HomeMy WebLinkAboutMINUTES - 05042004 - C59-C60 ti.r✓.
577
TO: BOARD OF SUPERVISORS
FROM: MAURICE M. SHIU, PUBLIC WORKS DIRECTOR
DATE: May 4, 2004
SUBJECT: CONTINUE the emergency action originally taken ,by the Board of
Supervisors on August 5, 2003, regarding the construction of the Asbury
Graphite Wastewater System as recommended by the Pudic Works Director,
Hercules area. [SCH No. 95043029) (Contra Costa Transportation Authority
Funds, 100%) (District 11) Project No.: 4660-6X4152.
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
1. Recommended Action:
DETERMINE that there is a need to continue the emergency action taken by the
Board of Supervisors on August 5,2003, pursuantto Public Contract Code Sections
22035 and 22050,to construct a wastewater system for Asbury Graphite, Hercules
area.
01
Continued on A#tachrrteANN X SIGNATURE:
G4 ?GY'
RECOMMENDATION OF COUNTY ADMINISTRATOR
RECOMMENDATION OF BOARD COMMITTEE
—APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON May 4, + APPROVED AS RECOMMENDED X OTHER
1 hereby certify that this is a true and correct copy of an
action taken and entered on the minutes of the Board
VOTE OF SUPERVISORS of Supervisors on the date'shown.
X UNANIMOUS(ABSENT None }
AYES: NOES:
ABSENT: ABSTAIN:
ATTESTED: �jay 4, 2004
MH:JP.ij:cl JOHN SWEETEN, Clerk of the Board of Supervisors
G:\GrpOata\Design\BOARD ORDERS\2004\Asbury Emergency8.docand County Administrator
Orig.Div: Public Works(Design)
Contact., J.Pulliam 313-2185
- '
C., M.Hollingsworth,Design _�w
K.haws,Real Property By � Deputy
SUBJECT: CONTINUE the emergency action originally taken by the Board of
Supervisors on August 5, 2003 regarding the construction of the Asbury
Graphite Wastewater System as recommended by the Public Works Director,
Hercules area [SCH No. 05043029] (Contra Costa Transportation Authority
Funds, 100%) (District Il) Project No.: 4660-6X4152
DATE: May 4, 2004
PAGE: TWO
If. Fiscal Impact:
The total estimated contract cost is$400,000, which is 100% reimbursable from the
Contra Costa Transportation Authority.
Ill. Reasons for Recommendations and Background:
A. On August 5, 2003, the Board of Supervisors declared an emergency and
authorized the Public Works Director to proceed in the most expeditious manner
to construct the Asbury Graphite Wastewater System.
B. Repair status:
Construction of Phase 1 by Sebastopol Construction is completed. The final
phase, Phase 2, was advertised on April 13. Bid opening is scheduled for
May 11, with construction starting in June.
IV. Conseguences of Negative Action:
Nan-concurrence of the above recommendation will delay replacement of the
wastewater system until the later half of 2004 resulting in the increased potential for
the failure of the existing system. This would cause effluent contamination of the
surrounding area and off-hauling up to 750 gallons per day of effluent to an
appropriate disposal facility.
_. _ _........ ......... ......... ......... ....
. . ........ ................. _........ ..................._.... ......... ......... .............._. . .
__._. _....... _....... . ........ .........
....................................
TO: BOARD OF SUPERVISORS ', CONTRA
FROM: BARTON J. GILBERT, DIRECTOR OF GENERAL SERVICES COSTA
DATE: MAY 4, 2004 COUNTY
SUBJECT: CONTINUATION OF EMERGENCY ACTION TO FACILITATE C..-'160
COMPLETION OF THE CONTRA COSTA COUNTY ANIMAL
SERVICES FACILITY PROJECT AT 4800 IMHOFF PLACE,
MARTINEZ ( H41'5F)
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 Anima[ 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
t. 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.
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:
CONTINUED ON ATTACHMENT:-YES SIGNATURE: INbA&&
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE _OTHER
SIGNATURE 5: G
ACTION OF 9O&_--- May 4, M APPROVED AS RECOMMENDED X OTHER
VOTE OF SUPERVISORS
X UNANIMOUS(ABSENT None )
AYES: NOES:
ABSENTS: ABSTAIN:
MEDIA CONTACT:BARTON J.GILBERT(313-7100)
Originating Dept.:General Services Department
cc: General Services Department 1 HEREBY CERTIFY THAT THIS IS A TRUE Capital Projects Management Division AND CORRECT COPY OF AN ACTION TAKEN
AND ENTERED ON THE MINUTES OF THE BOARD
Accounting
CPM File: 250-0003lC.1.1 OF SUPERVISORS ON THE DATE SHOWN.
250-0003/A..5 ATTESTED May 4, 2004
County Administrator's Office JOHN SWEETEN,CLERK OF THE BOARD OF SUPERVISORS
County Counsel AND COUNTY ADMINISTRATOR
Auditor Controller /� r �r
Animal Services Department(via CPM) By t j .r"� DEFSUTY
(via CPM)
H:\200012500003100L003276b.doc LDR:tb Page 1 of 3 M382(10188)
CONTINUATION 4F EMERGENCY ACTION TO May 4, 2004
FACILITATE COMPLETION OF THE CONTRA COSTA
COUNTY ANIMAL SERVICES FACILITY PROJECT AT
4800 INMHOFF PLACE, MARTINEZ
September 16. 2003 letter to DJA: tetter 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. tetter 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: tetter notified DJA that, due to financial, scheduling, and ether
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.
Other 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 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. On 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.
H:1200012500003t00003276b.doc LDR:tb Page 2 of 3 M382(10168)
CONTINUATION OF EMERGENCY ACTION TO May 4, 2004
FACILITATE COMPLETION OF THE CONTRA COSTA
COUNTY ANIMAL SERVICES FACILITY PROJECT AT
48001 IM'HOFF 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 passible,
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 4800 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.
R\2000i2500003100003278b.doc LDR:tb page 3 of 3 M382(10(88}