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Agenda Item
ASR
Control 05-000413 |
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MEETING DATE: |
03/07/06 |
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legal entity taking action: |
Board of Supervisors |
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board of supervisors
district(s): |
1 |
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SUBMITTING
Agency/Department: |
Resources and Development Management Department (Approved) |
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Department contact
person(s): |
Clark Shen
(714) 567-6568 |
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Mark Browning (714) 567-6565 |
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Subject: Accept Work & Assess L.D. - CJC
HVAC/ADA Retrofit
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ceo Concur |
County
Counsel Review |
Clerk of the Board |
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Concur |
Approval Not Required |
Consent Calendar |
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3 Votes Board Majority |
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Budgeted: N/A |
Current Year Cost:
N/A |
Annual Cost:
N/A |
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Staffing Impact: No |
# of Positions:
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Sole Source:
N/A |
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Current Fiscal Year Revenue: N/A |
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Funding Source: 036:82%,
081:18% |
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Prior Board Action: Minute
Order dated May 18, 2004 authorized takeover agreement with Kemper. |
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RECOMMENDED ACTION(S)
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1. |
Accept work as complete. Kemper Insurance Company assumed the contract from Dennis J. Amoroso Construction. The project was completed on November 17, 2004 for a total construction contract of $8,751,884.90 ($1,509,281 from 100-081-P003-4200, $7,242,603.90 from 100-036-P964-4200). |
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2. |
Assess the Contractor 317 days liquidated damages at $1,500 per day for a total of $475,500. |
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3. |
Approve the commencement date for the one-year warranty to be November 17, 2004. |
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4. |
Direct Auditor-Controller to retain $475,500 of unpaid contract proceeds from project account (100-036-P964-4200) for liquidated damages and authorize disbursement of the balance of the contract amount upon notification by the Director of RDMD or his designee that compliance with all legal and contractual requirements has been met. |
SUMMARY:
Accept Superior Court-Central Justice Center (100-036-P964-4200 & 100-081-P003-4200) project as complete, assess liquidated damages due to time delay by Contractor and retain the assessed amount from the unpaid contract proceeds of (100-036-P964-4200).
BACKGROUND INFORMATION:
This project, designed by A.C. Martin and Associates, provided for the remodel of the former Federal Court Modular Building and for the renovation of the HVAC systems and ADA compliance improvements on the 9th, 10th and 11th floors at Central Justice Center at 700 W. Civic Center in Santa Ana.
During the course of this construction project, a number of change orders including additional time to complete certain project activities were granted due to County changes and/or unforeseen conditions. These change orders resulted in extensions to the contract completion date. In addition to these change orders a 317 calendar day delay, due to no fault of the County, was experienced beyond the approved contract's adjusted completion date. Staff is recommending that the general contractor be assessed 317 calendar days liquidated damages at $1500 per calendar day as stipulated in the contract Agreement with the total amount of liquidated damages to be $475,500.
On December 20, 2004 the Resources and Development Management Department (RDMD), with County Counsel approval and on behalf of the County, transmitted a written claim to the bonding company, Kemper Insurance, notifying them that the County received beneficial occupancy as of November 17, 2004 and that liquidated damages would be assessed unless Kemper could provide a properly substantiated time extension request. Subsequently, many informal conversations and official correspondence have been exchanged between the entities, but the results to date have not brought about a satisfactory resolution of the claims. Staff now recommends that the project be noticed as complete and any claims be resolved through settlement discussions or legal actions. RDMD staff and County Counsel will continue discussions as appropriate
Harbor Construction Company was the completion Contractor; the project was completed on November 17, 2004; total construction contract was $8,751,884.90. The total amount paid on this contract to date is $7,607,078.13. To protect the County's interest, staff recommends your Board direct the Auditor-Controller to retain $475,500 of unpaid contract proceeds from project account (100-036-P964-4200) for liquidated damages and disperse the balance of the contract amount to Kemper Insurance Company upon notification by the Director of RDMD or his designee when all legal and contractual requirements are met. Among the contested issues are several outstanding stop notices for which contract funds will be reserved as required by law.
Since the County took beneficial occupancy on November 17, 2004, it is requested that the commencement of the contractual one-year warranty be November 17, 2004. No unresolved warranty issues remain.
RDMD submitted a request to the Clerk of the Board to file a Notice of Completion for project on February 3, 2006. This will ensure that the 5% retention would become payable to the contractor within 60 days as stipulated in the Public Works Contract Code Section 7107 contingent upon contractor fulfilling all legal and contractual requirements under the Agreement between the County and the contractor.
LEGAL REQUIREMENTS:
CEQA Compliance: The subject activity is not a project as defined by CEQA pursuant to Section 15378(5) of the CEQA Guidelines.
General Plan: Not Applicable
FINANCIAL IMPACT:
N/A
STAFFING IMPACT:
N/A
REVIEWING AGENCIES:
RDMD/Planning
Superior Court