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12-30-1982 - Workshop - r , ~- - / , ~ Q v CITY OF EDGEWATER CITY COUNCIL WORKSHOP December 30, 1982, at 1 p.m. Minutes The workshop on the Florida Shores Paving Progr~m was called to order by Mayor McKillop at 1:10 p.m. in the conference area of the Community Center. ROLL CALL: Mayor Richard McKillop Councilman David Ledbetter Councilwoman Gigi Bennington Councilman Neil Asting Councilman Jack Spencer Present Absent Present Present Present City Attorney Jose' Alvarez City Clerk Nancy Blazi Chief Earl Baugh Present Present Absent Mayor McKillop introduced Mr. Harry Wild of Briley, Wild and Associates, and Mr. Martin with Martin Paving Company. He asked the City Attorney if he had gotten with Briley, Wild for renegotiation. Mr. Alvarez said he had had no meetings with Briley, Wild. Mr. Spencer asked for an explanation of the legalities of what they could or could not do, to learn what their options are and also, to consider the City's financial position. Councilman Asting wished to get into contrac- tural conditions. Councilman Spencer noted there were two resolutions passed by the former City Council, Res. 82-R-22 enabling the City to proceed, which says the City shall pay the sum of one-third of the total estimated cost of the proposed improvement, which shall not exceed $100,000 and shall be appropriated from the General Improvement Fund. Sec. 4 states that the total cost of proposed improvement is $300,000, and such estimated costs shall include the cost of construction, etc. Res. 82-R-32 calls for a public hearing on the project. The public hearing was held as required. When asked about cost at that hearing Mr. Mitchell said, "At this time the estimated cost is $4.10 per lineal foot, or about $328 for the average lot of 80 feet; cost could be extended over a five year period at a cost of about $6.26 per month. The City would borrow the money at a municipal rate of interest and would be paid back as the property owners paid their assessment." Councilman Spencer asked the City Attorney whether or not they needed to have an additional public hearing or simply to proceed to increase the amount by a resolution without a public hearing. Due to a time element he did not favor a public hearing. Mr. Alvarez said that legally what this project is guided by is Chapter 170 of the Florida Statutes. The resolution established the limitations, sub- ject to public hearing, and he is concerned. Mrs. Blazi said the actual figure Briley, Wild came up with was $3.70 per lineal foot. The attorney said he would not be comfortable with an increase without another public hearing. Councilman Spencer said they could proceed to spend the balance of the money authorized, then hold a public heariling to increase the amount. Councilman Asting said it states in the contract in the preconstruction con- ference that any increases from the original amounts are made by change order only. He doesn't think they can authorize an increase to the con- tractor without a public hearing and doesn't favor any large increase to finish it. There is a liability which concerns Briley, Wild and the paving contractor. He also noted that there was a mistake in the measuring of the lineal footage. Mayor McKillop said that Briley, Wild has accepted liability. Now the amount of liability has to be determined. j - - ~ u Attorney Alvarez said Briley, Wild has made an offer; Mr. Wild asked the City to respond by stating what they feel their damages are. Mr. Alvarez noted that Briley, Wild's attorney did not feel the City had suffered at all. Attorney Alvarez said that for 60 days the project has stopped. It has inconvenienced people, the roads are going, humiliation by political embarrassment, tension if you have to go back to another public hearing. He said $1,000 per day would be a reasonable figure in his estimation. Mr. Wild said the actual out-of-pocket expenses to the City is about $300. Another hearing would cost about $350 to the City. Briley-Wild did the assessment themselves to save the City some money. The City made the computations to save the City money. He explained how they would have made the computations as opposed to how it was done by the City. He noted also that the City wanted to do the on-site inspection. Had they been doing the on-site inspection they would have recognized much earlier that there were some differences. He said that they have made a settle- ment offer of $2500. Mr. Wild said there were several alternatives which he had outlined in his letter. Councilman Asting asked about the $17,000 engineering fee -- what was it for? Mr. Wild said that it included the design, report, construction services of approving the contractor, looking at the way the contractor was going to proceed, but did not include on-site inspection except when called by the City. Councilman Asting said that in the project contract prepared by Briley,Wild they stated the number of lineal feet to be paved. Councilwoman Bennington asked if they were responsible for the soil cement