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AGENDA ITEM REVIEW FORM |
11.A.
Regular City Council Meeting
- Meeting Date:
- 08/22/2018
- Department Head:
- Kay Macuil
- Submitted By:
- Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding the retainage on the Manganese Filtration Project for Well Site 7. (Kay Marion Macuil, City Attorney and Eulogio Vera, Director of Public Works)
SUMMARY:
The city entered into a contract for a turn-key manganese filtration system at Well Site 7, which has two (2) wells numbered 11 and 12. The water pumps on wells 11 and 12 have repeatedly failed due to electrical problems. The City has withheld monies of the contract due to the failures.
The General Contractor on the project has requested the release of the retainage indicating that they have installed as designed, so the design engineer must be at fault. However, construction failures have been found and the General Contractor, so far, has failed, neglected or refused to correct these failures.
The system has never worked as specified in the contract. Exactly why the failures are occurring is still unknown.
On August 9, 2018, the city and the contractors involved in the project engaged in mediation. During the mediation, the parties scheduled to be present for testing at the Well Site by the city's expert on August 20, 2018.
At the August 20 testing, the expert determined the most likely cause of the pump failures include bad connections, bad groundings, and insufficient insulation of the wires going to the submerged water pumps. The pumps must be removed to inspect them to confirm if that is the cause. Therefore, the premise for releasing the retainage is no longer viable. Again, while these identified issues might be the problem, it is still not known if this is the full extent of the problems awaiting a solution.
The accounting for the retainage is attached.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE RELEASING 1/2 OF THE RETAINAGE TO IWS IN THE AMOUNT OF $56,599.46.
OR
I MOVE TO REJECT RELEASING ANY OF THE RETAINAGE.
OR
I MOVE TO REJECT RELEASING ANY OF THE RETAINAGE.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City
- TOTAL:
- $56,599.46
- BUDGETED AMOUNT:
- Yes
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- GL: Retainage Payable 300-20600 / $100,891.00
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
This is the amount if 1/2 the retainage is released