PUMP STATION 41 REHABILITATION - 07-0009-UT - ADDENDUM TO AGREEMENT FOR CONSTRUCTIONADDENDUM TO AGREEMENT FOR CONSTRUCTION OF
LIFT STATION 41 REHABILITATION
CITY OF CLEARWATER CONTRACT No. 07-0009-UT
In reference to contract # D 7- Cep LI-dated between City of Clearwater, the Owner, and
TLC DIVERSIFIED, INC_, the Contractor, it is furthe AGR ED as follows:
1. The Owner has reserved the right to purchase certain portions of the material for the Project directly in order
to save applicable sales tax in compliance with Florida Law since owner is exempt from the payment of sales tax.
2. The attachments lettered "A", "B", and "C", attached hereto (as amended by notations thereon) and
incorporated herein shall be executed by the Contractor and applicable Sub-contractors and the terms thereof shall
govern the purchase of materials for the Project as determined by the Owner.
3. The contract price shall be reduced by the cost of the materials purchased by owner plus the normally
applicable sales tax as bid by the Contractor even if the cost is in excess of the cost for the materials as bid by the
Contractor. However, for purposes of calculating engineering fees, contractor fees, architects fees, and any other
amounts that are based on the contract amount, the original contract amount shall be used.
4. The Contractor reserves the right to authorize payments for invoiced materials, prior to Owner's
authorization process, as outlined in Attachment "D".
5. The Contractor will assist Owner in owner's direct purchase of materials for the project. However, owner
acknowledges that Contractor's Sub-contractors nonetheless each reserves the right to purchase project materials
directly, without Owner's prior approval and consequent power to eliminate reimbursement of sales tax.
This addendum, upon its execution by both parties, is made an integral part of the aforementioned agreement.
CITY OF CLEARWATER:
Date: '?; •l$•ZOL0
CONTRACTOR:
Date: Is. S. CQ610
William B. Horne II
City Manager/Owner
ATTEST: OF rxr ATTE T:
nthia E. Goudeau
y Clerk Secretary
(City's Corporate Seal) ??b ACV
APPROVED AS TO FORM: _ ?YATE?
Leslie K. Dougall-,Sues
Assistant City Att y
ATTACHMENT "A"
FROM CITY OF CLEARWATER (OWNER)
TO. TLC DIVERSIFIED (CONTRACTOR)
OWNER-FURNISHED MATERIALS
PROJECT: LIFT STATION 47 EHABILI T10N 07-0093-UT
1. The Contract Price includes Florida sales and other applicable taxes for material, supplies, and equipment
which will be a part of the Contractor's Work. The owner, being exempt from sales tax, reserves the right to make
direct purchases of various construction materials included in the Contractor's contract. Owner-purchasing of
construction material, if selected, will be administered on a deductive Change Order basis. Additionally, Purchase
Orders will include Owner's Certificate of Exemption number.
2. The Contractor shall provide the Owner a list of all intended suppliers, vendors, and material for
consideration as Owner-Furnished Materials. The Contractor shall submit price quotes from the vendors, as well as a
description of the materials to be supplied, estimated quantities, and prices.
3. The Contractor shall be fully responsible for all matters relating to the receipt of materials furnished by the
Owner in accordance with these Special Provisions including, but not limited to, verifying correct quantities, verifying
documents of orders in a timely manner, coordinating purchases, providing and obtaining all warranties and
guarantees required by the Contract Documents, inspection and acceptance of the goods at the time of delivery due to
the negligence of the Contractor. However, the owner assumes the risk of damage or loss during the time that
the building materials are physically stored at the job site prior to their installation or Incorporation into the
project. The Contractor shall coordinate delivery schedules, sequence of delivery, loading orientation, and other
arrangements normally required by the Contractor for the particular material furnished. The Contractor shall provide all
services required for the unloading and handling of materials. The Contractor agrees to indemnify and hold harmless
the Owner from any and all claims of whatever nature resulting from non-payment of goods to suppliers arising from
the action of the Contractor.
