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HomeMy WebLinkAboutMINUTES - 12031985 - IO.5 TO= BOARD OF SUPERVISORS FROM: INTERNAL OPERATIONS COMMITTEE Contra lira November 25 , 1985 Costa DATE; Co^ SUBJECT: purchase of Equipment for the Byron Fire Protection District SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION i RECOMMENDATIONS: 1 . Authorize the County Administrator to send a letter to the Hofmann Company requesting payment of $30, 000 to the Byron Fire Protection District consistent with the previous agreement between the County and the Hofmann Company. 2 . Remove this item as a referral to our Committee. BACKGROUND: This item has been on referral to the Committee for some time. A detailed review has been made by the Public Works Department of the sequence of events involving the construction of the Discovery Bay Fire Station by the Hofmann Company and the agreement with the Hofmann Company to provide $30,000 in equipment for the Byron Fire Protection District in partial mitigation for the increased responsibilities placed on the Fire District by the development of Discovery Bay. At our last meeting on this subject on November 25 , 1985 , the County Administrator' s Office filed the attached report with our Committee summarizing the position of County staff to the effect that there is no evidence that the Hofmann Company has ever complied with the terms of their agreement with the County relating to the contribution of $30, 000 in cash or equipment for the Byron Fire Protection District, and recommending that a letter be sent to the Hofmann Company requesting payment of the $30 , 000 . We agree with staff ' s recommendation and urge the Board' s approval of the above recommendation. CONTINUED ON ATTACHMENT: X YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMM ATI N OF BOARD COMMITTEE XAPPROVE THER SIGNATURE(S): Tom Torlakson Tom Powers ACTION OF BOARD ON ` December 3, 1985APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS X 1 HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS (ABSENT AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. CC: County Administrator ATTESTED December 3, 1985 County Counsel --— Public Works Director PHIL BATCHELOR, CLERK OF THE BOARD OF Chief, Byron Fire Prot. District SUPERVISORS AND COUNTY ADMINISTRATOR AUdi:tor-Control l er Hofmann Company BY ,DEPUTY M382/7-83 _4 V(-:- OFFICE OF COUNTY ADMINISTRATOR CONTRA COSTA COUNTY Administration Building Martinez, California T a Internal Operations Committee Date November 20 , 1985 Supervisor T. Torlakson Supervisor -7 Powers C.Q From Terrence J. McGraw, Hofmann Company Purchase bject : Deputy County Administrator Suof Equipment for Byron Fire Protection District This issue has to do with the agreement between the County and the Hofmann Company for the development of the Discovery Bay fire station in which the Hofmann Company agreed to purchase $30, 000 worth of equipment for the Fire District. Chief Nick Papadakos of the Byron Fire Protection District had informed your Committee that the District had not received the $30 , 000 of equipment. Accordingly, earlier this year the Hofmann Company was requested to comply with the terms of the agreement. The Hofmann Company responded by stating that the Company had constructed the Discovery Bay fire station at a cost of $50, 000 below the estimated construction cost which should have resulted in a surplus in assessment district funds in that amount. They further stated that the $50, 000 surplus was to be used for the purchase of equipment. It is the Company' s position that if the alleged $50 , 000 surplus had been applied to the purchase of equipment, the terms of the agreement would have been satisfied. The above issues have been reviewed with the Fire Protection District, the Auditor-Controller ' s office, County Counsel and the Public Works Department. The Auditor-Controller ' s office informed us that there was a surplus of approximately $26, 800 after the construction of the fire station. However, that amount was subsequently used for the construction of a second bay at the Discovery Bay fire station. Regardless of the amount or disposition of the surplus, none of the participants in the fire station project have any recollection of discussions with the Hofmann Company regarding the use of any surplus for the purchase of equipment. Additionally, the use of assessment district funds for equipment would have been contrary to State law and Board of Supervisors Resolution No. 79/1046 which established the assessment district. We have been unable to discovery any documentation to support the Hofmann Company contention that the company submitted a bid at $50 , 000 below the estimated construction cost in order to provide a surplus for equipment. Given the variables and somewhat uncontrollable factors involved in a construction project, it would seem that the alleged underbidding arrangement would have been an imprecise and unreliable means of providing the District with funds for the purchase of equipment. Additionally, it should be noted that the Hofmann Company bid was not actually the lowest estimate submitted. There was a lower bid which was rejected on a bid technicality. The fact that another contractor submitted a lower bid would seem to refute the fact that the Hofmann Company bid was $50, 000 less than the realistic estimated construction cost. Chief Papadakos has indicated that there was discussion with the Hofmann Company regarding the application of the $30, 000 toward the purchase of a fire engine for the Discovery Bay station. The District did purchase a fire engine in 1982 for the Discovery Bay station; however, the funds for the purchase were allocated to the District from the Special District Augmentation Fund. We have recently informed the Hofmann Company of our findings which indicate that the District did not receive equipment equal to $30 , 000 or a cash contribution of $30, 000 toward the purchase of the fire truck. Since the District currently has an;' adequate complement of equipment and vehicles for the Discovery Bay station, we have requested the Hofmann Company to forward the $30,000 to the County on behalf of the Byron Fire Protection District to be used for future Fire District equipment needs. We will inform you further on this matter upon receipt of a response from the Hofmann Company and recommend any necessary further action that may be required to obtain the payment of the $30, 000 . TJM:py CC: Auditor-Con'troller , Byron Fire Protection District (Chief Papadakos ) County Counsel Public Works Hofmann Company