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BOOK M1 PnMl 11.H.7. SOUTH COUNTY EFFLUENT FORCE MAIN The Board reviewed a Memorandum of May 2, 1997: DATE: MAY 2, 1997 TO: JAMES E. CHANDLER COUNTY ADMINISTRATOR FROM: TERRANCE G. PINTO DIRECTOR OF UTILI VICES PREPARED WILLIAM F CA E. AND STAFFED CAPIT S ENGINEER BY: DEP UTILITY SERVICES SUBJECT: SOUTH COUNTY EFFLUENT FORCE MAIN CROSSING FAILURES INDIAN RIVER COUNTY PROJECT NO. US -94 -02.1 -ED On March 19, 1996, final payment and acceptance was approved on the above -referenced project, (see attached agenda item and minutes). The transmission main at issue delivers treated effluent from the South County Wastewater Treatment Plant to the reuse system and the Wetlands. On or about December 26, 1996, I was made aware of leakage problems that were occurring at five (5) aerial crossings on the South County Effluent Transmission Main. I immediately contacted the engineer on the project, Carter Associates, Inc., and discussed the situation. At that time, the engineer was already fully aware of the situation, and, with the County's concurrence, a letter of notification was sent to the contractor, McGrand and Associates (see letter dated December 27, 1996). We checked the contractor's Warranty Bond expiratian--date and found that it had expired in early December. This fact was reiterated in the contractors response letter. (See attached.) The engineer contacted the pipe manufacture who met on the site to review the situation. (See attached correspondence). On January 23rd, the County officially put Carter Associates, Inc. on notice as the Engineer 8f :Record to resolve the situation. Please see letter dated January 23, 1997. Attached is correspondence, from their insurance company detailing the repairs to the piping system. The cost of these repairs escalated and work was stopped by the engineer, until the contractor could be included in the solution. Therefore, the main is still not functional. Staff in a good -faith effort to resolve the situation without costly litigation was finally able to bring together all involved parties on April 14th. Several offers of solution were subsequently brought to the table by both the contractor and engineer. The final outcome of all negotiations for an acceptable solution is as follows, subject to the Boards approval: 1. Carter's insurance company, CNA ,has agreed to pick up all repair costs. 2. The County in exchange for this corrective action will assign all its rights and remedies to Carter to take whatever action Carter deems necessary. ON MOTION by Commissioner Ginn, SECONDED by Commissioner Adams, the Board unanimously approved the General Release and Assignment of Rights with Carter Associates, Inc. and authorized the Chairman to execute same, as recommended by staff. DOCUMENTS ARE ON FILE IN THE OFFICE OF THE CLERK TO THE BOARD MAY6 97 108 s