4. As Owner-Furnished Materials are delivered to the job site, the Contractor shall visually inspect all
shipments from the suppliers, and approve the vendor's invoice for material delivered. The Contractor shall assure that
each delivery of Owner-Furnished Materials is accompanied by documentation adequate to identify the Purchase
Order against which the purchase is made. This documentation may consist of a delivery ticket and an invoice from the
supplier conforming to the Purchase Order together with such additional information as the Owner may require. The
Contractor will then forward the invoice to the Owner for payment, pursuant to Attachment A of this Contract.
5. The Contractor shall insure that Owner-Furnished Materials conform to the Specifications and determine
prior to acceptance of goods at time of delivery if such materials are patently defective, and whether such materials are
identical to the materials ordered and match the description on the bill of lading. If the Contractor discovers defective or
non-conformities in Owner-Furnished Materials upon such visual inspection, the Contractor shall not utilize such
nonconforming or defective materials in the Contractor's Work and instead shall properly notify the Owner of the
defective or nonconforming condition so that repair or replacement of those materials can occur without undue delay or
interruption to the Project. If the Contractor fails to perform such inspection and otherwise incorporates into the
Contractor's Work such defective or nonconforming Owner-Furnished Materials, the condition of which it either knew
or should have known by performance of an inspection, Contractor shall be responsible for all damages to the Owner,
resulting from Contractor's incorporation of such materials into the Project, including liquidating or delay damages.
6. The Contractor shall maintain records of all Owner-Furnished Materials it incorporates into Contractor's
Work from the stock of Owner-Furnished Materials in its possession. The Contractor shall account monthly to the
Owner for any Owner-Furnished Materials delivered into the Contractor's possession, indicating portions of all such
materials which have been incorporated in the Contractor's Work.
7. The Contractor shall be responsible for obtaining and managing all warranties and guarantees for all
materials and products as required by the Contract Documents. All repair, maintenance, or damage-repair calls shall
be forwarded to the Contractor for resolution with the appropriate supplier, vendor, or subcontractor.
8. Notwithstanding the transfer of Owner-Furnished Materials by the Owner to the Contractor's possession, the
Owner shall retain legal and equitable title to any and all Owner-Furnished Materials.
9. The Owner shall indemnify and hold Contractor harmless from any sales tax (and interest and penalties
incurred in connection therewith) in the event there is a final determination that sales made by Owner, which Owner
treats as being exempt from sales tax, are subject to sales tax. "Final determination" shall mean an assessment by the
Department of Revenue that is no longer subject to protest, or a determination of a court having jurisdiction over such
matters that is final and not subject to appeal. Contractor agrees to promptly notify owner of any audit, assessment,
proposed assessment or notice of deficiency issued with regard to the Project and relating to Owner-Furnished
Materials.
10. As invoices are received, Contractor shall be required to review invoices submitted by all suppliers of
Owner-Furnished Materials delivered to the Project during that delivery for use by the Contractor and either concur or
object to the Owner's issuance of payment to the suppliers, based upon Contractor's records of materials delivered to
the site and any defects in such materials.
11. In order to arrange for the prompt payment to the supplier, the Contractor shall provide to the Owner a
listing indicating the acceptance of the goods or materials within thirty (30) days of receipt of said goods or materials.
The list shall include a copy of all applicable Purchase Orders which will include owner's Certificate of Exemption
number, invoices, delivery tickets, written acceptance of the delivered item, and such other documentation as may be
reasonably required by the Owner. The check will be released, delivered and remitted directly to the supplier. The
Contractor agrees to assist the Owner to immediately obtain partial or final release or waivers as appropriate. At the
end of the Project, Contractor will be provided with a deductive Change Order for the cost incurred by the Owner to
provide all Owner-Furnished Materials. Salvage materials shall be stored or removed from the site by the Contractor at
the Owner's direction, or may be turned over to the Contractor for salvage or disposal at the Contractor's option.
12. The Contractor shall be entitled to the benefits of any discounts attributable to the early payment of vendor
invoices for materials furnished by the Owner pursuant to the Specifications.