mix, and if they were responsible for the design. He explained that the soil cement mix is that which they might anticipate they would use, but they don't know the quantity of it. He said they did the roadway design and the plans that indicate to the contractor what work he is to do and where. They also estimated the amount of cement they felt it would take to do the job. Councilman Asting called attention to the letter dated November 9th from the City Manager to Martin Paving Company ordering them to stop work because of discrepancies. The City apparently was not aware of the extra soil cement that was used and the following additional costs until the work had already been done. Mr. Wild responded that it was the City's responsibility to have someone out there, as the City chose to do the day to day on-site inspection. Mayor McKillop asked for a breakdown of the services received for the $17,000 billed to the City. Mr. Wild recalled that sometime in early 1981 they were authorized to proceed with the design of this work. It was his understanding that the scope of that work changed off and on again, start and stop; they received from the City a list of the streets that were to be paved. The early work would have covered the 25,000 feet. At some point in the job additional streets were added to the project, and there were some deletions of streets, because they came in with a higher estimate so the City trimmed some of the streets back to get within the estimate. They prepared the specifications, preparation of the maps, preparation of the contract documents that the contractor will use to construct the streets. The design fee is in accordance with the contract and is a percent of construction basis as the contract calls for. That percentage is something like eight - it depends on the quantity - on a curve basis. The higher the price is, the lower the percentage. That fee pays for the design process that goes up thru the bidding stage, working with the City in analyzing the bids, recommending awards after the project has been put together and de- signed. During construction it involves some consultant services, primarily reviewing shop drawings, participation in the preconstruct ion conference; it is basically in-house services during the construction process. Contract says they will provide inspection services during construction with an in- spector on the site. The fee for that is on an actual cost basis, over and above the percent fee. He said Briley, Wild was asked by the City to waive that portion of the contract to provide the inspection services at the site, and the City would do those inspections. - 2 - City Council Workshop December 30, 1982 '-J v 1 \ , , Mayor McKillop ascertained that Briley, Wild prepared the bid package. Mr. Martin came up with a figure of $280,307.50 based on the bid package, knowing that the cement might change. The footage was taken from the bid pack, therefore the bid package was wrong. Councilman Spencer explained that for the purposes of obtaining a bid, all contractors are asked to bid on a specific number for the purposes of comparison, but the actual work may be more or less, and the contractor will get paid according to the actual work done. He agreed that Briley, Wild made a gross error in their state- ment in the bid package; it should be only 2 or 3 percent off and not 18 percent. Councilman Asting asked about the letter from Universal Testing Company dated 10/10/82 received by Briley, Wild on November 10, a month after the samples were tested. He said apparently the City was not notified for another month that the additional soil cement had already been added to the base. Mr. Martin and Mr. Wild said that the City was the client for the on-site inspec- tions and Briley, Wild hired them for the mix design. The question of who the City on-site inspector was to be was raised. Briley, Wild did not know who it was to be, but they had been advised that the on-site inspections would be done by the City. They never received an author- ization to do the inspections. Councilman Asting said he felt Martin Paving had to assume liability for the fact that they failed to notify the City of the additional soil cement added to the base. That should have been a decision made by the City since it increased the cost. He suggested an alternative: paving that part that has been soil cemented up to 26th Street and leaving the other four blocks unpaved. They have an estimated cost of $27,000 for this if it was paved with one inch of asphalt. The additional four blocks could be done at a later date. Mayor McKillop said he did not see how they could avoid a pub lic hearing. IDh~ Mayor asked Briley, Wild to go over the figures to realistically evaluate their damages. Mr. Wild said they had looked at what it would cost to hold another public hearing: $100 to $140 for advertis~ll ing, $59 for publication of entire public hearing, $26 for envelopes, $200 for postage. That cost is about $350. He said an error of equal magnitude was made by the person who came up with the