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HomeMy WebLinkAboutItem 05 Consideration of Approval for Termination of Agreement with Price Construction, Inc. for Construction of Sawmill Wal e center of GOOc/ Lll'. a. AGENDA ITEM COVER SHEET Meeting Date: February 15, 2005 Item # "5 Contact Name: Contact Number: Bob Zaitooni 6002 Reviewed By: M~' Department Director: __ City Manager: Subject: Sawmill Wall Project - Mutual Tennination of Contract with Price Construction, Inc. Background Summary: Based on competitive bid process (Bid #B04-08). City Commission approved a\vard of the Sawmill wall pro.iect to Price Construction. Inc. in April 2004. From the initial notice-to-proceed, project ,vas first delayed due to the shortage of material in spring and summer of 2004 and later due to the hurricanes. Most recently. Price Construction. Inc. requested additional funds to complete the pro.iect by submitting various claims. none of which can be substantiated by staff. In order to prevent further delay to the pro.iect and to construct a more economical solution. staff and Price Construction have agreed to recommend to mutually terminate the contract and seek alternate plans to complete the pro.iect. Issue: Mutual termination of contract with Price Construction. Inc. for construction of the Sa,vmill wall pro.iect. Recommendations Staff recommends approval of the mutual termination of the contract and to approve reallocation of project funds for alternate method of construction. Attachments: Mutual Termination Agreement (available on Commission Meeting date). Summan' of pro.iect events. Financial Impact: No additional funds are requested. Contractor will refund the disbursed funds to-date minus any restocking fees to the City. Staff requests reallocation of project funds to be used by the Department of Public Works for alternative method of construction. Type of Item: o Public Hearing o Ordinance First Reading o Ordinance First Reading o Resolution o Commission Approval o Discussion & Direction For Clerk's Oeot Use: 181 Consent Agenda o Public Hearing o Regular Agenda o Original Document/Contract Attached for Execution by City Clerk 181 Original Document/Contract Held by Department for Execution Reviewed by City Attorney Reviewed by Finance Dept l:>o"iO\Alorl "'" I \ 2-e-,"><) D N/A ~ N/A n "1/.6 City Man32er Robert Frank lill Commissioners Danny Howell, District 1 Scott Anderson. District 2 Rusty Johnson. District 3 Nancy J. Parker, District 4 Mayor S. Scott VandermIt STAFF REPORT TO: The Honorable Mayor and City Commissioners FROM: Bob Zaitoon~ Director of Public Works DATE: February 8, 2005 RE: Sawmill WaU Project - Mutual Termination of Contract with Price Construction, Inc. ISSUE Should the Honorable Mayor and City Commission approve mutual termination of contract with Price Construction, Inc., and authorize reallocation of project funds to be used by the Department of Public Works to manage an alternative project construction method? BACKGROUNDIDISCUSSION Based on competitive bid process (Bid #B04-08) and staff recommendation, the City Commission approved award of the Sawmill wall project to Price Construction, Inc. in April 2004. Notice-to-proceed was issued to the contractor on June 9,2004. Since notice-to-proceed, project was first delayed due to shortage of material (concrete and steel) in spring and summer of 2004 and later due to the hurricanes. Late in December of 2004, Price Construction requested additional funds to complete the project by submitting various claims none of which can be substantiated by staff. In order to minimize further delay to the project, staff and Price Construction have agreed to recommend to mutually terminate the contract and for the City to seek alternate and more efficient and economical plan to complete the project. No additional funds are requested for this project. Contractor will refund the disbursed funds to-date minus any restocking fees to the City. Staff requests reallocation of project funds to be used by the Department of Public Works for alternative method of construction. Staffwill present an alternative solution to the Sawmill HOA and upon consensus, will proceed with the construction phase of the project. It is envisioned that City staff will accomplish the demolition and clearing tasks while obtaining price proposals for the other components (fence, landscaping, etc.) of the project. RECOMMENDATION Staff respectfully request that the Honorable Mayor and City Commission to approve the Mutual Tennination Agreement and authorize Mayor and Clerk to execute the Agreement. It is further requested that the City Commission direct staff to meet with the Sawmill HOA to reach a consensus on alternative construction method and to reallocate project funds to be used by the Department of Public Works to seek and construct an alternative method of construction as described in this report. Sawmill WaD Project Summary of Events . Project Budgeted in Fiscal Year 03-04 for $115,000 . Engineering costs $10,000, Construction costs $105,000 . Project advertised for bid in early 2004,3 bids received with low bid at $105,000 from Price Construction. The next 2 bids were $148,000 and $196,000. . Awarded bid to