City, contractors negotiate over Waterfront Park charges

Six months after Henry C. Chambers Waterfront Park reopened to the public, Beaufort continues to question charges from the contractor, whose requests could push the total cost of the park renovation above $8.6 million.

When including interest on money borrowed to complete the renovation, Beaufort's expenditures could reach $10.1 million.

The project has cost about $8.2 million so far, including $6.4 million paid to Charleston-based contractor Brantley Construction. A final payment request from Brantley, which the city is reviewing, would bring the firm's compensation to $6.8 million.

The contract called for Brantley to be paid $6.7 million for the renovation, which began July 25, 2005, and was completed Dec. 23. When work began, the park was expected to be completed by June 13, 2006, in time for last year's Water Festival, but Brantley hit a variety of snags that prompted it to request more time and money from the city.

"There are always challenges (in construction projects), particularly in the case of the park," said Mayor Bill Rauch. "There were surprises underground that cost us time and money."

How much time and money they should cost, however, is a matter of dispute.

Brantley claims unforeseen circumstances increased the value of its work by more than $1 million; the company is seeking nearly $7.7 million for the entire project. City officials, however, have only agreed to about $180,00 over the original contract.

Gary Brantley, vice president of Brantley Construction, said the company still is seeking the additional money from Beaufort, but he stopped short of threatening a lawsuit.

"The change orders we have submitted to the city are still considered as outstanding and they have not been resolved at this time," he said. "We look forward to working with the city to reach an amenable solution to the differences that we have."

Beaufort CFO Shirley Hughes said a letter will be sent to Brantley next week that will outline the city's position and that "we are always open to negotiations."In addition to the contractor's request for additional money, the city differs from Brantley on the issue of late fees.

The contract signed in 2005 entitles Beaufort to collect a $600 from Brantley for each day the renovation was overdue, but Brantley claims all those fees should be waived. Beaufort agreed to waive late fees for 78 days, leaving the project more than 100 days overdue at the time of completion.

Beaufort has not yet charged any late fees, but Hughes said the city "will enforce all our rights under the contract."

Aside from Brantley, about 10 companies were part of the park renovation project, costing the city $1.75 million.

Charlotte, N.C.-based land planning and urban design firm ColeJenest & Stone received the largest amount, at $654,000; construction manager Collins Engineers received $360,000; planning and design firm Sasaki Associates was paid $198,000; and REA Construction was paid $106,000.

All the renovations are covered by a one-year warranty. Brantley workers were in the park this week repairing some sinkholes near the seawall by the Downtown Marina. Beaufort Public Works Director Isiah Smalls said the holes were caused by a leak in the drainage system.

The city borrowed $3.5 million from BB&T to pay for the Waterfront Park renovation, which must be repaid by 2020. The interest on that loan will be $1.1 million, Hughes said. The city is considering an additional $1.5 million loan from BB&T to help pay for the park, which would cost an additional $480,000 in interest.

Despite the large price tag, Rauch said the renovation had to be done.

"The Waterfront Park is the premier park in the city and one that draws visitors here and anchors the downtown," he said. "It had to be fixed because it was unsafe."

The park, which was built in 1976, had many structural problems when the renovation began in 2005. Seawall deterioration had allowed tides to erode soil under the park, causing drainage pipes to sag and break, creating sinkholes and endangering park structures. The park's electrical wiring and fixtures also failed to meet modern standards.

In addition to repairing those elements, the renovation project included a new pavilion, playground and restroom building.

"The park is a real asset to Beaufort as well as everybody else that comes to Beaufort," said City Councilman Gary Fordham. "(The renovation) was a good project, and I'm glad that we did it ... and hopefully the city will do any maintenance work that's required so we won't have to do such an extensive project the next time."

This story was originally published July 7, 2007 at 10:07 AM with the headline "City, contractors negotiate over Waterfront Park charges."