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HomeMy WebLinkAboutAgenda Statement 1983/08/02 Item 10 COUNCIL AGENDA STATEMENT Item 10 // Meeting Date 8/2/83 ITEM TITLE: Resolution , -- A c c e p t i n g Public Improvements - Water, Sewer, and Storm Dr in Facilities, Town Centre Focus Area SUBMITTED BY: City Engineer (4/5ths Vote: Yes No X ) Community Development DirectorIAL "r• REVIEWED BY: City Manager 3-4 Barron-Masanovich, A Joint Venture, completed the installation of water, sewer and storm drain facilities for the Town Centre Focus Area. The contract was awarded February 1, 1983, and signed on February 9, 1983. The contract completion date, by time extension granted by Council Resolution 11211 , is May 9, 1983. RECOMMENDATION: That Council : 1 . Approve resolution accepting the public improvements. 2. Extend the contract completion date to May 13, 1983, and impose liquidated damages incurred between May 13, 1983, and May 25, 1983. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: Barron-Masanovich completed their contract work on May 25, 1983. On June 7, 1983, the City received a letter from Sweetwater Authority stating that the water facilities were installed to their satisfaction. Sweetwater Authority will accept maintenance responsibility of the water system one year after acceptance of such work. This is in conformance with the Agreement to Improve Development-Water Facilities dated January 18, 1983, executed between the Authority and the City Redevelopment Agency. City staff inspected the trench backfill compaction and pavement replacement. The Water Company inspector was responsible for inspection of all water facility installation. On April 19, 1983, by Resolution 11211 Council approved a change in bonus dates to accommodate the start of grading for the parking structure. Community Development stated that if Barron-Masanovich could concentrate fully on that portion of work which interfered with the construction of the parking structure and have the site available to Wylie Construction Company for construction by April 21, 1983, they would recommend the bonus period be extended. The condition was that all their work be completed within Lot 7. The required work was completed within the allowable timeframe resulting in Barron-Masanovich being paid $3500.00 for his efforts. Page 2, Item 10 Meeting Date 8/2/83 Council previously approved a contract completion date of May 9, 1983. An additional four day extension, to May 13, 1983, would be appropriate because of inclement weather. However, the work was not completed until May 25, 1983, and it is our recommendation that liquidated damages be charged against the contractor for this excess of eight days. On July 1 , 1983, after reconciliation of the contract quantities, we received an invoice for final payment, less retention. The billing was reviewed and authorized for payment on July 5, 1983. The cover letter from Barron-Masanovich also stated that they were in the process of preparing a claim against the City for work beyond the scope of their contract, and as soon as all the paper work had been assembled, they would be submitting it to the City for consideration. The nature and extent of the mentioned claim cannot be determined by Engineering at this time. However, when such claim is received we will review and make recommendations to the Council as to what action should be taken. FINANCIAL STATEMENT: All payments are being made by the First Interstate Bank of California through a Certificate of Participation in a Trust Agreement based on the proceeds of sale of bonds for the Parking Structure. Original Contract Amount $175,418.00 6% Contingencies 10,582.00 Inspection and Testing 8,000.00 Total Authorized Expenditure $194,000.00 Final Contract Construction Cost $180,592.50 Change Order #1 - Water Facilities 500.00 Change Order #2 - Sewer Lateral Connection 400.00 Backfill Testing - Water Main Facilities 827.45 Bonus Payment (Revised) Resolution #11211 3,500.00 Liquidated Damages ($ 1 ,518.78) Total Final Contract Construction Cost $184,301 .17 Balance of Authorized Expenditure $ 8,180.05 Engineering Staff Time (Full Cost Recovery) Straight Time through 6/23/83 $10,998.65 x 2.238 = $ 24,614.98 Balance Authorized Expenditure 8,180.05 Unfunded Staff Time, Full Cost Recovery ($16,434.93) At the time the estimate for Engineering staff time was made, the City was not charging full cost recovery for this type of contract work. The estimate included inspection time only plus testing. Testing cost amounted to $827.45 and actual inspection time as of June 23, 1983, was $7,993.57 for a total of $8,821 .02. Total Engineering actual staff time from inception to June 23, 1983, was $10,998.65. " 11336 Page 3, Item 10 Meeting Date 8/2/83 FISCAL IMPACT: City, as owners, will maintain the sewer and storm drain systems and will also be responsible for defects due to workmanship/materials of the water facilities, installed under the contract, for a period of one year after acceptance of the facilities by Sweetwater Authority. However, State contract law places this responsibility on the contractor. The contract documents provide for liquidated damages for work performed after the contract completion date. The contract states that the "City Council shall have the right to extend the time for completion or not, as may seem best to serve the interest of the City; and if it decides to extend the time limit for the completion of the contract, it shall further have the right to charge to the Contractor, his heirs, assigns or sureties, and to deduct from the final payment for the work all or any part, as it may deem proper, of the actual cost of engineering, inspection, superintendence, and other overhead expenses which are directly chargeable to the contract, and which accrue during the period of such extension, except that the cost of final surveys and preparation of the final estimate shall not be included in such charges." We have calculated the amount of liquidated damages on the basis of the above provision to be $1 ,518.78. WPC 0568E by th° "i`i`` :i1 of Chula Vista California L ted' SU.