FROM:
Public Works
SUBJECT:
Title
Contractor Substitution Due to Job Abandonment and Bankruptcy from Previously Awarded Construction Contract for Public Works Concrete Maintenance Project (SB-107-PW-23)
End
RECOMMENDATION:
Recommendation
Approve and authorize the City Manager to execute a construction contract with Gentry General Engineering, Inc for the remaining work required to complete the construction of Public Works Concrete Maintenance Project in the amount of $168,840.00 (Bid No. SB-107-PW-23).
End
COUNCIL GOALS:
• To invest in the City’s infrastructure (streets, sewers, parks, etc.) by maintaining and improving the city's existing infrastructure.
• To invest in the City’s infrastructure (streets, sewers, parks, etc.) by providing for the development of new infrastructure.
DISCUSSION:
On April 11, 2023, the City Council awarded the construction contract with Stance Construction Company of Chino, CA for the construction of the Public Works Concrete Maintenance Project in the amount of $700,806.95 and 10% of contingency.
During the contract work, Stance Construction Company abruptly abandoned the job and subsequently filed for bankruptcy. In response to this challenge, the City has diligently collaborated with Guardian Group, the surety provided by Stance Construction Company, to identify a suitable path forward.
After thorough deliberation and assessment, both the City and Guardian Group have reached a consensus to issue a contract for the outstanding work to Gentry General Engineering, Inc. Staff believes that Gentry General Engineering, Inc possesses the expertise, resources, and commitment necessary to successfully complete the project to the City's satisfaction.
The Guardian Group, acting as the surety, bears full responsibility for addressing any claims related to nonpayment and covering expenses exceeding the original contract amount agreed upon between the City and Stance Construction Company.
The proposed contract amount with Gentry General Engineering, Inc. stands at $168,840.00, reflecting a fair and reasonable cost for the remaining work. This agreement will ensure the timely and high-quality completion of the project.
FISCAL IMPACT:
Funding is available in the FY 2023/24 budget to complete the project. Funds are allocated in the Capital Reinvestment Fund 601, Sidewalk Rehabilitation Project No. 37104326 and in Concrete Maintenance Operating Budgets 10137106 and 28137106. No further funding will be necessary to finalize the outstanding contract work.
MOTION:
Approve staff recommendation.