13. The Contract between Contractor and Owner is hereby amended to clarify that Owner-Furnished Material
shall be included in the Cost of the Work for the purpose of determining the Contract Sum due Contractor.
ATTACHMENT "B"
FROM TLC DIVERSIFIED (CONTRACTOR)
TO ITT WATER AND WASTEWATER (SUBCONTRACTOR)
OWNER-FURNISHED MATERIALS
PROJECT: LIFT STATION 41 REHABILITATION (07-0009-UT)
1. The Contract Price includes Florida sales and other applicable taxes for material, supplies, and equipment
which will be a part of the Subcontractor's Work. The Owner, being exempt from sales tax, reserves the right to make
direct purchases of various construction materials included in the Subcontractor's contract. Owner-Purchasing of
construction material, if selected, will be administered on a deductive Change Order basis. Additionally, Purchase
Orders will include owner's Certification of Exemption number.
2. The Subcontractor shall provide the owner a list of all intended suppliers, vendors, and material for
consideration as Owner-Furnished Materials. The Subcontractor shall submit price quotes from the vendors, as well as
a description of the materials to be supplied, estimated quantities, and prices.
3. The Subcontractor shall be fully responsible for all matters relating to the receipt of materials furnished by
the Owner in accordance with these Special Provisions including, but not limited to, verifying correct quantities,
verifying documents of orders in a timely manner, coordinating purchases, providing and obtaining all warranties and
guarantees required by the Contract Documents, inspection and acceptance of the goods at the time of delivery due to
the negligence of the Subcontractor. However, the Owner assumes the risk of damage or loss during the time
that the building materials are physically stored at the job site prior to their installation or incorporation into
the project. The Subcontractor shall coordinate delivery schedules, sequence of delivery, loading orientation, and
other arrangements normally required by the Subcontractor for the particular material furnished. The Subcontractor
shall provide all services required for the unloading and handling of materials. The Subcontractor agrees to indemnify
and hold harmless the Owner from any and all claims of whatever nature resulting from non-payment of goods to
suppliers arising from the action of the Subcontractor.
4. As Owner-Furnished Materials are delivered to the job site, the Subcontractor shall visually inspect all
shipments from the suppliers, and approve the vendor's invoice for material delivered. The Subcontractor shall assure
that each delivery of Owner-Furnished Materials is accompanied by documentation adequate to identify the Purchase
Order against which the purchase is made. This documentation may consist of a delivery ticket and an invoice from the
supplier conforming to the Purchase Order together with such additional information as the Owner may require. The
Subcontractor will then forward the invoice to the Owner for payment, pursuant to Attachment "A" of this Contract.
5. The Subcontractor shall insure that Owner-Furnished Materials conform to the Specifications and determine
prior to incorporation into the Subcontractor's Work if such materials are patently defective, and whether such
materials are identical to the materials ordered and match the description on the bill of lading. If the Subcontractor
discovers defective or non-conformities in Owner-Furnished Materials upon such visual inspection, the Subcontractor
shall not utilize such nonconforming or defective materials in the Subcontractor's Work and instead shall properly notify
the Owner of the defective or nonconforming condition so that repair or replacement of those materials can occur
without undue delay or interruption to the Project. If the Contractor fails to perform such inspection and otherwise
incorporates into the Subcontractor's Work such defective or nonconforming Owner-Furnished Materials, the condition
of which it either knew or should have known by performance of an inspection, Subcontractor shall be responsible for
all damages to the owner, resulting from Subcontractor's incorporation of such materials into the Project, including
liquidating or delay damages.
6. The Subcontractor shall maintain records of all owner-Furnished Materials it incorporates into
Subcontractor's Work from the stock of Owner-furnished Materials in its possession. The Subcontractor shall account
monthly to the Owner for any owner-Furnished Materials delivered into the Subcontractor's possession, indicating
portions of all such materials which have been incorporated in the Subcontractor's Work.
