Subject:
Title
Consider approving a Change Order dated April 21, 2020 to the previously entered into Comprehensive Agreement between The Harrisonburg City School Board and Nielson Builders, Inc.
Body
Presented By: Chris Brown, City Attorney
Recommendation and Review
Last December City Council approved a Comprehensive Agreement between the School Board and Nielson for the construction of a second high school in the City. The City was required to approve the Comprehensive Agreement to approve the School Board entering into the agreement and to provide funding. Construction has been progressing since that time, with significant site improvements taking place. City staff anticipated that the City would issue bonds earlier this year to finance the cost of the new high school, with cost paid for by the City’s fund balance until the bond issuance. Due to the COVID-19 pandemic and resulting economic consequences, the City anticipates suffering a significant decline in revenue, and has determined it would be imprudent to issue bonds at this time due to the volatile bond market. Therefore, the School Board and Nielson have agreed to the attached Change Order which effectively halts construction of the new high school until next Spring. At that time, a determination can be made as to the proper schedule for the continuation for the project. This Change Order provides that Nielson will be paid for all work performed thru April 30, 2020, and for Nielson to perform additional work solely for the stabilization of the project site in order to comply with applicable soil and erosion control and stormwater control laws. City and School staff are still finalizing the estimated cost for stabilizing and monitoring the site. Nielson also will be paid retainage withheld from its first three payment applications for the project.