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05/17/2017 ReleaseCounty of Monroe The Florida Keys Memorandum DATE: 25 April 2017 TO: BOCC r / FROM: Kevin G. Wilson, P. .r �-- SUBJECT: Proposed Payment to Nationwide Plumbing BOARD OF COUNTY COMMISSIONERS Mayor George Neugent, District 2 Mayor Pro Tern David Rice. District 4 Heather Carruthers, District 3 Danny L. Kolhage, District 1 Sylvia J. Murphy, District 5 Recommendation: The County should pay Nationwide $50,137.50. An explanatory letter (copy at Attachment 1) was sent to the vendor explaining how the amount was determined. Basis for Recommendation: 1. We received work and should pay for it. 2. The details below show that the vendor resisted providing consistent details. As a result I had to review the records and determine an equitable compensation. 3. Review of the vendor's labor submissions and rates yields labor charges due of $13,212.50 4. Vendor's materials billing is $3,140.00 5. While equipment usage is billed in several places, it appears that 2 days at $2,600/day is supported by the documentation. 6. JMC Jetting and Drain Cleaning subcontract invoices total $28,545. Discussion (page number references are to Attachment 2): The work was done during the period 10-31 August 2016. Initial invoices were not sufficiently detailed to allow proper review of charges (see page 12— note this invoice claims 218 hours at $325/hr.). Subsequent responses to requests for detail (shown in attached documents) changed what was billed for and by whom (Attachment 2 page #17 shows 179 hours of labor). Response to requests for additional detail on 26 October 2017 included a subcontractor invoice and refusal to provide actual worker hours. Eventually the contractor provided daily force count worksheets showing actual workers on site (see pages 38-45). He also provided a notarized summary (page 46). Attachment 2 is a complete chronology of the exchanges by the staff to secure a sufficiently detailed accounting to support the invoice. That chronology is in Attachment 2 and includes the record of attempts by the staff and County Attorney's office to obtain the required supporting details. The absence of detailed records or proposals made final determination more difficult. While it is understandable that the work scope was difficult to determine, the absence of any proposed prices / rates reflects an approach that lack a concern for the total cost. The amount eventually billed exceeded the County's threshold for competitive bidding and, hence, complicated the review process. The County has a right to expect itemized bills. Absent that, it was important to get what documentation there was about force and equipment counts / hours. The responses from the contractor were contradictory at best. Below is a summary of the possible interpretations of the responses from the contractor to the County's inquiries. Where they were contradictory, I have made a determination that was the fairest interpretation. The details supporting the tables are: 1. Labor charges — there were several different force counts provided by the contractor. They ranged from 153 person -hours to 218 person -hours. I used 153 because that was on the daily logs and it corresponded to the actual on site hours (contractor's presence) recorded by County employees. This was used because there was always a County staff member present whenever a contractor was on site. In cases where the contractor's claimed hours exceeded the time at which a County staff member was present I disallowed the claim (see specifically 10, 12, and 17 August). 2. Labor rates — There were a number of different labor rates reported. They ranged from $175/hour for a 2 person plumbing crew to $325/person-hour (original invoice). I have used the $175/hour for a 2 person crew in arriving at the proposed payment because there was no rationale provided for a different rate. In an effort to recreate the contractor's billing, I also evaluated a rate of $325/2 person crew (see last column with yellow highlight). This would increase the amount due from $51,137.50 (Table 1) to $61,462.50 (Table 3). 3. Materials and fittings — Allowed as billed. 4. Excavation Equipment — There was a discrepancy between the invoices and one summary. Inquiries to the contractor about equipment charges showed daily rates of $2,600/day (see page #53). Daily sheets showed 2 days' use so that was allowed at $5,200. 