7. The Subcontractor shall be responsible for obtaining and managing all warranties and guarantees for all
materials and products as required by the Contract Documents. All repair, maintenance, or damage-repair calls shall
be forwarded to the Subcontractor for resolution with the appropriate supplier, vendor, or sub-subcontractor.
8. Notwithstanding the transfer of Owner-Furnished Materials by the Owner to the Subcontractor's possession,
the Owner shall retain legal and equitable title to any and all Owner-Furnished Materials.
9. The Owner shall indemnify and hold Subcontractor harmless from any sales tax (and interest and penalties
incurred in connection therewith) in the event there is a final determination that sales made by Owner, which Owner
treats as being exempt from sales tax, are subject to sales tax. "Final determination" shall mean an assessment bythe
Department of Revenue that is no longer subject to protest, or a determination of a court having jurisdiction over such
matters that is final and not subject to appeal. Subcontractor agrees to promptly notify Owner of any audit,
assessment, proposed assessment or notice of deficiency issued with regard to the Project and relating to Owner-
Furnished Materials.
10. As invoices are received, Subcontractor shall be required to review invoices submitted by all suppliers of
Owner-Furnished Materials delivered to the Project during that delivery for use by the Subcontractor and either concur
or object to the Owner's issuance of payment to the suppliers, based upon Subcontractor's records of materials
delivered to the site and any defects in such materials.
11. In order to arrange for the prompt payment to the supplier, the Subcontractor shall provide to the Owner a
listing indicating the acceptance of the goods or materials within fifteen (15) days of receipt of said goods or materials.
The list shall include a copy of all applicable Purchase Orders which will include owner's Certificate of Exemption
number, invoices, delivery tickets, written acceptance of the delivered item, and such other documentation as may be
reasonably required by the Owner. The check will be released, delivered and remitted directly to the supplier. The
Subcontractor agrees to assist the Owner to immediately obtain partial or final release or waivers as appropriate. At the
end of the Project, Subcontractor will be provided with a deductive Change Order for the cost incurred by the Owner to
provide all Owner-Furnished Materials. Salvage materials shall be stored or removed from the site by the
Subcontractor at the Owner's direction, or may be turned over to the Subcontractor for salvage or disposal at the
Subcontractor's option.
ATTACHMENT "C"
From TLC DIVERSIFIED, INC. (CONTRACTOR)
To ITT WATER AND WASTEWATER (SUBCONTRACTOR)
PROJECT: LIFT STATION 41 REHABILITATION (07-0009-UT)
This project qualifies the Owner to utilize its sales tax exemption for the purchase of materials used in the project. In
order to do this, the City of Clearwater, Florida, (Owner) must payfor the materials directly. This shall be accomplished
in the following manner:
1. Subcontracts will be issued by Contractor to Subcontractors in the usual manner, including sales tax.
2. Subcontractors will prepare their material orders and forward same to Contractor so that City of Clearwater
(owner) purchase orders may be placed for these materials.
3. Contractor will return to the Subcontractor a copy of the City of Clearwater (owner) purchase order on behalf
of the City of Clearwater (Owner). It shall read:
To: Supplier
For: Material per attached Subcontractor order,
4. The material supplier will then bill the City of Clearwater (Owner) c/o "Subcontractor" c/o Contractor.
Subcontractor will approve invoice and send to Contractor who will submit same to City of Clearwater (Owner)
for payment.
5.City of Clearwater (Owner) will then pay the invoice directly and the Subcontractor will be issued a deductive
change order for the amount of the invoice plus sales tax.
It is imperative that the Subcontractor approve the invoices and forward them to Contractor by the 28th of each month
for payment by the 28TH of the following month. Those received after the 28th will be processed in the next month's
billing cycle.
ATTACHMENT "D"
PROCEDURE FOR GENERATING SUB-CONTRACTOR DIRECT PURCHASE ORDERS FOR SALES TAX
CREDITS
1. General Contractor will submit requisition for materials with vendor information required (see vendor
application form), item description, quantity if applicable, price, etc. Also included will be the sales tax savings amount.
