HomeMy WebLinkAbout06/20/1989, 5 - MARSH STREET PUBLIC PARKING STRUCTURE - CITY PLAN NO. M-41D REQUEST BY MADONNA CONSTRUCTION COMPANY MEETING DATE:
�II�fl�� ��I�II III II city of Sap Luis ogiSpo June .20, 1989
Norms COUNCIL AGENDA REPORT ITEM NUMBER:
FROM:
David F. Romero "44, -Va L Wayne A. Peters
Public Works Director City Engineer
SUBJECT:.
Marsh Street Public Parking Structure - City Plan No. M-41D
Request by Madonna Construction Company to Substitute Subcontractor.
RECOMMENDATION:
By Motion Consent, or Fail. to Consent, to Madonna Construction Company's
Request.
BACKGROUND:
The Council recently awarded a contract to Madonna Construction Company to
construct the Marsh Street Parking Structure. The bid from Madonna
Construction listed Amber Steel Company as subcontractor for supplying
reinforcing steel for the project (Exhibit A). On June 5, 1989 Madonna
Construction requested that the City allow the substitution of Regional Steel
Corp. for Amber Steel (Exhibits S and C). The City has notified Amber Steel of
the request and received a letter from Amber Steel dated June 5th indicating
that they object to the change in subcontractor and are planning to supply all
of the steel material (Exhibit D).
Public Contract Code, sections 4100 at. seq. , require the contractor bidding a
public works project to list subcontractors that will do work amounting to more
than one-half of one percent of the total contract. Any work to be done for
which a subcontractor is not listed shall be doze by the contractor's own
employees. Subcontractors may be substituted, upon approval of the City,
provided certain conditions are met. These conditions are spelled out in
section 4107 and 4107.5 (Exhibit E).
DISCUSSION:
The reason given by Madonna for this request is that Amber Steel is now and has
been .for many months now in Chapter 11 bankruptcy. Madonna Construction
Company says that they only just found out about this. The courts have been
asked by a creditor to dismiss the Chapter 11 proceeding or to convert them to
Chapter 7. Staff has been told these changes would lead to liquidation of the
company. Madonna Construction Company is concerned that there is the potential
that Amber Steel will not be able to perform their services and provide the
required material throughout the duration of the job. This is particularly a
problem with this project, since the parking structure requires post tension
stretching of the steel cables in the building. A change in subcontractor in
the middle of the job would result in problems for Madonna Construction to
identify responsibility and may limit his abili'y to require his subcontractor
to perform, and would probably delay the job.
lAmber Steel is not willing to allow Madonna Construction Company to substitute
another subcontractor and has asked for this hearing.
7NG AGENDA
city of san tins owpo ]ATE1002 ITEM #
COUNCIL AGENDA REPORT
Madonna Construction - Subcontractor Change
Meeting of June 20, 1989
Page Two.
As listed in section 4107 of the Contract Code, a subcontractor may be
substituted if he becomes bar lu upt or insolvent.
The determination must be made with legal advice, and after receiving testimony
from the parties involved, as to whether Amber Steel is bankrupt or insolvent
thus, permitting the Council to consent to the substitution.
OTHER STAFF COMMENTS:
The City Attorney will provide supplemental: information by confidential memo.
There is no fiscal advantage to the City as to which subcontractor supplies
Madonna Construction. The City may become involved in litigation no matter
which way this issue is decided.
OTHER RELATED ISSUES:
The law is clear that the subcontractor listed on the bid must be used unless
the awarding agency consents to a substitution. If a contractor insists on
using a non-approved subcontractor, he is in violation of his contract per
section 4110 on the Public Contract Code. The awarding agency may either
cancel the contract or assess the contractor a penalty of up to 10 percent of
the amount of the subcontractor's work. The contractor is also subject to
review by the Contractor's State License Board. This board may also penalize
the contractor.
If the issue is not decided in a timely manner, progress on the construction
will be delayed. If Amber Steel should go into bankruptcy while they are
subcontractor on the job, the construction will be delayed, and might present
quality control problems.
RECOMMENDATION:
Staff recommends that the Council hold a hearing for the parties involved. The
Council may adjourn to closed session to consider the City Attorney's advice
prior to making a finding and consenting to or refusing to a Subcontractor
Change.
