Board assesses $18,200 in liquidated damages to contractor over Bristol Street clearing delays

The Board of Public Works voted July 9 to assess $18,200 in liquidated damages against Homer Tree Services Inc. for delays and incomplete restoration related to tree clearing on the Bristol Street right-of-way project and to reduce pay item No. 4 by 50%, resulting in a net final contract price of $158,280.

The vote followed testimony from Jeff Schaeffer, engineering, who said the city had contracted for tree clearing before the prime contractor’s work began because of state restrictions tied to protections for the Indiana bat. "We did the clearing for the Bristol Street right of way before we had a prime contract," Schaeffer said, and he told the board the trees were required to be removed by March 31. Schaeffer said crews removed the trees by that date but did not complete several restoration tasks the contract required, including seeding and hole backfill where stumps had been pulled out: "we don't feel like we should use tax dollars for work that was not done and not done in a timely manner."

Schaeffer said the city considered having the prime contractor, Reith Riley, perform restoration work, but after a site tour with utility partner NIPSCO, the city determined the additional Reith Riley work was unnecessary. He said the $18,200 figure reflects approximately 60 days of liquidated damages from March 31, when Homer Tree Service stopped communicating, and that staff time responding to the issue was a factor in seeking damages. Schaeffer said the city notified Homer Tree Service of the proposed deductions via email and received a confirmation but no substantive response.

Board members asked whether the liquidated damages would cover any additional costs had the city needed Reith Riley to perform restoration; Schaeffer said the city avoided a roughly $69,000 Reith Riley charge because NIPSCO was able to work on the site and the extra work was not required. The board asked whether any Homer Tree representatives were present; no one appeared to speak for the company.

The action was moved, seconded and approved by voice vote with all present saying "aye." The motion record shows the contract pay item adjustment and the assessed damages; no additional penalties or further remedies were recorded at the meeting.

The city’s engineer noted natural vegetation has regrown in the disturbed areas and that the contractor’s incomplete work had required substantial staff time to manage site issues and utility coordination. No appeal or follow-up schedule for the contractor was announced at the meeting.