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MINUTES - 04062004 - C105
TO: BOARD OF SUPERVISORS CONTRA FROM: BARTON J. GILBERT, DIRECTOR OF GENERAL SERVICES - COSTA DATE: APRIL G, 2004 COUNTY SUBJECT: TERMINATION OF CONTRACT RIGHTS OF DENNIS J. AMOROSO CONSTRUCTION COMPANY, INC. FOR THE CONTRA COSTA COUNTY ANIMAL SERVICES FACILITY, 4800 IMHOFF PLACE, MARTINEZ, FOR THE ANIMAL SERVICES DEPARTMENT (WH415F) SPECIFIC REQUEST($)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION 1. DECLARE that Dennis J. Amoroso Construction Co., Inc. ("DJA") is in material breach and default of its contract dated July 9, 2002 for construction of a new Contra Costa County Animal Services Facility for each of the reasons set forth below, and TERMINATE and CANCEL DJA's rights under the contract on those grounds. 2. FIND and DECLARE, pursuant to Public Contract Code Sections 22035 and 22050, that an emergency exists and that the emergency will not permit a delay resulting from a competitive re- solicitation for bids, and DELEGATE to the General Services Director or designee the authority to proceed in the most expeditious manner to complete the project and to enter into one more contracts therefor, without the need to re-solicit competitive bids. 3. AUTHORIZE the County Counsel to pursue appropriate legal remedies, including the negotiation and execution of a takeover agreement or similar agreement with DJA's surety (Travelers Casualty and Surety Company of America; "Travelers") and the filing and prosecution of lawsuits against DJA, Travelers, and other parties responsible for the damages and expenses incurred by the County. FINANCIAL IMPACT Costs will be covered by funds deducted from the contract balance for the remaining work. To the extent that the contract funds are not sufficient to cover all expenses, the County presumably will be able to recover the additional amount from.DJA and/or Travelers. BACKGROUND 1. On July 9, 2002, the Board awarded the construction contract for the Contra Costa County Animal Services Facility, located at 4800 Imhoff Place, Martinez, to DJA of San Rafael, California. The contract required completion within 430 calendar days from the starting date. On July 24, 2002 a notice to proceed was issued with a starting date of August 5, 2002 and a contract completion date of October 9, 2003. 4 s CONTINUED ON ATTACHMENT: X YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE -APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON 5 ' f APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS { UNANIMOUS(ABSENT/ 5 ) AYES: NOES: ABSENT$: ABSTAIN: MEDIA CONTACT:BARTON J.GILBERT(313-7100) Originating Dept.:General Services Department cc: General Services Department 1 HEREBY CERTIFY THAT THIS IS A ACTIONTRUE TA KEN Capital Projects Management Division AND ENAND TERED ON RECT THE MINUTESOFY OF AN THE BOARD Accounting OF SUPERVISRS ON THE DATE SHOWN. CPM File: 250-0003tC.1 JJt 250-00031A.5 ATTESTED County Administrator's Office JoiiN SWEETEN,CLERK OF THE SOAR D OF SUPERVISORS County Counsel U'AND COUNTY ADMINISTRATOR Auditor Controller e"� Animal Services Department(via CPM) BY i ce ' ° .-s' - DEPUTY Dennis J.Amoroso Construction Co.,Inc.(via CPM) H:12000\250000310QL003250b2.doc LDR:tb Rev.4!1104 Page 1 of 3 M382(10/88) TERMINATION OF CONTRACT RIGHTS OF DENNIS J. April 6, 2004 AMOROSO CONSTRUCTION COMPANY, INC. FOR THE CONTRA COSTA COUNTY ANIMAL SERVICES FACILITY, 4800 IMHOFF PLACE, MARTINEZ, FOR THE ANIMAL SERVICES DEPARTMENT (WH415F) 2. DJA has not performed in a timely manner and has failed to comply with the scheduling and completion requirements of the contract. As a result of DJA's performance delays, the project presently is over five months late and only about 77% complete. 3. The County repeatedly has notified DJA and Travelers orally and in writing about the lack of progress and concerns with the project schedule. For an extended period of time, DJA and its subcontractors have failed to supply sufficient materials and workers to complete the project, and DJA has failed to comply with the scheduling and completion requirements of the contract, as documented by the following: September 16. 2003 letter to DJA: Letter requested that DJA take all measures (manpower, scheduling, material procurement, etc.) necessary to prosecute the work in a diligent manner and regain lost time. October 5 2003 letter to DJA: Letter notified DJA that the project was substantially behind schedule and that no firm completion date had been established by DJA, requested that 'DJA provide a recovery plan, and warned DJA that the County reserved its right to assess liquidated damages for delays. November 3 2003 letter to DJA: Letter notified DJA that, due to financial, scheduling, and Cather problems under DJA's control, the project was significantly behind schedule and that subcontractors were not performing and reminded DJA of the continuing costs to County operations, including existing lease payment obligations and administrative costs. December 22 2003 letter to DJA: Letter informed DJA that the County had not received an approved schedule from DJA. Despite the above notices (see attached copies), DJA has failed to take appropriate action to supply sufficient labor and materials to the project, to provide updated schedules, or to comply with the scheduling and completion requirements of the contract. These defaults continue up to the present. 4. Since August 2003, DJA generally has failed to pay bills for labor and materials on the project. As a result, over 26 stop notices totaling more than $1.7 million have been filed on the project. Cather subcontractors/suppliers have indicated that they also have not been paid and will be filing stop notices. The numerous stop notices have interfered with the project funding and have made it difficult for the County to arrange payment to necessary subcontractors and suppliers. In addition, over the past six months, many subcontractors and suppliers have slowed or cut off the supply of labor and materials to the project, causing the work on the project to progress erratically and at a slow pace. DJA and Travelers have failed to take effective action to release the stop notices or to deal with the serious financial problems. 5. On January 14, 2004, the County received a letter from Travelers (copy attached) demanding that the County release no further contract funds, including retention, without Travelers' advance, written consent. The notice had the effect of freezing all payments on the project, including these to necessary subcontractors and suppliers. In addition,',on February 27, 2004, the County received a writ of attachment from Travelers attempting to take possession of all contract funds. 