Loading...
HomeMy WebLinkAboutWD-32-85 (a) [File No � .2-101 vaP.,aP as„. wa CORPORATION F THE TOWN OF NEWCASTLE PUBLIC WORKS DEPARTMENT R. DUPUIS, P. ENG., DIRECTOR HAMPTON,ONTARIO TEL.(416)263-2231 LOB 1JO 987.5039 REPORT TO THE GENERAL PURPOSE AND ADMINISTRATION COMMITTEE MEETING OF MAY 21 , 1985. REPORT NO. : WD-32-85 SUBJECT: INVOICES RELATING TO THE RECONSTRUCTION PROJECT FOR THE KING STREET CONNECTING LINK IN NEWCASTLE VILLAGE. RECOMMENDATION: It is respectfully recommended: 1. That this report be received; and, 2. That an invoice to the Newcastle B.I .A. in the amount of $2,010.43, be forgiven and charged to Account No. 1170-X-1-9, General Accounts Receivable - allowance for bad debts. 3. That an invoice to the Newcastle Hydro Electric Commission in the amount of $2,151.70 be forgiven and charged to Account No. 1170-X-1-9, General Accounts Receivable - allowance for bad debts. 4. That both of these groups be so advised. . . . .2 n UT - 6060 Page 2 REPORT NO. WD-32-85 REPORT: Reconstruction of the Newcastle Village Connecting Link was , for the most part, completed in 1983 with most of the invoices relating to the project being processed during that year. However, there were some charges carried over into the early part of 1984 and further, due to an M.T.C. audit of both engineering and payment quantities, final payment was delayed until almost the end of 1984. This has resulted in a couple of problems. Firstly, when final payments were processed, the contractor indicated that he had entitlement to interest on the funds which had been held back from him for an excessive period of time. Such interest charges amount to some $400.00 and there is presently discussion with M.T.C. and their auditors over who should pay same. It is our position that the delay was caused by M.T.C. audit. With respect to the Newcastle B.I .A. , the charges relate to matters other than the delay in final billing. On the spring road tour, details were discussed. As pointed out at that time, the original tenders for the Connecting Link project included an item for supply and installation of decorative lights at the expense of the B.I .A. However, the bid prices for such lights exceeded funds available to the B.I.A. and the item was deleted from the contract. The street lights were then tendered for separately and were secured at a lower price which could be afforded by the B.I.A. Unfortunately, the tendered price did not include installation, but the contractor did perform this work. However, this was work over and above that in the accepted project tender and was billed as an extra. . . . .2 ul Ca) Page 3 REPORT NO. WD-32-85 In the final payment documents this oversight was discovered and an invoice was forwarded to the B.I .A. That group did not expect such charges and does not have funds available to pay the installation costs of about $2,000.00. As the street lights are not subsidizable by M.T.C. charges cannot be placed with them and it is recommended that they be forgiven per this report' s recommendation. Finally, the Newcastle Hydro Electric Commission did participate in the project for relocation and upgrading of the main street light system and paid for fifty percent (50%) of the relocation and one hundred percent (100%) of the upgrading costs through its budget. All invoices to that body were processed and paid through the regular payment certificates, however, again, the pro-rating of the final holdback placed the Newcastle Hydro Electric Commission in the position of receiving a late invoice for a nominal amount. The Commission does not have funds budgeted for this cost and since the delay was outside their control , i .e. , the amount of time required by M.T.C. audit, the charges should be covered in the manner recommended in this report. In a project with the magnitude and cost of the Newcastle Village Connecting Link it is inevitable that certain oversights and delays will occur, especially when final approval is by an outside agency like M.T.C. . . . .4 Page 4 REPORT NO. WD-32-85 It is, therefore, proposed that the payments be handled as recommended, as the easiest method of dealing with them. These adjustments will finalize the bills relating to the Connecting Link project. Respectfully submitted, R.G. Dupuis, P. Eng. , Director of Public Works. RGD:jco May 13, 1985.