assessment. If he had used the $280,000 number and divided by the 25,000 he would have come up with a per foot assessment which would have covered this work, and also the additional 5,000 feet, if it had been added to it. Mayor McKillop said that to complete the job as originally put to the people at the first hearing we need $51,557.60. Borrowing that money alone has got to be, in the neighborhood of $ 2 0,000 just for 5 years. He conceded that the City did have some responsibility. Mr. Wild said the assessment figures were computed by Mr. Mitchell. The workshop was recessed for five minutes. Mayor McKillop said Briley, Wild had offered $2500; the City attorney had a figure of $1,000 a day. Briley, Wild has agreed that they have made an error. Mr. Wild said he would like to discuss the matter with some of his associates in the firm. He would be in a position to have the number by Monday. It was the Mayor's recommendation that Councilman Asting meet with Briley, Wild and the City Attorney on Monday. A meeting at noon on January 3 in the City Hall was agreed upon. Part two of the workshop with ~. Martin of Martin Paving was begun. Councilman Asting said he thought his position was clear; he faulted them for not notifying the City about the additional amount of soil cement used. Mayor McKillop asked Attorney Alvarez if he had done any research from a legal aspect reo the fact that the change order wasn't submitted in a timely manner to the City. The City Attorney said he was aware of the facts and the point to consider is the agreement at the preconstruct ion meeting wherein the City would have their own man in the field. Councilman Asting asked about the cost of the extra soil cement used. Mr. Martin advised that they have already used an additional 1,028 barrels at $12.75 a barrel, which amounts to $13,107. They would need an additional 608 barrels at a cost of $7,752 in order to do the entire project (all 29,000 lineal feet.) Mr. Martin said he has asked the City to grant a - 3 - City Council Workshop December 30, 1982 J . , c.; <.) change order to increase their contract amount by 1,028 barre for additional cement. This is cement they have already bought and put on the streets. The City must decide if he is asking for something reasonable. Mayor McKillop responded by saying that the question is whether they con- tracted for this, and shouldn't the change order have been approved prior to the work being done. Mr. Martin said they do a lot of work for the State of Florida and have contract amounts which vary; they make those changes in the field with their representative. They don't go back to the governor, who signs the contract, every time they make a change based on a conversation with a field inspector. Mr. Martin said it was his under- standing that the City had hired Universal Field Inspectors to do field in~ spections on their work, and the City should have some reports from them. Councilman Asting asked Mr. Copeland how many soil samples he had taken to be submitted to the testing lab, and were they taken before grading was done. Mr. Copeland said he took samples in July from Pine Tree, Vista and Travellers; 12 samples altogether of different forms before the grading. No samples were taken after the grading. Mr. Martin mentioned that so far the City has not spent any money and he is now asking them to spend money on additional cement. Mr. Copeland remembered that there was a letter submitted to Universal Test- ing by Mr. Mitchell's secretary requesting that they run these tests and that they charge the City the going rate. Mr. Sprang of Briley, Wild requested the City to do this. Mr. Copeland said that he had given her the information so there should be a letter in City Hall. Mayor McKillop said that on Monday night they had to make a decision whether or not to pay the change order, and make a decision on the paving. Mr. Martin asked what the council planned to do Monday: do they want the entire project finished, do they want to pave up to where the existing soil cement is, do they want to limit the contract to $280,000, or just pave what they can? It was agreed that the City Attorney and Councilman Asting would make a recommendation to Council Monday night after negotia- tion talks on Monday. There was some discussion on paving as much as possible with one inch of paving and then do the remainder with a lesser amount of asphalt. Mayor McKillop asked the city attorney to let them know if they decide on a spending level of $285,000, what they have to do sequentially to stay within the laws of Florida and the resolutions that were written by the City, or, if we spend $315,000 what we'd have to do. He asked that the attorney have that ready for them Monday night. He also asked to be advised where the City's cash is now and where the cash flow will be thru the fiscal year. If necessary, base it on 1982 figures. Mayor McKillop thanked both Mr. Wild and Mr. Martin for attending. The meeting was adjourned. Minutes submitted by Joan Taylor - 4 - City Council Workshop December 30, 1982 .,.