HomeMy WebLinkAboutMINUTES - 12071999 - SD5 250-9842/C.1.3
TO: BOARD OF SUPERVISORS
FROM: BARTON J. GILBERT, DIRECTOR OF GENERAL SERVICES Contra
DATE: December 7, 1999 _
Costa
County
SUBJECT: TERMINATE CONTRACTOR'S RIGHTS UNDER CONSTRUCTION CONTRACT FOR TECHNICAL SERVICES
ADMINISTRATION BUILDING,30 GLACIER DRIVE,MARTINEZ;ASSESS LIQUIDATED DAMAGES;AND
AUTHORIZE COUNTY COUNSEL TO PURSUE LEGAL REMEDIES(WH354H)
SPECIFIC REQUESTS OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
I. RECOMMENDATION
A. DECLARE that Phoenix National Inc. ("Phoenix")is in material breach and default of its
contract dated October 27, 1998 for construction of the Technical Services Administration
Building project for each of the reasons set forth below, and TERMINATE and CANCEL
Phoenix's rights under the contract on those grounds.
B. Pursuant to the contract documents, ASSESS liquidated damages of$30,000.00 (60 days x
$500.00/day) in an amount to be determined for construction delay for the period between
October 8, 1999 and December 7, 1999,plus $500.00 per day between December 8, 1999 and
the final completion of the project.
C. AUTHORIZE the County Counsel to pursue appropriate legal remedies, including the filing and
prosecution of lawsuits, against Phoenix, Hartford Fire Insurance Company, and other parties
responsible for the damages and expenses incurred by the County.
II. FINANCIAL IMPACT
Costs will be covered by funds deducted from the contract balance for the remaining work.
III. REASONS FOR RECOMMENDATIONS/BACKGROUND
A. On October 27, 1998, the Board awarded the construction contract for the Technical Services
Administration Building project, located at 30 Glacier Drive, Martinez to Phoenix of Fallbrook,
California. The contract required completion within 300 calendar days from the starting date.
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON OTHER
IT IS BY THE BOARD ORDERED that this matter is CONTINUED to December 14, 1999,
VOTE OF SUPERVISORS
XUNANIMOUS(ABSENT tAXyu2--
AYES: NOES:
ABSENTS: ABSTAIN:
MEDIA CONTACT: BARTON J.GILBERT(313-7100)
CC: General Services Department I HEREBY CERTIFY THAT THIS IS A TRUE
Architectural Division AND CORRECT COPY OF AN ACTION TAKEN
G.S.Accounting AND ENTERED ON THE MINUTES OF THE BOARD
File: 250-9842/A.5
OF SUPERVISOR' N THE DATE SHOWN.
County Administrator's Office ATTESTEDP g `'
County Counsel HIL BATCHELOR,CLERK O THE BOARD OF
Auditor-Controller SUPERVISORS AND COUNTY ADMINISTRATOR
Contractor(Via A/D) )Z
Sheriff-Coroner Dept.(Via A/D) BY DEPUTY
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S05
TERMINATE CONTRACTOR'S RIGHTS UNDER CONSTRUCTION 250-9842/C.1.3
CONTRACT FOR TECHNICAL SERVICES ADMINISTRATION December 7, 1999
BUILDING, 30 GLACIER DRIVE,MARTINEZ;ASSESS LIQUIDATED
DAMAGES; AND AUTHORIZE COUNTY COUNSEL TO PURSUE LEGAL
REMEDIES (WH354H)
B. On December 1, 1998 a notice to proceed was issued with a starting date of December 2, 1998
and a contract completion date of September 28, 1999. As a result of change order work
required of Phoenix, the completion date was later extended to October 8, 1999. As of
November 15, 1999, the project was only approximately 65% complete.
C. For an extended period of time, Phoenix and its subcontractors have failed to supply sufficient
materials and workers to complete the project work.
D. Phoenix has been repeatedly notified orally and in writing of the lack of progress, and other
problems. Despite these notices, Phoenix has failed to adequately address the above-described
deficiencies. On November 2, 1999 notice was sent to Phoenix and its bonding company
(Hartford)by fax and certified mail, return receipt requested. The notice required Phoenix, no
later than November 12, 1999, to 1) submit a revised progress schedule and 2)return to the
jobsite with sufficient materials and workers to complete the work without delay, and warned
Phoenix that, if these things were not done by the deadline, the County would complete the work
in accordance with Section 11 of the Contract and that Phoenix would be subject to liquidated
damages in accordance with Section 5 of the Contract. Phoenix failed to meet the deadline and
has continued in its failure to supply sufficient materials and workers to complete the job.
E. On November 2, 1999 the bonding company(Hartford)was also sent a letter by fax and certified
mail, return receipt requested, informing them of the lack of progress, urging them to take
immediate action to remedy the situation and requesting them to indicate,no later then
November 15, 1999,whether it is prepared to arrange for another licensed contractor to take over
and complete the contract work should Phoenix fail to comply with the conditions of the
November 2, 1999 letter sent to Phoenix. No response was received by the deadline.
F. It is recommended that the Board terminate and cancel Phoenix's rights under the construction
contract for each of the deficiencies listed above, direct that the Director of General Services
proceed with the completion of the project, assess liquidated damages, and authorize the County
Counsel to pursue appropriate legal action, including the filing and prosecution of lawsuits,
against Phoenix, its bonding company and any other responsible parties.
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