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HomeMy Public PortalAbout2001-09-11 Special Meetingly4 COUNCIL MINUTES SPECIAL MEETING — SEPTEMBER 11. 2001 The Special Meeting of the Bal Harbour Village Council was held on Tuesday, September 11, 2001, in the Council Chambers, at Bal Harbour Village Hall. The meeting was called to order at 5:33 p.m. by Mayor Berlin. The roll was called and those present were: Also present: Mayor Howard J. Berlin Assistant Mayor Daniel Tantleff Councilman James E. Boggess Councilman Seymour Roth David Wolpin, Village Attorney Alfred J. Treppeda, Village Manager Jeanette Horton, Village Clerk Ellisa Horvath, Deputy Village Clerk Absent: Councilman Peg E. Gorson As a quorum was determined to be present, the meeting commenced. Q. DISCUSSION OF PARK PROJECT: Mayor Berlin explained that the Village ran into difficulties with the Contractor (Danco) for this project, who claimed that when the emergency work had to be done on 96th Street involving the water and sewer connections, they were involuntarily taken off the job and suffered delays and damages. He reported that the Village Attorney and Village Manager have been meeting with Danco to work out a compromise to get them back on the job. Mayor Berlin advised that in the interim, the Village solicited bids from alternative contractors to finish the job. He reported that their bids to finish the job were greater than Danco's initial bid to do the entire job, which indicates how far Danco underbid it. Mayor Berlin advised that the outline of the terms of a proposed settlement with Danco is enclosed in the agenda. Mayor Berlin reviewed the Proposed Settlement and questioned what the projected date of completion is. Mr. Wolpin advised that it is December 31, 2001. Mayor Berlin clarified that Danco does not receive the extra $50,000, if they fail to complete the project on a timely basis. Mr. Wolpin agreed and explained that this is an incentive to complete the project by the given date and to comply with that date. If they fail to meet that incentive, then they will not receive the $50,000 compensation. Mayor Berlin questioned if both $50,000 amounts are in the budget. Mr. Treppeda responded yes and distributed a Memorandum showing the Park Project Financial Status. Mayor Berlin questioned Mr. Wolpin and Mr. Treppeda if the $50,000 compensatory number is a fair settlement of Danco's potential claims against the Village. Mr. Wolpin and Mr. Treppeda both responded yes. Mr. Wolpin stated that although he feels that the Village is not liable for those claims, it is a fair measure of them. This would be subject to the fact that Danco will assign their rights to the Village for any of the claims caused by third parties, so that the Village can pursue those rights. Mayor Berlin questioned who is going to follow up to attain the assignment of the claim rights. Mr. Wolpin advised that he and Mr. Treppeda will follow up with Danco and their attorney to make sure that the Village actually gets those rights, so it can make a claim. Mayor Berlin questioned who the Village Special Council Meeting 09/11/2001 1 195 will claim against. Mr. Wolpin responded DOT (Department of Transportation) or DDT's Contractor, Gilbert Southern. He expects that Gilbert Southern will expeditiously process the Village's claim, because the Village has shown them every possible courtesy in the use of the Village's property. Mayor Berlin questioned what the possible recovery is. Mr. Wolpin estimates that it will be in the $25,000 range. Councilman Roth feels that the delay caused by the contamination from the fuel tanks is a legitimate claim. Mr. Wolpin advised that the contamination caused a delay; however, under the contract, the Village clearly provided that if a delay is caused, then the remedy is extension of time not damages or monetary compensation. Mr. Wolpin reported that in order to enforce that clause, it would require litigation. So, this is an effort to avoid litigation and to primarily get the project done. Mr. Wolpin advised that if the Council authorizes this settlement and Danco does not fully cooperate with implementing it, then the Village would proceed to notify the bonding company and go that route. So, this authorizes Mr. Wolpin to work things out with Danco; however, if they show any lack of cooperation, then Mr. Treppeda and he very clearly agreed that this is their last chance to work with the Village. Mr. Wolpin believes that the Village will be successful in resolving this. Mayor Berlin clarified that Danco doesn't get any of this money if they don't go back on the job. Mr. Wolpin agreed and reported that even the $50,000 compensatory, which makes up for alleged damages, will be paid in installments, based on the percentage of completion of the overall work for the finishing of the project. Mayor Berlin stated that if they're not working, then they're not getting that money. Mr. Wolpin agreed. Mayor Berlin clarified that the Village isn't out any money, unless Danco finishes the job. Mr. Wolpin stated that if the Village has any feeling at all that Danco is not showing good faith and getting back out there, then the bonding company will be contacted. He advised that the bonding company has already previously been put on notice of problems. Mayor Berlin questioned what "Revenue for the $44,404.03 can be allocated" means on Mr. Treppeda's Memorandum. Mr. Treppeda explained that with everything the Village has in reserve, with the $200,000 that is budgeted in 2001/2002 budget, $44,404.03 will still be needed. He advised that amount is in the contingencies, which are included in the general fund budget. So, the funds are available in the budget. Councilman Boggess questioned if Danco is capable of finishing this job and are resolved to getting it done. Mr. Wolpin feels that the $50,000 incentive payment for successful completion will be something that will drive them forward. Otherwise, they know that they are looking at the Village further notifying the bonding company and implementing the