5. Subcontracted amounts — allowed as billed a. Underground detection services — as billed b. Concrete & Tile — allowed as billed c. Demolition & debris disposal — allowed as billed even though there was some discrepancy in who performed it. This memo has two attachments — letter sent to the vendor (Attachment 1) and the detailed record of the exchanges with the vendor in attempts to get proper invoices and supporting details (Attachment 2). Table 1 - Detailed Analysis of Labor Hours Recap of Labor Charges by Nationwide Day Date Hours County Employees were on Site #hours County Employee on site Numberof Nationwide staff on site based on daily sheets Nationwide Claimed person -hours on daily sheets Numberof Nationwide staff on site based on notarized spreadsheet Nationwide Claimed person- hourson notarized spreadsheet (Note 1 & 2) Prposed allowed of person -hours Proposed allowed for billing (Note 3) Proposed allowed for billing (Note 4) Wednesday 10-Aug-16 1530-2130 6 2 12 2 18 12 $1,050.00 $1,950.00 Thursday 11-Aug-16 1530-2030 5 4 18 4 18 18 $1,575.00 $2,925.00 Friday 12-Aug-1 1430-1630 2 2 8 2 8 4 $350.00 $650.00 Saturday 13-Aug-16 0700-2100 14 5 70 5 70 70 $6,125.00 $11,375.00 Sunday 14-Aug-16 0700-1700 10 2 18 2 18 18 $1,575.00 $2,925.00 Monday 15-Aug-16 1530-2130 6 1 9 1 9 9 $787.50 $1,462.50 Tuesday 16-A2-16 1530.1830 3 0 0 0 1 0 0 $0.001 $0.00 Wednesday 17-Aug-16 1530-2130 6 4 20 5 25 1 TO$1,750.00 $3,250.00 Totals = 155 1 166 1 151 Note 1: There is a difference between the 8/10/2016 daily reports of nationwide employees on site and the notarized spreadsheet. The daily report shows two employees on site for 6 hours each; the spreadsheet says three employees for 6 housr each. Note 2: The daily report for 8/17/2016 shows four employees for five hours each. The spreadsheet shows five employees on site for four hours each. Note 3: In Nationwide's email reply of 1/11/2017, the reply to inquiry number 4 says that the $175/hr rate is for a two man crew. This labor amount is calculated based on that respose at $175/2person-hours Note 4: Nationwide's response dated 1/11/17 to inquiry number 3 suggests that the off hours rate for a two man cew is $325/hour. This column assumes that rate. Table 2 - Proposed Payment Proposed Payment to Nationwide Assuming $175/hr for two man plumbing crew Natonwide Labor 153 person -hours at $175/2 peron-hours $13,212.5b Nationwide Materials & Fittings $3,140.00 Nationwide billing for excavator (Note 5) $5,200.00 Subcontracted Services JMC Jetting & Drain Cleaning underground detection setrvices $16,000.00 Concrete Floorfinish &Tile $6,485.00 demolition & debris removal $6,100.00 TOTAL= $50,137.50 Table 3 - Another Analysis of Labor Assuming $325/hr for two man plumbing crew Natonwide Labor 153 person -hours at $175/2 peron-hours NationwideMaterials & Fittings $3,140.00 Nationwide billing for excavator (Note 5) $5,200.00 Subcontracted Services JMC Jetting & Drain Cleaning underground detection setrvices $16,000.00 Concrete Floorfinish &Tile $6,485.00 demolition & debris removal (Note 5) $6,100.00 TOTAL= $61,462.50 Note 5: There is a discrepancy between the Nationwide invoice dated 9/27/2016 and the notarized undated summary spreadsheet. The former says the excavator charges were $10,400 for 16 hours. The later claims 32 hours on non-consecutive days (one day on which no Nationwide work was performed (8/16/2016). In its 1/11/2017 email response to inquiry number 8 the hourly rate for the excavator is $2,600/day. This allows 2 days at 2,600/day consistent with the itemized invoice of 9/27/16. Attachment 1 Letter to Nationwide County of Monroe The Florida Keys BOARD OF COUNTY COMMISSIONERS Mayor George Neugent, District 2 Mayor Pro Tern David Rice, District 4 Heather Carruthers, District 3 Danny L. Kolhage, District 1 Sylvia J. Murphy, District 5 25 April 2017 Via electronic mail Nationwide Plumbing Services 92410 Overseas Highway Unit 9 Tavernier, FL 33070 Sir: SUBJECT: Payment for Work at Plantation Key Courthouse 9 — 31 August 2016 I was prepared to submit a payment request through the Clerk's Finance Department to your firm in the amount of $50,137.50. 