Attachments
Exhibit A Copy of Bid document showing Amber Steel
Exhibit B Memorandum from Roger Picquet indicating request to substitute
Exhibit C Letters from Madonna attorney requesting substitution
Exhibit D Letter from Amber. Steel's attorney refusing substitution
Exhibit E Contract Code sections relating to case
Letters from Amber Steel indicating their desire to subcontract
n/consent / A
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,vfi�d�T
The undersigned further agrees that in case of default in executing the
required contract, with necessary bonds, within ten days, (not including
Sunday), after having received notice that the contract is ready for
signature, the proceeds of the check or bond accompanying his bid shall
become the property of the City of San Luis Obispo.
Licensed. in accordance with an act providing for the registration of
contractors, License No.
SIGNATME OF BIDD
(If an individual. so state. If a firm or co-partnership, state the firm
name and give the names of all individual co-partners composing the firm.
If a secretary, treasurer, and manager thereof. )
T
Aa r,✓ei✓1&QA-(,- ,
dk&t RAbOM✓a G�ot1s�7Cu�no�J
NOWA9K)v
R o.. .Box 3Vo
SAA1I-UIS OB/SPO_ j!A. 234/03
Business Address
4PR.1 L 5" /Q89
Dated 0*0 w- LZ. 19N.
b
C%
Bid Proposal
LIST OF SUBCONTRACTORS
The Bidder is required to furnish the following information for each
Subcontractor performing more than 0.5% of the Total Base Bid. Do not
list alternative subcontractors for the same work.
Name Under Which Address and Phone Specific
Subcontractor Number of Office. Description of
Licensed License Number Mill or Shop Subcontract
LJ
Attach additional sheets as needed.
c
GyNtSl r B
LAW OFFICES
LYON & PICQUET
ROGER LYON* 1104 PALM STREET TELEPHONE
(805) 541-2580
ROGER PICOUET POST OFFICE BOX 922 TELECOPIER
TIMOTHY J.CARMEL SAN LUIS OBISPO,CALIFORNIA 93406 (805) 543-3857
w u..COwM,unOw
June 5 , 1989
MEMORANDUM
TO: Pam Voges, City Clerk.
City of San Luis Obi o
FROM: Roger Picquet
RE: Mafsh Street Parking Structure-
(Madonna Construction)
Madonna Construction has, by and through its attorney, amended
its letter of 5/18/89 seeking to substitute out Amber Steel as.
subcontractor. It now wants Regional Steel Corp. as its sub-
contractor.
The request conforms to the procedure set forth at law (Public
Contracts Code Section 4100 et seq) . Notice should be given by
the City (certified or registered mail) to Amber Steel of. this
amended request of Madonna's, including the date set for hearing.
Please call if you have any questions .
RP/bw-1
cc : Vicki Finucane
John Dunn
David Romero
l
CI
WARREN A SINSHEIMER III SINSHEIMEP, SCHIEBELHUT 8 BAGGETT
ROBERT K. 5CHIEBELHUT A PROFESSIONAL CORPORATION STREET ADDRESS:
K. ROBIN BACCETT ATTORNEYS AT LAW
MARTIN I. TANCEMAN 1010 PEACH STREET`.
MARTIN P MOR05KI POST OFFICE BOX 31 -�
DAVID A. IUHNKE TELECOPIER:
M. SUZANNE FRYER SAN LUIS OBISPO• CALIFORNIA 93406-0031 Anr+-541-2602
STEVEN I.ADAM5KI Donoles action by Lead Ferscn
DIANE W MOROSKI SOS-54i-2800
CYNTHIA CALDEIRA
MICHAEL R. PETERSON Respond by:
SCOTT E. LEWIS i_l Council
MONIE HUBBARD•HOPKINS
ALAN D. SHEWELL rClO
or COUNM I;,4Cj'h1 Arty
D. IAN DUFFY ��lerk-ong.
May 18, 1989 ?�O. RoinE,eo
r.