provisions of the payment and performance bond. Councilman Boggess questioned if they are well bonded. Mr. Wolpin responded yes, they have bonds and the Village has received communication from their bonding company and intends to keep the bonding company posted as it moves ahead with this. Mr. Wolpin advised that if the Village doesn't see full cooperation within the next 10 days, then he will not proceed with giving Danco the opportunity to move ahead. He reported that Danco has verbally given commitments and their Attorney has assured that Danco recognizes that this their last chance to move ahead with this. Mr. Wolpin advised that he and Mr. Treppeda believe that Danco wants to move ahead with this project so as to avoid problems with their bonding company. Mr. Wolpin advised that the Village will know their good faith by whether they show activity at the work Special Council Meeting 09/11/2001 2 1�0 site very shortly. Councilman Boggess questioned if there's anything to impede them proceeding. Mr. Treppeda advised that at this point there's nothing to impede them. Councilman Boggess questioned if the fuel tanks were taken care of. Mr. Treppeda responded yes. Mr. Wolpin advised that the site is ready for work. Councilman Boggess questioned where the new tanks are going. Mr. Treppeda advised that needs to be evaluated, but they will probably be placed somewhere near the public works building. Councilman Boggess questioned if that's an additional expense. Mr. Treppeda responded yes and that funds are budgeted for the new tanks. Mr. Wolpin advised that the problem with this project was caused by the performance of the Contractor, coupled with the other circumstances that happened (fuel tanks, drainage, DOT). He thinks that if an excellent contractor had been out there, then it probably would have been an incidental matter. But, this was a troubled contractor who claimed that they underbid this project because of a former employee's error. Mr. Wolpin advised that Danco has told that same thing to other cities where they have done the same thing. Assistant Mayor Tantleff requested that Mr. Treppeda ensure that Danco doesn't complete the project too quickly in order to get the bonus, leaving the Village with an inferior basketball court, etc. Mr. Treppeda advised that the building department will look at everything, as well as the Project Manager (CAP Engineering). A motion was offered by Assistant Mayor Tantleff and seconded by Councilman Roth to approve the Village Manager to move forward with the Proposed Settlement with Danco Development Company for the Park Proiect as presented. The motion carried with the vote as follows: Mayor Berlin aye; Assistant Mayor Tantleff aye; Councilman Boggess aye; Councilman Gorson absent; Councilman Roth aye. i. OTHER BUSINESS: Assistant Mayor Tantleff advised that he will become the President of the Dade County League of Cities on October 4, 2001. He invited all Council members to attend the dinner at the Sheraton. Assistant Mayor Tantleff announced that he was elected to the Florida League of Cities Board of Directors. Assistant Mayor Tantleff requested that Mr. Treppeda look into how much parking is available at the Surf-Bal-Bay Library, because there doesn't seem to be a lot in front of the Community Center. Mr. Treppeda reported on the Beach Master Plan and advised that Coastal Systems International is still dealing with the State on the irrigation system. He explained that the State is taking the position that they don't want a permanent irrigation system out there because of the turtles. Mr. Treppeda advised that the Village is putting in a very expensive irrigation system, so if the State is holding that position, the Village is going to fight that. If they continue to hold that position, then the Village should downgrade the system and save a lot of money on the irrigation. Mayor Berlin thought that the irrigation system had Special Council Meeting 09/11/2001 3 197 previously received a permit from the State and questioned how they can change their minds on that. Mr. Treppeda advised that Coastal Systems International will address the Council at the Council Meeting on September 20th regarding this issue. Assistant Mayor Tantleff requested that Harvey Sasso, Coastal Systems International, attend the meeting to give an update. Mayor Berlin doesn't understand how they can approve a permit and then decide not to approve it. Mr. Wolpin advised that once they give a permit, they are bound by it. Assistant Mayor Tantleff feels that it's possible that Coastal Systems International didn't get a permit for the irrigation. 4. ADJOURN: There being no further business to come before the Council, a motion was offered by Assistant Mayor Tantleff and seconded by Councilman Roth to adjourn. The motion carried unanimously (4-0), with Councilman Gorson absent, and the meeting adjourned at 5:50 p.m. Mayor Howard J. Berlin Attest: Jeanette Horton, CMC Village Clerk /elh Special Council Meeting 09/11/2001 4 197 previously received a permit from the State and questioned how they can change their minds on that. Mr. Treppeda advised that Coastal Systems International will address the Council at the Council Meeting on September 20th regarding this issue. Assistant Mayor Tantleff requested that Harvey Sasso, Coastal Systems International, attend the meeting to give an update. Mayor Berlin doesn't understand how they can approve a permit and then decide not to approve it. Mr. Wolpin advised that once they give a permit, they are bound by it. Assistant Mayor Tantleff feels that it's possible that Coastal Systems International didn't get a permit for the irrigation. 4. ADJOURN: There being no further business to come before the Council, a motion was offered by Assistant Mayor Tantleff and seconded by Councilman Roth to adjourn. The motion carried unanimously (4-0), with Councilman Gorson absent, and the meeting adjourned at 5:50 p.m. Mayor Howard J. Berlin Attest: Jeanette Horton, CMC Village Clerk /elh Special Council Meeting 09/11/2001 4