1 have been advised by the Clerk of Courts, however, that approval of this payment by the Board of County Commissioners is required. I will request approval on the BOCC agenda for its May meeting which will be in Key West. This proposed payment is based on our analysis of the supporting documentation for the charges originally billed in the amount of $70,850.00 for which we have not yet received a proper invoice. We have made multiple attempts to get sufficient documentation supporting your claimed amounts and have not yet received such documentation. The amount proposed for the payment represents our analysis of the conflicting documentation that you have submitted to date. We believe you should be paid for work performed and which is properly documented. The amount we have submitted for payment is what we believe we have sufficient documentation to support. Assuming approval by the BOCC, we will have the check drawn and held at our offices and delivered to you upon receipt of a release of lien (blank copy attached) from you and each of the subcontractors. We would prefer that those releases include copies of the final invoices from each subcontractor. Upon receipt of those releases we will deliver the check. This can be done at our offices in Key West or with prior arrangement at my office in Key Largo. The following is a summary of how we arrived at the amount. The work was done during the period 10-31 August 2016. Initial invoices were not sufficiently detailed to allow proper review of charges. Subsequent requests for detail resulted in changes in what was billed for and by whom. The absence of detailed records or proposals makes final determination more difficult. While it is understandable that the work scope was difficult to determine, the absence of any proposed prices / rates reflects an approach that lacked a concern for the total cost. The amount eventually billed exceeded the County's threshold for competitive bidding and, hence, complicated the review process. The County expects proper itemized bills. Absent that, it was important to get what documentation there was including force and equipment counts / hours. The responses received to date from your firm are contradictory at best. 1100 Simonton Street tel: (305) 292-4529 Key West, FL 33040 fax: (305) 295-4321 The attached table is a summary of the possible interpretations of your responses to the County's inquiries. Where they were contradictory, I have made a determination that was the fairest interpretation. The details supporting the tables are: 1. Labor charges — there were several different force counts provided by the contractor. They ranged from 155 person -hours to 218 person -hours. I used 151 hours because that was based on our comparison of the daily logs with the actual on site hours recorded by County employees. 2. Labor rates — There were a number of different labor rates reported. They ranged from $175/hour for a 2 person plumbing crew to $325/person-hour (original invoice). I have used the $175/hour for a 2 person crew in arriving at the proposed payment because there was no rationale provided for a different rate. 3. Materials and fittings — Allowed as billed. 4. Excavation Equipment — There was a discrepancy between the invoices and one summary. Inquiries about equipment charges showed daily rates of $2,600/day. Daily sheets showed 2 days' use so that was allowed at $5,200. 5. Subcontracted amounts — allowed as billed a. Underground detection services — allowed as billed b. Concrete & Tile — allowed as billed c. Demolition & debris disposal — allowed as billed even though there was some discrepancy in who performed it. Respectfully, !K�i n G. Wilson, P.E. Assistant County Administrator Cc: Ms. P. Eables Mr. D. Sposito 1100 Simonton Street tel: (305) 292-4529 Key West, FL 33040 fax: (305) 295-4321 Recap of Labor Charges by Nationwide Day Date Hours County Employees were on Site #hours County Employee on site Numberof Nationwide staff on site based on daily sheets Nationwide Claimed person -hours on daily sheets Numberof Nationwide staff on site based on notarized spreadsheet Nationwide Claimed person- hourson notarized spreadsheet (Note 1&2) Prposed allowed of person -hours Proposed allowed for billing (Note 3) Wednesday 10-Aug-16 1530-2130 6 2 12 3 18 12 $1,050.00 Thursday 11-Aug-16 1530-2030 