012-22 - Resolution - Use of Retainage Bond for ACI ConstructionRESOLUTION NO.012-22
A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, AUTHORIZING
THE USE OF A RETAINAGE BOND IN THE ACI CONTRUCTION CONTRACT IN LIEU
OF THE CITY HOLDING RETAINAGE CONSISTENT WITH RCW 60.28.011.
WHEREAS, in early 2021, the City Council authorized the Sidney Avenue Sewer Repair
Construction Project to make time -sensitive repairs to the sanitary sewer infrastructure and
sidewalk and pavement repairs from Dekalb Street to Kitsap Street; and
WHEREAS, on April 13, 2021, the City Council authorized Contract No. 036-21 with ACI
Construction for the Project in the amount of $358,358; and
WHEREAS, in July 2021, the City Council increased the change order authority for the
project by up to $135,000.00 to address anticipated cost overruns and avoid unnecessary
delays; and
WHEREAS, the Contractor has requested to post a bond in lieu of the City holding
retainage, so that the Contractor may receive full payment from the City including retainage;
and
WHEREAS, Staff has discovered that complete retainage forms, including the option to
utilize a Retainage Bond, was not included within the Contract and recommend that the City
accept a Retainage Bond to cure the deficiency; and
WHEREAS, RCW 60.28.011(6) specifically allows a contractor to submit a bond for all or
any portion of the contract retainage in a form acceptable to the City, unless the City can
demonstrate good cause for refusing to accept the Retainage Bond, and such cause is not
present under this contract and bond request; and
WHEREAS, the City Council finds accepting a retainage bond to be consistent with the
intent of state statutes; now, therefore
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES
AS FOLLOWS:
THAT: It is the intent of the Port Orchard City Council that the recitals set forth above
are hereby adopted and incorporated as findings in support of this Resolution.
THAT: The City Council authorized the Public Works Director to accept a Retainage Bond
in lieu of withholding retainage consistent with RCW 60.28.011.
THAT: The Resolution shall take full force and effect upon passage and signatures
hereon and shall be automatically rescinded without further action of the City Council
upon completion of the Sidney Avenue Sewer Repair Construction Project.
Resolution No. 012-22
Page 2 of 2
PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested
by the Clerk in authentication of such passage this 25th day of January 2022.
Robert Putaansuu, Mayor
ATTEST:
Brandy Rinearson, MMC, City Clerk