The URL can be used to link to this page

Home My WebLink AboutMINUTES - 08122003 - C.37 CPM: 105--0i001/C.1.1 P TO: THE BOARD OF SUPERVISORS, CONTRA COSTA COUNTY, `. CONTRA CALIFORNIA AS EX OFFICIO THE GOVERNING BODY OF COSTA THE CROCKETT-CARQUINEZ FIRE PROTECTION DISTRICT L►rr FROM: BARTON J. GILBERT, DIRECTOR OF GENERAL SERVICES COUNTY DATE: AUGUST 12, 2003 40.0. / SUBJECT: TERMINATION OF CONTRACT RIGHTS, NEW FIRE STATION NO. 79, 1423 LILLIAN ST., CROCKETT FOR CROCKETT-CARQUINEZ FIRE PROTECTION DISTRICT; AUTHORIZATION TO COMPLETE PROJECT; AND AUTHORIZATION TO PURSUE LEGAL REMEDIES(WH734B) SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOM'MEN'DATION 1. DECLARE that Bay Commercial Construction, Inc. ("Bay Commercial") is in material breech and default of its contract dated October 17, 2000 for construction of New Fire Station No. 79, 1423 Lillian Street, Crockett for each of the reasons set forth below, and TERMINATE and CANCEL Bay Commercial's rights under the contract on those grounds. 2. DIRECT the Director of General Services, or designee, to proceed in the most expeditious manner to complete the construction of the above project. 3. AUTHORIZE County Counsel to pursue appropriate legal remedies, including the filing and prosecution of lawsuits, against Bay Commercial, Zurich North America Surety & Financial, Colonial American Casualty & Surety Co., and other parties responsible for the damages and expenses incurred by the District. FINANCIAL IMPACT Costs will be covered by current Crockett-Carquinez Fire Protection District funds and by funds deducted from the contract balance for the remaining work. BACKGROUND On October 17, 2000, the Board, as governing body of the Crockett-Carquinez Fire Protection District, awarded the construction contract for New Fire Station No. 79, located at 1423 Lillian Street, Crockett, to Bay Commercial of Cameron Park. The contract required completion within 180 calendar days from the starting date. On December 4, 2000, a notice to proceed was issued with a starting date of December 4, 2000 and a contract completion date of June 2, 2001. As a result of change order work required of Bay Commercial, the completion date was later extended to August 1, 2001. CONTINUED ON ATTACHMENT: X YES SIGNATURE: L sy L 'A ' r -'`RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITT .---'APPROVE OTHER SIGNATURES: � . ACTION OF 80 D AUGUST 12, 2003 APPROVED AS RECOMMENDED XX OTHER VOTE OF SUPERVISORS XXX UNANIMOUS(ABSENT DONE 1 AYES: NOES: ABSENTS: ABSTAIN: MEDIA CONTACT:BARTON J.GILBERT(313-7100) Originating Dept.:General Services Department I HEREBY CERTIFY THAT THIS ISA TRUE cc: General Services Department AND CORRECT COPY OF AN Capital Projects Management Division AND ENTACTION ENTERED ON THE MINUTES THE BOARD Accounting OF SUPERVISORS ON THE DATE SHOWN. CPM File: 105-0001/A.5 AUGUST t2, 2003 County Administrator's Office ATTESTED County Counsel JOHN SWEETEN,CLERK OF THE BOARD OF SUPERVISORS Auditor Controller AND COUNTY ADMINISTRATOR Crockett-Carquinez Fire Protection District(via CPM) BY r � .DEPUTY H:12000110500011008001123b.doc Rev.814/03 SJ:AMC Page 1 of 2 M382(10188) TERMINATION OF CONTRACT RIGHTS, NEW FIRE STATION 105-0001JC.1.1 NO. 79, 1423 LILLIAN ST., CROCKETT FOR CROCKETT- August 12, 2003 CARQU'INEZ FIRE PROTECTION DISTRICT; AUTHORIZATION TO COMPLETE PROJECT; AND AUTHORIZATION TO PURSUE LEGAL REMEDIES (WH734B) For an extended period of time, Bay Commercial and its subcontractors have failed to supply sufficient materials and workers to complete the project work, and the work is currently over 23 months behind schedule. No substantial work has been accomplished during the past nine months. Deductive Change Order No. 3, dated March 7, 2003 and fully-executed on March 26, 2003, deleted certain work from Bay Commercial's contract. This deleted work was accomplished by a different contractor hired by the County in order for the Fire Station to be occupied by the Fire District. The Fire Station was occupied and operational on April 30, 2003. Stop notices for $2,137.00 and $12,985.90 have been filed by United Rentals Northwest, Inc., an equipment supplier, and SureBuilt, Inc., a metal building supplier on this job. The stop notices have not been paid. The remaining contract funds are insufficient to finish the project work and to pay the stop notices. This creates an impediment to Bay Commercial finishing the job, because it is unlikely that existing subcontractors and suppliers will resume work on the job or continue furnishing supplies and equipment when the remaining contract funds are insufficient to provide full payment. During the course of the job, Bay Commercial has used subcontractors that were not listed in the original bid and whose substitution was not approved by the District. This constitutes violation of the Subletting and Subcontracting Fair Practices Act (Public Contract Code Sections 4100-4114). Under Public Contact Code Section 4109, a contractor that violates the act also violates its contract, and the awarding authority may, in its own discretion, cancel the contract. On April 8, 2003, Bay Commercial's contractor's license was suspended by the Contractors State License Board for failure to comply with an Arbitration Award. To date, the license has not been reinstated. As a result, Bay Commercial presently is unlicensed and legally cannot perform the contract work. Bay Commercial and its bonding company (Zurich North America Surety & Financial) repeatedly have been notified orally and in writing of the lack of progress, stop notice, and other problems. Despite these notices, both Bay Commercial and the bonding company have failed to adequately address the above-described deficiencies. The latest notice was sent to Bay Commercial and its bonding company by 'certified mail, return receipt requested, on July 21, 2003. The notice required Bey Commercial, no later than July 31, 2003, to reinstate the contractor's license, provide evidence of reinstatement, and return to the jobsite with sufficient materials and workers and complete, the remaining work without delay. The notice also warned Bay Commercial that, if these things were not done by the deadline, the District would terminate the contract and pursue legal action. Bay Commercial flailed to meet the deadline and has continued in its failure to supply sufficient materials and workers to the job. It is recommended that the Board terminate and cancel Bay Commercial's rights under the construction contract for each of the deficiencies listed above, direct that the Director of General Services proceed in the most expeditious manner to complete the construction of the above project, and authorize the County Counsel to pursue appropriate legal action, including the filing and prosecution of lawsuits, against Bay Commercial, its bonding company, and other responsible parties. SJ:amc H:1200011050001100B001123h.doe Page 2 of 2 M382(10188)