The URL can be used to link to this page

Home My WebLink AboutDocumentation_Regular_Tab 10A_09/14/2000 � Mcmora�dum To: i�illage Councid Fram: Joann Mc�tgc�xiello, Acting Yillage Mcrnager �b( . Date: Septe»aber 8, 2000 Subjed: Reverse Osmosis Wate�r Tredtment Facility - Final Corripletion The Reverse Osmosis Water Treatment Facility has reached fina,l completion All that remains is the finalization of the associated project paperwork and establishment of the final project cast. In order to prepare a final pay request, it is incumbent on the V'illage Counc� to d�ide whether or not ta assess The Poole and KeYrt Company, Contractors for the RO. Facility, liguidated damages and other costs. Correspondence from William D. Reese, Reese, Macon and Associates, Inc., Engineering Consultant, relative to the outstanding damages and costs is enclosed for your review and informa.tion, as well as, a copy of the minutes of the October 14, 1999, V'illage Council Meeting wherein the subject of liquidated daxnages was discussed and voted upon Bill Reese will be present at the September 14, 2000, V�tage Council Meeting to answer any � qu�ians you may have relative to the same. Enclosures �pro/61�Im�ag��a� � . T �� — �r� y g' , . � � .� . � Reese, Macon and Associates, Inc. 7uly 7 20(}0 �,�� :�:..�� Mr. 7osefGrusaus�cas, Utilities Direct �,� AUG � 1 200Q �� T�"illage of Tequesta. � P.O. Box 3474 � L��g� 1��.��'�� `��: Tequesta, FL 33469-0474 �"m" Re: Water Treatrr�ent Plant - Fina1 Completion Dear Mr. Crrusa.uskas: Eff�tive June 19, 2000 all final punchlist ite�s �iave been cc�mpleted �;xcept thos� asso�iat,:.d with proje�t closeaut paperwork. In order to prepaze a fina( pay request, it is necessary to establish the final project cost. For this�to occur, the V'illage must make a decision on assessment of damages and other costs_ A summary of cost exposure is as follows. Substantial Completivn Liquidated Damages i 1117/99 through 3/23/00 127 days @ $1000lday $127,000.00 Final Completion Liquidated Damages 4/22/00 through 6/19/00 58 days @ $500/day $ 29,OOd.00 Engineering Costs - 10/17/99 through 4/22/OQ $ 83 378.28 , A portion ofthe engineering costs have already been paid. We believe the unpaid portion.of the engineering costs is approximately $50,000, but these payments do not pass through us so this a.mount needs to be confirmed with youi� Accounting Department. In making a decision whether to assess dama.ges, the V'illage should consider the following: a. The Village does not appeaz to have incurred any actuat loss as the result of the delayed completion (assum�ng Contractor payment of engineering costs). b. During this period, the ContractQr may have incurred some delays beyond his control for which he ma.y be entitled to an inerease in contract time. The Contractor has requested consideration for a�iditional time. A final dispositian on the request has not been completed pending receipt of further informa.tion. Naturally, if the Village elects not to assess aamages, the discussion becomes moot. It should also be noted, that the determination of any additional time has the potential to be controversial. 6415 Lake Worth Road • Suite 307 • Lake Worth, FI. 33463-2907 Telephone (56!) 433-3Z26 • Facsimile (561) 433-8011 e-mail: reemac@gate.net �. . , �$ . �� .� J. Giu�uskasN'illage of Tequesta OVTP-Fiaat Compietion July 7 , ZOQO Page Z c. The V'illage should an�icipate that any decision to assess damages wi111ikely be met by resistance from the Contractor. We would expect the Contractor would use aIt means at his disposal to reduce the amount of the assessment and delay its payment. d. The Contractor has informallv_ indicated to us that they wili probably not object to payment of all outstanding costs (engineering, water, electric) associated with the deiay provided there is no assessment of liquidated damages. e. The Contractor has asked the Yillage to consider the quality of vyork and the functionality .of the final product in its decision ta assess, or not. We would concur that the work product and final facility reflects an above avera.ge effort. The Yliage, may or may not, choose to assign weight to this in its delibera.tions. f. The V'illage may wish to consider the fact that this project ha.s been completed without a change order. The $100,0� bidding contingency will be fully unused. This reflects a cooperative effort by all involved parties. . Plee�se consiti� the above and advise of the V'�ltage's decision on this matter. In the event the V"illage intends to consider assessment of damages, we strongly recommend tlie Contractor