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HomeMy WebLinkAboutMINUTES - 07191988 - T.4 T. 4 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on July 19, 1988 by the following vote: AYES: Supervisors Powers, McPeak, Torlakson, Schroder NOES: None ABSENT: None ABSTAIN: Supervisor Fanden ------------------------------------------------------------------ ------------------------------------------------------------------ SUBJECT: Hearing on Contract. Substitution for the West County Justice Center, Project B Chairman Schroder convened the hearing on the substitution by Walsh Construction Co. , the prime construction contractor for the West County Justice Center, of a subcontractor for the lath/plaster/gypsum wallboard work. The Board received a report from the County Administrator presenting two options available to the Board in rendering its decision. A copy of the report is attached and included as a part of this document. V., J. Westman, County Counsel, administered the oath to all individuals who would testify at the hearing this day. Deputy County Counsel David Schmidt summarized the scope of issue before the Board which concerns a proposal that the County has received by the prime contractor, Walsh Construction, to substitute a plastering subcontractor. He noted that the origin- ally listed subcontractor is Frederick Meiswinkel of San Francisco, and that Walsh has claimed that an inadvertent clerical error was made right at about the time that the bids were submitted. He advised that Walsh had intended to list a Bakersfield subcontractor by the name of Herb Shearer Plastering. Mr. Schmidt called atten- tion to the fact that staff is not taking a position as to whether the proposed substitution should be granted or not. Chairman Schroder opened the hearing. Sterling Ross, attorney with the law firm of Rabb and Ross, 655 Redwood Highway, Suite 360 , Mill Valley 94941, and representing Frederick Meiswinkel, advised that this case is governed by Section. 4107 of the California Public Contract Code which sets forth particular times and criteria under which a general contractor whose bid has been accepted can substitute a subcontractor out of a job. Mr. Ross commented on the list of reasons permitting the substitution of a subcontractor and noted that the reason applica- ble in this situation relates to a clerical error with respect to the creation of the contract and the bid. Mr. Ross admitted that he could not prove that Walsh Construction Co. was guilty of any wrongdoing to cut another contractor to give a lower bid after the original bids were accepted. However, he requested the Board to seriously consider the evidence presented at this hearing today. Edward Puchi, a Sacramento attorney representing the Walsh Construction Co. , referred to Section 4107. 5 of the Public Contract Code which provides for relief for a prime contractor when there has been an inadvertent clerical error made in listing the names of the subcontractors and expressed the belief that this section takes into account the nature of the competitive bidding process in the construction industry. He briefly spoke on the bidding process particularly in the final minutes prior to the submission of the final bid document. He called attention to the fact that the bid for the plastering work was the amount presented by Shearer, that the general contract bid submitted by Walsh was adjusted to the bid figure submitted by Shearer, - and that with the rush to meet the bid deadline, the name of Frederick Meiswindel was not changed to reflect Herb Shearer. Mr. Puchi noted that the particular bid document for this project was extremely burdensome. He spoke on actions taken when the error was discovered and notification of County officials, Fred Meiswinkel, Inc. , including followup letters advising all parties concerned in accordance with statutory re- quirements. Leslie Fay, estimating manager for the Walsh Construction Co. , described what takes place at Walsh Construction on bid day right up to the time that the bid quotations are given to the company' s representative over cellular phone at the location where the bids were to be submitted. Supervisor Powers inquired for clarification that the bid actually made by Frederick Meiswindel was $2,310,000, that the bid made by Shearer was $2,250,000 and that it was the latter bid that the Walsh bid was based on. Mr. Fay advised in the affirmative. Mr. Ross ' s cross examination of Mr. Fay covered procedures utilized by Walsh Construction in receiving bid quotations from subcontractors. Kurt Karlin, the estimator for Walsh Construction Co. who received the telephone quotes from the subcontractors who were competing for the drywall and plastering work, commented on the process. Mr. Ross cross examined Mr. Karlin. Gerry McClellan, A.I .A. , Project Manager .of the West County Justice Center, advised that the facts presented at this hearing were completely consistent with all information provided