COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Manager’s Office

 

DATE:

January 8, 2007

BOARD MEETING DATE:

January 23, 2007

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

4/5ths

 

TO:

Honorable Board of Supervisors

FROM:

Paul Scannell, Assistant County Manager

SUBJECT:

San Mateo County Youth Services Center

 

RECOMMENDATION:

(1) Authorize execution of Revision Order 23 with Turner Construction Company in the amount of $2,271,965.

(2) Adopt a Resolution authorizing the execution of a Settlement and Mutual Release Agreement with Turner Construction Company.

 

(3) Approve an Appropriation Transfer Request (ATR) transferring Criminal Justice Construction Fund Reserves of $900,934 to Capital Project Expense to make the final Settlement payment.

 

VISION ALIGNMENT:

Commitment: Ensure basic health and safety for all.

Goal 8: Help vulnerable people—the aged, disabled, mentally ill, at-risk youth and others—achieve a better quality of life.

This project contributes to the commitment and goal by consolidating youth services in one location in a new state-of-the-art facility to benefit youth, families, staff, and community. Capital Projects has completed the Youth Services Center project and turned it over to the operating County departments.

BACKGROUND:

On October 22, 2002, by Resolution No. 65620, the Board of Supervisors authorized the County Manager’s Office to execute an agreement with Turner Construction Company to provide construction management, architectural and engineering services for the San Mateo County Youth Services Center. The County is responsible for changes authorized by the County or caused by unforeseeable circumstances, such as differing site conditions; the trade contractors or Turner are responsible for other costs.

The Youth Services Center construction project (the “Project”) is now substantially complete and the County is using and occupying the buildings. Revision Order 23 completes and resolves the determination of final payment for the undisputed portions of the work and services performed by Turner under its construction management services contract with the County. There are punch list items and services that still must be completed. The parties have been discussing their responsibilities for the punch list items, and for other work and services that may have been provided to, or omitted from, the Project.

 

DISCUSSION:

Revision Order 23 is part of the final resolution of all of the outstanding claims and issues between Turner and the County in connection with change orders for the revisions necessary to properly complete the Project.

As a result of negotiations, Turner and Capital Projects have prepared a Settlement and Mutual Release Agreement (“Agreement”) that identifies, and provides for, the completion of all tasks necessary or appropriate to finalize and closeout the work on the Project, including punch list items. The Agreement also provides for a payment of an additional $1,373,969 to Turner from the County, and for the release and settlement of any claims between the parties. Execution of Revision Order 23, together with the Agreement, should assure the final completion of work on the Project without additional cost to the County, or claims by or against the County, Turner, or any of its contractors or subcontractors.

 

FISCAL IMPACT:

The project budget is $148,203,000. This project is funded by the sale of lease revenue bonds and a Federal grant. This revision order will amend the contract as follows:

Vendor

RO

Original

Contract

Prior

Revisions

This

Revision

Revised

Contract

Turner

23

$13,831,314

$111,705,222

$2,271,965

$127,808,501

The final amount owed Turner is $7,981,340, which includes $2,271,965 in Revision Order 23, the payment of the additional $1,373,969, and $4,335,406 in retention on the current contract now to be released at job’s end. US Bank currently holds bond/grant proceeds budgeted for this phase of the contract of $7,080,406. The ATR will provide the needed funds to make up the difference. There is no impact on the General Fund.