2. Architect will review the requisition, and forward to the project manager for approval and preparation of
electronic purchase requisition. Requisition must contain project number as well as correct account number.
3. Project Manager will then request requisition approval from the Finance Director.
4. Purchasing will issue purchase order and will mail, fax, or otherwise distribute purchase order as requested.
5. A purchase order summary reportwill be maintained indicating the following: purchase order number, owner
Certificate of Exemption number, vendor, total amount of P.O., total tax savings, amount previously requested, amount
of current request, and remaining balance of P.O. This report will be updated and issued with each group of payment
requests (monthly).
6. Payment requests with invoices must have receiving paperwork with authorized signatures and must be
submitted for approval as indicated below:
7. Payment authorization sequence: invoices must be submitted for approval in the following order:
a. General Contractor
b. Architect
c. Project Manager
d. Engineering/City Manager
e. Purchasing/for processing only
f. Finance/for processing only
PROCEDURES FOR SALES TAX SAVINGS, REQUESTS TO REQUISITION and
RECEIVING/INVOICING
CITY OF CLEARWATER
LIFT STATION 41 REHABILITATION
PROJECT # 07-0009-UT
Contractor: TLC DIVERSIFIED, INC.
CEI:
Addendum to Agreement for Construction:
See separate instructions for completing the Addendum to Agreement.
Process procedures for tax savings:
2. Completion of the Request to Requisition forms by Contractor.
3. Approved by CEI. Approver(s):
4. Original to Owner's Representative for processing of P.O. requisition.
5. Based on Request to Requisition forms a schedule will be prepared for the City's Purchasing Manager
to reduce the Contractor's P.O. by the amount of the P.O.s to the Materials Suppliers. It is important
to process as many material supplier Requests to Requisition as possible at one time thereby
reducing the amount of changes necessary to Contractor's P.O. Construction contract will not change
and the sum of the P.O.s to the Materials Suppliers plus the Contractor's P.O will represent the total
contract commitment. Before sending to_the_Purchasing Manager, the schedule will be
forwarded to the Owner's Representative, CEI and Contractor's re resentative fora rovaL
We will need the a-mail address for the Contractor's & CEI's contact erson s for this
process.
6. The estimated sales tax savings for each materials requisition will be deducted from the primary lines
of Contractor's P.O. A related Sales Tax Savings line for each charge code will be added to the
Contractor's P.O. No changes will be made to the sales tax savings lines until all materials are
purchased, received, accepted and paid for unless additional materials purchases are necessary.
7. Closing of the sales tax savings line on the Contractor's P.O. can only be done through a change
order (Recommendation is that it's done on the final C/O).
Process procedures for re guest to re uisition forms:
1. General description is a brief recap (sewer lines and manholes; water lines; etc)
2. Contractor should include their fax number as well as a contact number.
3. In the description section of the Request to Requisition include any special delivery instructions.
4. Indicate whether or not retainage is to be withheld. City s standard is 5%.
5. Include the address where the supplier is to mail invoices.
6. Where applicable, shipping and handling costs should be listed as a line item on the request to
requisition.
7. City staff will complete the charge code line.
Procedures where a detailed line item proposal has been received from the ODP supplier:
a. On the request to requisition summarize the materials to be ordered by type of system
(stormwater, streets, water, sewer, reclaimed, etc) giving the total dollar amount per for each
system. Leave 2 line spaces between each system to allow for the addition of the City's charge
code.
b. Attach the supplier's proposal to be mailed as an attachment to the purchase order. Attachment
should include estimated quantities and types of materials. Cost information is optional.
Procedures where a detailed line item proposal is not available:
c. Provide quantities and detailed descriptions of the items to be ordered, per unit and total cost as
the City's P.O. will be sent directly to the Materials Supplier.
d. Materials on each request to requisition should be grouped in relation to the major billing line
items on Contractor's P.O. Leave 2 spaces between each group, as the City will add the
appropriate charge codes.
