HomeMy WebLinkAboutReso 2006-205 - Deckade Advanced Decking
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RESOLUTION NO. 2006 - 205
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF REDDING DECLARING DECKADE ADVANCED
DECKING SYSTEMS IN DEFAULT OF AND CANCELING
THE PUBLIC WORKS CONTRACT FOR REDDING
CONVENTION CENTER SLAB RESURFACING, BID
SCHEDULE NO. 3852, JOB NO. 8302
WHEREAS, the City of Redding ("the City") competitively bid the construction ofthe
Redding Convention Center Slab Resurfacing, Bid Schedule No. 3852, Job No. 8302 ("the Project");
and
WHEREAS, Triangle Builders of Nevada, Inc. dba Deckade Advanced Decking Systems
("Deckade") was the low bidder at $324,261.00 for the Project; and
WHEREAS, on July 19, 2005, the City Council of the City of Redding awarded the public
. works construction contract for the Project to Deckade ("the Contract"); and
WHEREAS, on July 29,2005, American Contractors Indemnity Company ("Surety"), issued
a performance bond ("the Bond") in the amount of$324,261.00, on the Project naming Deckade as
principal and the City as beneficiary; and
WHEREAS, the Contract specifies that Deckade shall diligently prosecute the work to
completion by December 31, 2005; and
WHEREAS, on September 8, 2005, City staff conducted a walk-through inspection of the
work performed by Deckade to date and found numerous construction defects in all areas of the
Project, specifically in the kitchen area, main area, and lobby/stairs; and
WHEREAS, Deckade's Project Foreman attended the inspection of September 8, 2005, and
had first-hand knowledge of said construction defects; and
WHEREAS, on September 29,2005, the City notified Deckade in writing that the materials
and work performed to date did not conform to the contract plans and specifications and that,
pursuant to Section 4-1.1 of the Standard Specifications for Public Works Construction
("Greenbook"), the City deemed the work performed to date defective, thereby rejecting the work
performed to date and any demands for payment therefor; and
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WHEREAS, on September 29, 2005, the City requested in writing that Deckade provide a
written plan by October 7, 2005, for repairing the defective work and its time schedule for
completion of such repairs; and
WHEREAS, on October 17,2005, the City requested in writing that Deckade meet with City
Project officials and that Deckade bring a proposed plan of repair of the defective work and a time
schedule for completing such repairs to that meeting; and
WHEREAS, representatives from the City and Deckade met on October 26, 2005; and
WHEREAS, Deckade failed to produce a proposed plan of repair and schedule prior to or
at the meeting on October 26,2005; and
WHEREAS, Deckade proposed a work repair plan on November 1,2005; and
WHEREAS, the City obtained core samples of the flooring which were analyzed by KTA-
Tator, Inc.; and
WHEREAS, the City notified Deckade in writing on December 27,2005, that the tests of
the core samples were worse than expected and that KT A- Tator, Inc., did not support the work repair
plan previously submitted by Deckade, and that removal of the entire urethane top coat would be
required in order to establish the proper mechanical bond to the designed substrate; and
WHEREAS, the City notified Deckade in writing on December 27,2005, that the contract
completion date shall be extended to a date to be determined upon further negotiations with the City
and Deckade that would allow the necessary repairs to be completed; and
WHEREAS, on February 21,2006, the Surety requested in writing that the City not pay any
further monies to Deckade or anyone else on the Project without the Surety's prior written consent;
and
WHEREAS, on March 3, 2006, Deckade notified the City in writing that the fix proposed
by KTA-Tator, Inc., was unwarranted and that it would be willing to attempt a repair that
incorporated the involvement ofN eoGard, the manufacturer ofthe installed flooring system, so long
as payment for the work performed to date was paid; and
WHEREAS, on May 25,2006, the City notified Deckade in writing that the testing analysis
provided by Deckade which was performed by PSI was not persuasive or viable and that the City
would stand by the repair plan proposed by KT A- Tator, Inc. until such time as Deckade proposed
a viable method of repair acceptable to the City; and
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WHEREAS, on May 25,2006, the City requested in writing that Deckade and the City make
one last attempt to resolve this matter and allow Deckade to complete the Project and suggested that
the parties meet within ten days to work out an acceptable repair plan, construction schedule, and
payment schedule; and
WHEREAS, on June 9, 2006, Deckade notified the City in writing that it would agree to
participate in one final meeting to discuss possible ways to fix the defective construction and that
if the City refused to participate in such a meeting, that Deckade would agree to terminate its work
on the Project and drop all potential claims against the City upon receipt of a payment in the amount
of $180,000 as a compromised payment for work performed to date; and
WHEREAS, on June 20, 2006, the City notified Deckade in writing that the City was
amenable to one final meeting with Deckade, but that for such a meeting to be productive Deckade
must provide the City a viable repair plan prior to the meeting; and
WHEREAS, on August 31, 2006, Deckade notified the City in writing that there is likely
no alternative fix it could propose that would be acceptable to the City and that as a result, Deckade
contended that the City had constructively terminated, and thereby breached, the Contract and further
breached the Contract by refusing to pay Deckade for work performed; and
WHEREAS, on August 31, 2006, Deckade notified the City in writing that it demands
arbitration pursuant to Public Contract Code ~ 20104, et seq. and claimed payment of$267,730.52
for work performed and interest at the rate of two percent per month from and after September 30,
2005; and
WHEREAS, on October 31, 2006, the City notified Deckade in writing that the City's
position is that the City has not constructively breached the Contract and, to the contrary, Deckade
has defaulted on its contractual obligations to perform work according to the Contract plans and
specifications and that the provisions of Public Contract Code ~ 20104 et seq. do not apply; and
WHEREAS, the anticipated cost to repair Deckade's defective construction exceeds the
Contract amount of $324,261.00; and
WHEREAS, City staff has tried repeatedly to gain cooperation and compliance from
Deckade in order that the Project could be completed without resorting to declaring Deckade in
default of the Contract and making a claim on the Bond; and
WHEREAS, Deckade has failed to provide the City a viable repair plan and refuses to repair
the defective construction in compliance with the Contract plans and specifications; and
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WHEREAS, section 6-4 ofthe 2003 edition of the Standard Specifications for Public Works
Construction ("Greenbook"), which is a part of the Contract, provides that the City Council may
cancel the Contract without liability for damage when, in its opinion, the contractor is not complying
in good faith, has become insolvent, or has assigned or subcontracted any part of the work without
the Council's consent; and
WHEREAS, section 6-4 of the Greenbook states that if the City Council declares the
Contract canceled for any of the aforementioned reasons, written notice to that effect shall be served
upon the Surety, and the Surety then has five (5) days to assume control and perform the work as
successor to the contractor;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF REDDING
RESOLVES AND DECLARES that:
1. Deckade is in default of the Contract because it is not complying with the Contract
in good faith;
2. The Contract is canceled; and
3. Written notice of this Resolution shall be served upon the Surety, with a demand to,
within five (5) days, assume control and perform the work as successor to Deckade
in conformance with section 6-4 of the Greenbook.
I HEREBY CERTIFY that the foregoing resolution was introduced, read and adopted at
a regular meeting of the City Council of the City of Redding on the 5th day of December, 2006,
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBER: Bosetti, Jones, Murray, Stegall and Dickerson
COUNCIL MEMBER: None
COUNCIL MEMBER: None
COUNCIL MEMBER: None
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DICK DICKERSON, Mayor
Attest:
Form Approved:
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" _, ~ity Clerk
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