HomeMy WebLinkAboutMINUTES - 08081995 - C115 0, 1 Jq C .1115,
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TO: BOARD OF SUPERVISORS
FROM: Victor J. Westman
County Counsel
DATE: August 2, 1995
SUBJECT: Construction Contract for Drainage Area 10, Line G Culvert Replacement
Project (Project No. 7554-6D8482-92) in Danville Area; Authorization
to File Interpleader Action.
SPECIFIC REQUEST(S) OR RECOMMENDATIONS) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
AUTHORIZE County Counsel to file an interpleader action of
$133, 780. 30 in withheld construction contract funds; DIRECT the
Auditor-Controller to issue a warrant or check for deposit with the
Contra Costa County Superior Court.
FISCAL IMPACT
The interpleader amount represents funds already budgeted and
encumbered for this project.
BACKGROUND/REASONS FOR RECOMMENDATIONS
On June 14, 1994, the Board awarded a construction contract for the
Drainage Area 10, Line G Culvert Replacement Project to V & M
Construction/Backhoe ("V & M") . On December 6, 1994, the Board
accepted the project work as complete. V & M was late in
completing the work, exceeding the contract time by 29 days. As a
result, $14, 500. 00 in liquidated damages has been assessed against
V & M and has been deducted from the contract funds.
The District has received various stop notices from subcontractors
and suppliers who claim not to have been paid for their labor
and/or materials. Pursuant to law, all remaining contract funds
less liquidated damages ($133,780. 30) have been withheld to cover
the stop notices. Three of the stop notice claimants (Ayala
Boring, Inc. ; Bragg Crane & Rigging Co. ; and San Jose Concrete Pipe
Co. ) have already filed suit to enforce their stop notices. It is
likely that additional suits will be filed by other stop notice
claimants.
To protect the District against multiple, conflicting claims and to
facilitate prompt payment of the contract funds, it is necessary
for the District to file an interpleader action.
CONSEQUENCES OF NEGATIVE ACTION
If the interpleader action is not authorized, the District will not
be protected against potential multiple liability and a
multiplicity of lawsuits.
CONTINUED ON ATTACHMENT: _ YES SIGNATURE
RECOMMENDATION OF COUNTY ADMINISTRATOR _ RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON Q�.� �,. S. 195 APPROVED AS RECOMMENDED r/ OTHER
VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE
AND CORRECT COPY OF AN ACTION TAKEN
UNANIMOUS (ABSENT ) AND ENTERED ON THE MINUTES OF THE BOARD
AYES: NOES: OF SUPERVISORS ON THE DATE SHOWN.
ABSENT: ABSTAIN:
ATTESTED
Contact: David F. Schmidt, Co. Counsel's Ofc. (646-2057) PHIL EIATCHELOR, 9LERK OF
THE BOARD OF SUPERVISORS
cc: Public Works Dept. (Attn: Bud Murphy, Const.) AND COUNTY ADMINISTRATOR
County Auditor-Controller (Attn: Judy Coons)
BY DEPUTY