HomeMy WebLinkAboutReso 2009-022 - Public Works Bid No 4109
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RESOLUTION NO. 2009 - 22
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF REDDING DECLARING GRIVETTE CONSTRUCTION
IN DEFAULT OF AND CANCELING THE PUBLIC WORKS
CONTRACT FOR T-HANGAR AND JET POD AT REDDING
MUNICIPAL AIRPORT, BID SCHEDULE NO. 4109, JOB
NO. 9545
WHEREAS, the City of Redding ("the City") competitively bid the construction of the T-
Hangar and Jet Pod at Redding Municipal Airport, Bid Schedule No. 4109, Job No. 9545 ("the
Project"); and
WHEREAS, Grivette Construction was the low bidder at $653,500 for the base bid and
$10,000 for the additive alternate bid for the Project; and
WHEREAS, on March 18, 2008, the City Council of the City of Redding awarded the public
works construction contract for the Project consisting of both the base bid and additive alternate bid
to Grivette Construction ("the Contract"); and
WHEREAS, on March 25, 2008, Nationwide Mutual Insurance Company ("Surety") issued
a performance bond ("the Bond") in the amount of $663,500.00 on the Project naming Grivette
Construction as principal and the City as beneficiary; and
WHEREAS, the Contract specifies that Grivette Construction shall diligently prosecute the
work to completion by February 3, 2009; and
WHEREAS, on February 2, 2009, City staff conducted a walk-through inspection of the
work performed by Grivette Construction to date and issued a final punch list on February 3, 2009,
of all remaining work to be performed under the Contract;
WHEREAS, on February 5, 2009, The Surety requested in writing that the City make no
further disbursement of Contract funds to Grivette Construction, or any other party, without the
Surety's prior, express, written consent;
WHEREAS, on February 18, 2009, Grivette Construction notified the City in writing that
it would not complete the remaining punch list items due to economic difficulties;
WHEREAS, City staff has tried repeatedly to gain cooperation and compliance from
Grivette Construction in order that the Project could be completed without resorting to declaring
Grivette Construction in default of the Contract and making a claim on the Bond; and
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WHEREAS, Grivette Construction has failed to complete the remaining work on the Project
as required by the Contract and has notified the City in writing of its refusal and inability to do so;
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 or has become insolvent; 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. Grivette Construction is in default of the Contract because it is not complying with
the Contract in good faith and has become insolvent;
2. The Contract is canceled; and
3. Written notice ofthis Resolution shall be served upon the Surety, with a demand to,
within five (5) days, assume control and perform the work as successor to Grivette
Construction 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 17th day of March, 2009, by
the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBER:
COUNCIL MEMBER:
COUNCIL MEMBER:
COUNCIL MEMBER:
Dickerson, Jones, McArthur, Stegall, and Bosetti
None
None
None~~ __
RICK BOSETTI, Mayor
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ATTEST: ,,', 1'-"-
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FORM APPROVED:
CONNlESTROHMAYER
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ity Clerk
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RICH;ARD A. DUVERNAY
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