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R00-069 RESOLUTION NO. R00-~ A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, AUTHORIZING AND DIRECTING THE MAYOR AND CITY CLERK TO EXECUTE SETTLEMENT AGREEMENT BETWEEN THE CITY OF BOYNTON BEACH AND INTERSTATE ENGINEERING CORPORATION, AND PROVIDING AN EFFECTIVE DATE. W-~EREAS, Interstate Engineering Corporation was the general contractor for the construction of the Phase II West Water Treatment Plant Membrane Softening Expansion Project pursuant to a contract with the City of Boynton Beach; and Wq{EREAS, During the course of the project, numerous disputes arouse between the City and Interstate Engineering Corporation, resulting in litigation being commenced; and WHEREAS, It is the intent of this Settlement Agreement to resolve all issues between and among the parties arising out of this project and allow dismissal of the lawsuit and close- out the Project. WHEREAS, Construction has been completed on this project for fifteen months; and WHEREAS, The Settlement Agreement, a copy of which is attached hereto, incorporates changes in Change Order No.3 for a net decrease of $19,622.35 for an amended contract amount of $2,342, 305.39. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, THAT: Section 1. The Mayor and City Clerk are hereby authorized and directed to execute a Settlement Agreement with Interstate Engineering Corporation Incorporated, said Agreement bemng attached hereto as Exhibit "A" Section 2. This Resolution shall become effective immediately upon passage. PASSED AND ADOPTED this /~ d~y of May, 2000. CITY © BOYN O BE H, FLORIDA Vice Mayor Mayor Pro Tem Commissioner 0500 koo -9 SETTLEMENT AGREEMENT The City of Boynton Beach, Florida (hereafter "City ") and Interstate Engineering Corp. (hereafter "Interstate ") enter into this Settlement Agreement this (- of MI, 2000 as follows: WHEREAS, Interstate was the general contractor for the construction of the Phase II West Water Treatment Plant Membrane Softening Expansion Project (hereafter the "Project ") pursuant to a contract with the City; and WHEREAS, during the course ofthe Project, numerous disputes arose between the City and Interstate, resulting in litigation being commenced by one of Interstate's subcontractors, Gilmore Electric Co., Inc. (hereafter "Gilmore ") in which Interstate's surety, General Accident Insurance Company of American (hereafter "Surety ") was named as a defendant; and WHEREAS, Interstate, as Third -Party Plaintiff, brought a Third -Party action against the City and two other subcontractors, Instrument Control Systems, Inc (hereafter "ICS ") and Membrane Systems Corp. (hereafter "Membrane Systems ") WHEREFORE, it is the intent of this Agreement to resolve all issues between and among the parties arising out of this Project and allow for the dismissal of the lawsuit and the close -out of the Project THE FOREGOING CONSIDERED, it is agreed as follows: 1. The City will pay Interstate $13,877.65 on Change Order No. 3. 2. The City will withhold $33,500.00 from Interstate as liquidated damages. 3. After adjustment for items 1 and 2 above, the revised contract amount will be $2,343,305.39, and the resulting contract balance of $98,474.04 will be paid by the City to Interstate within two weeks of Commission approval. 4. Interstate will file a Dismissal with Prejudice of all claims asserted against the City. TO: FROM: DATE: SU BJ ECT: UTILITIES DEPARTMENT MEMORANDUM 00-89 Nick I. Igwe, Assistant City Attorney Bob Kenyori, ~'~i{~'~ Deputy Utility D~re~tor April 25, 2000 Gilmore Electric - Interstate Engineering Settlement West Water Treatment Plant Expansion Bid #031-401-97/C3D was for the expansion of the West Water Treatment Plant. The contractor for the project was Interstate Engineering Corporation. The original contract amount was $2,235,000.00 and has been amended by two change orders to $2,361,927.74. The construction took longer than contracted and several other issues have taken time to be resolved. As per our discussion this morning, I am pleased to report that Interstate Engineering, Inc. has completed all of the issues outlined in Item #6 of my December 6, 1999 Memorandum #99-328 to you. All of the work has been completed and I recommend that the contract be closed as outlined in that