HomeMy WebLinkAbout08-09-1988 Regular Meetinga 23
The Airport Board of the City of Fairhope met August 9, 1988 at 4:00 p.m.
at the City Municipal Complex, 161 N. Section Street, Fairhope, Alabama
Present: Chairman Mason McGowin; members Russell Kilgore and
Jeanette Puckett. Jim Reid, City Attorney and M.L. Aust
Engineer were also present. Betty Rivenbark served as
Secretary
Mason told the Board that the meeting today was being held to
let M.L. Aust and Jim Reid explain to us what has transpired
in our negotiations with Newell in trying to close out the project.
M.L. advised the Board that he has attempted to bring to a conclusion
the project as per the Board's instructions by June 15th as evidenced
by his letter to Board(copy in file). That a letter was sent to the
contractor asking him to respond by June 15 and if he needed exten-
sion of contract time to request same w/justification. That right
after the 15th of June Newell asked for a meeting to discuss the
letter that had been sent by M.L. Aust to him. On 6/29, Newell
M.L., Jim Reid and the Electrical sub -contractor's attorney met
and discussed the project at length, primarily discussed were the liq-
uidated damages. Everybody present thought the contractor would
go back and discuss liquidated damages and get back with us.
Jim Reid added that he thought Newell was going to search his records
and get definite times. M.L. said after that meeting he had discussed
with Russ and Mason what went on at meeting. That he had offered
his assistance to Newell and that he thought that everything was
well received. M.L. called the contractor on 7/13 and offered to go
over things on a day by day basis. Since that time we have heard
nothing back from Newell. At this time Jim Reid said the bottom line
would be the calculated date of completion and the date the project
should have been completed. M.L. had spelled this out in his letter
to the Board as amount of liquidated .damages of $64,800. The
extra cost of the project $47,221.00 + approximately 3,500.00 to close-out
completely or a total of about $51,000 which would have to include litigation costs.
Mason said that the only thing the Board wanted was to cover our
excess costs.
M.L. told what funds
might be available if we have to go into litigation. That now we
are at least $20,000 under proiect costs, that the total funds available Aould
include the amount of liquidated damages plus 10% project overrun written
into the law. Mason thought it would be best to authorize M.L. and Jim Reid
to prepare a letter advisi.ngl$64,8� liquidated damages, tell them they
are being charged with this (deduct rom retainage) and cut them a check
for the remaining amount. Tell them that the check is here and they can
have it when they sign the necessary authorization. Jeanette Puckett put
into the form of a motion to assess liquidated damages to W.S. Newell in the
amount of $64,800 and have Jim Reid and M.L. work up accompanying
letter. Russ Kilgore seconded and motion carried unanimously.
M.L. presented bills to the board(copies in file) amounting to $12,800.00
Mason said they were all in order. Russ Kilgore moved to pay these
bills as well as bill from Jim Reid. Jeanette Puckett seconded and rmtion
carried unanimously.
There being no further business meeting was duly adjourned