Agenda 01/15/2008 Item #16A11
Agenda Item No. 16A11
January 15, 2008
Page 1 of 4
EXECUTIVE SUMMARY
Recommendation that the Board of County Commissioners authorize
payment of invoices to Wm. J. Varian Construction Company, Incorporated
in the amount of $20,403 for work performed at the Development Services
Center
OBJECTIVE: To pay the named contractor for materials/services rendered and
to reconcile procedural issues pertaining to portions of the work
CONSIDERATIONS: In October, 2006, the Purchasing Department issued a
purchase order against contract 06-3971 to Wm. J. Varian Construction, Inc.
(Varian) to construct renovations within the Development Services Center in the
amount of $97,723. The work was needed to expand the work space available
for the Commercial Plan Review function. The profect was managed by the
Building Review and Permitting Department.
In November 2006, the Building Review and Permitting Department requested
the Purchasing Department to release a modification to the purchase order in the
amount of $14,350 to re-paint offices, hallways and customer service areas
adjacent to the construction area. The modification to the purchase order
brought the total amount of the work to date to $112,073.
Subsequent to these actions, Varian performed additional services (demolition,
framing, drywall, flooring/tiling and electric) in the Plan Review area and
submitted a cost proposal of $29,970. This work was performed without a written
change order or modification to the purchase order. The contractor maintains that
he received verbal authorization from the former Building Director to perform this
work.
In reviewing the work under this contract, two procedural errors occurred.
1) The first modification to the purchase order ($14,350) should not have been
released by the Purchasing Department without prior Board approval.
2) The work from the proposal totaling $29,970 should not have been performed
without a properly authorized purchase order (or modification to the existing
purchase order).
-.
To date, the contractor has been paid $109,073 against the purchase order with
$32,970 in unpaid invoices pending ($3,000 from work from the first modification
plus the entire $29,970 for work performed without a purchase order). In an
effort to resolve this matter equitably, staff has met with the contractor and
recommends that the Board approve payment to the contractor in the amount of
$20,403 to satisfy the pending invoices. The proposed amount includes the
$3,000 pending under the first purchase order modification and $17,403 for the
unauthorized work. The latter amount is the amount owed by Varian to their
subcontractors, who were not parties to the agreement between the County and
Agenda Item I~o. 16A 1 '1
January 15. 2008
Page 2 of 4
Varian. Varian has agreed to accept the proposed amount of $20,403 to resolve
the matter.
As a result of these errors, the CDES Division has modified its internal business
procedures to centrally route the management of all such projects in the future
through the Division's Office' of Operations and Regulatory Management to
ensure proper coordination with all County departments and other parties,
including contractors.
FISCAL IMPACT: Funds for this project are available in the Community
Development and Environmental Services (CDES) Capital Improvement Fund
(310) within Project # 550551.
GROWTH MANAGEMENT IMPACT: There is no Impact on the Growth
Management Plan.
RECOMMENDATION: That the Board of County Commissioners authorize
payment to Wm J. Varian Construction Company, Inc. in the amount of $20,403
to satisfy all pending invoices pursuant to the CDES Building Renovation project
as described herein.
PREPARED BY: James C French, Operations Manager
Office of Operations and Regulatory Management, CDES
Page 1 of2
Agenda Item No. 16A11
January 15, 2008
Page 3 of 4
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
'16A11
Recommendatic!rI thai the Board of County Commissioners authol"ize payment of invoices to
Wm. J Varian Construction Company, lncol-porated in the alnount ':Jf $20,403 for work
peifo;'med at the Deveiopment Services Center,
1j15/~2D08 90000 AM
Item Summary:
Meeting Date:
Prepared By
J~m€'s F l'Emch
Ope;"ations Supervisor
Date
CGn1111unity Dc-,',?ionm'2'Hf &
CDES Dpc:";)t:,ms
~'t20l;;~n(}7 1,57 :50 ;:;M
Environmental :::;er\tiC0~,
\pprovcd By
,.ludY;:::"Jlq
'~)pe~:-Jt;C)"l':, And,'}S!:
U0t0
';;:.mm,;1:,ity Devefopmeni S,
;~nVir()nmf1lltai ,'j(}rVir:;.~';,
'~~,0m'11unitv [)8v"i~npm"fnt &
-If 'cmme ,t2: Se,'v'[(,:es ,L,drnt;'l
t 2J2(\/~'n07 J: 5i PnJi
Approved By
:-\J:al-ie;-,e St0warf
--:"cc;. ;"n,.', ~;,("cr('t2:ry
c;ate
Community Developm:H1" &
Community :Js'v0Iopm'O-n~:~
f~,!lvi,onmenta; Servii:es Admin
'I 2i20'2!)[i7 .~ :53 PM
Environmental Serviu,s
Approved By
Joseph K. Schmitt
Community Development &
Environmental Services Adminstrator
Date
Community Development &
Environmental Services
Community Development &
Environmental Services Admin.
12f2Qf2007 8:20 PM
Approved By
Steve Carnell
Pur~hasing!General Svcs Director
Date
Administrative Services
Purchasing
12126/20073:41 PM
Approved By
Robert N. Zachary
Assistant County Attorney
Date
County Attorney
County Attorney Office
12127/20073:26 PM
Approved By
Lyn Wood
Purchasing Agent
Date
Administrative Services
Purchasing
12127/20073:44 PM
Approved By
OMS Coordinator
Applications Analyst
Date
Administrative Services
Information Technology
12128120079:06 AM
Approved By
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Page 20f2
i"genda Item No. 16A 11
January 15. 2008
Page 4 of 4
Mark Isackson
Budget Analyst
Date
County Manager's Office
Office of Management & Budget
12/28/200710:00 AM
Approved By
Michael Srnyl<;o\<'Jsld
fVianagC!rl1cnt &. 3udget Dtrector
Cc;te
::>:)unty Manager's C)ffi::0
Offic;e of Management & Budget
~ 2/28/2007 .: 1:27 AM
Approved By
J8m0S \f Mudd
::::,urdy Manager
J'ate
beard of Coun~v
Cc,rnmissionars
(':c'unty!I!:;:ln."ge"'" )+:1,;",
~ ?/28/2UCi7 .;. i:1 PM
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