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Home My WebLink About1/2/2013 - STAFF REPORTS - 4B (2) Y ALMS. c u m M C0410PPitD iAa * c4`'F°""�P City Council Staff Report Date: January 2, 2013 UNFINISHED BUSINESS Subject: CONSIDER G&M CONSTRUCTION'S REQUEST TO WAIVE LIQUIDATED DAMAGES ASSESSMENT ON BELARDO BRIDGE & ROADWAY PROJECT From: David H. Ready, City Manager Initiated by: Public Works and Engineering Department SUMMARY G&M Construction has requested the City to waive the 30 days of liquidated damages charged against them on the Belardo project saying that additional fill dirt and rock justified time extensions. In addition Mr. Marantz has requested consideration due to the sickness of his wife, which prevented him from closely monitoring the work progress. RECOMMENDATION: 1) Although staff is cognizant and sympathetic to the circumstances in which G&M Construction cites as the basis for their request to waive liquidated damages, based upon the opinion of the City's engineering consultant, and the Federal grant regulations, staffs recommendation is to not to grant G & M's request. STAFF ANALYSIS: The Belardo Bridge and Roadway project, a federally funded construction project, was deemed substantially complete on August 9, 2012. The total project cost was $2.6 million. There were 140 working days specified in the contract for project completion to which 52 additional working days were authorized due to change orders yielding a total authorized time of 192 working days or until July 10, 2012. The project was not completed until August 9, 2012. The contract provided that liquidated damages in the amount of $2,200 per day would be charged for each calendar day beyond the authorized time until the project was completed. In a letter dated December 19, 2012 (received December 26, 2012) G&M requested liquidated damages be waived for reasons noted in the summary. As this is a contractual obligation, waiver can only be granted by Council. �i�0.2�.2013 City Council Staff Report January 2, 2013- Page 2 Consider G&M Construction's Request to Waive Liquidated Damages Assessment on Belardo Bridge and Roadway Project. Memorandums from the City's consultant project resident engineer (Dokken Engineering) indicated that G&M was informed that additional time for the material import and rock excavation could not legitimately be granted as these were not the controlling item of work (the bridge was) and that work could have been completed had G&M not been absent from the project during most of December 2011 and January 2012. G&M had been notified of these items on numerous occasions. Staff was aware of Mr. Marantz' family situation during this time period and agree that the time delays are likely not to have occurred if Mr. Marantz were able to have been directing the work. The principal reason for liquidated damages is to cover additional costs due to the extra time of construction. In this case, Council has authorized $92,500 to Dokken Engineering to cover their additional time 17 days administering and inspecting the project. However, as this project was federally funded, it is subject to Caltrans and FHWA audit. They specifically look at contractual obligations and are not likely to agree with Mr. Marantz requested time extensions, no matter the familial considerations given by the Council. The worst case would FHWA and/or Caltrans requiring the City to reimburse Federal funds in the amount of$66,000 due to the result of an audit. FISCAL IMPACT: None, unless waiver is granted and audit requires reimbursement 3 years hence. SUBMITTED: Prepared by: ca David J. Barakian Director of Public Works/City Engineer Approved by: David H. Ready, Ciy4VWnager Attachments: 1. G&M Letter 2. (3) Dokken Engineering Memos G & M CONSTRUCTION ®, Subsidiary of Happy Traveler 211 West Mesquite Avenue Fed.ID#95-2417032 Palm Springs, California 92264 Lic.