8. The requesting official will be the Contractor's official with authority to procure materials. Contractor's
authorized procurer(s): Mark Seloh
The official approving that the materials requested meet the design specifications will be authorized
personnel from the CEI only. Authorized approvers:
NOTE: An materials ordered b the contractor that are not included on the City's issued purchase
order or an amounts ordered that exceed the amounts on the City issued urchase order MUST
be separately ordered ursuant to a purchase order direct) between the supplier and the
contractor. These materials MUST be invoiced separately from the materials su lied pursuant to
the City issued purchase order. Another option would be to submit an additional Re uest to
Requisition to increase the amount of the ODP purchase order for that su lier.
Process procedures for receiving and invoicing:
1. Upon receipt of materials, Contractor's representative will verify the materials are in usable condition and
the quantity received.
2. The Materials Suppliers will be instructed on the City's P.O. to send their original invoice to the Contractor
to the attention of Larry Nelson
3. Contractor must sign off on the invoice to approve the payment and, if no receiving report is attached,
must indicate on the invoice that all materials were received in usable condition. Any discrepancies with
the invoice are to be resolved between the Contractor and the Materials Supplier. If the invoice is in error,
it can be corrected by the Contractor before forwarding for payment under the following conditions:
a. A corrected supplier's invoice can be paid up to the amount of the originally issued invoice but not
in excess of that amount.
b. None of the original data on the invoice can be obliterated. If it is the City will return the invoice
for replacement by a corrected one from the supplier.
c. If the corrections cause the invoice amount to exceed the original billed amount, the excess must
be invoiced separately by the supplier and is to have the same support documentation and/or
approvals as all other invoices to be paid.
4. Supplier invoices for retainage amounts, if any has been withheld, are not required support documentation
but must follow the approval process as all other invoices.
5. After approval the Contractor will forward the original invoice and any attachments to City of Clearwater's
Owner Representative:
City of Clearwater
Engineering Department
Attn: Tom Robertson
100 S. Myrtle Avenue, Rm. 220
Clearwater, FL 33756
6. After approval and verification of the materials received the Owner's Representative will forward the
original invoice and any attachments to the appropriate City department for payment processing.
7. Steps 1 through 7 will be followed for each materials receipt and invoice.
8. Materials purchase P.O.s can be closed only upon completion of the materials acquisition and at the
approval of the Contractor.
9. Upon closing of a materials purchase P.O. any unused balance will be added back to the appropriate
line(s) on Contractor's P.O.
Closing of Contractor's P.O.:
1. All Materials Suppliers' P.O.'s must be closed prior to the final change order and closing of the
Contractor's P.O.
REQUEST TO REQUISITION
STANDARD PURCHASE ORDER
General Item Description: Submersible sewage pumps, controls, and panels Section 11305
Vendor: ITT Water & Wastewater, attn. Steve Dennis steve.dennis@itt.com
Street Address: 2152 Sprint Blvd.
City/State/Zip: Apopka, FL 32703 Phone No: 407 880-2900
Receiving Location (Ship to): TLC Diversified
Street Address: 2719 17tn St. East
City/State/Zip: -Palmetto, FL 34221
Requested by: TLC Diversified, Inc Mark Selph mselph@tlcdiversified.com
Phone Number: (941) 722-0621
Date Needed by: July 12 2010
Expense Code: 0376-96686-563800-535-0000-0000
Line #
Quantity Units
$, etc. Detailed Description
(List shipping & handling charges, if applicable) Price Per
Each
Total
Pump Package
1 1 ea Submersible sewage pump
package including pumps,
hatches, control panel, TAC
Pack, J-box, floats, and
start-up service. $65,300 $65,300.00
Freight Included, FOB Factory
Sales Tax Savings $3,968.00
?--? Date: 7
Reque ting Offidial
Director of Resources TLC Diversified Inc.
Title and Organization - Contractor
71 A42&225i Dater /3 o
Approving Official
Title and Organization - C.E.I. Services
Completed forms are routed for approval to contracted C.E.&I. Firm and to Engineering. Engineering will process and provide records retention
according to City of Clearwater's Records Management Program.
Page 1 of 1
ODP Documentation.doc 10/9/2008
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