6. Can January 21, January 30, February 6, February 25, and March 16, '2004, the County sent letters or email messages to Travelers (copies attached) demanding that Travelers take prompt action to pay critical subcontractors and suppliers, to restore funding' to the project, and to provide a qualified replacement contractor to complete the remaining contract work. On March 17, 2004, the County received a letter from DJA (copy attached) advising that DJA had no objection to Travelers providing a replacement contractor and had urged Travelers to take that action with the County's project. Despite the numerous demands to Travelers, Travelers has failed to take any meaningful action except the one-time issuance of checks to nine subcontractors and suppliers. H:\2000\2500003\00L003250b2.doc LDRAb Rev,411/04 Page 2 of 3 M382(10188) TERMINATION OF CONTRACT RIGHTS OF DENNIS J. April 6, 2004 AMOROSO CONSTRUCTION COMPANY, INC. FOR THE CONTRA COSTA COUNTY ANIMAL SERVICES FACILITY, 4800 IMHOFF PLACE, MARTINEZ, FOR THE ANIMAL SERVICES DEPARTMENT(WH415F) 7. On March 15, 2004, the County gave a written, ten-day notice to DJA and Travelers pursuant to the contract provisions (copy attached). The notice listed five defaults, including the ones described above, demanded that DJA correct the defaults by March 25, 2004, and warned that DJA was in material default under the contract and that failure to timely correct the defaults would lead to termination of DJA's contract rights. Despite the notice, DJA and Travelers failed to correct the defaults by the March 25 deadline and continue in their failure to supply sufficient labor, materials, and funding to complete the project. 8. The above-described defaults affect the entire project and present a potential threat to the animals presently housed in the existing Martinez Animal Shelter. Given the seriousness of the defaults and DJA's repeated failure to take timely action to deal with them, it is recommended that the Board declare that DJA is in material breach under its construction contract and terminate DMA's rights under the contract. It is also recommended that the Board authorize the County Counsel to pursue appropriate legal action, including the negotiation and execution of a takeover agreement or similar agreement with Travelers and the filing and prosecution of lawsuits against DJA, Travelers, and any other responsible parties. 9. As explained in the accompanying letter from Michael G. Ross, Animal Services Director, the existing Martinez Animal Shelter is obsolete and subject to overcrowding, and it is essential that the new facility be complete and occupied as soon as possible. To deal with this imminent threat to public safety and welfare, and to minimize the adverse impact of extended rent and possible rent increases for the existing Martinez Animal Shelter, it is recommended that the Board delegate to the General Services Director or his designee the authority to respond to the emergency by proceeding with the project in the most expeditious manner possible, without the need to re-solicit competitive bids. CONSEQUENCES OF NEGATIVE ACTION The project would continue in its present incomplete state, with no assurance that the project would be completed in a proper, timely manner. It is likely that the project funding would be adversely affected by extended rent and possible rent increases for the existing Martinez Animal Shelter and extended project management costs. HA2000\2500003\00L,003250bZdoc LOR:tb Rev.411704 Page 3 of 3 M382(10188) Contra. p�!� GENERAL SERVICES DEPARTMENT Barton J.Gilbert V o 1111 Gil`. Capital Projects Management Division Director of General services Costa Lease Management Division V s a 1220 Morello Avenue,Suite 100 Michael J.Lango County�` Martinez,California 94553-4711 Deputy General Services Director x (925)313-7204 Carol Chan Lease Manager 'f (925)313-7250 os Iw y FAX .� (925)313-7299 o� jq�O September 16, 2003 In reply refer to: 250-0003/C.12.2 VIA FAX AND U.S. MAIL Dennis J. Amoroso Construction, Inc. Attn: Paul Gilles, Vice President of Operations 1101 5th Avenue, Suite 310 San Rafael, CA 94901 SUBJECT: CONTRA COSTA COUNTY ANIMAL SERVICES FACILITY, 4800 I IIIOFF PLACE, MARTINEZ, FOR THE ANIMAL SERVICES DEPARTMENT (WH415F); Project Schedule and Finances Dear Paul: I appreciated the opportunity to meet with you and your staff regarding the Contra Costa County Animal Shelter project. The following is a summary of the items discussed and the actions required for issues addressed in the meeting held between Dennis J. Amoroso Construction(DJA)and Contra Costa County on September 09, 2003 regarding payments and the project schedule. • DJA is to provide appropriate releases, as defined in County Counsel's correspondence to DJA, for all payments made to subcontractors and vendors, specifically those who filed stop notices. These releases must be provided to the County prior to the County releasing any withheld funds or implementing joint checks to DJA/subs. • The County will assist DJA by issuing joint checks to the three entities identified in DJA's letter of August 28, 2003. • Joint checks to DJA and subs/vendors for monthly progress payments are not the desirable method by the County and for that matter,DJA. • The County reiterated to DJA of the legal requirement to pay subs/vendors with funds paid by the County for work performed on this protect. Moreover,payments made to DJA by the County for work performed on this project shall be used exclusively for this project'. • The County requests that DJA commit to stopping/slowing down the continuation of stop notices. Many of the current stop notices were issued by subs/vendor/other for non-payment of money, even though the County issued progress payments for actual material/labor of work performed. • DJA expressed their views on why the project is behind schedule. DJA was asked to provide an analysis of the justifiable time that they believe is due to them. This schedule analysis will be provided before the next meeting. • The County continues to be extremely concerned regarding the timely completion of the project and DJA's proposed completion date of mid-January 2004. H:\200012500003\00L©03171 r.doc Attachment—"BACKGROUND" Item 3 Dennis J.Amoroso Construction, Inc. September 16, 2003 CONTRA COSTA COUNTY ANIMAL SERVICES FACILITY File No. 250-0003/C.12.2 FACILITY, 4800 IMHOFF PLACE,MARTINEZ FOR THE Page 2 of 2 AND4AL SERVICES DEPARTMENT • The County requests that DJA commit and demonstrate on a consistent basis that they are taking all measures (manpower, scheduling, material procurement)necessary to prosecute the work in a diligent manner and regain lost time. • Next meeting with DJA management is scheduled for October 02, 2003. Please feel free to call Les Richardson or me at(925)313-7200 should you have any questions. Sincerel Rob Lim, P.E. Capital Projects Division Manager LR:amc cc: General Services Department L. Richardson Dennis J. Amoroso Construction, Inc. J. Gant D. Harter C. English R. Heidenreich Luster National, Inc. G. Granada Animal Services Department M. Ross 13:\2000\2500003\00L003171r.doc GENERAL SERVICES DEPARTMENT Barton J.Gilbert Contra Capita#Projects Management Division Director of General Services Costa Lease Management Division 1220 Morello Avenue,Suite 100 Michael J. DePuty General Services Director County Martinez,California 94553-4711 (925)313-7200 Carol Chan Lease Manager d (925)313-7250 FAX r c (925)3137299 copy October 9, 2003 VIA FAX AND HAND DELIVERY Dennis J. Amoroso Construction,Inc. Attn: Chuck English,Project Manager 4800 Imhoff Place—Project Trailer Martinez, CA 94553 SUBJECT: CONTRA COSTA COUNTY ANIMAL SERVICES FACILITY, 4800 IMHOFF PLACE, MARTINEZ, FOR THE ANIMAL SERVICES DEPARTMENT (WH415F) RE: Notification of Contract Completion Date and Right to Assess LiquidatedDamages Dear Chuck: 3 Please be informed that in accordance with