settlement agreement between all parties. On September 23, 2015, the School Board ratified the settlement agreement. The school district then issued a settlement check to Prime Electric on October 1, 2015, and proceeded with a final change order, final application for payment, and contract closeout. VIII. STATEMENT OF ISSUE Approval of this motion will allow the District to formally accept the work and close out the contract. IX. ALTERNATIVES Not accepting the project in a timely manner could put the District in a violation subject to litigation. Therefore, this alternative is not recommended. X. RESEARCH AND DATA SOURCES / BENCHMARKS Not Applicable 2

3 XI. TIMELINE FOR IMPLEMENTATION / NEXT STEPS Contractor s One-Year Warranty period expired September 7, 2012 Acceptance of completed project by School Board April 20, 2016 XII. ATTACHMENTS Architect s Final Completion Notice Change Order Memo Project Budget Summary Schedule of Values Board Action Report dated September 23, 2015 Project Closeout Checklist 3

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