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Home My WebLink AboutMINUTES - 05191992 - 2.9 345-8503/C. 1 .2 TO: BOARD OF SUPERVISORS SE--L Contra •r•- j -art:`.1�. FROM: •�.�-- BARTON J. GILBERT, DIRECTOR OF GENERAL SERVICES Costa County DATE: May 19, 1992 rsr�cou CONSTRUCTION CONTRACT FOR EL PUEBLO DAY CARE CENTER, PHASE II, 1760 . SUBJECT: CHESTER DRIVE, PITTSBURG; FINDING THAT AN EMERGENCY EXISTS; AUTHORIZATION TO COMPLETE THE PROJECT; AND AUTHORIZATION TO . PURSUE LEGAL REMEDIES (WH328F) SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION I . RECOMMENDATION A. DECLARE that Facchini- Enterprises, Inc. ( "Facchini") is in material breach and default of its contract dated June 25, 1991 for construction of E1 Pueblo Day Care Center, Phase I_I project for each of the reasons set forth below, and TERMINATE and CANCEL Facchini 's rights under the contract on those grounds . B. FIND that an emergency exists and AUTHORIZE the Director of General Services to proceed in the most expeditious manner, . pursuant to Public Contract Code Section 20134, to complete the construction of .the above-described project. C. AUTHORIZE the County Counsel to pursue appropriate legal remedies, including the filing and prosecution of lawsuits, against Facchini Enterprises, Inc. , Freedom Insurance Company, Ltd. , and other parties responsible for the damages and expenses incurred by the County. II . FINANCIAL IMPACT Costs will be covered . by current Community Development Block Grant Funds and by funds deducted from the contract balance for the remaining work. III . REASONS FOR RECOMMENDATIONS/BACKGROUND A. On June 25, 1991, the Board awarded the construction contract for the E1 Pueblo Day Care Center, Phase II. project, located at 1760 Chester Drive, Pittsburg, to Facchini of Martinez. The contract required completion within 100 calendar days from the starting date. X CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON NSA;:-1 9 1999 APPROVED AS RECOMMENDED X OTHER Primo Facchini, President/Owner of Facchini Enterprises , Inc. , appeared and urged to Board not to cancel the above contract , but to allow him additional time _ to complete the contract . The Chair read comments submitted by Olivia . Phung, Administrator ,Facchini Enterprises , Inc. , advising that Facchini is trying very hard to finish the project . Board members considered the testimony, and approved the above recommendations of the Director of General Serivices . VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE �Y_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. General Services Department CC: Architectural ATTESTED.May 19,-1992 Accounting PHIL BATCHELOR,CLERK OF THE BOARD OF County Administrator: D. .Bel l SUPERVISORS AND COUNTY ADMINISTRATOR County Counsel Auditor-Controller Consultant (Via A/D) BY DEPUTY M3oMffifhity Development Dept. (Via A/D) 34503B04 . 15A GB: ls Page 1 of 3 Board of Supervisors 345-8503/C. 1.2 CONSTRUCTION CONTRACT FOR EL PUEBLO May 19, 1992 DAY CARE CENTER, PHASE II, 1760 CHESTER DRIVE, PITTSBURG; FINDING THAT AN EMERGENCY EXISTS; AUTHORIZATION TO COMPLETE THE PROJECT; AND AUTHORIZATION TO PURSUE LEGAL REMEDIES B. On August 14, 1991 a notice to proceed was issued with a starting date of August 15, 1991 and a contract completion date of November 23, 1991 . As a result of change order work required of Facchini, the completion date was later extended to December 14, 1991. C. For an . extended period of time., Facchini and its subcontractors have failed to supply sufficient materials and workers to complete the project work, and the work is currently five months behind schedule. No substantial work has been accomplished during the past month. D. Stop notices totaling more than $95,000 . 00 have been filed by subcontractors, material suppliers and workers who have not been paid on this job. None of these stop notices have been paid, and three of the claimants (Piedmont Lumber Co. , Aladdin Mechanical Services, Inc. and City Electric Supply, Inc. ) have filed suit against the County. The unpaid contract funds ( $101,715. 85) are insufficient to finish the project work and to pay the stop notices . This creates a practical impediment to Facchini finishing the job, because it is unlikely that the unpaid claimants will resume work on the job. E. On or about March 25, 1992, the County Building Inspection Department issued a stop work order to Facchini for failure to obtain and pass required buildingcode inspections . The stop work order was not removed until May 14, 1992 . F. During the course of the job, Facchini has used subcontractors that were not listed in the original bid and whose substitution was not approved by the County. This constitutes violation of the Subletting and Subcontracting Fair Practices Act (Public Contract Code Sections 4100-4114) . Under Public Contract 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. G. Facchini and its bonding company (Freedom Insurance Co. , Ltd. ) have been repeatedly notified orally and in writing of the lack of, progress, stop notices and other problems. Despite these notices, both Facchini and the bonding company have failed to adequately address the above-described deficiencies . The latest notice was sent to Facchini and its bonding company by certified mail, return receipt requested, on April 29, 1992 . The notice required Facchini, no later than May 9, 1992, to clear the stop work order, correct certain defective work and return 'to the job with sufficient materials and workers to diligently complete the job, and warned Facchini that, if these things were not done by the deadline, the County would terminate the contract and pursue legal action. Facchini failed to meet the deadline and has continued in its failure to supply sufficient materials and workers to the job. Page 2 of 3 Board of Supervisors 345-8503/C. 1 .2 CONSTRUCTION CONTRACT FOR EL PUEBLO May 19, 1992 DAY CARE CENTER, PHASE II, 1760 CHESTER DRIVE, PITTSBURG; FINDING THAT AN EMERGENCY EXISTS; AUTHORIZATION TO COMPLETE THE PROJECT; AND AUTHORIZATION TO PURSUE LEGAL REMEDIES H. On April 30, 1992 the County received notification from the insurance agent for Facchini that Facchini ' s insurance was cancelled for non-payment of premium, effective 12 : 01 a.m. on April 301 1992, and that reinstatement would not be offered. While 30 days ' notice of cancellation was required to be given to the County, the County has been unable to obtain from the insurance carrier written confirmation that the insurance is still in effect as to the County. In addition, Facchini or its bonding company have not, to the County's knowledge, obtained insurance coverage to replace the cancelled policy. I . After- receiving information questioning the validity of Facchini 's contractor' s license, General Services staff contacted the Office of the Contractors State License. Board on May 15, 1992 . Staff was informed that Facchini ' s contractor' s license had been suspended and that Facchini is not able to contract at this time. J. The unfinished construction constitutes a potential hazard to the children occupying the existing day care facility, as well as ' the children of the neighborhood. The unfinished construction also makes the structure vulnerable to vandalism. Immediate action is required to avoid danger to life or property. K. It is recommended that the Board terminate and cancel Facchini ''s rights under the construction contract for each of the deficiencies listed above, find that an emergency exists, direct that the Director of General Services proceed with the completion of the project and enter into any necessary contracts in accordance with Public Contract Code Section 20134, and authorize the County Counsel pursue appropriate legal action, including the filing and prosecution of lawsuits, against Facchini, its bonding company and other responsible parties . 34503B04 . 15A GB: ls r Page 3 of 3