HomeMy WebLinkAboutMINUTES - 10191993 - 1.27 TO: BOARD OF SUPERVISORS
FROM: COUNTY COUNSEL
DATE: October 19, 1993
SUBJECT: Construction Contract for Highway 4 Widening - SR160 to Big Break Road
Project, Project No. 4660-6X4029-90, Authorization to File Interpleader
Action
SPECIFIC REQUEST(S) OR RECOMMENDATIONS) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
1. AUTHORIZE County Counsel to file an interpleader action of
$149,831. 05 in unpaid construction funds and to take other
appropriate action; and
2 . DIRECT County Auditor-Controller to issue a warrant or check
for deposit with the Contra Costa County Superior Court.
FISCAL IMPACT
The funds to be deposited with the court are encumbered but unpaid
original construction contract funds in the construction fund
account for this project.
BACKGROUND/REASONS FOR RECOMMENDATIONS
A. On June 9, 1992, the Board awarded a construction contract for
the Highway ,4 widening - SR160 to Big Break Road project to
Joe Foster Excavating, Inc. ("Foster") .
B. On May 4, 1993, the Board accepted the project work as
complete.
C.' The Public Works Department, Auditor's Office and County
Counsel have been notified by numerous subcontractors and
suppliers that they have not been paid by Foster, and these
unpaid firms have filed stop notices with the county. In
response to the stop notices, the county has withheld payment
from Foster, but the amount available for disbursement in the
construction fund account for this project is not sufficient
to pay all of the stop notice claims.
D. Several of the stop notice claimants have filed lawsuits
against the county. In order to protect the county against
potential multiple liability and excessive legal expense, it
is necessary that an interpleader action be filed naming all
of the stop notice claimants. This would provide a single
forum in which all of the competing claims can be properly
adjudicated and the funds disbursed.
CONSEQUENCES OF NEGATIVE ACTION
Failure to approve filing of an interpleader action would expose
the county to additional legal expenses and potential multiple
liability and could delay payment to Foster's subcontractors and
suppliers.
CONTINUED ON ATTACHMENT: YES SIGNATURE
RECOMMENDATION OF COUNTY ADMINISTRATOR _ RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON APPROVED AS RECOMMENDED YC 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: l�/�
ATTESTED -e .Qix�
Contact: B.J. Kerekes, (510) 313-2321 PHIL BATCHELOR, CLERK OF
cc: CAO THE BOARD OF SUPERVISORS
County Counsel AND COUNTY ADMINISTRATOR
Public Works
Auditor-Controller BY DEPUTY