Pam Voges, City Clerk HAND DEL
City of Sar. Luis Obispo
990 Palm Street
San Luis Obispo, California 93403
Re: Marsh Street RubJ_ c Parking Structure,
City File N :X89-02
Dear Ms. Voges:
This law firm represents Alex Madonna, dba Madonna
Construction Company ("Madonna") . As you know, the City of San
Luis Obispo has awarded the foregoing contract to Madonna. As you
may also be aware, Madonna designated the company of Amber Steel
Company, Inc. as a subcontractor under the foregoing contract. v
On May 15, 1989, Madonna received a "Notice of Motion and
Motion for Dismissal of the Chapter 11 Proceeding or Conversion
Chapter 7" filed in case number 186-03432 , in the United States
Bankruptcy Court for the Eastern District of California. As is
evident from the attached enclosure, the United States of America,
as a creditor of Amber Steel Company, Inc. , has filed a motion
which could result in the conversion of the bankruptcy proceeding
of Amber Steel Company, Inc. to a Chapter 7 liquidation proceeding.
Given the inherent uncertainty caused by the possibility of
this subcontractor being placed into liquidation in the immediate
future, Madonna hereby requests a substitution under the terms of
the provisions of California Public Contract Code Section 4107 (a) .
Under those provisions, Madonna may request a substitution of a
subcontractor "when the listed subcontractor becomes bankrupt or
insolvent" . Prior to May 15, 1989, Madonna was unaware of the
pending bankruptcy proceedings, of the fact that Amber Steel
Company, Inc. was already bankrupt, or of the threatened conversion
proceedings to Chapter 7. Madonna requests that Madonna
Construction Company be substituted in place of Amber Steel
Company, Inc.
A copy of this letter is being served by certified mail to the
last known address of Amber Steel Company, Inc.. We trust that this - '
written notice will suffice to meet the purposes of Section 4107.
RECEj V�
_<-S 'may 181989
Pam Voges
May 18, 1989
Page 2
If the City of San Luis Obispo has some other format, or a
particular form, for this request, please provide the same to the.
undersigned at your earliest convenience so that this request may
be expedited.
Please present this request to the appropriate authorities
immediately, so that consideration of the request can be expedited,
in order to avoid any delay in the performance of the construction
project.
Sincerel
S , SCHI BELHUT & BAGGETT
MgARTT J. EMAN
MJT/tlg
gVOGES. ltr
Enclosure
cc: Dave Romero, Public Works Director
City of San Luis Obispo
Amber Steel Company, Inc.
C
LAW OFFICES
LYON & PICQUET
ROGER LYON* 1104 PALM STREET TELEPHONE
ROGER PICOUET POST OFFICE BOX 922 (805) 541-2560TELECOPIER
TIMOTHY J.CARMEL SAN LUIS OBISPO, CALIFORNIA 93406 (805) 543-3857
May 31 , 1989
MEMORANDUM
TO: VICKI FINUCANE, Acting City Attorney
City of San Luis Obispo
FROM: Roger Picquet
RE: Request for Substitution of Subcontractor by
Madonna Construction (Parking Structure No. 2)
i
By letter from its attorney of May 18 , 1989 , Madonna Construc-
tion has requested approval to substitute out Amber Steel due to
the latter' s bankruptcy status (see Public Contracts Code Section
4107 , attached) . Amber has objected to the request (see letters
from Amber and its attorney) .
Madonna' s request is inappropriate since it seeks to substi-
tute itself for Amber rather than another subcontractor. A reading
of Section 4107 , and other relevant provisions, supports the
conclusion that a substitution can only be subcontractor for
subcontractor. Also, please note the City (awarding authority) is
to give the notice by certified or registered mail , not the prime
contractor.
I recommend Madonna Construction be advised to identify a
specific subcontractor which it intends to use and to make a new
request for approval . After that comes in, the Clerk should give
the required notice. Then we should see if Amber still objects.
Assuming it will, a hearing must be scheduled before the City
Council .
jot-:.
J
C'
Please call if you have any questions .
RP : ar
Attachment
cc : Pam Voges
David Romero
John Dunn
P . S . I had a telephone conversation with Madonna' s attorney
regarding this on May 25 , 1989 . He understood our position
and would see that a new request is submitted.
