HomeMy WebLinkAbout2004 06 28 Regular 508
062804_ COMM _Regular _508_ ADD-aN_Mediation
COMMISSION AGENDA
ITEM 508
Consent
Informational
Public Hearing
Regular X
July 28. 2004
Regular Meeting
(V
Mgr. / Dept.
Authorization
REQUEST: The Public works Department requests the City Commission authorize the
City Manager to approve the mediation settlement agreement with CWB Contracting, Inc.
for the Central Winds Park Expansion Contract A, Clearing and Grubbing.
PURPOSE: The purpose of this item is to obtain City Commission approval to execute the
mediation settlement agreement which will increase the contract price from $332,500.00 to
$352,375,00 for the Clearing and Grubbing Contract for the Expansion of Central Winds Park.
CONSIDERATIONS:
· On April 14, 2003 the City Commission approved the contract award of $332,500.00 to
Bimini Grassing (now known as CWB Contracting, Inc.) with a 15% contingency in the
amount of $49,800.00, and Construction Administration in the amotmt of $5,000.00 for a
totalof$387,300.00
· Both staff and the Commission were concerned about the $130,000 differential between
apparent low price of the recommended bidder and the next highest bidder. Staff met
with the contractor and gave him the opportunity to withdraw his bid. Contractor
indicated he was comfortable with his bid.
· The project was completed 246 days late resulting in liquidated damages of$123,000,
· The contractor submitted claims of $264,000,00 for 22,000 years of fill dirt, plus time
delays due to the topographic survey being wrong and $125,000 plus time delays for
extra costs due to high groundwater conditions because he had not received the soils
report, Staff denied these claims because the surveyor verified perimeter elevations and
the contractor has acknowledged in writing receiving addendums 1 through 4 containing
soils and survey data.
CITY OF WINTER SPRINGS
CITY COMMISSION
REGULAR MEETING -
CONSENT AGENDA ITEM ""
PAGE20F2
· The contractor submitted a claim of $12,000 plus time delay to rework some of the
storm water ponds because the design was changed during construction, Although not
processed because it was included in the other claims, this claim appears to be
reasonable,
· The current contract value is $311,500 due to a deductive change order for sod because
the stormwater piping, and also the irrigation are not installed, The City has paid
$218,250 to CWB to date which leaves $93,250 "owed" to the contractor.
· Due to the inability to resolve the claims, contractor requested mediation per the
agreement which was attended on June 2151 by the Utility/Public Works Director, Capital
Projects Coordinator, and Michelle Reddin of the city Attorney's office,
· The recommended mediation settlement agreement between the contractor and the City
would result in an increase in the original contract price of $19,875 to $352,375 or
$40,875 over the current contract. The $352,375 is still within the amount of
$387,300.00 previously approved for the project.
· The amount paid to date on the contract is $218,250,00 with a balance owed of
$114,250.00,
· Reviewing the other bids, staff is of the opinion the true value of the work between
$400,000 and $425,000.
. Legal and mediation fees to date are approximately $10,000,
· The total amount of the mediation agreement is $134,125,00 ($93,250 + $40,875), to be
paid after receipt of release of liens from the contractor.
FUNDING:
Sufficient funds remain from the original authorization to cover the contract value of $352,375,
RECOMMENDATION:
The Public Works Department recommends that the City Commission authorize the City
Manager to approve the mediation agreement with CWB Contracting, Inc. for the Central Winds
Park Expansion Contract A, Clearing and Grubbing which increase the contract amount to
$352,375.
A TT ACHMENTS:
1. Copy of Mediation Agreement
COMMISSION ACTION:
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CASE NO: PRE SUIT
DA TE: JUNE 21, 2004
CWB CONTRACTORS, INC.
VS.
CITY OF WINTER SPRINGS
/
SETTLEMENT AGREEMENT
The parties agree as follows:
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Dated this ~ day of 3 L.. ..., 'i:
,2004.
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Plaintiff
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On behalf of Do fonda at C'+;'b W\W,,-~/)(Ir'l<):l
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Plaintiff
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Att0l11ey for Plaintiff
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Insurance Claims Representative
Mediator, Howard R. Marsee
On behalf of Defendant