Division C-2, Items, and2lo'f the Contract, for the above noted project, project completion was to occur by October 9, 2003, 430 calendar days from the Notice to Proceed. As of today, the project is substantially behind schedule without a firm'completion date yet established.by Dennis J. Amoroso (DJA). Although the County and DJA are currently discussing possible DJA time extensions for portions of the overall delay, DJA needs to immediately re-establish a project completion date and then provide whatever resources and processes necessary to achieve completion by that date or earlier. The County, as discussed earlier, wants to see and review a recovery plan by DJA that brings the completion date as close as possible to the contract completion date. Until the overall time delay issues are determined, the County reserves its right to assess liquidated damages, in the amount of$1,500.00 per calendar day, for delays directly attributed to the actions or inactions caused by DJA and their subcontractors. Please feel free to call me at(925) 313-7200 should you have any questions. Sine ely, --M--... eslie D. 'char son Acting Supervising Capital Facilities Project Manager LDR:tb cc: Mike Ross,Animal Services Department Rob Lim, General Services Department George Miers,George Miers&Associates Glenn Granada, Luster National File: 250-0003/C.2.4/C.5.2 H:\2000\2500003\00L003184r.doc Mail: Post ,Office Box 58 ,, Telephone: 510.622.0004 Oakland, California 94604-0058 Facsimile: 510.622.0074 www.fuster.com Y v E-mail:lustere@"3tlustercom Project Mailing Address: Luster National,Inc. November 03, 2003 1220 Morello Avenue, Suite 100 In reply refer to: Martinez, CA 94553-4711 250-0003/C.5.2/C.2.4 DJA-093 Dennis J. Amoroso Construction,Inc. Attn: Chuck English-Project Manager FAXEDMAND DELIVERED 4800 Imhoff Place-Project Trailer Martinez, CA 94553 SUBJECT: CONTRA COSTA COUNTY ANIMAL SHELTER-,MARTINEZ REF: FOR.ANIMAL SERVICES DEPARTMENT(WH415F) RE: Project Delay Dear Chuck, It appears that due to financial, scheduling or other difficulties under the control of DJA, that the project schedule continues to slip dramatically. Key subcontractors, such as, Galletti Concrete, Carone-Site Utilities, Bay Cities-Grading &Paving, Enterprise Roofing, Omega Lath & Plastering, Harrison Drywall and MEP subs have either not shown up on the job to perforin work and/or have provided intermittent and/or reduced work forces. Moreover, no additional efforts (overtime, additional crews, alternate subs and other) are being provided in order to expedite completion of the project. Some of the key subs noted above will affect DJA's ability to close up the site prior to the rainy season. Hence, the County will not be responsible or issue time extensions due to weather for this upcoming rainy season. As you have been previously notified, the County considers the delay of project completion to be very detrimental in regards to the operations of the Animal Services .Department, established lease agreements, and administrative costs, all with serious cost implications to the County and DJA. Therefore, please take whatever measures necessary to remedy the financial, scheduling and other delaying issues. Please call with any questions. 4SiGlenn W. Construction Manager—Luster National, Inc. Attachments: None cc: w/Attachments Mike Ross--CCC Animal Services Les Richardson—CCC Architectural Services George Miers—George Miers & Associates C:1 I MARTINEZ PROJECT FILESi5CORRESPONDENCE TO DJAIDJA 93Project Delay.doc 1001 Broadway . Suite 214 Oakland , California 94607 LUSTER NATIONAL,INC. TRANSMITTTAL 1220 Morello Avenue,Suite 100 NO. 381 Martinez,Ca PHONE:925 3131700 94553-4711 FAX: 925 313 7299 FILE NO:250-000310.2.4 Martinez Facility PROJECT: CONTRA COSTA CO.ANIMAL SERVICES FACILITY DATE: 1113103 WH415F FAX CC: p Les Richardson-CCC 925 313 7299 CC: ID Mike Ross&Staff-CCC 925 646 2991 RE: CCCASF-MARTINEZ CC: M George Miers-GMA 925 631 6910 DJA-093 Letter to DJA TO: CJ DJ Amoroso Construction,Inc 925 957 9468 RE Project Delays 0 (Chuck English/Robert Heidenreich) El DOCUMENT ACTION ACTION TAKEN SHOP DRAWINGS APPROVAL El SEE REMARKS: LETTER YOUR USE PRINTS AS REQUESTED PLANS REVIEW AND COMMENT C1 DATE DUE TBD SPECIFICATIONS OTHER: SAMPLES SENT VIA CHANGE ORDER FAX 2 Pages OTHER: Li E-MAIL MAILED HAND DELIVERED ITEM NO COPIES ITEM NUMBER DESCRIPTION REV NO. STATUS 1 1 DJA-093 Letter to DJA REMARKS: ISSUED BY: GLENN_GRANADA Mail: Post Office, Bax 58 .r„„ Telephone: 510.622.0004 Oakland, California 94604-0058 ` Facsimile: 510.622.0074 www.luster.com E-mail:fuster@luster.com —0 F Project Mailing Address: Luster National,Inc. December 22, 2003 1220 Morello Avenue,Suite 100 In reply refer to: Martinez,CA 94553-4711 250-0003/C.5.2/C.4.49 DJA-103 Dennis J. Amoroso Construction, Inc. Attn: Chuck English-Project Manager FAXED/HAND DELIVERED 4800 Imhoff Place-Project Trailer Martinez, CA 14553 SUBJECT: CONTRA COSTA COUNTY ANIMAL SHELTER-,MARTINEZ FOR ANIMAL SERVICES DEPARTMENT(WH415F) REF: DJA Memo 12/19/03 Notice of Potential Change NPC 031 Cooler Drainage RE: Proposal Request No.'s 49 DJA Notice of Potential Delay Dear Chuck, We are in receipt of your above noted memo and have the following response. While the timing of the proposal request is after the contract project completion date, the activity that would be most impacted by this change is the grading and paving of the east parking lot. Although this activity could have started months ago, it has not commenced and more than likely will not commence until there is enough dry weather. Since, the proposal request was issued last week, as a time and material change,there should be plenty of time to complete the underground plumbing portion of the work prior to the start of the grading and paving operation. Cather portions of this work are still to be defined. However, if you believe that these items will hold up the completion of the project, please inform the County immediately, so that alternative efforts can be taken. Also, please be informed that all requests for potential delays/changes must be substantiated by a delay analysis on an approved project schedule and in accordance with Division F. General Conditions/Section 8. Progress Schedule, 1.06 Analysis and Updating of the Schedule. To date, the County does not have an approved schedule in place. Please call with any questions. Sind arely;-- da Construction Manager—Luster National,Inc. Attachments: DJA Memo 12/19/03 Notice of Potential Change NPC 031 Cooler Drainage cc: w/Attachments Mike Ross—CCC Animal Services Les Richardson—CCC Architectural Services George Miers--George Miers&Associates CA I MARTINEZ PROJECT 1 ILESI5CORl2ESPONDENCE TO DJAIDJA 103 PR 49 Potential Delay Response.doc 1001 Broadway . Suite 214 . Oakland , California 94607 DENNIS J. A.IV OROSO CONSTRUCTION Co., INC. GEXERAT. CONTRACTORS LIC. 646873 1141 5"' Avenue, Saute Sit} Baa Rafatel. CA 94901 415-257-9911 FAX 415-297-8833 j: NOTICE OF POTENTIAL CHANGE TO: COatra COsta Cftnty&Uos -r Nall wd Att[!. QC''Il Granada EJ copy Copy-. J. Gant/R WGemge Miers/Les RichardsonW, Ross FROM: Chuck English DATE December 19,003 Subject:CCC AmaW Ser:ces Fulty-•COOS Dramage System-PR#49 As admAsui in WPC #3,.the additicars vfetra%-Ork at this hte date pottti�,tail!bav dcla� ; effect on the ODMptetioa ofr r Conh* We WM