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CITY OF MELBOURNE, FLORIDA MINUTES – REGULAR MEETING BEFORE CITY COUNCIL APRIL 27, 2004

Mr. Contreras said it sounds like the company was re-involved for the Phase 1 activities. And it appears as if Phase 1 is not performing in accordance with the design specifications. Mr. Ralls agreed.

Following a brief discussion, Mr. Ralls said we need to resolve the operational problems and proceed with Phase 2 pending this issue. We need to resolve the cost issue and get CH2MHill moving forward. Staff intends to make a one time offer in the $75,000 range to get them back to work. Work has been on hold by mutual arrangement; they are at 90% with Phase 2. We almost have to finish this project with CH2MHill; it would be next to impossible for another engineering firm to take over the project.

The City Manager added that we believe CH2MHill needs to complete the design, evaluate the bids and obtain the permits. Beyond that, we are not certain about any additional work.

Mr. Ralls continued and noted that we may likely have to obtain a construction litigator. If the firm doesn’t accept the one time offer, then the contract calls for alternative dispute resolution, which is mediation. We need a construction litigator early in the process.

Mrs. Poole said she would like to hear an explanation from CH2MHill. Mr. Schluckebier discussed Council entering a mediation posture. He added that Council certainly has the ability to make such a business decision.

Continuing, Mr. Schluckebier said that given the fact we have concerns with Phase 1, we need to retain the services of a construction litigator. We want someone on board with expertise. Mrs. Hand asked if the City can afford that and the City Manager replied yes.

Mr. Contreras said that this is a contract/performance issue. In writing we need to voice our dissatisfaction with unapproved costs and with Phase 1 not performing in accordance with design requirements.

Mrs. Poole asked if staff would check with officials in Tampa to determine if they are also experiencing problems with the Actiflo system. Mr. Schluckebier agreed.

Mayor Buckley asked what the recommendation is. The City Manager asked Mr. Ralls to outline staff’s plan. Mr. Ralls said we intend to make an offer in the $75,000 range. If that is not successful, we would need an attorney to proceed with alternative dispute resolution.

Mr. Schluckebier confirmed for Mrs. Walker that the City Attorney would be involved in every step.

Mr. Palmer said that it violated the contract for work to be done without our approval. Mr. Schluckebier said there are subtleties. CH2MHill did the work and we benefited from the

work.

Along

the

way,

Somewhere they inferred

work

and

we

benefited.

there were probably misinterpretations of our questions. that we were asking for additional design work. They did the Mr. Palmer said then there should be some compensation.

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