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HomeMy WebLinkAboutItem 06.jDate: 16 December 2010 Item No. CONTRACT ADDENDUM WITH AUTOMATIC SYSTEMS CO. TO EXTEND THE COMPLETION DATE FOR THE INSTALLATION OF A VARIABLE FREQUENCY DRIVE Proposed Action Staff recommends adoption of the following motion: Move to approve the contract addendum with Automatic Systems Co. to extend the completion date for the installation of a variable frequency drive (VFD) to 28 February 2011. Passage of this motion formally extends the completion date from 31 December 2010 to 28 February 2011 as a result of unforeseen delays in receiving components for the VFD. Overview In August 2010, Council awarded the contract to Automatic System Co. for the installation of a VFD at the Water Treatment Facility. A VFD is a motor control that controls the rotational speed of a motor. Used with a pump, they save energy by allowing the volume of water moved to match system demand. Automatic Systems Co. has advised the City that a transformer used in the VFD has been backordered and is not expected to be delivered until 27 December 2010. This late delivery does not allow Automatic Systems Co. to complete installation, startup, and commissioning of the VFD by the 31 December 2010 contract deadline. This addendum formally extends the completion date for the installation and avoids liquidated damages to the contractor. Staff has reviewed the contract addendum and recommends its approval. Primary Issues to Consider • Impact of delay in VFD installation. Timing of the installation was based on off -peak water demand periods. Delaying the installation to the end of February does not adversely impact water distribution. Supporting Information • A copy of the •roposed contract addendum is attached. /-�r Oper ions and Maintenance Director Financial Impact: er J. Petree Related Documents (CIP, ERP, etc.): Notes: Budgeted: Source: CONTRACT ADDENDUM CONTRACT ADDENDUM made this 20th day of December 2010, by and between the CITY OF LAKEVILLE, a Minnesota municipal corporation ( "City "), and AUTOMATIC SYSTEMS CO., a Minnesota corporation ( "Contractor "). 1. INCORPORATION BY REFERENCE. The parties have previously entered into a contract dated August 2, 2010 for the Installation of a Variable Frequency Drive which is incorporated herein by this reference shall remain in full force and effect except as specifically modified by this Addendum. 2. EXTENSION TO COMPLETION DATE. The City and the Contractor agree to extend the completion date of the contract to 28 February 2011 Inasmuch as additional damage or loss to the City which will result from the failure of the Contractor to complete the work by the extended date will be most difficult or impossible to accurately assess for every calendar day after February 28, 2011 the work has not been completed the Contractor shall pay the city liquidated damages off $500 per day for each calendar day, Sundays and holidays included. IN WITNESS WHEREOF, the parties have entered into this Agreement on the day and year first above written. CITY OF LAKEVILLE BY: Holly Dahl, Mayor AND CONTRACTOR: AUTOMATIC SYSTEMS CO. BY: Its Charlene Friedges, Clerk