to him, and that. the notification of the error was promptly made in com- pliance with statutory requirements. Mr. McClellan acknowledged that the bid document was a very complicated form. All person desiring to speak having been heard, the hearing was CLOSED. On motion of Supervisor Powers, seconded by Supervisor Schroder, the Board CONSENTED to the substitution of Herb Shearer Plastering, Inc. , Bakerfield, for Frederick Meiswindel, Inc. , San Francisco, for the lath/plaster/gypsum wallboard subcontractor listed in the bid proposal by the prime contractor, Walsh Con- struction Co. , for the West County Justice Center, Project B, as requested by the prime contractor, and in accordance with Section 4107 of the California Public Contract Code. Supervisor Fanden abstained from voting on the motion because she was not present for all the testimony. I hereby certify that this Is a tnm and 00"d W"of an action taken and entered on the minutes of ft Boardof Supervi ors on the date shown. cc: County Administrator ATTESTED.* �offt �County Counse1 PHIL B TCHEL R,CleBoard Justice System Programs of Supervisors and County Administrate Walsh Construction Co. Frederick Meiswinkel, Inc. By0. 7-4-A .omuty Herb Shearer Plastering, Inc. TG1. BOARD OF SUPERVISORS Cglra y F„FROM: PHIL BATCHELOR Costa I • COUNTY ADMINISTRATOR Ca,'" ") DATE: July 14 , 1988 SUBJECT: West County Justice Center, Project B Subcontractor Substitution Specific Request(s) or Recommendations(s) & Background & Justification RECOMMENDATION After hearing the written and oral testimony presented, take one of the following actions: CONSENT to the substitution of Herb Shearer Plastering, Inc. , Bakersfield, for Frederick Meiswinkel, Inc. , San Francisco, the lath/plaster/gypsum wallboard subcontractor listed in the bid proposal by the prime contractor, Walsh Construction. Co. , for the West County Justice Center, Project B, as requested by the prime contractor, and in accordance with Section 4107 of the California Public Contract Code; O. R DENY the substitution of Herb Shearer Plastering, ,Inc. , Bakersfield, for Frederick Meiswinkel, Inc. , San. Francisco, the lath/plaster/gypsum wallboard subcontractor listed in the bid proposal by the prime contractor, Walsh Construction Co. , for the West County Justice Center, Project B, as requested by the prime contractor, and in accordance with Section 4107 of the California Public Contract Code. FINANCIAL .IMPACT None for the County REASONS FOR RECONNENDATION/BACKGROUND A. On May 4, 1988 , the County opened bids for the subject project. Walsh Construction Co. , the prime contractor, listed Frederick Meiswinkel, Inc. as their lath/plaster/gypsum wallboard subcontractor. B. Within 24 hours after the bids were opened, the prime contractor requested approval to substitute Herb Shearer Plastering, Inc. for the drywall/Lath and plaster subcontractor listed in the original bid, Frederick Meiswinkel, Inc. The reason given for the requested substitution was a clerical error made in listing subcontractors at the time of bid. CONTINUED ON ATTACHMENT: X YES Signature?:- Je462a7rl�p Recommendation of County Administrator Recommendation of Board Committee Approve Other Signature(s) : Act of Board on: Approved as Recommended Other Vote of Supervisors: I HEREBY C IFY THAT THIS IS A TRUE AND CO GT COPY OF AN ACTION TAKEN Unanimous (Absent ) AND ERED ON THE MINUTES OF THE Ayes: Noes: OF SUPERVISORS ON DATE SHOWN. Absent: Abstain: Attested: CC: CAO P Batchelor, Clerk of CAO, Justice Sys Programs the B of Supervisors County Counse and Count 'nistrator *Walsh Con uction Co. *Frede ' Meiswinkel, Inc. By: PUTY *He Shearer Plastering, Inc. via Justice System Programs ^-Subcontractor Substitution for WCJC, Project B July 14, 1988 Page Two C. The County Administrator's Office, in a letter dated. May 26, 1988, notified Frederick Meiswinkel, Inc. of the prime contractor' s request for substitution. The notification gave five working days within which to submit written objections to the substitution.. D. Frederick Meiswinkel, Inc. , in a letter dated June 6 , 1988 , objected to the prime contractor' s request for substitution. Since this subcontractor has filed written objections, it is necessary for the Board to conduct a hearing as specified in the Public Contract Code, Section 4107. E. Section 4107 lists a limited number of exceptions that would allow a prime contractor authority to substitute another subcontractor in place of the subcontractor listed in the original bid. One exception occurs when the prime contractor demonstrates " . . . that the name of the subcontractor was listed as the result of an inadvertent clerical. error" . (Section 4107(a) (5) ) F. On June 14 , 1988, the Board awarded a construction contract for the West County Justice Center, Project B, to Walsh Construction Company, Sacramento, California.. CONSEQUENCES OF NEGATIVE ACTION Failure to approve one of the recommendations might result in a construction delay.