To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: Final Settlement for Miller Wellness Center - Crisis Stabilization Unit Project
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Public Works Director, or designee, to sign final Change Order No. 4 with CWS Construction Group, Inc. (CWS) in the amount of $123,734.49 to settle all claims from the Miller Wellness Center - Crisis Stabilization Unit Project.
FISCAL IMPACT:
Funds of $123,734.49 for the proposed settlement amount will come from Mental Health Realignment funds from the Health Services Department.
BACKGROUND:
The Miller Wellness Center - Crisis Stabilization Unit Project was substantially complete on November 10, 2023. The initial contract amount was $1,365,000. Mutually agreed change orders during construction, totaling $160,309.87, raised the construction contract amount to a sum of $1,525,309.87. During the project and after its substantial completion, CWS filed construction claims totaling $867,335. These claims consisted of a variety of issues, including delays allegedly caused by the County, differing site conditions and defective plans/specifications, extra work ordered by the County, unpaid retention, interest, and attorney’s fees.
In a nonbinding mediation held on January 22, 2025, the County and CWS tentatively accepted $123,734.49 as settlement of all claims and disputes, subject to approval by this Board and the execution of a final change order.
CONSEQUENCE OF NEGATIVE ACTION:
Not approving the settlement will expose the County to potential litigation and all the costs and risk associated with an unknown outcome and could cost the County well in excess of the tentative settlement amount.