SR 06:003 - Laserfiche WebLink

liquidated damages will be finalized as part of the claims resolution. The final project costs ~ill be determined after the claims process is completed. Honorable Mayor and Members of the City Council: BACKGROUND On September 17,2002, the City a~arded a $16,524,214005 contract to the Ferma Corporation for construction of the golf course facilities, including: construction of utilities along Alisal Street and a small portion of Sycamore Road to serve golf course development; construction of the roadway and utility improvements for the public streets within the golf course property (West Bridge Lane and Clubhouse Drive; BV A bridges and golf cart bridges; on-site utilities and parking lot; a 5, 500 square foot maintenance building; and the golf course and driving range. A Notice to Proceed was issued on October 21, 2002, and according to our records, construction started on November 12,2002. The Contract specified a time limit for completion of the project of 293 ~orking days. With additional days granted for rain delays and contract change order increases, the date for completion of the project should have been in February, 2005. The City ~ill be deducting $2,500 for each ~orking day in excess of the project completion date 0 The final determination of liquidated damages ~ill occur as a part of the expected claims settlement for the project. To date, sixty-five authorized change orders totaling $2,544,497.71 have been added to the original contracto In addition to the approved change orders, Ferma has requested, or is expected to request, payment for ~ork it believes ~as beyond the scope of the original contract, and for additional costs incurred during construction for unanticipated conditions. Ferma ~ill file these requests in the form of final claims after the project is accepted and final payment has been submitted to Fermao Staffwill analyze the final claims, and enter into negotiations with Ferma in an attempt to resolve the claims. It is expected that Ferma will also wish to negotiate the liquidated damages. If staff and Ferma are unable to agree on the resolution of the claims, the claims process directs that an arbitrator resolve the issue, unless both parties agree to a court resolutiono All ~ork has been completed on the project, and the City has been using the golf course since early Novembero The adjusted contract cost is $19,068,711.76 ($16,524,214.05 bid plus $2,544,497071 in change orders). The final payment request is expected to reduce the adjusted contract price by approximately $1 million, due to work ~hich "Was not required to be performedo The final project cost ~ill not be kn.o~n until the expected claims settlement occurso SR 06:003 Page 2 of3