advise;�c�of a� �de1a;% �br�r+jit is detercruiaed. We have established CPE#Ogg to nxvittal co~, :std li:i�tt'f�Ebis��n . Plr� �+ ,�f�r0a11t�cr in all comsposde=c o13 this see e t If You have auk•gues6o .please give rale a can Thank 3m. Chuck Ea kOsh Project ager GENERAL SERVICES DEPARTMENT ; CAPITAL PROJECTS MANAGEMENT DIVISION J A DEC 19 2003 J I:ILE:0.3`0-0103 URD T t r LUSTER NATIONAL,INC. TRANSMITTAL 1220 Morello Avenue,Suite 100 NO. 425 Martinez,Ca PHONE:925 393.7200 94553.4711 FAX 925 313 7299 FILE NO: 250-00031CAA7&49 Martinez Facility PROJECT: CONTRA COSTA CO.ANIMAL SERVICES FACILITY DATE: 12f22f03 WH415F FAX CC: 0 Les Richardson-CCC 925 313 7299 CC: El Mike Ross&Staff-CCC 925 646 2991 RE: CCCASF-MARTINEZ CC: d George Mlers-GMA 925 631 6910 Ltr DJA-103 and 104 TO: P1 DJ Amoroso Construction,Inc 925 957 9468 Proposal Request Non's 47 and 49 ❑ (Chuck English/Robert Heidenreich) Response to DJA Notices of Potential Delay DOCUMENT ACTION ACTION TAKEN SHOP DRAWINGS APPROVALSEE REMAFKS: LETTER YOUR USE IRINTS AS REQUESTED PLANS REVIEW AND COMMENT DATE DUE TBD SPECIFICATIONS 0 OTHER. SAMPLES SENT VIA CHANGE ORDER 0, FAX 5 Pa e s OTHER: 0 E-MAIL MAILED HANOI DELIVERED ITEM NO COPIES ITEM NUMBER DESCRIPTION REV NO. STATt3S 1 1 Ltr DJA-103 and 104 REMARKS: Proposal Request No.'s 47 and 49 ISSUED BY: G ENN GRANADA ^� Patrick G. Toulouse est Bond Claim Counsel ravIE avele + 7'466 Sou Bond3456 South 344th Way,Suite 200 Auburn, WA 90001 COPY Phone:253-9415-7330 Fax.253-946-7156 E mall:Patrfrk.G.Toufouse07rauefers.com January 14, 2004 VIA NEXT DAY AIR Mr.Barton Gilbert Contra Costa County General Services Dept. 1220 Morello Ave.,Ste. 200 Martinez,CA 94553-4711 Re: Travelers Cas. &Surety Co.of America Our File No.: 091SCT0303322NR Bond No.: 103SBI03729593BCM Principal: Dennis J.Amoroso Construction Co.,Inc. Obligee: Contra Costa County Project: Contra Costa County Animal Services Facility Dear Mr. Gilbert: Please be advised that Travelers has received claims on the above-referenced bond. As a consequence of this, Travelers is exposed to potential losses under the payment bond furnished for this project. We are in communication with the appropriate representatives of Dennis J. Amoroso Construction Co., Inc. to investigate the facts concerning this matter and hope that it can be resolved shortly. At this time, however, Travelers demands that you release no further funds under the above-referenced contract,including retainage, without the advance written consent and direction of Travelers. We make this demand on the basis of and to protect the Surety's rights of subrogation and to enable the Surety to protect its interest under its bond issued for this project. This correspondence and all prior or subsequent communications and/or investigative efforts are made with the express reservation of all rights and defenses which Travelers or Dennis J. Amoroso Construction Co.,Inc. has or may have at law,equity or under the terms and provisions of the bond and contract documents. If you have any questions concerning this notice,please contact the undersigned as soon as possible. Thank you for your anticipated cooperation in this matter. Sincerely,�r Patrick G. Toulouse Bond Claim Counsel Bond Claim Department see % rmm u ,oWae MWJJas Attachment—"BACKGROUND" Item 5 FW: Centra Costa County Animal Services Facility, Martinez, CA (your file#091 SCT0303322NR) Page 1 of 1 04� } ; ►. V-0m: Les Richardson[SMTP:Irichardson@gsd.cccounty.us] Michael Lango(E-mail);Mike Ross(E-mail);Glenn Granada(E-mail);Laura Lockwood(E-mail) Cc: Subject: FW:Contra Costa County Animal Services Facility,Martinez,CA(your file#091SCT03033,22NR) Sent: 1/21/04 5:57 PM Importance: High FYI -----Original Message----- From: David Schmidt[maiIto:dschm@ccxccounty.us] Sent: Wednesday, January 21, 2004 5:46 PM To: Patrick.G.ToulouseTravelers.com Cc: Richardson, Les; Lim, Rob Subject: Contra Costa County Animal Services Facility, Martinez, CA (your file #091SCT0303322NR) Importance: High Patrick, Thanks for returning the phone message I left this afternoon. The County has received your January 14 letter,in which you demanded that the County release no further funds on the above project without Travelers'written consent and direction. For several months,the County has been working with Amoroso Construction to make payments directly to subcontractors and suppliers that are owed money on the jab. Our purpose in doing this was to keep the project work moving and to give Amoroso Construction a chance to complete the project. If your January 14 letter freezes all payment on the project,this soon will lead to work slowing down or stopping on the project. With the project already 3+months late and liquidated damages accruing at$1,500/day,work slowdown or stoppage seems like the wrong thing to force at this time. All that will do is make it more difficult for Amoroso Construction to complete the project and increase the County's mages. We would like to hear from you as soon as possible what Travelers'plan is to maintain the cash flow and complete the project work. Please contact me or Les Richardson right away. I also would appreciate it if you would fax me a copy of the indemnity agreement or other document that authorizes Travelers to stop all payment on the project. David F. Schmidt Contra Costa County Counsel's Office (925)335-1816 fax(925)646-1078 "0""' cc,cccommus Attachment--"BACKGROT ND" Item 6 http://64.186.175.116:8080/exchange/forms/lPM/NOTE/read.asp?command=open&obj-000Q0OOOFD355FIC, 1/22/04 Subject: FW:Martinez Animal Shelter project Sent: 212/04 8:2.2 AM Importance: High -_--Original Message----- From: David Schmidt [mailto:dschm@cc.cccounty.us] Sent: Friday,January 30, 2004 8:59 PM To: Patrick.G.Toulouse@Travelers.com Cc: Sweeten,John; Lockwood, Laura; Gilbert, Bart; Lim, Rob; Richardson, Les; Ross, Mike; Marchesi, Silvano B.; Anderson, Sharon L. Subj=ect: Martinez Animal Shelter project Importance: Nigh Patrick, I just faxed you a letter. Please check your fax machine and call me right away to arrange a resumption of payments on the County's project. If we don't resolve this quickly,the work will grind to a halt and the County's damages will escalate. This is a project where losses can be avoided or greatly reduced if Travelers will work quickly and cooperatively with the County. David F.Schmidt Contra Costa County Counsel's Office (925)335-1816 dsQbmm cc.cccounty.t, PLEASE NOTE:This email is intended for the named recipient(s)only,and it may contain privileged or confidential information.If you have received this e-mail in error or are not an intended recipient,you may not use,copy,or disclose this message or any information contained in it to anyone.Please notify the sender by reply e-mail and delete the message.Thank you. http://64.186.175.116:80801exchangelforms1IPMNOTE/read.asp?command=open&obj=OOOOOOOOFD355F 1 C... 215/04 OFFICE OF THE COUNTY COUNSEL 6_� ,Z StLVANO S.MARCHES! =` .t+ COUNTY OF CONTRA COSTA ,�.'