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HomeMy WebLinkAbout10/18/2000 - STAFF REPORTS (6) Date: October 18, 2000 To: City Council From: City Engineer APPROVE THE RELEASE OF LIQUIDATED DAMAGES WITHHELD FROM MERCURY CONSTRUCTION. RECOMMENDATION: That the City Council approve the release of liquidated damages that were withheld from Mercury Construction as part of City project# 99-08, Boys & Girls Club Gymnasium Remodel. The total amount of liquidated damages to be released is $3,320.00. BACKGROUND: On January 3, 2000, Mercury Construction and Restoration Services began construction on City Project# 99-08, Boy and Girls Club Gymnasium Remodel. The original date of completion for this project was February 16, 2000. The Project was not considered substantially complete until May 4, 2000. The majority of this extensive delay was due to the non availability of specified sports equipment, particularly: Wall and Column pads, and folding bleachers. These delays were clearly outside of the control of Mercury Construction and the majority of this additional time was added to the contract. However, there was a total of eight working days that were identified as days in which Mercury Construction was directly accountable. This delay of 8 days was due to a dispute between Mercury Construction and one of their suppliers. Per specifications, the City was required to withhold liquidated damages for these days at the agreed rate of$415/day, totaling $3,320.00. The Boys & Girls Club staff has requested that the money withheld be released to Mercury Construction due to the fact that the facility did not suffer any actual damages as a result of these delays. The Boys & Girls Club Staff also stated that the work done by Mercury Construction was of a very high quality and that they were very satisfied. It should be noted that with the exception of the sports equipment items mentioned above, all work was completed by the originally specified completion date. This $95,000 project was approximately 85% funded from Community Development Block Grant monies with the remainder paid by the Boys and Girls through the Capital Projects fund. 3A Boys & Girls Club Gymnasium, CP 99-08 October 18, 2000 Page 2 Sufficient funds to cover this change order were encumbered when the project was awarded and are therefore still in account number 261-1395-63531, Boys and Girl Club Improvements. David J. Barakian ohn aymo City Engineer a velopmn Director APPROVED: City Manager �- REVIEWED BY DEPT.OF FINANCE .�K 34�. MINUTE ORDER NO. APPROVING THE RELEASE OF $3,320.00 IN LIQUIDATED DAMAGES THAT WERE WITHHELD FROM MERCURY CONSTRUCTION AS PART OF CITY PROJECT # 99-08, BOYS & GIRLS CLUB GYMNASIUM REMODEL I HEREBY CERTIFY that this Minute Order approving the release of$3,320.00 in liquidated damages that were withheld from Mercury Construction as part of City project#99-08, Boys & Girls Club Gymnasium Remodel, was approved by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 18" day of October, 2000. PATRICIA A. SANDERS City Clerk