HomeMy WebLinkAboutMINUTES - 04201999 - D6 135-9417/C.1.3
Tc: BOARD OF SUPERVISORS
FROM: BARTON J. GILBERT., DIRECTOR OF GENERAL SERVICES _ Centra
-
Costa
DATE: April 13, 1999 County
SUBJECT: TERMINATE CONSTRUCTIOIVT CO NTTRACT FOR NORTH RICHMOND CENTER FOR HEALTH,
CHESLEY AND'THIRD STREET,RICHMOND;ASSESS LIQUIDATED DAMAGES; ANIS
AUTHORIZE COUNTY COUNSEL TO PURSUE LEGAL REMEDIES (WH528B)
SPE0FiC REQUESTS OR RECOMMENDATIONS)&BACKGROUND AND JUSTIFICATION
1. RECOMMENDATION
A. DECLARE that Clearview Construction, Inc. ("Clearview") is in material breach and default of
its contract dated December 16, 1997 for construction of North Richmond Center for Health
project for each of the reasons set forth below, and TERMINATE and CANCEL Clearview's
rights under the contract on those grounds.
B. Pursuant to the contract documents, ASSESS liquidated damages in the amount of$46,500.00
for construction delay for the period between January 29, 1999 and March 1, 1999 (30 calendar
days), the date on which the County took occupancy of the building.
C. AUTHORIZE the County Counsel to pursue appropriate legal remedies, including the filing and
prosecution of lawsuits, against Clearview, Ranger Insurance Company ("Ranger"), 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 RECOMMENDATION&BACKGROUND
A. On December 1.6, 1997, the Board awarded the construction contract for the North Richmond
Center for Health project, located at Chesley and Third Street, Richmond to Clearview of
Rocklin, California. The contract required completion within 315 calendar days from the
starting date,
CONTINUED ON ATTACHMENT:__X_„.YES SIGNATURE:
; RECOMMENDATION OF COUNTY ADM?NISTRATOR _.,_._RECOMMENDATION OF BOARD COMMITTEE
_APPROVE OTHER
SIGNATURE(S): 6kzdz , z.
ACTION OF BOARD ON APPROVED AS RECOMMENDED
VOTE OF SUPERVISORS
UNANIMOUS(ABSENT
AYES: NOES:..
ABSENTS:_. ABSTAIN:
MEDIA CONTACT; BARTON J.GILBERT(313-7100)
CC: General Services Departmene E HEREBY CERTIFY THAT THIS IS A TRUE
Architectural Division AND CORRECT COPY OF AN ACTION TAKEN
AND ENTERED ON THE MINUTES OF THE BOARD
G.S.Accounting OF SUPERVISORS ON DATE SHOWN.
File: 135-9417/A.5
County Administrator's Office ATTESTED
County Counsel 11
IL , HELOR,CLERK O E BOARD OF
Auditor-Controller SUP VISORS AND UNTY ADMINISTRATOR
Contractor(Via AID)
Health Services Dept.(Via AID) BY DEPUTY
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4.FRMINNATE CONSTRUCTION CONTRACT FOR NORTH 135-9417/C.1.3
RICHMOND CENTER FOR HEALTH, CHESLEY AND THIRD April 13, 1999
STREET, RICHMOND; ASSESS LIQUIDATED DAMAGES; AND
AUTHORIZE COUNTY COUNSEL TO PURSUE LEGAL REMEDIES
(WH528B)
B. On January 9, 1998 a notice to proceed was issued with a starting date of January 12, 1998 and a
contract completion date of November 23, 1998. As a result of change order work required of
Clearview, the completion date was later extended to January 29, 1999.
C. For an extended period of time, Clearview and its subcontractors have failed to supply sufficient
materials and workers to complete the project work.
D. Stop notices totaling more than$115,000.00 have been filed by subcontractors and material
suppliers who claim to have not been paid on this job.
E. Clearview has been repeatedly notified orally and in writing of the lack of progress, stop notices
and other problems. Despite these notices, Clearview has failed to adequately address the above-
described deficiencies. On February 25, 1999 notice was sent to Clearview and its bonding
company(Ranger)by fax and certified mail, return receipt requested. The notice required
Clearview to complete all remaining work, including punch list items,no later than March 19,
1999, and warned Clearview 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 Clearview
would be subject to liquidated damages in accordance with Section 5 of the Contract. Clearview
failed to meet the deadline and has continued in its failure to supply sufficient materials and
workers to complete the job.
Fe On March 3, 1999 the attorney for the bonding company sent a letter indicating that Clearview
had notified Ranger that it will be unable to complete the balance of the work.
G. It is recommended that the Board terminate and cancel Clearview°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 Clearview, its bonding company and other responsible parties.
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