memorandum. The key points include the following: 1) 2) 3) s) 6) I have contract for an The City pay $13,877.65 on Change Order #3 (changes to pumps); Interstate Engineering Corporation will pay $33,500.00 in liquidated damages (67 days) to the City of 8oynton Beach; There will be no effect on warranties, guarantees, or subsequent claims for defects; except that Instrument Controls Systems (ICS) is relieved of any further warranty obligation; AEer adjustment of Items #1 and #2, all retainage shall be released by the City; The City gets a general release from all interested parties; Interstate indemnifies the City against claims by sub-contractors, suppliers, etc. attached Change Order #3 indicating the net decrease of $19,622.35 to this amended amount of $2,342,305.39. Please present this request to the City Commission for their approval of this matter. If you need additional information, please contact me at Ext. 6402 or Barbara Conboy at Ext. 6406. T appreciate your assistance. Attachments /acl CC: Dale S. Sugerman 3ohn A. Guidry Barbara Conboy Bob Kenyon File MEMORANDUM UTILITIES DEPARTMENT 99-328 TO: FROM: DATE: SUBJECT: Mr. Nick Igwe, Assistant City Attorney Bob Kenyon,~' I~c~o'~/-'~' Deputy Utility Director/ December 6, 1999 West Water Treatment Plant Expansion Gilmore Electric Co., Inc. vs. General Accident Insurance Co. of America In reference to the November 29, 1999 correspondence from Ms. Agnant, I recommend that we accept the modifications as presented. This modification includes the following key items: 1. The City will pay $13,877.65 on Change Order #3. 2. The contractor, Interstate Engineering, will pay $33,500 (67 days) in liquidated damages. 3. There will be no effect on warranties, guarantees, or subsequent claims for defects; except that Instrument Control Systems (ICS) is relieved of any further warranty obligation. 4. After adjustment for Items I and 2, all retainage shall be released by the City. 5. Items 4, 5, 6, 8, and 9 in your letter of October 22, 1999 to Ms. Agnant are agreed on. 6. There are six outstanding warranty issues that need attention and full resolution: A. The check valves for the permeate lines on the trains are not properly closing. B. The check valve on high service pump #5 has intermittent closure problems, i.e. "slamming". C. Membrane feed pump #4 and motor has an unacceptable level of vibration that needs to be corrected. D. On transfer pump #3, the electrical conduit is cracked and needs to be replaced. E. [nfluent valve on train #4 leaks when plant is shut down. F. Several liquid filled pressure gauges on the trains are leaking fluid. Please present this to Ms. Agnant so that she can prepare the settlement documents for approval by the City Commission. /ktr bc: ~i3b~Kenyon-' cc: John Guidry Barb Conboy File CHANGE ORDER' A1A DOCUMENT G701 Distribution to: OWNER ARCHITECT CONTRACTOR FIELD OTHER PROJECT: West Water Treatment & Plant Expansion Phase II TO: Interstate Engineering CHANGE ORDER NUMBER: INITIATION DATE: April 25, 2000 ARCHITECT'S PROJECT NO: CONTRACT FOR: CONTRACT DATE: You are directed to make the following changes in this Contract: Ao Increase $13,877.65 pump modifications Liquidated damages due from contractor $33,500.00 Net decrease of $19,622.35 Not valid until signed by both the Owner and Architect. Signature of the Con~'semr indicates his agreement herewith, including any adjustment in the Contract Sum or Contract Time. The original (Contract Sum) (Guaranteed Maximin Cost) was... $2,235,500.00 Net change by previously authorized Change Orders... The (Contract Sum) (Guaranteed Maximum Cost) prior to this Change Order was... The (Contract Sum) (Guaranteed Maximum Cost) will be (increased) (decreased) by this Change Order .... The new (Contract Sum) (Guaranteed Maximum Cost) including this Change Order... The Contract Time will be (increased) (decreased) (unchanged) by... N/A The Date of Substantial Completion as of the date of this Change Order therefore is $ $2,361,927.74 $19,622.35 $2,342,305.39 ( ) Days. N/A . Authorized: ARCHITECT Address: CONTRACTOR Address: OWNER Address: P.O. BOX 310 BY DATE BY BY DATE DATE AIA DOCUMENT G701 - CHANGE ORDER- APRIL 1978 EDITION - AIA - c1978 THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON D.C. 20006 G701-1978 x xxx~ xxxxx~x x ~ x