be given a forum to be heard during the decision making process. � � . After the amount of the final pay request has been established, we ma.y need to discuss further � project closeout details. Specifically, the Contractor may wish to secure a bond to cover any � outstanding invoices to subcontractors rather thaa a release of lien. This will depend to some extent � on how much, a�tl whether, the Contractor elects to assign a portion of aay.additional costs to }us subcontractors aud/or suppliers. In the interim, please forward a copy of atI Iega1 Notices to Owner which the V'illa,ge has received during the entire duration of this project. Also, please forward copies Qf any Notices to Uvvn� received b�t`:�veen now and submit�al of the finat pay request as they azrive. Obviously, to avoid V'illage e�osure for double payment, it is very important that we have a complete list of Notices to Owner. If you ha.ve questions or wish to discuss tlus fiuther, please cal1. Very tnily yours, ��'�-- William D. Reese, P.E. WDRcf wdi001T4/96-1 I7.4 VILLAGTs COIIi�CIL D�SI�II� �I1TDT$S October 14, 1999 PAGg 16 --------------- The Village Manager cautioned that there could not be setbacks so large that they en�.ed up having the eff�ct of cance3.ing tM.e abi].ity of anyone to accomplish such a business. In order to avoid someone $ictating to the viliage th3rough the courts where they would p].ace �uch an estabiisY.�nent, zoning in progress was recdmmended. V3.11age Mar�.�.ger Bradford explained that the time al].otte�tt for the �tud� would depend upon the comple�ity of the issues, but that it must be a reasonable length o� time. ' Coun�ilme.�ctber Schauer cc�unented. that the draft ordinance had been very detailed and thanked village Manager Bradford for �vozking on t�.e draft. Vice N�ayor Han�en question:ed what wou.�d happen if such a reqllest vsere made tod�y, �o �vhiCh village Attorne�r Randolph resp�anded that the Villa�e would not grant a permi.t because th� current ord3.aar�ee prohik�ited these business�s; but t�.e applican.t et�uld challenge the '�illage in court axtd th� court cou].c� aliow �he bu5in�ss �o happen.. . vice Mayp�r 8aaaea made a motfo�r. to approge zoniag i.�. �rcigre�s �or ac'1�].t eate�ta�.aa�ame�4t es�lis�mteats whi�e �t �study was ces�cducted to �evfaai approgr�.,a�+� �d�fic,a,ti.oas to t�ite Tequesta. zo�.iag ordiaaa�ce rela�i�e ta adu�.t . ,,�e�ctsiar�m�+�at establ�.sbmeats. Covaci].�aaembez Schauer s�r�,�.ed �he motisaa. The �rote oa the motioa �ras; Rou T. �ackail - fcr Gar1 C, Sans�ea - for Josep�, N. Cagretta - for �a.�il Dalack - for �13�abeth A. Schauer - far � The motio�a waB t�erefo�e pas8ed aa.d aldopted. D) CQasideratioa of Not Pursu3.ag Liq�.idated Damages for 30 Days Agaia�t Foole � Keat Coa,tractors �or the R.O. �eaf�meut Plant w3.th Conditioas Pursuaat to Reese, Macon aac� �.s�QCiate�, =ac. Lette�r of October 7, 1999. tStaff �' ltecanuo��uds A�gprosral ) � vrr,r�,a� co�c=L a�r=xQ �r�s 4ctober 19�, 1999 PAGS 17 -----•--------- village Manager Bradford explained that this item had been considered by the Finance and Administration Committee at their october 5, 1999 meeting. The next day, October 15, vva� the date in the contract that the R.O. platit must be substantially complete; however, the �ob was approximately 60 dayg behind schedule. The Village Manager reported. that a very good work product had been provided to date by the contraetor, primarily due to the fact that the consultant, Bill Reese of Reese Macon anci Associate$, an.d Utility Director Morrison had demanded strict adherence to the detailed specification requirements and had bent over backwards to expedite every single request that had been made by the contractor. There s�as a very good workimg relationship between the contractor and the village, and staff and the consultant on the project }�a.d e,�orried th�.t imposing the $1,000 p�r day liquidated damages called for in the contaract if .