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BOOK ill PAGE 53 7 completion as outlined in the contract documents. (Refer to Exhibit -C - letter dated October 29, 1999 from Utility to CDM Inc.) The County has the option to impose liquidated damages as outlined in the Contract or accept an equitable alternative. The proposed equitable alternative is to deduct $129,600 from monies due the Contractor to reimburse the County for actual incurred expenses. Imposing liquidated damages as outlined in the contract documents is determined by multiplying the computed estimated daily liquidated damage amount by the number of calendar days that the contract obligations were not achieved. The contract documents define two liquidated damage values of $1,000 per day through substantial completion and $750 per day through final completion. This equates to minimum liquidated damage fees of $249,000 through substantial and $75,750 through final -completion. The imposing of liquidated damages must be deemed "just and reasonable". Liquidated damages is a mechanism to reimburse the County for damages sustained by failure of the Contractor to achieve substantial completion of the work within the time stipulated in the contract. The amount to be imposed must be substantiated through actual incurred costs. The County is obligated to provide proof for the expenses incurred by failure of the Contractor to meet the specified milestone dates. Generally, the County can only be reimbursed for "out-of-pocket" expenses, which in this case it is recommended that the Countv receive reimbursement in the amount of $129,600 in lieu of the calculated liquidated damage fees of $324,750. In addition, to achieve Contract closure with Whatton -Smith portions of the contract affiliated with implementation of a County Wide Supervisory Control and Data Acquisition System (SCADA) has been deleted from the contract through Change Order No. 4. The County currently has two other major Capital Improvement Projects underway (North Beach Re pump Station and Central Regional WWTF Expansion) which also incorporate SCADA System improvements. Both of these Capital Projects have localized SCADA system improvements. Deleting the SCADA system work under Wharton -Smith will allow the County Utilities to ordinate and implement a Countywide Utility SCADA system with the other two ongoing capital projects and close out this project. This will reduce SCADA system communication conflicts and ultimately improve system reliability. ANALYSIS Staff has reviewed all claimed costs submitted by our consultants and concur that all services were incurred qutside of the original contract scope as a result of project delays. The following additional services have been incurred. a) Additional County incurred Operating Expenses: The Utility has accumulated added expenses for the discharge of wastewater to the City of Vero Beach by failure of the Contractor to achieve the specified date for substantial completion as defined in the contract documents. The inter -local Agreement (Resolution No. 93-36) between the City of Vero Beach and the County, delineates the specific charges for the discharge and treatment of wastewater to the City's wastewater collection system. The total out-of-pocket expense incurred by the Utility is valued at $58,000. Refer to Exhibit -C. b) Additional Engineering Services: The fee for extra engineering services was based on actual extra services required over and above the construction services contract. The additional engineering fees incurred by the County are to be deducted from monies due the contractor. The total out-of-pocket expense incurred by the County is valued at $71,600. Exhibit -D includes a request for payment from the engineering consultant. December 7, 1999 102