�',*. ' `' .,� COUNTY COUNSEL Administration Building 651 Pine Street, 91"Floor *;' °`�. SHARON L.ANDERSON Martinez, California 84553-1228 ! CHF AsssrANr f t (925) 335-1800 i#;i tt14 it+ GREGORY C.HARVEY (925) 646-1078 (fax) �, � �, VALERIE J, isTARANNTE Assrs�aNrs CotY f y January 30, 2004 COPY Via Fax(253-946-7156) and U.S. Mail , Patrick G. Toulouse Bond Claim Counsel Bond Claim Department Travelers Bond 3455 South 344`" Way, Suite 200 Auburn, WA 98001 Re: Travelers Casualty & Surety Company of America Your Pile No.: 091SCT0303322NR Bond No.: 103SB103729593BCM Principal: Dennis J. Amoroso Construction Co., Inc. Obligee: Contra Costa County Project: Centra Costa County Animal Services Facility, Martinez, CA Thank you for calling me to discuss your January 14, 2003 letter, in which you demanded that the County release no further funds on the above project without Travelers' advance written consent. This project should have been completed by October 9, 2003 and has been accruing liquidated damages of$1,500 per day since that date. In an effort to keep the work moving and complete the project, the County has been working with Amoroso Construction to arrange payment to unpaid subcontractors and suppliers. Over the past .several months, the following direct payments have been made from the County to subcontractors or suppliers: Single payee check to Bellanti Plumbing $48,128.00 Single payee check to Bob's Iron, Inc. $14,318.00 Single payee check to Darnell Electric, Inc. $30,446.01 Single payee check to Gailetti & Sons, Inc. $69,842.00 Single payee check to Monarch Mechanical $20,102.00 Single payee check to Monarch Mechanical $52,115.00 Joint check to U.S. Glass & Aluminum, Inc. & Amoroso Const. $50,000.00 Single payee check to U.S. Glass & Aluminum, Inc. $73,325.74 Patrick G. Toulouse January 30, 2004 Page 2 Joint check to Weyerhaeuser Co. dba Trus Joist & Amoroso Const. $221,341.50 Total $579,618.25 When Travelers issued its January 14 demand to stop all further payments, the County was about to make further direct payments (i.e., single payee checks) to subcontractors and suppliers who are necessary to complete the project. Unfortunately, those payments now have been stopped or delayed. Although the project work still is continuing, it essentially is limping along at a slow pace. Unless the payment stoppage is promptly resolved and the money flow restored to the project, the work undoubtedly will grind to a halt soon. That only will increase the liquidated damages, which already total $171,500 to date. To avoid a shutdown of the work, the County would like Travelers to take over the payments to crucial subcontractors and suppliers. From our telephone conversation on January 23, it is my understanding that Amoroso Construction has requested the following payments to expedite the remaining project work and that Travelers is prepared to issue checks: Darnell Electric, Inc. $62,845.99 GK Welding $10,987.05 Olsson Plumbing $9,544.00 •-,Oc-Air- ,,. - Omega Construction $48,320.00— U.S. Glass &Aluminum, Inc. -$25,166.2Q-*- -' Total $156,863.30 Pursuant to the performance bond, the County submits a claim and requests that Travelers promptly issue the above checks and pay in full all subcontractors and suppliers necessary to complete the project work. Please let me know right away whether Travelers will do so. if so, the County naturally will cooperate by promptly paying to Travelers all earned progress payments that are not required to cover unpaid stop notices and liquidated damages. From our January 23 phone conversation, it is my understanding that Travelers is trying to convince Amoroso Construction to let Travelers bring in replacement contractors to finish the County's project and other projects. If a competent replacement contractor were assigned to the County's project and if the necessary payments were promptly made to crucial subcontractors and suppliers, the County estimates that all remaining work could be completed in two months (i.e., by early April). That is important, because the County will be faced with a substantial rent increase if the project is not finished by early April. Patrick G. Toulouse January 30, 2004 Page 3 Please call me to discuss Travelers' progress in arranging a replacement contractor for the County's project. To expedite the assignment of a replacement contractor and the completion of the remaining work, the County may be willing to voluntarily consider limiting its recovery of liquidated damages. That would offer an inducement to Travelers and Amoroso Construction to promptly arrange a replacement contractor, while allowing the County to recover its actual expenses. In acceding to Travelers' demand to stop all payments, the County assumes that Travelers has an indemnity agreement or other document that gives it the authority to freeze payments on the County's project. To verify that right, please email or fax me a copy of the document that authorizes the demand in your January 14 letter. I look forward to hearing from you and to arranging a prompt resumption of payments on the County's project. Very truly yours, DEQ- C E B W E D SILVANO B. MARCHESi FEB 0 2 2004 COUNTY COUNSEL GENERAL SERVICES DEPARTMENT CAPITAL PROJECTS MANAGEMENT WQP4411� By: David F. Schmidt Deputy County Counsel' DFS/ cc: John Sweeten, County Administrator Laura Lockwood, Director, Capital Facilities and,Debt Management Barton J. Gilbert, Director of General Services Rob Lim, General Services Dept., Capital Projects Management Div. Les Richardson, General Services Dept., Capital Projects Management Div. Michael G. Ross, Director of Animal Services Luster National, Inc., Attn: Glen Granada .. ..._..... ......... ......... ......... ......... ............1.1.11. ._ ........ .......... ......... ........ ......... .............................. .............................. ULurT Pagel of3 Les Richardson From: David Schmidt[dschm@cc.cccounty.us] Sent: Friday, February 06, 20034 8:21 PM To: Patrick.G.Toulouse@Travelers.com; PTOULOUS@Travelers.com Cc: Lockwood, Laura; Richardson, Les; Ross, Mike Subject: Contra Costa County Animal Services Facility (Martinez Animal Shelter) Importance: High Patrick, See the attached letter and enclosures. Please call me to discuss the schedule for issuing checks. I have been trying to contact you by phone for the past few days but without success. David F. Schmidt Contra Costa County Counsel's Office (925)335-1816 dschm@cc.cccounty.us NOTE:This email is intended for the named recipient(s)only,and it may contain privileged or confidential material.If you have received this e-mail in error or are not the intended recipient,you may not use,copy,or disclose this message or any information contained in it to anyone.Please notify the sender by reply e-mail and delete the message.Thank you. CILE.EZ'5 SERVICES DEPARTMENT APITAL PROJECTS AGEMENT DIVISION FED Ott 1004 --(D 9905/d" " Test- 2/9/2004 co a 0 a a M 0) to t3' r tra U) d h` d 64 6s ( hey- W to N r C(a 6 C6 Cr704 r 69 6} 63 m b9 m m N C � L U U') a U) 0 LO 0 a co a 0 U) t� in 1-- C) 0 — .I: > rr- t-� C+7 1-1- t*7 C7 6 t` N h- Oa t- N V co C7 to Cn r CA C*) r r r IIj CD C7 N Cl) h- CO ira tr) O N - CD O d �6'} mC464 t4 W � � m � as a to a CL Ur co In r o (D 0 C) <t th ui rs o o c�i rr cD cCi tri r. M ht- M 69 EH £f3 (35 CO O N � Cf) N 0 Cl) et a CD oC4 69 64 Y+ W fR 6m9 N V V od.3 O b 0 0 C> O ,h Mar 0) 6 N C N SLO NS' � C IQ CD Y r r a C`) CO Y - E co U') r-- NCO N tra `ct terra h- CD N 69 64 �64 64 696S- 69 (4 d} ro CL o CD 00 Cl C) o v C) Ira C� 0 1- <- o C> r r CD C:S C7 O N t7 fi- CJ CD CD C> Ca tt w C`) M t.00 N C> 00 1- 1•- t- tea CD to Lo !