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City attorney: Case for recouping hydrogen sulfide fees shaky

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Marco Island may be able to recoup costs of dealing with the hydrogen sulfide gas problem from contractors, though City Attorney Alan Gabriel seemed skeptical Monday night about the extent to which the city could claim the contractors’ liability.

His opinion stemmed from a memo produced at the request of councilmembers who expressed interest in seeking recompense for hydrogen sulfide testing and treatment fees, the result of problems stemming from the release of gas during sewer construction.

Testing costs have totaled $95,000 to date, and the council recently approved the combined lease and purchase of treatment equipment at a rate of $430,000 a year.

Additionally, it seems that contractors D.N. Higgins and Quality Enterprises may be seeking their own remuneration because of delays in work caused by the concerns that the gas, which occurs naturally below the soil, was causing a public health threat when released in the course of sewer installation.

Public Works Director Rony Joel said one contractor had put the city on notice that it has been impacted by the delays, and the other contractor was intending to do the same.

Gabriel outlined a provision in the contract for Quality Enterprises’ work in the West Winterberry District called a “differing site conditions clause.” The clause, which Gabriel wrote has been upheld by Florida courts in other cases, states that the contractor can seek compensation if crews run into unanticipated conditions that delay work and cause a material cost increase.

Dewatering pipes lead to the hydrogen sulfide treatment system set up for testing in the North Barfield sewer assessment area during October. While the city has expressed interest in recouping the costs of testing and treatment from sewer contractors, City Attorney Alan Gabriel says the city may have to deal with contractors seeking restitution for delays and increased material costs.

LESLIE WILLIAMS / Eagle staff

Dewatering pipes lead to the hydrogen sulfide treatment system set up for testing in the North Barfield sewer assessment area during October. While the city has expressed interest in recouping the costs of testing and treatment from sewer contractors, City Attorney Alan Gabriel says the city may have to deal with contractors seeking restitution for delays and increased material costs.

“Under the current facts, the contractor could argue that it relied on the dewatering plan specifications provided by the city, which fails to reference any potential hydrogen sulfide issues relating to the dewatering operations,” Gabriel wrote.

A contract for work by D.N. Higgins Inc., in the North Barfield sewer district, lacks this clause, which Gabriel says would make it harder for Higgins to seek damages. Gabriel told the council that the case for collecting compensation from the contractors was all the more unstable because of recent declarations by the city that hydrogen sulfide is an island-wide problem, and not confined to those two areas. Also, he said, there has been no specific declaration by a regulatory agency stating that the hydrogen sulfide amounts to hazardous waste.

Council argued back and forth over this point, questioning Gabriel on the validity of tests that found gas concentrations exceeding limits set forth by the Centers for Disease Control. Gabriel said that without a reasonable belief that the levels were hazardous while work was underway, the contractor had no responsibility to contain it.

“But there is a data sheet that says hydrogen sulfide is a hazardous material,” said Councilor Rob Popoff. “We needed to go through all of this testing. Even though we know at this point we’ve got it under containment, it is a hazardous substance. What you’re telling us is because it’s after the fact, we don’t have a case?”

Popoff went on to ask what might be the repercussions of seeking restitution from the contractors.

“Frankly, I’m uncomfortable in an open forum providing a legal opinion on this, but I’m trying to respond to council’s questions,” Gabriel responded. “There was no evidence at the time that that was a hazardous material in the way they were handling that material.”

He said he expected the issue to arise again, and that the council could continue to asses its options if and when the contractors file for time extensions because of the delays.

In other business, Council voted to go forward with the Kendall and Mackle Park sewer districts, both scheduled for construction in 2009. One of the items passed Monday night will allow the city to authorize engineering for the two districts in advance of the request for bids to go out to contractors in 2008.

All items relating to the sewer districts — from the authorization of the special assessments to the engineering approval — were split on a 5-2 margin, with councilors Ted Forcht and Chuck Kiester dissenting.

A discussion on appointees to an ad hoc committee to draft possible short-term rental ordinances was tabled because the council expressed a desire to generate a larger pool of interested citizens for the committee. With only nine residents expressing interest in seven positions, the city may advertise again for appointees in hopes of gaining a more diverse pool.

Council also agreed to add a representative from the Marco Island Restaurant Association, to join the representatives from the Chamber of Commerce, the Association of Realtors and a rental agency representative. That would bring the number of voting committee members to 11.

The appointments will come before council again at its next regularly scheduled meeting Dec. 3.

If you are interested in becoming a member of the committee, call City Hall at 389-5000.

HYDROGEN SULFIDE TESTS ON MARCO

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Wonderful! The contractors, reading the implication of the departure of Mr. Moss, now wish to bite the hand of the man who fed them so they sent him forth to issue their warning. What we have here, in the words of Cool Hand Luke, is a case of contractor extortion. What we need are more expensive Miami lawyers.

