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Council approves change orders and contract adjustments for water and capital projects
Summary
Council approved multiple contract adjustments and change orders related to ongoing capital projects, including additional work to address infiltration during construction, a sales-tax reimbursement-related change to a generator contract, and closeout steps for a grant-funded parking project that require a budget amendment.
The Reidsville City Council approved several contract adjustments and budget steps to finalize and address issues on ongoing capital projects.
Staff told council that a capital project encountered infiltration and damage during construction that required additional work beyond the original contract. Council approved a change to cover that work. Staff also described a change order for the water-treatment-plant generator enclosure project: because sales tax was included in contractor payments, the city will adjust the contract to reflect estimated sales tax ($166,600) with the expectation of later reimbursement through the state’s sales-tax refund process.
On a separate grant-funded parking project, staff reported that the contractor agreed to complete two final maintenance items before final payment and that some mitigation and engineering costs remain unpaid. Council was asked to accept the project, adopt a capital budget ordinance related to the closeout, and approve a budget amendment transferring roughly $27,000 to cover remaining items; motions were made and approved.
Council also considered and approved a lease renewal for telecommunications space on a city water tank under existing terms (including an annual 4% increase) and moved forward on a staff recommendation to send a draft letter and resolution to NCDOT to request transfer of maintenance for E. Wilkins Way to the city. Staff estimated maintenance would begin about 60 days after the state’s transportation board processes the request.
Staff emphasized that although sales tax appears in contractor billings, the city expects the tax to be reimbursed at fiscal year end; the change orders reflect accurate contract accounting rather than a permanent new expense, officials said.