` a Co C76 CD C7 o Y r CD r r u) et O p7 F- CD M N 00 co U') (::> C') Ch r N '[t M N - C'i -- " r "i o C+7 C") .6 ,4 CD O td CT! Sr Cft 65 C+a 69 C> 6" Ch J ' 69 �. N O y 6 v N o ti m a c w G N ? C> O N ti C @ V j ti U :3 C) C C C Q L C -0 z CD E2 N m E CO O 4) O G L 0 CL M UJ K L i v i — O d til � CCS .� d d- N Iif _N 'C3 la G — -' C Ch E i U c Sill 07 m 7 S co m m Cl) co C'7 CJ O d M d m m C7 0 C7 M a O' a C7 ua M C) CJ' C� a tpt 4 0117 Cl 9i CO Q1 CO CV r CA C�! M 7 m Y r tra N 04 4 tfa r c6 C6 CO CJS r r r r r r r r W m pj 64 r- e- 64 y N C�7 Gi OUB' k9 N d (6 tz� co co h- try' b4 L) G d7 i.� Lam' QY UJ C � m y D L, N �L C < w O O CP C U OFFICE OF THE COUNTY COUNSEL A 51LVANO B.MARCHESI COUNTY OF CONTRA COSTA �� COUNTY COUNSEL Administration Building SHARON L.ANDERSON 651 Pine Street,9'41 Floor W �," CHfEFA55asTANr Martinez, California 94553-1229 _ � f GREGORY C.HARVEY (925) 335-1800 01 Y11 4 , ; VALERIE J. RANCNE (925)646-1078 (fax) Fy `� m ;� AsswANrs CID i s February 6, 2004 Via Email and U.S. Mail Patrick G. Toulouse Band Claim Counsel Bond Claim Department Travelers Bored 3455 South 344'h Way, Suite 200 Auburn, WA 98001 Re: Travelers Casualty& Surety Company of America Your File No.: 091SCT0303322NR Bond No.: 103S8103729593BCM Principal: Dennis J. Amoroso Construction Co., Inc. Obligee: Contra Costa County Project: Contra Costa County Animal Services.Facility, Martinez, CA This is a follow up to my January 30, 2004 letter. When you and I spoke by phone on February 2, you asked me4o send you copies of the outstanding stop notices. The requested copies, which in 17 stop notices from 14 claimants, are enclosed. Also enclosed is a table: listing all stop notices and the amounts withheld by the County to cover them. During our February 2 phone conversation, you told methat the County should issue the five single payee checks listed in my 1-30-04 letter. Therefore, I was udder the impression that Travelers would not issue the checks, and I had been taking steps to have the County issue them. Today, when the project manager contacted Darnell Electric, Darnell Electric mentioned that they had contacted Travelers and that Travelers would be issuing the $62,$45.99 check within a week. Since no payments have occurred for several weeks, the work at the project site is slowly but surely grinding to a halt. To reverse this and complete the project, it is vital that payments be made now to crucial subcontractors and suppliers. As a first step to restoring the project cash flow, the County requests that Travelers promptly issue the following seven checks, which are essential to the completion work: Darnell Electric, Inc. $62,845.99 ....................................................................................................I............ ............................................................... Patrick G. Toulouse February 6, 2004 Page 2 tF_Le_C�� C_ 16,21 GK Welding, Inc. $10,987.05 Olsson Plumbing $9,544.00 Omega Plastering. $48,320.00 U.S. Glass &Aluminum, Inc. $25,16.6.26 Galletti & Sons, Inc. $17,367.75 Laborer's Local 270 Had Carriers Division Trust Fund $4,802.24 Total .$179,033.29 Please confirm right away that Travelers will issue the above seven checks to get the work going. Itis necessary that Travelers issue the checks, because the.County does not have enough unpaid contract funds to cover stop notices and-issue the checks. If the County withholds $534,946.78 to cover the unreleased stop notices, we only will have $90,883,10 to issue the seven checks, which is not enough, On the other hand, if Travelers issues the seven checks, the County can and will pay the $90,883.10 to Travelers.- I look forward to working with you or Travelers' consultant to arrange additional payMents to crucial subcontractors or suppliers (e.g., Darnell Electric, Olsson Plumbing, Gallbttti & Sons, Monarch Mechanical, Omega Plastering, painting subcontractor. etc.). To. illustrate the importance of this, .1 just have.heard that Galletti & Sons will not-deliver concrete to the site next week unless they are paid. If Galletti fails to deliver the : -- conQr'ete,the site work, which currently is underway, will cease. That ultimately would delay the project work at a critical time and result in more damages to the County and Travelers, By making payments to crucial subcontractors and suppliers.arid working with the County to free up the maximum amount of unpaid contract funds., Travelers can mitigate darnages forall concerned. During our phone conversation on February.2, you mentioned that You would be meeting later that,.day with Amoroso Construction to discuss completion of the project. Did you reach any resolution with,Amoroso Construction? Did they agree that Travelers could bring in a re'placement contractor to finish the project work? I would appreciate-an update from you. Very truly yours, SILVANO B. MARCHESI COUNTY COUNSEL By: David F. Schmidt Deputy County Counsel . ................................................................................................................................................................ _.. ......... ......... ......... ......... ._....... ......._. . ......._. ....._..... ........_..........._..... ....__..._........... Patrick G. Toulouse February 6, 2004 Page 3 DFS/ Enclosures cc: John Sweeten, County Administrator Laura Lockwood, Director, Capital Facilities and Debt Management' Barton J. Gilbert, Director of General Services Rob Lim, General Services Dept., Capital Projects Management Div. Les Richardson, General Services Dept., Capital Projects Management Diu. Michael G. Ross, Director of Animal Services Luster National, Inc., Attn: Glen Granada Re: Contra Costa County Animal Services Page i oft From: David Schmidt[SMTP:dschm�,7u cc.cccounty.us] To: Toulouse,Patrick G. Cc: Granada,Glen;Lockwood,Laura;Ross,Mike;Richardson,Les Subject: Re:Contra Costa County Animal Services Sent: 2/25/04 4:36 PM Importance: Normal Patrick, Thanks for the update. We are releasing the$41,693 check to Monarch Mechanical today. The County"s project manager has been working with Amoroso Construction to develop a list for the next round of checks. In a few minutes,I will fax you a copy of Amoroso Construction's 2-24-04 letter,which proposes and authorizes direct checks to 17 subcontractors and suppliers. Of the 17 listed checks,the following are especially critical: Carlson Products(supplier of double impact doors)$7,385.10 Darnell Electric,Inc.