Ed Foster

#1 Posted by EdFoster on November 6, 2007 at 7:28 a.m. (Suggest removal)

Mr. Attorney, the City made declarations that hydrogen sulfide is an island-wide problem based on known historical evidence. Evidence that hydrogin sulfide exists in large amounts below the surface of Marco Island is an established "fact". A "fact" validated and verified recently by another City contractor ENVIORN. Our "qualified" sewer contractors,had a "reasonable" expectation to find high levels of hydrogen sulfide gas on their worksites. Dangerous levels previously published by OSHA as being dangerous to human life are evidenced by numerous deaths and near deaths investigated by OSHA during it's history. As a contractor experienced enough to win the bid process and to dig and work with "sewers" the City had a "resonable" expectation to believe the contractor would know what these dangerous levels were. When the contractor's own employee experienced a life threatening mishap, the Contractor had a "resonable" expectation to encounter "life-threatening levels" of hydrogen sulfide gas while continuing the project. A local Doctor publicaly recently announced that he had compiled data that more than 800 of our citizens had suffered upper respritory effects. As his patents lived within neighborhoods impacted by sewer construction, the doctor "reasonably" suspected hydrogen sulfide gas to be the cause. Local media published the doctor's suspicions. As a result of the media coverage, the contractor had a "resonable" expection to take extra precautions to protect our citizens and their employees. The new City Council needs to take another look at the legal advice it is receiving. It appears we have paid for an opinion that has resulted in weakening our contracting process. City contracts are boiler plated and have been tested in our courts. If the legal advice is solid then our contracts are no longer boiler plate. Someone in our contracting office or City administration has weakened them. The Council must act immediately to strengthen our construction contracts to protect our city from jeoprady. If these boiler plate contracts have been deliberately weakened in any way without direction of the Council, The person responsible should be fired immediately. Someone is responsible for this mess. It is not the people of Marco Island.

#2 Posted by bbyrone46 on November 6, 2007 at 7:37 a.m. (Suggest removal)

we need a new city attorney,he can go work for the contractor

#3 Posted by tptcolumbusway on November 6, 2007 at 8:56 a.m. (Suggest removal)

what's the matter Joey, you don't like when people disagree with you? At least I have the guts to put my name on here. Maybe you should be Joey "NO NUTS"

#4 Posted by tptcolumbusway on November 6, 2007 at 10:35 a.m. (Suggest removal)

Hey Joey "NO NUTS", with 742 blog entries your mouth is pretty big.

#5 Posted by tptcolumbusway on November 6, 2007 at 10:47 a.m. (Suggest removal)

Need to focus on a couple of points here...regardless of what our city council, city manager and staff knows, Quality Enterprises is the supposed expert in the project. Otherwise we would be hiring day laborers to get this job done. Mr. Gabriel says that "the contractor could argue that it relied on the dewatering plan specifications provided by the city, which fails to reference any potential hydrogen sulfide issues relating to the dewatering operations". This would be like an electrician installing something wrong because the customer wanted it that way. It is the PROFESSIONAL'S responsibility to explain to the client what the scope of work should entail. Quality Enterprises should have more experience in digging ditches than any of our city leaders. And should be more aware of what is under the surface than anyone else. This can not possibly be the first time that ditches have been dug in an environment such as ours. Electricians know that if a house was built before a certain time the house would most likely not be up to code, they don't need to rip out walls to know this!

Fact of the matter is that (once again) someone at city hall is misspeaking. They are giving their own uninformed opinion in such a way that it will cause irreversble damage to the citizens of Marco Island. These unintended mistakes will be quoted as gospel by the contractor and used against us. And we will pay for it.

Why are we still comfortable at City Hall with constantly setting poor precedence? We've done it before with allowing the asbestos debacle to be paid for by the city. We've done it by allowing a councilperson to lie saying he had proof that the asbestos was planted by certain individuals then not holding him accountable (he should be disbarred and in jail). We've done it by allowing the Glon property to be used for an unintended use (for free). We've done it by council behaving poorly towards the citizens (in public, at council meetings). We've allowed it by stepping in on the H2S situation and attempting to remedy it ourselves, thereby transferring the responsibility away from the responsible party. Instead of saying "Mr. Contractor, you have a health issue here. Stop and fix it before you continue." We have a Homer Simpson wanna-be making some assinine contraption. Once again making it appear that the city (not QE) is responsible. 'The city acts like it is responsible for the situation so it must be' is the defense QE will use. Now lets let them also say that city council has been informed by their legal representation that QE is not responsible. Even if its a lie.

#6 Posted by JoeFubietze on November 6, 2007 at 7:04 p.m. (Suggest removal)



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