Price Construction in April 2004 for $105,000 . Notice-to-proceed was give June 9,2004 with commencement date of July 6, 2004 . Pre-construction meeting was held on June 18, 2004 and a field meeting on July 6,2004 . Contractor claimed that they could not get concrete and steel due to shortage for several months . Contractor applied for a permit (not a requirements for CIP projects) in August 2004. . Project was delayed due to Hurricanes in August and early September. . City paid $6,961.36 to Price Construction for fence material in hand and partial mobilization. . In September 2004, Contractor claimed that they could not get block for the project as specified in contract and asked to change design. Answer was no. . Permit was issued on December 21, 2004. . Early January, Contractor called design engineer to change the design of the project claiming that they could not accomplish the design with the given budget. Answer was no. . After a telephone call from Price asking for additional monies or change in the design, a notice was issued to Price to complete the project as bid within 45 days from January 7,2005. . Contractor wrote back with additional questions which were resolved earlier in 2004 and claimed a substantial delay due to failure of City to issue permit in a timely manner. . Addressed Contractor's concerns in a letter and asked once again in complete the project. They answered back another refusal. . Telephone conversation with Philip Price, we agreed that we can mutually terminated the contract if Price return all material purchased for the project. They requested in the letter to proceed with termination without a penalty. Agenda 2/15/05 Item E 5 MUTUAL TERMINATION AGREEMENT THIS TERMINATION AGREEMENT (this "Termination") is made this day of , 2005 by and between the CITY OF OCOEE, a Florida municipal corporation, whose mailing address is 150 North Lakeshore Drive, Ocoee, Florida 34761 (the "Owner") and PRICE CONSTRUCfION, INC., a Florida corporation, whose mailing address is 7440 Daetwyler Drive, Orlando, Florida 32812 (the "Contractor"). RECITALS WHEREAS, Owner and Contractor entered into that certain Agreement Between Owner and Contractor for a Small Project on May 13,2004 in connection with the rehabilitation and reconstruction of the Sawmill Wall (the" Agreement"); and WHEREAS, Owner and Contractor desire to mutually terminate the Agreement and mutually release one another from all obligations in accordance therewith; and WHEREAS, Owner and Contractor agree that Contractor will return to Owner FIVE THOUSAND SEVEN HUNDRED AND SEVENlY-SEVEN AND 65/100 DOLLARS ($5,777.65) originally paid by Owner to Contractor; and WHEREAS, Owner and Contractor desire to mutually release and discharge one another from all claims, demands, and causes of action that they had, have, or may have against each other arising out of or under the Agreement. NOW THEREFORE, in consideration of the mutual promises herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: Section 1. Recitals. The above recitals are true and correct and are made a part hereofby this reference. Section 2. Termination. The Owner and Contractor hereby mutually terminate, cancel, and rescind the Agreement and declare that all of the rights and obligations contained therein are of no further force or effect. Section 3. Return of Disbuned Funds. Upon execution of this Termination, Contractor will return to Owner FIVE THOUSAND SEVEN HUNDRED AND SEVENTY- SEVEN AND 651100 DOLLARS ($5,777.65) originally paid by Owner to Contractor pursuant to the Agreement. Section 4. Mutual Release. Each party hereto hereby releases, remises, acquits, and forever discharges the other of and from all claims, demands, and causes of actions, that each had, now has, or hereinafter may have, whether or not known to either, arising out of or under the Agreement. Section 5. No ConseQuences: Exoneration of Bond. This Termination is for the convenience of the parties, and is otherwise without consequence to, and without admission of liability or wrongdoing by either party. This Termination is not to be constructed to reflect unfavorably on either party, and does not operate to debar Contractor in any way, officially or otherwise, from participating in any of Owner's future projects (including any rebid of the project contemplated in the Agreement). This Tennination exonerates and releases Contractor's bid, perfonnance, and/or payment bonds and/or security, as applicable, and the sureties therefore, executed, issued, delivered, and/or otherwise made in connection with tbe Agreement. IN WITNESS WHEREOF, the Owner and Contractor have caused this Termination to be duly executed as of the date and year first written above. [SIGNATURE PAGE FOLLOWS] 2 A nEST: Beth Eikenberry, City Clerk (SEAL) FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA; APPROVED AS TO FORM AND LEGALITY this day of , 2005. FOLEY & LARDNER LLP By: City Attorney CONTRACTOR: PRICE CONSTRUCflON, INC., a Florida corporation By: Print Name: Title: (CORPORATE SEAL) OWNER: CITY OF OCOEE, FLORIDA, a Florida municipal corporation By: S. Scott Vandergrift, Mayor APPROVED BY THE OCOEE CITY COMMISSION AT A MEETING HELD ON , 2005 UNDER AGENDA ITEM NO. 3