(work is on critical path and is essential to energize the building)$27,384.00 Hundley Hardware(supplier of door hardware)$57,500.00 Olsson Plumbing&Heating(critical subcontractor;previous check did not cover past due billings)$18,593.00 Prime Construction Supply(supplier to Monterey Hay Masonry;payment needed to obtain further supplies)$5,444.00 Stiles Custom Metal(supplier of doors and frames;close to filing stop notice)$41,330.00 By the way,because Darnell Electric's supplier(Pratt Electrical Supply)has filed a bond claim,we would propose that the next check to Darnell Electric be a joint check to them and Pratt. Since the last information I sent you,more stop notices have come in. I will fax you copies and an updated stop notice chart later today or tomorrow morning. At the same time,I will try to provide overall project financial information to help Travelers and the County see how the remaining contract funds match up against the remaining contract work and the unpaid subcontractor and supplier bills. David F.Schmidt Contra Costa County Counsel's Office (925)335-1816 dsch cc.cccounty.us NOTE:This email is intended for the named recipient(s)only,and it may contain privileged or confidential material.If you have received this e-mail in error or are not the intended recipient,you may not use,copy,or disclose this message or any information contained in it to anyone.Please notify the sender by reply e-mail and delete the message.Thank you. ---Original Message----- Front: Toulouse.Patrick G. To: David Schmidt Sent:Wednesday, February 25,2004 91:29 AM Subject: Contra Costa County Animal Services David: I received the claim farm and release from Monarch Mechanical so you can release the check you are holding to them. Thanks. Patrick Toulouse Bond Claim Counsel Direct Line: (253)946-7390 http://64.186.175.116:8080/exchange/forms/1PM/NOTE/read.asp?command=open&obj=00fl00000FD3 55F 1 i... 2/26/04 CONTRA COSTA COUNTY General Services Department - Barton J.Gilbert CAPITAL PROJECTS MANAGEMENT nu Director 1220 Morello Avenue, Suite 100 Mickey Davis Martinez, California 94553-4711 CorT Deputy Director (925) 313-7200 Phone Michael J.Lango (925) 313-7299 Fax Deputy Director VIA FAX AND CERTIFIED MAIL Rob Lire,PE RETURN RECEIPT REQUESTER Manager March 15, 2004 Travelers Casualty& Security Company of America Attn. Patrick Toulouse 3455 South 344th Way, Suite 200 Auburn, WA 98001 Bond No. 103729593 dated July 9, 2002 SUBJECT: CONTRA COSTA COUNTY ANIMAL SERVICES FACILITY, 4800 IMHOFF PLACE, MARTINEZ FOR THE ANIMAL SERVICES DEPARTMENT (WH415F);February 2004 Project Pay Application Payments Dear Mr. 'Toulouse: Please find attached a list of County approved pay application amounts for various subcontractors for the month of February 2004. As previously discussed, the County requests that Travelers issue checks to subcontractors for current amounts earned. Since these subcontractors are critical to sustaining the flow of work, it is imperative that timely payments occur. Please call me if additional information or questions are required. Sincerely, Richardson usvSpiing Capital Facilities Project Manager LR:aim cc: Dennis J. Amoroso Construction,Co. C. English County Counsel's Office D. Schmidt Auditor-Controller C.Ramirez General Services Department M. Lango R.Lim T.Mann File: 250-00031C.1.1 H:\2000\2500003\00L003249t.doe 3116/04 CONTRA COSTA COUNTY ANIMAL SERVICES FACILITY,4800 IMHOFF PLACE MARTINEZ,CA SUBCONTRACTOR PAYMENTS FOR WORK PERFORMED in FEBRUARY 2004 SUBCONTRACTOR AMOUNT EARNED RETENTION PAYMENTAMOUNT COMMENTS Bay Cities Grading and Paving 5029 Forni Drive Concord,CA 94520 925 687-6666 $15,376.00 $1,537.60 $13,838.40 Gailetti&Sons Inc. 55 Howe Road Martinez, CA 94553.2039 925 939 4183 $15,957.88 $1,595.79 $14,362.09 Six Rivers Enterprise P.O.Box 3307 Auburn,CA 95604 530 367 5227 $10,620.00 $1,062.00 $9,558.00 Berke Door&Hardware,Inc 8255 Belvedere Sacramento,CA 95826 916 452 7331 $9,800.00 $0.00 $9,800.00 No retention for suppliers Omega Construction 23 Olive Glen Court Pittsburg,CA 94501 925 963 2051 $25,200.00 $2,520.00 $22,680.00 West Coast Industrial Flooring 3765 Omec Circle,Unit'I Rancho Cordoba,CA 95742 916 858 0181 $31,701.62 $3,170.16 $28,531.46 Monarch Mechanical 3443 Cattey Lane Rio Vista,CA 94571 707 374 4900 $5,956.00 $595.60 $5,360.40 Darnell Electric 3987 First Street,Suite E Livermore,CA 94551 925 455 1150 $24,341.20 $2,434.12 $21,907.08 Total for the Month of Februa '04 $126,037.43 .LV L'tua •siV LW r vvi4 uts tiv ... — - — `} TS AIV1C)ROSo :Cool STJ .UQ LQN-CO., ' . •:. . ' . ' DEAdN J_ _ t' 'GENERAL GONTitAC O4 S . VTCFACSIIVi�. ## (253) 46:4156 '=Nasik j7:2 00 :• _ :. _ �_ �, _ .. r... •• - • .,si, Mr.Tit ick Toulouse' - - - • ;'Sorid•Clai�:�ourisd:..:. .. ,_ _..` - - • -.:.. .T&V46 Bond: . :.. •3455.S&th-3.'44:tlrWay:` _ `: : . =_ • _ _ : ..' ... Aiiburll,WA 8001:-`- Re. 001•• — •Re: Y. 'Di!hn s .AAinorost''Cohs=Ldou Co.,.Tsic./Tr'a dez''s`= Z7eai lYLr.'`Ioulouse• _ - - _ _ I j -.•' : Attaclacd=`is`:; letter,`dated•Masch.•15, -2004=froiri Contra •Costa•.Collty-Vic '"Ci a:!�ty. -"advis -Denilis J' Amoroso Construction,Co. Izac:aricl Tra�re ss't int'tie;Cciuntyi d`ec xg,the n . •• _ l aztinez AiYixzial,Services•Facility Pioject:ttti'be ui,Efdof irit dn' g,Yv�g;Eliriozoso Coiisrtnz tii�z? ixid`: :. t•. Tsavelei's ien daps to urc''thc hcfault-:-PraviLduslp'-Indpex'pour-atlomeys'x4clwt,we pres!�lg:-ga've'_ + -T velers permission•to.corl-ract•ovriets,-rsuai iis•tlie 03=, ty,io distuss•Nriith. ie -Trap te=s t l � over and.co tplet agproyects,;We-d:o nc;t•-gnderst�tidulp.Traaelers`his nil contacted•the=Cousltp to begin=`maicissg` laris-`to-takeover die-Anii�3al S`esviccs.Facility at.very ` dear in its.fcitcr that .0 11r, 5:Txavclexs`.'does_.:sc�':liy March`'25;'2004, `xliall It t ninate-'6!2r. coritsacttxal:r%ghts'and have the;cm' iris wozl,�dtrne_ b� aotbcrcontractor-`'Tf tiie County takes. ' `such' st the-cost,to complete -the.-ro'ect• Will ' txease`coilsid�cabl ra�%t� �e:ze nest 'that•: 'Travelers-x,6rk•with ins an 14bc.Coiaxzty.tq-gom-p.etc-this pioj eet as'quiCl ly as possible. '.We.rem`ai' s v illin to assist Travelers irr any way chat we.can,to•ctimplece_ c project - This letter,asic a l:pr srious�le`ttejrs a:ie)FIi te_ix;nth an-express' servation'and p��seriraticin_ci� DJA`'s rights;claizzis:arici'defenses: 'Xravelers for its Lina'faith anti•fratidvlent conduct tlxat aqc: t' _ hack`adevastarirlg:irxlpacroiithe'coznpany'arid_-me•persos�ally. : .-DENNIS fl :©CONSTR�TC�It��} Ct�MT�A1tTY .. .•:` - president. -Attachment 1W Mcbael J.Laiigo, :..: =':.. . % . •.. . ' - '' Dlapl:7 General&e ces Director.(via facsimile(925),311;710$) Rifihaxd.Ivffiex,11l2er Law Firm,P.C: ` .' 1 l0l 5n•''AVENUZ S,U7I .310;SA17_RA£ATI,CA 94901-2903 : '(4).5J 157=8811 FAX•(4.15j,257_-3833'. ` _ ...... . CONTRAtTbks LiCENSE,1S.TO:6468,73 ,' CONTRA COSTA COUNTY General Services Department Barton J.Gilbert 1220.Morello avenue, Suite 200 Director Martinez, Caii#ornla 94553-4711 Mickey Davis (925,) 313-7100'.'Phone Deputy Director (925) 318-7108 Fax conv Michael J.Lango LJ r I Deputy Director VIA FAX AND CERTIFIED MAIL RETURN RECEIPT REQUESTED March 15, 2004 Dennis J. Amoroso Construction Co., Inc. Attn: Dennis J. Amoroso 1101 5h Street, Suite 310 San Rafael, CA 94901 SUBJECT; CONTRA COSTA COUNTY ANIMAL SERVICES FACILITY, 4800 IMFIOFF PLACE,MARTINEZ FOR.THE ANIMAL SERVICES DEPARTMENT(WH415F) Dear Mr. Amoroso: Despite numerous notices, you have failed to complete the above-project on time and have defaulted on the project. In particular,you have committed the following defaults. (1) You have failed to supply sufficient materials and workers to the jobsite for an extended period of time. As a result,work is barely progressing on the project. (2) You have failed to complete the project on time and presently are over five months: late in performance. You also have failed to submit updated project schedules, as required by the contract documents. (3) To date, at least 21 stop notices have been filed on the project by unpaid subcontractors and suppliers. You have failed to pay your subcontractors and suppliers in a timely manner and have failed to resolve the stop notices,resulting in a financial and labor crisis on