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Council approves $6.18M contract and owner allowance for town-center pedestrian tunnel

Johns Creek City Council · September 30, 2024
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Summary

Council approved a $6,184,823 construction contract with Vertical Earth Inc. for a town-center pedestrian crossing, including a $400,000 owner allowance and a 10% contingency; the CEI task order with KCI ($255,000.50) was included. The motion passed with one recorded nay.

Johns Creek's City Council approved construction of a Town Center pedestrian crossing by awarding a base construction contract to Vertical Earth Inc. for $6,184,823, adding an owner allowance of up to $400,000 for alternate protective-barrier design work, a 10% construction contingency, and a CEI (construction engineering and inspection) task order to KCI for $255,000.50.

Assistant City Manager Bennett described the owner allowance as an option the council could authorize now or later; he said any owner allowance would not be expended without a future council action or budget amendment. "The $400,000 is not spent unless you make a decision on what that add alternate looks like," Bennett said. Councilmembers debated whether to include the allowance now (arguing it can reduce later change-order premiums) or to keep the contract limited to the base scope and separately bid optional work.

Supporters said rebidding elements later often leads to higher prices and slower schedules; opponents preferred to limit immediate scope to the base contract. Council voted to approve the contract as presented with the owner allowance and contingency; the motion carried with one recorded nay. Several councilmembers described the project as an important element of Creekside Park activation and pedestrian connectivity. Staff said the project will proceed with phased implementation and that final additional elements would return to council for approval if used.