Minutes-10/10/1984

Baker reviewed the contract agreement and amendments as follows: Original contract called for completion on July 28, 1984 at a cost of $72,950.00. On June 21st, Service Enterprises requested at 30 day time extension. One June 22nd the City of Tiffin granted to Service Enterprises a 30 day time extension, setting completion date as August 27, 1984, with the stipulation that if work is not completed by August 27th, the $100.00 per day penalty will be applied retroactively to July 28, 1984. On August 21st the Council met and received notification from the engineers that the original contract did not include inside pitting repair. Service Enterprise Corp. requested an additional $3400.00 for pit repair, but would agree to repairing pitting at no extra charge if another 30 day time extension was granted. Council denied request by Service Enterprise Corp. for another 30 day time extension. On August 27, 1984 Council met and approve change order no. 2 which states that 30 day time extention is granted and completion date is August 27, 1984. Contract liquidated damages of $100.00 per day shall accrue for each day after August 27, 1984 until the pit repair and painting is completed. Contract liquidated damages shall not accrue after the painting is completed while the paint is curing or the tank is being disinfected. The contractor shall repair the interior pitting in the riser pipe and lower part of bowl with Tenemec 62-1400 Seam Sealer Solventless Epoxy-Polyamide Sealer at no additional cost to the owner. Gish: Weather problems in the spring. We did not get here as quick as we should because of other jobs. Then the rains forced crew to take three times as long as normal for foundation. We made every effort to get back on schedule. Riser and few areas in bottom of bowl had some pitting. Couldn't determine condition of riser because it was not sandblasted, yet. Repair of pitting was not included in Contract. Guessed at extent of repair and asked for time extension to offset our costs. Welding was estimated at about $8,000.00, but it is easier and faster to use epoxy. After it was blasted we found the entire surface of the riser needed to be covered with sealer. Pitting was continuous in riser. We used sealer instead of epoxy. Had trouble with our supplier and underestimated amount of supplies to order. Thought it would take 20 gallon and it took 72 gallons at $31.06 per gallon. Materials cost $3,000.00. It took three weeks, 360 manhours, at $20.00 per hour to paint and repair. Cost of labor was $7,200.00. Have a $10,000.00 investment here. I wanted the opportunity to explain to council the situation and the reasons. Of course, it is after the fact. We did not know the condition of the riser. Normally there is localized pitting. Baker: The tank structure is sound. The crew did a good job.. Gish: We want to make the customer happy. Glad for the opportunity to work for you. We got behind and that was not our fault. Normally, it is not so costly to repair pits. We're asking if City can give any additional relief. The issue of liquidated damages needs to be resolved.