HomeMy WebLinkAboutMINUTES - 03012005 - C.84 ' .i,•oma
TO: BOARD OF SUPERVISORS _ CONTRA
f, 'r, "t j•
FROM: BARTON J. GILBERT DIRECTOR OF GENERAL SERVICES . ._s:. - COSTA
DATE: MARCH 1, 2005 •. . 01)UNT'f
A C p'1";
SUBJECT: CONTINUATION OF EMERGENCY ACTION TO FACILITATE
COMPLETION OF THE CONTRA COSTA COUNTY ANIMAL r
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.
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: X YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
PROVE OTHER
q): ;,�
SIGNATURES
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ACTION OF OAONAPPROVED AS RECOMMENDED OTHER
/51
VOTE OF SUPERVISORS
UNANIMOUS(ABSENT �� }
AYES: NOES:
ABSENTS: ABSTAIN:
MEDIA CONTACT:BARTON J.GILBERT(313-7100)
Originating Dept.:General Services Department I HEREBY CERTIFY THAT THIS IS A TRUE
cc. General Services Department AND CORRECT COPY OF AN ACTION TAKEN
Capital Projects Management Division AND ENTERED ON THE MINUTES OF THE BOARD
Accounting OF SUPERVISORS ON HE DATE HOWN.
CPM File: 250_0003/C.1.19 '
250-0003/A.5 ATTESTED
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 ,DEPUTY
H:1200012500003100L003337b.doc Page 1 of 3 M382(10/88)
CONTINUATION OF EMERGENCY ACTION TO March 1 2005
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.
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, Y February 25, and March 16, 2004, the Count sent
letters or email messages to Travelers demanding that Travelers take p
prompt action to pay
Y
critical subcontractors and suppliers, to restore funding to the project, and to
a rovide qualified
p
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 Travelersrovidin a
p g
replacement contractor and had urged Travelers to take that action with the project.
County's 'ect.
Despite the numerous demands to Travelers, Travelers has failed to take any meaningful ful 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,
. pp Y ,
materials, and funding to complete the project.
H:1200012500003100L003337b.doc LDR:amc Page 2 of 3 M382(10/88)
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CONTINUATION OF EMERGENCY ACTION TO March 1, 2005
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 Count
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
g Y
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 Takeover Agreement between the County and the Surety (Travelers) was executed on
August 6, 2004. A Notice to Proceed was issued by Travelers through their agent, Sage
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Associates, to Robert L. Brown Construction of Martinez. Robert L. Brown and Travelers have
executed a Completion Contract with the completion of the work now assigned to Robert L.
Brown. The Surety had agreed to complete the remaining work no later than December 20
2004. However, because the Surety did not secure the necessary subcontractors and execute
their contracts in a timely manner, project substantial completion has been delayed until March
3, 2005.
12. The condition that the Board found to be an emergency on April 6, 2004 continues to exist.
Therefore, it is necessary to Y Y
continue the emergency action previous) taken b the Board so
that the work can be completed n the shortest time possible.
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THE REDEVELOPMENT AGENCY OF CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Resolution on March 1 2003]the following vote: mai T
AYES: GIOIA, PIEPHO, DESAULNIER, GLOVER AND UILKEMA *'
r' 1
1 � i
NOES: NONE
'►�"'rte ♦ j�V
ABSENT: NONE
Qs�A COUI`zr'�
ABSTAIN: NONE
Resolution No. 2005/ 113
SUBJECT: Appointing Mary N. Piepho to the Board of Directors of the Pleasant Hill BART Station Leasing
Authority.
The Contra Costa County Redevelopment Agency RESOLVES THAT:
The Contra Costa County Redevelopment Agency(the"Agency"), approved the creation of the Pleasant
Hill BART Station Leasing Authority(the"Authority"), a joint powers authority of the Agency, Contra Costa County
(the"County")and the San Francisco Bay Area Rapid Transit District(the"BART")by Redevelopment Agency
Order dated September 9, 2043. The Authority will coordinate the development of a transit village located on that
certain property located in the Pleasant Hill BART Station Redevelopment Project Area.
The Joint Exercise of Agreement for the Pleasant Hill BART Station Leasing Authority(the"Agreement")
governs the activities and structure of the Authority. The Agreement provides that the Board of Directors of the
Authority(the"Authority Board")consist of one (1) member appointed by the Agency, one(1)member appointed
by the County, and two (2)members appointed by BART. Consequently, pursuant to the Agreement, the Agency
must appoint One (1)member to the Authority Board.
The Agency desires to appoint Mary N. Piepho to the Authority Board.
NOW, THEREFORE, BE IT RESOLVED that the Agency hereby appoints Mary N. Piepho to the
Authority Board until the Board appoints a replacement or her term on the Board of Supervisors ends, whichever
first occurs.
BE IT FURTHER RESOLVED, that the Agency authorizes and directs staff to undertake any and all
action necessary to ensure that Mary N. Piepho becomes a member of the Authority Board and receives any
assistance necessary to perform her function as Authority Board member.
I hereby certify that this is a true
and correct copy of an action
taken and entered on the
minutes of the Board of
Supervisors on the to shown:
ATTESTED: _2A Z
JOHN SWEETEN, Clerk of the
Board of Supervisors and County
Administrator
L
By uty
RESOLUTION NO. 2005/1
Orig. Dept: Redevelopment Agency
Contact: Jim Kennedy
cc: Director of Community Development
County Counsel
County Administrator
G:\CDBG-REDEV\redev\LNoble\Personal\Documents\resolution.rda.bod.phbart.piepho.3.05.doc