2
C
WARREN A SINSHEIMER III 5IN5HEIMEP, SCHIEBELHUT 8 BAGGETT
ROBERT K. SCHIEBELHUT A PROFESSIONAL CORPORATION _
K. ROBIN BACCETT STREET ADDRESS: '
MARTIN J. TANCEMAN ATTORNEYS AT LAW 1010 PEACH STREET
MARTIN P. MORO5K1 POST OFFICE BOX 31 --
DAVID A IUHNKE TELECOPIER:
M. SUZANNE FRYER SAN LUIS OBISPO. CALIFORNIA 93406-0031 805-541-2802
STEVEN J.ADAMSKI
DIANE W. MOK05KI 805-541-2800
CYNTHIA CALDEIRA
MICHAEL K PETERSON
SCOTT E. LEWIS
MONIE HUBBARD-HOPKIN5
ALAN D. SHEWELL
OF COUNSEL
D. )AN DUFFY
May 26, 1989
Pam Voges, City Clerk HAND DELIVERED
City of San Luis Obispo
990 Palm Street
San Luis Obispo, California 93403
Re: Marsh Street Public Parking Structure
City File
Dear Ms. Voges:
This law firm represents Alex Madonna, dba Madonna
Construction Company ("Madonna") . By letter dated May 18, 1989,
we formally requested, on behalf of Madonna, consent to a
substitution of Madonna Construction Company in place of Amber
Steel Co. , Inc. as subcontractor on this job. I 11---)
Please be advised that Madonna herewith amends his letter
dated May 18, 1989, and the request contained therein, to request
that Regional Steel Corporation be substituted in place of Amber
Steel Co. , Inc. Regional Steel Corporation is located at 740 South
Hillview, Milpitas, California 95035.
Very truly yours,
SINS 14R EIH BELHUT & BAGGETT
MAR .IN /J:,j TANGE>vIAN
MJT/tlg
gVOGES1. 1tr
cc: Dave Romero
Amber Steel Co. , Inc.
Roger Picquet
RECEIVE ®
MAY 2 61989
CITYCLERK
SAN LUIS nalecn.CA
y'yo ID.m . z^ 9
_ £,c til+W T .S?
LAW OFFICES OF
F.C.GORTON(#677-1246) GORTON PETRIN-I CONRON gA"`ws 19Po,cA9 s01
JAMS PCTRINI(1697.19761 , a57 SAN Rosw.STRc
MARRY M.CONRON(1907.1971) TE LEPNONC(8 340
KENNCTM O.PINSLNT(1953.19841 WESTOHESTER CORPORATE PLAZA
-
1600 30TH STREET,4TH FLOOR SANTA MARIA,CA 93434
REGIONAL OIMMCES
POST OFFICE BOX 2026 ILC S0. E(80,SUI 22- 121
SACRAMENTO,CA 98614 TELEPHONE(809)922.6283
1000 G STREET,SUITE 380 BAKERSFIELD, CALIFORNIA 93303
TELEPHONE(910)A43.4722 SANTA BARBARA,CA 93101
(803) 322-3091 120 C.DELA GUERRA ST.,2ND FLOOR
FRESNO,CA 93721 CABLE:"VERDICT" TELEPwpN[(B OS)'564.2404
T.W.PATTLRSON BLDG"SUITE 830
2014 TULARE STREET n ' SAN OIEGO,CA 92101
TELEPHONE(209)Zea-0117 May 2 4 19 8 9 �l �/UAA�E
359 W.BEECH STREET.SUITE 400
Y TELEPHONE(6191232.2A24
VISALIA,CA 93291
THE COLONIAL BLDG.,ENO FLOOR � ncAeo Los ANGELES,CA 90017
601 WEST ACEOUTA STRECT' I'� ONE WILSHIRE.BUILDING
TELEPHONE(209)627-5600 �. UI)A)Al 624 50.GRAND AVE.,SUITE 2900
TELEPHONE(213)469-6888
NEWPORT*EACH,CA 92660
OAON CCNTRE wOCICSTC,CA 9535A
1300 OOVE STREET,SUITE ZOO 82113T STREET,SUITE 01
TELEPHONE(714)752.2333 TELEPHONE(209)576.1701
1N REPLY REFER
TO OUR FILE NO.
Bakersfield
45237/21455
HAND DELIVERED
San Luis Obispo City Clerk
990 Palm Street
San Luis Obispo, CA 93403
Attention: Ms. Pam Voges
Re: Amber Steel. Company, Inc .
