Explanation
1. BACKGROUND
This legislation authorizes the Director of Public Service to modify and increase an existing contract with Shelly & Sands, Inc. for the Arterial Street Rehabilitation - Morse Road Phase 1 - Seward Street to Stygler Road project in an amount of up to $3,275.58. It also authorizes the refund of any unused funds deposited by MORSO Holding Company for construction, construction inspection and administration for this project upon the completion of final accounting or when the Department of Public Service determines remaining funds are no longer needed for construction inspection and administration for the project.
Ordinance 1303-2020 authorized the Director of Public Service to enter into contract with Shelly & Sands, Inc. for the construction of the Arterial Street Rehabilitation - Morse Road Phase 1 - Seward Street to Stygler Road project and to provide for construction administration and inspection services.
Shelly & Sands, Inc. was awarded the contract as the lowest, responsible, and best bidder for their bid of $6,299,921.84 which included a base bid of $5,727,201.68 plus a 10% contingency of $572,720.16. The 3P developer, MORSO Holding Company, deposited 50% of the contingency in the amount of $286,360.08 at the time of award. Accordingly, the initial contract was legislated with ordinance 1303-2020 in the amount of $6,013,561.76 to reflect a reduction in the project contingency amount from 10% to 5% of construction costs. MORSO Holding Company deposited the remaining 50% of the contingency in the amount of $286,360.08 in February 2021. In accordance with ordinance 1303-2020, a contract modification was to be executed after the remaining contingency was deposited to increase the contract amount to $6,299,921.84.
As of December 5, 2022, all work on the project is complete and final acceptance has been issued. Additionally, final quantities are agreed and the final estimate has been requested. When the final estimate was draf...
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