5 5 18 5 18 18 $1,575.00 Friday 12-Aug-16 1430-1630 2 2 8 2 8 1 4 $350.00 Saturday 13-Aug-16 0700-2100 14 5 70 5 70 70 $6,125.00 Sunday 14-Aug-16 0700-1700 10 2 18 2 18 18 $1,575.00 Monday 15-Aug-16 1530-2130 6 1 9 1 9 9 $787.50 Tuesday 16-! u 16 1530-1830 3 0 0 0 0 0 $0.00 Wednesday 17-1ug-16 1530-2130 1 6 1 not shown 20 1 5 25 20 $1,750.00 Totals =1 155 166 151 $13,212.50 Note 1: There is a difference between the 8/10/2016 daily reports of Nationwide employees on site and the notarized spreadsheet. The daily report shows two employees on site for 6 hours each; the spreadsheet says three employees for 6hours each. Note 2: The daily report for 8/17/2016 does not show the number of employees for a tottal of 20 hours. The spreadsheet shows five employees on site for five hours each. Note 3: In Nationwide's email reply of 1/11/2017, the reply to inquiry number 4 says that the $175/hr rate is for a two man crew. This labor amount is calculated based on that respose at $175/2person-hours Proposed Payment to Nationwide Assuming $175/hr for two man plumbing crew Natonwide Labor 151 person -hours at $175/2 peron-hours $13,212.50 Nationwide Materials & Fittings $3,140.00 Nationwide billing for excavator (Note 5) $5,200.00 Subcontracted Services 1MC Jetting & Drain Cleaning underground detection setrvices $16,000.00 Concrete Floor finish & Tile $6,485.00 demolition & debris removal $6,100.00 TOTAL= $50,137.50 1100 Simonton Street tel: (305) 292-4529 Key West, FL 33040 fax: (305) 295-4321 WAIVER AND RELEASE OF LIEN FINAL PAYMENT The undersigned lienor, in consideration of the final payment in the amount of 5Dl Iy i • 50 , here waives and releases its lien and right to claim of lien for labor, services or materials to on the job of AlmiUf Cj"i,J �' ,0*9 to the following described property: Dated: V 1 4. p i g Lienors Name:�!An-vMc4 Address: �1 By: Printed Name: The foregoing instrument was acknowledged before in this ��_' ofl�-(�� , 20_r _, by F 4P who is personally known to me or who has produce as identification and who did take an oath. ARY PLUBLIC, STATE OF V ' My Commission Expires: -Na-0 E. e� ,ate 9400 �G ',�qrE OF WAIVER AND RELEASE OF LIEN FINAL PAYMENT The undersigned lienor, in consideration of the final payment in the amount of • �� S95 , hereby waives and eleases its lien and right to claim of lien for labor, services or materials to Rts.4incpn the job of to the following described property: u s . L,- �3 6 r7 b Dated: l q • 7 Lienors Name: JtA(� Address: 130ir _w S—b M Printed Name: The foregoin ument was acknowledged before me this 1 A. of-�- , 20�, by 14M l a `Z D who is personally known to me or who has produced 1 as identification and who i to a an oat . %_1 AR Y PLUBLIC, ATE OF '20 ice.44 PUBS-� My Commission Expires: " ((Q •� ���''��q F•,ov: MONROE COUNTY FINAL RELEASE OF LIEN KNOW ALL MEN BY THESE PRESENTS, that NATIONWIDE PLUMBING SERVICES, 92425 Overseas Highway, Unit 2, Tavernier, FL 33070, for and in consideration of the sum of Fifty Thousand One Hundred Thirty-seven and 50/100 Dollars ($50,137.50) paid to NATIONWIDE PLUMBING SERVICES by Monroe County, Florida, receipt of which is hereby acknowledged, does hereby release and quitclaim to Monroe County, Florida, the Owner, its successors or assigns, all liens, lien rights, claims or demands of any kind whatsoever which NATIONWIDE PLUMBING SERVICES has, have, or might have against the property, building, and/or improvements, on account of labor performed, material furnished, and/or for any incidental expense for the construction/repairs conducted starting August 20, 2016, at the Plantation Key Courthouse Complex in Monroe County, Florida, thereon or in otherwise improving said property situated as above described. In Witness Whereof thisI G —day of June, 2017. � L11�01 Witness 4 Witness M Pct pN i i9C PL.uM jSw 6 (Name of Co rg ure of authorized representative) 9—N-A "LA N P ) (Printed name and Title) The foregoing instrument was acknowledged before me this 1( day of June 2017, by u , who is (}'personally known to me or produced a driver's license as identification. NOTARY PUBLIC, STATE OF FLORIDA CtAuD 111 SAmQQVAL (SEAL) Print, type of stamp commissioned name of notary CLAUDIA SANDOVAL My Commission Expires: IJOJ. ZO jL ; MY COMMISSION # GG049134 EXPIRES November 20, 2020