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Home My WebLink AboutMINUTES - 05182004 - C63 TO: BOARD OF SUPERVISORS � `. CONTRA FROM: BARTON J. GILBERT, DIRECTOR OF GENERAL SERVICES `' d�a COSTA DATE: MAY 18, 2004 COUNTY SUBJWCT: CONTINUATION OF EMERGENCY ACTION TO FACILITATE e"63 COMPLETION OF THE CONTRA COSTA COUNTY ANIMAL SERVICES FACILITY PROJECT AT 4800 IMHOFF PLACE, MARTINEZ (WH415F) SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION DETERMINE that there is a need to continue the emergency action taken by the Board on April 6, 2004 pursuant to Public Contract Code Sections 22035 and 22050 to complete the Contra Costa County Animal Services Facility at 4800 Imhoff Place, Martinez for the Animal Services Department. 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 the contractor, Dennis J. Amoroso Construction Co., Inc. ("DJA") and/or their surety, Travelers Casualty and Surety Company of America ("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. . 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 37% 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: CONTINUED ON ATTACHMENT: X YES SIGNATURE: a*JA&& _J{ECOMMENDATEON OF COUNTY ADMINISTRATOR _RECOMMENDATION OF BOARD COMMITTEE _jLfAF PROVE _OTHER SIGNATUR€'S: _ r F ACTION OF BO ON _ � 18, 2004 APPROVED AS RECOMMENDED_X OTHER VOTE OF SUPERVISORS X LNANIMOUS(ABSENT ) AYES: NOES: ABSENTS: ABSTAIN: MEDIA CONTACT:BARTON J.GILBERT(313-7100) Originating Dept.:General Services Department cc: General Services Department T{HEREBY CERTIFY THAT THIS IS A TRUE Capita:Projects Management DAND CORRECT COPY AT ivision AN ACTION TAKEN AND ENTERED ON THE MINUTES OF THE BOARD Accounting OF SUPERVISORS ON THE DATE SHOWN. CPM File: 250-0003/C.1.1 250-0003/A..5 ATTESTED �--Iaj 18, 2004 County Administrator's Office JOHN SWEETEN,CLERK OF THE BOARD OF SUPERVISORS County Counsel AND COUNTY ADMINISTRATOR Auditor Controller Animal Services Department(via CPM) BY (via CPM) xf �t �" i�;� DEPUTY W2000125000031001-003281 b.doc LDR:tb Page 1 of 3 M382(10/88) CONTINUATION OF EMERGENCY ACTION TO May 18, 2004 FACILITATE COMPLETION OF THE CONTRA COSTA COUNTY ANIMAL SERVICES FACILITY PROJECT AT 4800 IMHOFF PLACE, MARTINEZ 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 9 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 other 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, 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. Can January 14, 2004, the County received a letter from Travelers 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 those 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. On January 21, January 30, February 6, February 25, and March 16, 2004, the County sent letters or email messages to Travelers 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 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. 7. Can March 15, 2004, the County gave a written, ten-day notice to DJA and Travelers pursuant to the contract provisions. 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. R\2000\2500003\00L0032815.doc LDRAb Page 2 of 3 M382(10188) CONTINUATION OF EMERGENCY ACTION TO May 16, 2004 FACILITATE COMPLETION OF THE CONTRA COSTA COUNTY ANIMAL SERVICES FACILITY PROJECT AT 4800 IMHOFF PLACE, MARTINEZ 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 was recommended that the Board declare DJA in material breach under its construction contract and terminate DJA's rights under the contract. It was also recommended that the Board authorize 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. The existing Martinez Animal Shelter is obsolete and subject to overcrowding, and it was 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 was 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. 10. Consequently, on April 6, 2004 (Agenda Item C.105), the Board 1) found that an emergency exists, 2) delegated authority to the General Services Director to proceed in the most expeditious manner to complete the project at 4600 Imhoff Place, Martinez for the Animal Services Department and enter into one or more contracts therefore, and 3) directed the General Services Director to make reports to enable the Board to review the emergency actions and to determine that there is a need to continue the action. 11. The condition that the Board found to be an emergency on April 6, 2004 continues to exist. Therefore, it is necessary to continue the emergency action previously taken by the Board so that the work can be completed in the shortest time possible. 12. Contracts for the emergency work are being negotiated and will be reported to the Board after the scope of work and schedules have been confirmed. -A2000\2500ocs\aadcos281 b.doc !-[)R:tb Page 3 of 3 M382(10/88)