the project. (4) Travelers, your bonding company, has instructed the County to cease releasing any Bands on the project and has declined to continue paying the unpaid subcontractor and suppliers, thus exacerbating or prolonging the financial and labor crisis on the project. ' (5) According to the contract documents, the project should have been finished on October 9, 2003. Instead, the project has been at a standstill for some time with many items incomplete. Liquidated damages at the rate of$1,500 per day have been accruing since October 9, 2003 and continue to accrue. The present situation is intolerable and requires your immediate attention. Pursuant to the contract documents (e.g., Construction Agreement, Section 11; General Conditions, Section 11B) and applicable law, you are hereby notified that, within 10 days of the date of this letter (i.e., on or before.Murch 25, 2004),you must cure the above defaults by doing the following: (1) Provide a revised schedule that that meets all of the requirements of the contract documents (see Division F,-Section 8) and is acceptable to the County. The schedule must demonstrate to the County's satisfaction that sufficient labor and materials will be provided to the project as necessary to accelerate project completion. The revised project completion date must be acceptable to the County and include documentation that the subcontractors are committed to provide labor and materials to complete the project in accordance with the revised project schedule. H:12000\2500003\00L003227r.doe Attachment—"BACKGROUND" Item 7 Dennis J. Amoroso Construction, Inc. March 15, 2004 CONTRA COSTA COUNTY ANIMAL SERVICES FACILITY, Page 2 of 2 4800 IM11OFF PLACE,MARTINEZ FOR THE ANIMAL SERVICES DEPARTMENT (2) Immediately and continuously provide sufficient labor and materials, especially subcontractor labor, to the project as necessary to achieve an accelerated completion date. (3) Bring current all bills owed to subcontractors and suppliers for work performed to date. (4) Resolve all stop notices to the satisfaction of the County and the stop notice claimants. If you fail to take the above steps by the March 25, 2004 deadline, the County intends without further notice, to terminate your contract rights, to have the remaining work done, and to deduct the cost from the contract balance. Given the seriousness of the present situation, we again are notifying Travelers of the above-described deficiencies. Should you or Travelers fail to take appropriate action by March 25, 2004, the County's expenses and damages, including liquidated damages, well could exceed the unpaid contract funds. If so, the County will hold you and Travelers responsible for all expenses and damages incurred by the County. We urge you and Travelers to take advantage of this final opportunity. Failure to do so will result in more damages to the County and consequent legal action. It has been our desire to work with you and Travelers on completing this project,but the continued lack of progress has forced us to issue this notice to protect the County's legal rights in case termination becomes necessary. Nevertheless, without waiving the County's rights, the County is willing to continue working with you and Travelers to see if a satisfactory arrangement can be reached for prompt completion of the remaining work and prompt payment of the outstanding bills. Sincerely 4IaJ. Lango Deputy General Services Director RL:LR:anc:tb cc: Animal Services Department M.Ross County Administrator's Office L. Lockwood County Counsel's Office D. Schmidt General Services Department B. Gilbert R. Lim L. Richardson Luster National,Inc. G. Granada Travelers Casualty and Surety Company of America (Bond No. 103729593 dated July 9,2002) File: 250-0003/C.1.3 H:\200012500003100L.003227r.doc f' Anft'11ial Services Department Contra Michael G. Ross Animal Services Director 4849 Imhoff Place Costa Martinez, California 94553-4393 (925) 646-2995 taunt)/ 651 Pinole Shores Drive 4'] Pinole,California 94564-2632 ._. L � Ap (510) 37443966 « Sr a 3 a r S .- �iTµ Oko r - APR Q 1. 2004 Srd in+ J co < , LE. d DATE: April 1, 2444 ,.. TO: John Sweeten, County Administrator County Administrator's Office FROM: Michael G. Ross, Director Animal Services Department SUBJECT: Amoroso's Contract As you are aware,the new Martinez Animal Shelter was scheduled for completion in October 2443. As a result of problems with the general contractor, Dennis J. Amoroso Construction Co., Inc., including serious financial problems, the shelter's completion has been substantially delayed and now is in doubt. To put the project back on track, it is important that the Board of Supervisors consider terminating Amoroso Construction's contract rights and consider authorizing an emergency action to waive the competitive bid process to complete the new shelter in the most expeditious manner possible. The current facility clearly has outlived its usefulness. Our department's ability to continue to keep the number of animals currently housed at the facility has become increasingly difficult. As the Board of Supervisors considers all factors before taking action, I offer the following list of potentially serious issues that the department must address on a daily basis at the current shelter. • The current shelter is inadequate for the department to impound animals for longer periods of time and to provide additional veterinary care in a manner consistent with recent legislative changes. As a result, we often have up to three times as many animals per kennel as the kennels are designed to hold. • Due to the overcrowding of the kennels, it is more difficult to control infectious diseases and adequately separate animals. This potentially exposes employees and the public to unnecessary health and safety risks. • It is becoming increasingly difficult to properly quarantine rabies suspect animals due to the already overcrowded kennels. Attachment—"BACKGROUND" __ Item 9 ........................................................................................................................................................... .................................. • Further delays opening the new shelter will be detrimental to the health and well being of animals for which the department is charged with protecting. • The current building does not meet current seismic safety regulations and ADA standards. • We have had break-ins by pet owners who have stolen their animals, some of which were potentially dangerous animals being held pending hearings. In the new facility,all of the kennels are indoors,which will effectively prevent this type of crime. • We are unable to occupy the newly completed West County Animal Shelter located in Pinole because the new Martinez shelter is not complete. The new West County Shelter will utilize the new Martinez Shelter to hold rabies quarantined animals, livestock, and animals prior to euthanization. The inability to open the new West County Shelter is causing crowding at the current Pinole Shelter commensurate with that affecting the current Martinez Shelter as noted above. I am available to discuss these issues with you at your convenience, and I thank you in advance for your consideration. cc: Board of Supervisors Bart Gilbert,Director,General Services Department ............