#A-272619 (760) 322-6918 Fax(760)778-6708 General Engineering Grading Pipeline • Hazardous Waste Asbestos Demolition LEC 2 u 7012 December 19, 2012 Mr. David Barakian City of Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs, CA 92263 RE: BELARDO ROAD & BRIDGE PROJECT LIQUIDATED DAMAGES—APPROXIMATELY 23 DAYS Dear David: Even though G & M Construction should be allowed additional days on the road construction portion of the Belardo Road & Bridge Project, Jeff Burdick from Dokken Engineering stated he was. only allowed to authorize additional time for the bridge construction only, and could not address the days which G & M Construction was entitled for the overage in material and effort on the road construction of the project. The import and placement of fill material was computed on the bid documents at approximately 9,000 cy. In fact, G & M Construction scrounged and imported approximately 14,500 cy. which produced an overage of 5,500 cy of imported material placed and compacted. This overage was considered and funds were allowed for the additional material and work, but no additional days were forthcoming from the City of Palm Springs. Likewise, 1,500 cy of rock were anticipated during excavation. The actual quantities substantiated by Dokken Engineering was approximately 3,600 cy of rock which had to be placed or disposed of either on or offsite which was an overage of approximately 2,100 cy of pure rock. Again, the cost of the additional material was authorized but no additional days were forthcoming. Mr. David Barakian December 19, 2012 Page Two The additional rock was placed under the bridge and along the easement area on either side of the roadway. This could not be accomplished until the bridge was completed and the curb & gutter & sidewalk were installed. This work was done with the acquiescence of the Aqua Caliente Band of Mission Indians and the Riverside County Flood Control. The cost of the above work was of course substantially higher than the $8.00/cy which G & M Construction originally bid and anticipated. The elephant standing in the comer was the sickness and death of my wife, Dianne Marantz. I am asking for consideration of this fact for all of the service both her and myself have given the City over the past 40 plus years. G &M Construction will not have made a profit on this project,but the forgiveness of the liquidated damages by the City Council will lessen the losses G & M Construction will suffer from this project. Sincerely, Geor arantz cc: Steve Poughnet David Ready DOKKEN E N G I N E E R I N G ww w.dok ke ne¢gi¢ee ri¢g.com July 2, 2012 MEMORANDUM TO: George Marantz, G&M Construction FROM Jeff Burdick,P.E.,Resident Engineer RE: CP#87-49—Rock Slope Protection Quantity Calculation Good Afternoon George, I have reviewed the calculations that were provided for the Rock Slope Protection. Dimensions shown in the calculations do not match the plans. G&M Construction decided to build the RSP deeper and wider than the plans show to remove excess rock from the site and for ease of construction. Per section 72-2.04 of the Standard Specifications, "Quantities of rock slope protection to be paid for by the cubic yard will be determined from the dimensions shown on the plans or the dimensions directed by the Engineer and rock slope protection placed in excess of these dimensions will not be paid for." Since I did not direct G&M Construction to adjust these dimensions, any excess RSP placed outside the limits shown on the plans will not be paid for. Per the attached Calculations,the amount of RSP is as follows: Item 44—RSP(Facing, Method B)—98.4 CY Item 45 —RSP(Backing No. 1 Method B)— 185 CY Item 46—Concreted RSP(1/2 Ton, Method B)—900 CY If you have any questions or comments, please feel free to contact me at(858)232.4717. Sik ncerely, '&�— Jeff Burdick, PE Resident Engineer 1411-800 5675 Ruffin Road,Suite 250 a San Diego,CA 92123 •Tele: 858.514.8377•Fax: 858.514.8608 J§DOKKEN / EwNGINEERING /j do kke oenginee riog.com Calculations: RSP Facing,Method B—Per Page 36 of the Plans SW Retainin2 wall Depth= 1.8' Width=6' Length= 16' Volume= (1.8*6*16)/27= 6.4 CY SE Retaininq Wall Depth= 1.8' Width=6' Length= 100' Volume=(1.8*6*100)/27=40 CY NW Retaining Wall Depth= 1.8' Width=6' Length= 30' Volume =(1.8*6*30)/27= 12 CY NE Retaining Wall Depth = 1.8' Width=6' Length= 100' Volume =(1.8*6*100)/27=40 CY Total = 6.4+40+12+40 = 98.4 CY Total Shown in SSPs = 106 CY RSP Backing No. 1 Method B—Per page 37 of the plans Measurement Assumption— %2 of RSP has 1'9" of RSP Backing#1 underneath it. South Area: Measured 50' West of the Centerline and 45' East of the Centerline,with 30' wide. Volume=0.5*(95*30*1.75)/27—92.5 CY North Area: Measured 50' West of the Centerline and 45' East of the Centerline,with 30' wide. Volume =0.5*(95*30*1.75)/27—92.5 CY Total = 185 CY Total shown in SSPs = 178 CY i i i 5675 Ruffin Road,Suite 250•San Diego,CA 92123•Tele: 858.514.8377•Fax: 858.514.8608 I ®DOKKEN ENGINEERING w ww.dok kene o6ioee rin&•com Concreted RSP (1/2 Ton, Method B)—Per Page 37 of the plans Measurement Assumption—All of RSP has 4.25' of Concreted RSP underneath it. South Area: Measured 50' West of the Centerline and 