Dear Ms. Voges:
This firm represents Amber Steel Company, Inc .
We have been provided a copy of a letter from "Martin J.
Tangeman, Esq. , regarding the Marsh Street. Public Parking
structure, City File 89-02, wherein Mr. Tangeman requests on
behalf of Madonna Construction to substitute that firm in
place of Amber Steel Company, Inc. , as a subcontractor on the
job. This request is made under Public Contract. Code
section 4107 .
Amber Steel Company, Inc. , does not consent to the
request, and pursuant to section 4107 , requests a hearing on the
request. Our client' s objection is based upon the fact that
Madonna Construction was aware at the time the bid was
submitted, and apparently utilized by Madonna, that Amber Steel
was, and is, in a Chapter 11 proceeding. Further, the motion
referred to in Mr. Tangeman' s letter is a renewal of a
motion which was denied by the Bankruptcy Court approximately
one month ago, and there has been no decision by the court
as yet which changes the circumstances extant at the time
Amber Steel submitted, and at the time. Madonna used, its bid
for the subject subcontract.
RE ZEI
MAY 2 410
wy c'LvW
SANG ticf14:CdJ CA �/O
GORTON, PETRINI & CONRON
San Luis Obispo City Clerk
May 24, 1989
Page 2
Any questions, and future notices or correspondence.
pertaining to this matter should be addressed to Michael D.
Worthing of our Bakersfield office, at the address and/or
telephone number set forth above for that o ce;�_�
Vr79y trul calid rs /.
Mich el D o ing
MDW:cls
cc: Public Works Director
City of San Luis Obispo
Attn: Mr. Dave Romero
Martin J. Tangeman, Esq.
/8 r T
.... "UBLIC.CONTRACT CODE PUBLIC CONTRACT CODE §4101
with California taxpayer dollars That support instead -W when a government entity purchases food prefes-
should go imo the United State's eoti semy. ence should be given to United Statea-growo and United
1 - Swa-processed commodities.-
at time contras is awarded; failure of
CHAPTER 4. SUBLETTING AND SUBCONTRACTING
Section
5, G 1078, § P. 4100. Short title.
4100.5. Repealed
license at.time contract is awarded; 4101. Legislative findings.
4103. Preservation of bids or offers.
tion of.rights and remedies.
4104. C
versify of California and the California ontents
actor's license which a contractor shall 4105. Circumvention by prime contractor of requirement to list subcontractors by listing another
shall be.included in any plans prepared contractor who will sublet; violation.
pursuant to this code 4106. Failure to specify or specification of more than one subcontractor, performance by prime
contractor.
us who contract directly with the public 4107. Prime contractor whose bid is accepted; prohibitions.
4107.2. Carpeting; subletting subcontract with respect to labor.
tecause of the failure of an entity, as 4107.5. Claim of inadvertent clerical error in listing subcontractors; notice; objection; hearing.
tall not receive damages for the loss of 4107.7. Failure of contractor with contract with public entity for investigation, removal or remedial
action, or disposal relative to release or presence of hazardous material or waste to pay
subcontractor, service of stop notice.
4108. Faithful performance and payment bonds of subcontractors.
4109. Subletting or subcontracting portion in excess of certain percent of prime contractor's total
r intent of the Legislature that this act shall apply bid to which no subcontractor was dean
tractors who contract directly with public entities bid in original bid.
I the Public Contract Cede^ 4110. Violations of chapter and contracts; cancellation or penalty, notice and hearing.
4111. Violations of chapter by licensee under Contractors' State License Law; grounds for
disciplinary action.
MATERIALS 4112 Failure of contractor to comply with chapter, no defense in action against contractor by
subcontractor.
4113. Subcontractor and prime contractor.
4114. Counties with population of 6,600,000 or more; board of supervisors as awarding authority;
delegation of certain functions to hearing officer, recommendations.
trade names not permitted; exception Chapter 4 was added by Stats.1986, c. 195, § 42.1.
eter'--•to terms and conditions of bid.signed In Cross Reftsennees
` �operly delivered, it was valid notwith- Spocialty contractors on public works contracts, work
ni. ,'not signed in the one place required by outside specialty to be
Neciefee v.Fresno Court Brewer-Kalar A performed in odecompliance§ 9. this
�'( 1(App. chapter,ser.Business& Professions Code-§ 7059:
i ZIO CaLRp[r.99, 163 C.A.3d 1175.
