HomeMy WebLinkAboutCity Council Minutes 03.27.1957. _ _ w _ , .
Minutes of the Ci Council of Laurel
27 March 1~7
The Council was called to order at 1 :30 of cloak p.m. by Mayor Thomson.
Aldermen pro sent:
Williams Leuthold
Horn ing Parker j~od~ers Freeburg
Ebersviller
'She purpose of the mseta~r~g was to discuss the city?s request for liquidated
damages resulting in unneoessary delay in completion of tho Cop construction Co.,
and L. Flynn 8c Company ooratract, for construction of the new ~~Vater Filter Plant with Mr. T. B. }~obinson o~ Blaak & Veatch, consulting engineers, designing and
supervising the project. Nir. Robinson presonted Black ~ Veatah~ s observation on the
contract pertaining to the matter of rock excavation and liquidatEd damages.
vlr. Robinson first reviewed the matter of question conQern~.ng the City's
obligation, ~f any, on rock excavation quantity ~'or the intake s~ru~.cture. Because
the ori~xnal contract for the intake was .not a oQepted as such, he held that the terms of the original bid were not bi~d~:~~g and that the basis of payment should be
as negotiated by the change "rder which authorized removal of the existing intake
and construction of a new intake on the same site. He conf firmed the fact that
the negotiation fora new intake was based on a lump sum bid ~c~th a stipulation
that the amount of the bid be adjusted at a unit price per foots of depth ~'or the
actual amount that the depth oz' the intake varied from the depth as shown on the construction flan. Various correspondence between Cop & Flynn, Black & Veatch and
the City ~n~ineer concerning these details were cited. The Contractor's construction
break-down for tkie job was reviewed by l~~r. Robinson and he pointed out 'that the
Contractor had allowed kan his lump sum bid for the fob, a total of 180 ou. yards
of excavation at X10.00 per Cu. Yard, ex~J~usive of dewa~ering operations. T:~is
factor seemed to indicate to the group that the Contractor had never contemplated receiva.ng payment for rock excavation as a separate item. e
141r. nobinsan reported that in the preliminary discussion relating to proposed
bids for construction of the new intake that the contractor had asserted that the
price which he vaould quote would cover the cost of everything including the rook
excavation. Mr. mobingon concluded that the City hds no moral obl~.~ation concerning
additional pay for rock excavation for Lhe intake structure. He also stated that he would not attempt to predict v~hat tale legal status of the question would be.
On this basis he reQOmmended tkiat the City reiuee to accept as the~.r responsibii~.ty
pa;~ment f'or rock excavation under this ~han~e Order.
~'oncernin~ the matter of liquidated damages for which the pity has alleged
that the Contractor had been negligent in performing the job ~o Qompletion. it_r. ` Robinson re-a~f'irmed ~1ack & Veatch's original statement relating to a reasonable
extension of time resulting from chan.~es and additions to the original contract. fi
Ke further stated that it is not Black R~ Veatch~s policy to ~e severe with any
Contractor in assessing liquidated damages for a project. Ne added that the owner
mush ba able to show actual d+~mages incurred to have a legal cla~.m for such alleged
d~ma~ed.
Because the matter of placement of the venturi meter was the principal
factor upon which cop ~on.struction Co. & F _ L. ~''lgnn & Co., had presented their
request for extension of time, Mr. Robinson concentrated on the details concerning
the placement o~ i~he meter. ~e asserted that the records shove that the contractor
would 'hot have been able to place the meter if it had been available because of
various phases of the job which she Contractor had not completed. He $dded that the question of placement of the ventura. meter had no direct bearing on the completio
ainnca thA r~rnia~t r.nialr3 ~~v~ been completed vuith or with the meted a?'1d the
plant placed intovJoperation. He ~ur~:her stated that the City was justified in asking for liquidated damages because they could show that such damages were
actually incurred due to 1:he additional cost of a project engineer for the job
and the loss of r evenue from the No~~hern Pacific Railwa~r, by be ing unable to furnish
faltered water.
Mr. Robinson stated that his firm tivas ran agreement that the contractor for. the piping, pumps and Filter work, E. tiV. Bacharao~, Tnc. , had performed to the
best of their ability and did not contribute to the delay in any mat~Ger. ~+yhen the
questicn of extra items and minor tivork which tree Construction C orlpany did f'or the
City was considered, it was pointed out by the City Ey g~-near 'and P/Ir. Robinson that
the City co-operated fully vuith ,t ie Con~traator by fur~iishing tools, equipment, power, shop space, etc., to the ~'ontractor without charge and that the Contractor
was not eligible for extra consideration on these matters.
Mr. Robinson concluded that the Contrac~c~r~ Cop Const~~:~j.on Co., & Fl. L.
Flynn & Co., did not execute the work to 'the best of their ability, tn.at thn City
claim for liquidated dmages was justified, and that she pity should use their own
discretion in determining a final solmtion to the question.
Minutes of the City Council of Laurel
27 filar c 1957
1~2a,~ror Thomson referred the question t o the Council as a group for consideration with instructions to report to 'the next Council meeting on April with a
recormnendation.
The meat ing was ad jou.rned.
Mayor
.Approved this 2nd day of A~a~i1, 1957•
ATTES'T' : ~Ni~yor
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