45' East of the Centerline,with 30' wide. Volume =(95*30*4.25)/27—450 CY North Area: Measured 50' West of the Centerline and 45' East of the Centerline,with 30' wide. Volume=(95*30*4.25)/27 —450 CY Total = 900 CY Total shown in SSPs = 715 CY 5675 Ruffin Road,Suite 250•San Diego,CA 92123 a Tele: 858.514.8377•Fax: 858.514.8608 ®DOKKEN ENGINEERING www.dokkenenginecring.com July 18,2012 MEMORANDUM TO: George Marantz,G&M Construction FROM Jeff Burdick,P.E.,Resident Engineer RE: CP#87-49—Liquidated Damages/Project Delay George, This memorandum is a reminder that G&M Construction is currently being charged Liquidated Damages of$2,200 per Calendar Day per Article 2 "Commencement and Completion" of the City Contract and Section 4 of the Project Specifications. Liquidated Damages began on 6/27/12 (WD Number 183). To date, 22 Calendar Days have expired from the end of Contract Time. In addition, I have had multiple discussions with Eric and yourself regarding the remaining items of work that need to be completed. G&M Construction has opted not to complete any substantial work on these remaining items over the last few days, other than sidewalk and curb and gutter construction through the use of your subcontractor BLGC's crews. This is notice that there are multiple items that need to be and can be completed now and that these delays in the completion of this work are the responsibility of G&M Construction. If you believe it would be helpful, I am available to meet with you to discuss these remaining items and assist G&M Construction in determining a potential plan of completion. If you have any questions or comments,please feel free to contact me at(858)232.4717. Sincerely, k '� Jeff Burdick, PE Resident Engineer 1411-800 CC: Mike Mott, City of Palm Springs Mike Lytar, City of Palm Springs David Barakian, City of Palm Springs Rick Liptak,Dokken Engineering Mike Roberts, Dokken Engineering 5675 Ruffin Road,Suite 250•San Diego,CA 92123•Tele: 858.514.8377•Fax: 858.514.8608 ®DOKKEN ENGINEERING www.dekkenengineering.com July 18, 2012 MEMORANDUM TO: George Marantz,G&M Construction FROM Jeff Burdick,P.E.,Resident Engineer RE: CP#87-49—Liquidated Damages/Project Delay Reply George, I am aware that there appears to have been additional Rock Excavations and Import beyond the estimated quantities of the contract. These items will be dealt with when we can agree upon the final quantity per all of the import tickets, field measurements,and previous discussions we have had. As for additional time related with this work, at the time of the excavations and import the controlling operation was the bridge construction. The additional import of material and additional rock excavations did not impede the controlling operation, and therefore, no additional time will be considered with the change order for the unit adjustments. In addition, G&M Construction was not on site for the majority of the months of December 2011 and January 2012 while you were completing the City Sewer Project. During the months that G&M Construction was not on site,most of the work that is being completed now could have been finished. This was brought up to G&M Construction on multiple occasions by my team as well as your subcontractor BLGC. The only roadway work that was tied to the bridge was approximately 100' north and south of the bridge. Everything else was independent of the bridge construction and should not have impacted contract time. Ultimately, G&M Construction's absence has impacted the schedule and will not be taken into account since these projects were not related. Furthermore, multiple construction issues with the bridge relating to the quality of workmanship have also caused additional delays that will not be taken into account when determining any additional working days. Currently, there is a large amount of contract work that needs to be completed before I can provide G&M Construction with a project close out punch list. To help the process, I will begin putting together a draft punch list to aide G&M Construction is the scheduling of the final work but this will not be considered the final punch list of items. I will begin putting this together and will have it available to G&M Construction by close of business Thursday,July 19,2012. If you have any questions or comments,please feel free to contact me at(858)232.4717. Sincerely, Vt Y- Jeff Burdick,PE Resident Engineer 1411-800 CC: City of Palm Springs Dokken Engineering 5675 Ruffin Road,Suite 250 a San Diego,CA 92123 a Tele: 858.514.8377 a Fax: 858.514.8608