City Reaches Settlement with Turner Construction for Work on Mitchell Park
The City of Palo Alto and Turner Construction Company, who was hired as the construction management firm for the Mitchell Park Library and Community Center, have reached a settlement agreement that calls for the City to retain $425,000 of the $850,000 that the City set aside to pay Turner to complete the project. The settlement agreement with Turner finalizes and completes all of the legal issues associated with the construction of the Mitchell Park Library and Community Center.
The City and Turner Construction first entered into an agreement in 2009 for construction management services related to the Mitchell Park Library and Community Center. Since that time, there have been a number of amendments to the agreement, and in May 2013, the City set aside $850,000 in anticipation of funds needed to pay Turner for completion of the project. Under this settlement agreement, the City retained half of the funds.
In December 2014, the City settled its legal issues with Flintco, and under the terms of that agreement, recovered approximately $700,000. In addition, Flintco agreed to pay all of Big D's costs (the replacement contractor hired by the Surety on the project) for completing the work (estimated to be more than $2 million). The City had a separate contract with Turner for construction management services, and the firm oversaw both Flintco and Big D’s work on the project.
In 2008, the community passed the Measure N bond measure that provided $76 million to fund major facility improvements to three libraries, including the Mitchell Park Library and Community Center. The City originally estimated the cost to construct the MPLCC at $50 million, but final costs for the project are now expected to be between $44 and $45 million.