PenMet fires contractor for Phase 1 of rec center project. How will that affect timeline?
PenMet has fired one of the contractors for its recreation center project after a setback occurred during Phase 1 of construction.
The entire project at 2416 14th Ave. NW was approved by the PenMet board in 2021 for $31.6 million. It’s being built in two phases by two different contractors.
Phase 1 is a $1.5 million contract and turns a 7,730-square-foot facility building that used to be a golf pro shop into PenMet Parks’ permanent administrative headquarters and additional community program space.
The 58,000-square-foot rec center facility is being built in Phase 2.
The entire $31.6 million project budget covers construction costs and soft costs, such as permit fees, sales tax, design fees, fixtures, furnishings, equipment and project contingency, Ally Bujacich, executive director for PenMet Parks, told the Gateway in May.
PenMet issued invitations to bid for each phase of construction. It chose one construction company for Phase 1 and another for Phase 2, Jacquie Goodwill, marketing coordinator for PenMet, told the Gateway.
Things took a turn after PenMet fired the contractor for Phase 1 after it allegedly did not finish the septic system and other fire and life safety elements critical to obtaining occupancy by the agreed completion date, Goodwill said.
PenMet Parks issued a Notice of Termination on Aug. 3.
“There is a deficiency list of more than 130 items,” Goodwill said. “About a dozen of those are needed to meet substantial completion and receive occupancy for the building.”
The construction company, Grenlar Construction, was supposed to have the work substantially complete by May 12, according to Goodwill.
“The delay in reaching substantial completion is 100% on PenMet,” Grenlar said in a 73-page statement sent to PenMet Aug. 10 and to the Gateway Oct. 16. “There are only two items currently delaying substantial completion: the drain field and the handicap operator at the front door.”
Delays with the septic system stem from the drain field, according to Grenlar’s statement.
“The only item hindering the completion of the septic system is the inoperable drain field which is the responsibility of PenMet,” the statement said. “It is undisputed that the drain field is not within Grenlar’s scope of work.”
On June 5, the statement said, Grenlar and PenMet were both present as the septic system was tested.
“During the test multiple sections of the drain field failed and did not flow properly,” according to the statement. “All noted that the drain field was not functioning properly. No issues were noted as to Grenlar’s work.”
Grenlar alleged PenMet then hired a plumbing company to “come out and tamper with NW Cascade’s (a sub-contractor of Grenlar) work on the Septic System,” the statement said. “This resulted in cut water lines, mud flowing into the tanks and lines, warped tank lids, tanks emptied (risking movement and floating), pumps being run dry, electrical boxes and panels opened and wiring moved.”
To date, PenMet has paid Grenlar about $900,000 of a $1.5 million contract, Goodwill said.
PenMet Parks is withholding the balance of the Grenlar contract funds until the cost of correcting and completing the work for Phase 1 has been determined, Murray said.
“For almost three months after the agreed-upon completion date, PenMet Parks made every reasonable effort to encourage Grenlar Construction to meet substantial completion and receive occupancy for the building,” Zemorah Murray, a spokesperson for Pen Met told the Gateway. ”We were disappointed when the contractor failed to reach substantial completion as we originally agreed. It prevented us from moving into the new Administration building this spring, as planned.”
PenMet Parks is withholding the balance of the Grenlar contract funds until the cost of correcting and completing the work for Phase 1 has been determined, Murray said.
PenMet had to extend its lease on its offices at 5717 Wollochet Dr. through October until septic work is complete. The lease extension cost the district $8,653.99 per month.
“In the event that the unpaid contract amount is not sufficient to pay for the cost to correct and complete the work, and recover liquid damages, PenMet Parks will hold Grenlar Construction and its payment and performance bond accountable for those costs so they are not borne by taxpayers,” Murray said.
After issuing a competitive bid, Pen Met has selected a new contractor that is “working expeditiously to complete the project,” Goodwill said. J.A. Morris Construction is the new contractor for Phase 1 with a contract for $220,565, Murray said.
“The work is anticipated to be substantially complete by October 13, 2023,” Murray said.
Phase 2 in still on track
Construction for Phase 2 began in late August.
PenMet awarded a $20.7 million contract to Jody Miller Construction, based in Puyallup, to complete Phase 2.
The company has done projects such as Ocean5 in Gig Harbor and the South Tacoma Community Center.
PenMet has identified cost savings efforts within the project for the budget to remain the same as planned, and Phase 2 is on track for a completion date of late fall 2024, Goodwill told the Gateway.
Pen Met is not cutting or reducing any part of the project, Murray said.
“We have received roughly $1 million in grant monies through the State of Washington to perform LEED Certification, which is outside the budget and results in a zero-dollar net effect on the project,” Goodwill said. “Currently, that is the biggest cost-savings that we have and will have a positive ripple effect on our building efficiency and operating costs in the future.”
A LEED (Leadership in Energy and Environmental Design) Certification will identify the new recreation center as “green”.
The funding from the state “has conditional requirements, including compliance with the state’s green building standards (RCW 39.35D), which states that major facility projects of public agencies receiving funding in a state capital budget must be designed, constructed, and certified at the LEED Silver standard or above,” according to the agenda packet from the Sept. 5 PenMet board meeting.
“The LEED rating system provides a framework to develop healthy, efficient, carbon, and cost-saving green buildings,” according to the agenda packet. “... Designing and constructing the CRC to meet or exceed LEED Silver standards will result in a more energy-efficient building with a reduced environmental footprint and aligns with PenMet Parks’ goals and objectives including preserving open space.”
Phase 2 builds the new indoor recreation center, extends the Cushman Trail, and renovates the existing miniature golf course.
“The facility includes an indoor turf field for activities such as soccer, lacrosse, and football, three multi-purpose gymnasiums for basketball, pickleball, and volleyball, an elevated track, as well as multipurpose rooms and other community gathering spaces that will accommodate a wide range of activities,” according to a PenMet press release April 27.
“There are gathering and viewing spaces, flexible rooms that may be used for programming, meetings, classes, parties, and more, and spaces to display artwork,” Bujacich said.
The project’s expansion of the Cushman Trail will take place at the southern end point at 24th Street Northwest. The trail will be extended along the side of the rec center, the Gateway previously reported.
Expanding the Cushman Trail brings “it considerably closer to a connection with the Narrows Bridge and the trail system beyond,” Bujacich said.
This story was originally published October 9, 2023 at 5:00 AM.