§ 4100- Short title
This chapter may be cited as the "Subletting and Subcontracting Fair Practices Act."
(Added by Stats.1986, c. 195, § 42.1.)
y school district or community college Historian Note intent of the Legislature,in retransferring these sections,to
iced States-grown produce and United 1996 legisiauom effect any substantive change in the law as it existed prior to
nieally feasible to do so. For purposes Section 1 of Stats.1986.a 195, provided: the initial transfer to the Public Contract Code.-
;hall be made by the purchasing public "It is the intent of the Legislature to retrans&r the
food and the budget and policies of the provisions which state the powers of the affected local Derivatium Gov. C. former § 4100, enacted by Slam
entities from the Public Contract Code to the codes where 1943.c. 134,§ 4100,amended by Stats.1949,c. 1453.§ 1;
these provisions originated. Suits.1%3,c. 2125, § 1.
"Consistent with the intent in transferring these and other Stan.1941,c. 1283, § I.
sections back to the Public Contract Code, it is not the
ith subsidies. These lower cots of production
ngare often a result of foreign producers and § 4100.5. Re
of having to comply with the strict health and pealed by Stats.1988,e. 1578, § 2
ements that California producers must comply Histori®I Noe
a 2app § 2,amended h ter. 1972,c. 834, § 1,related to
The repealed section, mer§ y0t.5,added
a 195,§ 1%3. the application of the chapter.
value of the state's exports has substantially derived from Gov.C.former§ 4100.5,addrdby Stats.)%3.
is decade due to many factors. including, but
as high valued dollar and competition from
,cer § 4101. Legislative findings
I a gi veniment entity purchases imported foods The Legislature finds that the practices of bid shopping and bid-peddling in connection with the
support of foreign producers and processors construction, alteration, and repair of public improvements often result in poor quality of material
hanger or additions by amendment Asterisks ' ' ' indicate deletions by amendment
5
C -
§.°41U1 PUBLIC CONTRACT COD]
and workmanship to the detriment of the public, deprive the public of the full benefits of fau
competition among prime contractors and subcontractors,and lead to insolvencies, loss of wf^-,t
employees, and other evils.
(Added by Stats.1986, a 195, § 421.)
Hlatafol Nae
Deriratlon' Gov.0 forma§ 4101,added by SMM1963,
c. 2125,§ 4.
§ 4109. Preservation of rights and remedies
Nothing in this chapter limits or diminishes any rights or remedies,either legal or equitable,which:
(a) An original or substituted subcontractor may have against the prime contractor; his or her
successors or assigns.
(b) The state or any county, city, body politic, or public agency may have against the prime
contractor, his or her successors or assigns, including the right to take over and complete the
contract
(Added by Stats.1986, c. 195, § 421.)
Historical Note a 1380. § 1. renumbered § 4103 and amended
Deri�s: Gor.C.(ismer§ 4103•formerly§ 4101•en- 1%3,c. 2125, § 4. by Stan"
acted by Stets1943,c. 134,§ 4101,amended by Stw&1945. Suts.194I,c. 1283, § 1.
§ 4104. Contents of bids or offers
Any officer,department, board or commission taking bids for the construction of any public work
or improvement shall provide in the specifications prepared for the work or improvement or in the
general conditions under which bids will be received for the doing of the work incident to the public
work or improvement that any person making a bid or offer to perform the work,shall,in his or her
bid or offer, set forth:
(a) The name and the location of the place of business of each subcontractor who will perform
work or labor or render service to the prime contractor in or about the construction of the work or
improvement, or a subcontractor licensed by the State of California who, under subcontract to the
prime contractor,specially fabricates and installs a portion of the work or improvement accordirr-.,t
detailed drawings contained in the plans and specifications, in an amount in excess of one-half
percent of the prime contractor's total bid or in the case of bids or offers for the constructio.
streets or hi¢hways includin¢ brides, in excess of one a o 1 percent o
total uia or ten thousand dollars ( 1000 w e pnme contractorslrhever is ereater.
