THE PUBLIC WORKS DEPARTMENT/WATER AND WASTEWATER SERVICES RECOMMENDS APPROVAL OF THE ABOVE ACTION.
On August 13, 2013 (Item No. 46), the Board of County Commissioners approved the Agreement with Lakdas/Yohalem Engineering, Inc. (LYE), for the North Regional Wastewater Treatment Plant - Structural Steel Replacement, RLI No. R1007403R1. Under the agreement, LYE would provide engineering design and services during construction for the repair and replacement of various building and process steel structures and for the demolition of buildings and structures at the North Regional Wastewater Treatment Plant for a total amount of $130,000 and a time of performance of 268 calendar days (Exhibit 1). In phase one of the project, LYE was contracted to provide engineering design and engineering services during construction for the Belt Press Filter Building Demolition. On September 12, 2013, County staff issued a Notice to Proceed to LYE requiring phase one be completed by December 29, 2013 (Exhibit 2).
On April 28, 2014, LYE submitted its 100% plans and specifications for Phase One (first submittal). County staff’s review of the first submittal discovered numerous errors, omissions, and inconsistencies prompting a meeting with LYE on February 23, 2016. During this meeting, County staff discussed the deficiencies in the first submittal with LYE and provided LYE with an additional two weeks to correct and resubmit the 100% plans and specifications by March 8, 2016.
On March 8, 2016, LYE submitted its revised 100% plans and specifications for Phase One (second submittal). County staff's review of the second submittal again resulted in the discovery of numerous errors, omissions, and inconsistencies. At this point, staff engaged the services of an independent consultant (Brown and Caldwell) to perform a review of the first and second submittals for the purpose of obtaining an independent, outside professional assessment (Exhibit 3). Although Exhibit 3 states that generally the second submittal was more detailed than the first submittal, the independent consultant identified critical issues in LYE's submittals that “could significantly impact the successful execution of the project." Based on the County staff’s review and the findings of the independent consultant, and pursuant to Article 10.2 of the Agreement, County staff notified LYE on June 20, 2016 of the County's intent to terminate the agreement for cause (Exhibit 4).
On July 11, 2016, County staff met with LYE again, to discuss the significant deficiencies and errors contained in the April 28, 2014 and March 8, 2016 100% submittals as well as the findings of the independent consultant report. Based on the July 11, 2016 meeting, County staff provided LYE with an additional 30 days (August 12, 2016) to cure the deficiencies and resubmit a sufficient set of 100% plans and specifications. LYE submitted the third set of 100% plans and specifications on August 11, 2016. County staff reviewed the third submittal and found that it still contained numerous errors, omissions and inconsistencies that would ultimately affect the success of the project and the ability to obtain accurate bid pricing (Exhibits 5 and 6). As a result of this final review, County staff sent a second notice of the County’s intent to terminate the agreement for cause on September 12, 2016 (Exhibit 7). After this second notice, the County attempted to negotiate a settlement agreement with LYE to terminate this contract. Staff from Water and Wastewater Services, as well as the County Administrator's Office and the Office of the County Attorney, participated in efforts to settle this matter. Despite the County's efforts, these negotiations were not successful. However, staff has decided to proceed with a termination for convenience for this contract.
This action has been reviewed by the Office of the County Attorney and the Purchasing Division.
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