�ubstantial coaanpletion �as not acco�Iished by Octo$er 15 could upset that relationship so that the contractor might begin cutting corners in order to fin.ish as t�oon as possible to mi.nimize their damages. �lthough $60,000 for sixty days of damages was not a lot of moaey on a$5.7 million job, tha� would b� profi� taken from Poole & Rent. l�r. Reese had written a letter dated. October 7, requesting that the village Cauncil make a �notion not to asses� liquida�ed damages for � period. of the first 30 days afte� the substantial comple�ion date subject to the foilo�ving conditions: (1) the contrac�or agre�s not to gursue a change in contract time or a change of the con�ract price for any even� �vhich occurred prior to the sub�tantial completion dat�; (2) the contractor agrees that they will pay all other costs associated with the failure to achieve substantial completion as required by th� contract, �.nciud3.ng•but not Zimited to engineering fees, (3) tl�e v�illage agrees to re-eva�.uate the contractor� s progress at, or near, the end of the 30-day period and consider waiving liquidated , da.m�ge� for an additional �0 days. Utility Directo� '� Morrison commented that the Village and the contractor � . • VI?,,LAt�L CO'QNCIL ��ING �END�I3S October 14, 1999 PAQ�B 18 enjoged an outstanding v�orking relationship and there had been no change orders on this $5.7 million pro�ect to date, which was very unusual. Mr. Mor�ison stated he felt comfortable the Village was getting an excellent oontract, and. reported the Village was hoZding back $800,000 on this project, It was r�ported that the interest being earned on the $800,OU0 wauld a].�ost offset the rnon�.es p�roposed � no� to b� charged in liquidat�d damages. Russell Von Frank, 489 Dover Roa.d, reported he had atten�ied the �inance axad Administration Co�ni.ttee meeting and had been really impressed with Evhat had been accomplished. Mr. �Ton Frank statecl he had worked with contractor� for over 30 yea�s and felt the Iiquidated �.am�ages shauI.d be charged. since cont�actars in,clut�ed a figure i.n �hei� bidding for cantingenci�s. Councilmember Da.iack co�ented h� d�td not see anp benefit to the Vill�ge from foregoing what the Village was entit7.ed ta receive and the vill�g� was 7.osing mon�y every day the RO plant was not pn line. Counci].n�ember Dalack stated. this was not �omet3�ing outrageous, but �aas a part of the contra.ct to v�hich both parties had agreed, �.n.c� stat�ed this saunt�.e�l. �ike bla�kmail if the contractor would begi.n prad.ucin� substandard work. Gouricilmemhe� Dalack �on�ented that the contractor could not start producing subs�andard work but must adhere to the co�.tract, and that there was nothing �.mproper abaut imposing the liquidatec�. damages. Councilmember Caprett� �ommentet� �hat Councilmembe� Dalack's point was a legai tcchnicality that stated what t�e contract said; how�ver, he had managed a lot o€ big projects during his life in the aerospace business for the government, and �he way most major companies mad+e money on governm�nt �ontracts was through engineering chan.ges. Councilmember Capretta reported he ha.d been very proud to pe�sonaily develop the maon suits far the �stronauts, and he had bid a contract with trie go�rernmen� to b�ild the moon suits for �8 � VILLAC�l� CO'�N'CIL �68TING �NOTBS october 14, Z99s PAG� 19 million. �nd had de].ivered them for $56 million. Councilmember Ca�retta reported when the astronauts had asked whether the moor� suits would be built to specifications he �.ad replaed the suits would be the best he �ould build, and he was the low bidder. CounciZm�mber Capretta explained. that the RO contract ri.ad had no engineering fee� and that the contractor was build�.nc� according to Mr. Re�se�s cr�ntract specifications. Councilmember Cagretta expressed his opinion the contra�tor should be given a bonus for their fine work and if thi.s would ma.intain the goad relationship with the village it was worth $30,000. Vice Mayor H�n,�en expre�sed his apinion tM.at �. 30-dag del.ay wc�v.ld do no l�ar� to the Vil�.age because there v�a.s �ufficient water in �1� surficia]. wells and that th� village had gaaned from �� good work done b� the cor�.tract�ar. Vic�: �ayor Hansen cc�mented he vv�as in favor of not im�osing th� Ziguidated ��a�.ge, and he had been visiting the jobsite ma�y ti�es and observed that the ccmtractQr had �lon� extra things �hat were beyora.c�. the3r requir�ments. Councilm�mber ScY��uer reported she �iad receiv�d cc�ntpliments on how this contractor had kept the jobsa.�e a� a11 times and since thexe had been no change orders she could not see .pe�.�.izing the contractor for doing a good job. �'c�ur�.cilmemb�r Schauer commenteci she did not want anyone to be a.�l� to s�y th�re had i�een a slipsY�o�1. job at the end in order to me�t timing reqlzi.rements. Covaci].aone�uber Schaue� ma,de a motfo�a aot to p�aalize the contractor �uttd to follow the sta£f recommeae�a.ttoa aot to pursue liqui�a�� r,iama�es for 30 day� ag�i�t Po�le � Keat Coatractors for the R.O. treatmaat piaat with coac�i.tious pur�uaut to Beese, �eo�a sac�. Associattes, =nc. lettes o� 4etober 7, i949. Roa T. Mackaf�l - for Carl C. �a,asea - fos �oseph N. Capretta - for Sa�t�l Dalack - aga�iast