(b) The portion of the work which will.be done by each subcontractor under this act. The prime
contractor shall list only one subcontractor for each portion as is defined by the prime contractor in
his or her bid.
(Added by Stats.1986, c. 195, § 421. Amended by Stats.1988, c. 1578, § 3.)
Historical Nospublic.t9e8 tea`-� tics ancon depriverhe public of the full bene6n of fair coin ci-
The 1988 g prime contractors and subcontractors•and lead
legislation inserted,at the end of subd.(al after to insolvencies,loss of wages to employers•and other evils."
d m Provisions relating bids or offers for the construc-
tion of streets or highways,including bridges. Deriutione Gov.C. former§ 4104,formerly§ 4102•en-
Section I of Stars.1988•c 1578,provides: acted by Suits.1943.c. 134•§ 4102•amended by Stmt 1945,
'The Legislature finds that thepractices of bid shopping c. 1380• § 2, renumbered § 4104 and amended by Stars.
and bid peddling in connection with the eonstruaim altera-. I%3, e.2125, § 5; Stars.1971, a 376, § t; Stats.1971, c.
tion.and repair of Public improvements often result in poor 1584,§ 1.
quality of material and workmanship to the detriment of the SUMS-1941.c. 1283. § I.
§ 4105. Circumvention by prime contractor of requirement to list subcontractors by listing
another contractor who will sublet: violation
Circumvention by a general contractor who bids asa prime contractor of the requirement under
Section 4104 for him or her to list his or her subcontractors, by the device of listing another
contractor who will in turn sublet portions constituting the majority of the work covered by the
Prime contract,shall be considered a violation of this chapter and shall subject that prime contractor
to the penalties set forth in Sections 4110 and 4111.
(Added by Stats.1986, c. 195, § 421.)
Underttne Indicates changes or additions by amendment
6
PUBLIC CONTRACT CODE § 4107
PUBLIC CONTRACT CODE
ve the public of the full benefits of fair
and lead to insolvencies, loss of wages to Historical NOW
Derl,dium Gov.C.forma§ 4105,added by StOL1963,
�_- c.2125,§ 6.
§ 4106 Failure to specify or specification of more than one subcontractor, performance by
prime contractor
If a prime contractor fails to specify a subcontractor or if a prime contractor specifies more than
one subcontractor for the same portion of work to be performed under the contract in excess of
one-half of 1 percent of the prime contractor's total bid,the prime contractor agrees that he or she is
remedies,either legal or equitable,which: fully qualified to-perform that portion himself or herself,and that the prime contractor shall perform
against the prime contractor, his or her that portion himself or herself.
If after award of contract, the prime contractor subcontracts, except as provided for in Sections
blic agency may have against the prime 4107 or 4109, any such portion of the work, the prime contractor shall be subject to the penalties
named in Section 4111.
the right to take over and complete the (Added by Stats.1986, c. 195, § 421.)
Historical Note c. 1380. § 3. renumbered § 4106 and amended by Stats.
Derivation: Gov.C.former§ 4106,formerly§ 4103,en. 1%3,c.2125.§ 7.
§ 1, renumbered § 4103 and amended by Stats, acted by Staa 1943•c. 134•§ 4103,amended by Stats.1945. Stats 1941.c 1283.§ 1.
2125,§ 4.
1941,a 1283• § 1.
o pnm' accepted shall:
Is for the construction of any publicwork (a)•Substitute any person as subcontractor in place of the subcontractor listed in the original bid,
ad far the work or improvement or in the except that the awarding authority,or its duly authorized officer,may,except as otherwise provided
e doing of the work incident to the public in Section 4107.5, consent to the substitution of another person as a subcontractor in any of the
!r to perform the work,shall,in his or her following situations:
(1) When the subcontractor listed in the bid after having had a reasonable opportunity to do so
perform fails or refuses to execute a written contract, when that written contract,based upon the general
of each subcontractor who will
Pe terms,conditions,plans and specifications for the project involved or the terms of that subcontrac-
or about the construction of the work or torts written bid, is presented to the subcontractor by the prime contractor.
California who, under subcontract to the (2) When the listed subcontractor becomes bankrupt or insolvent.
of the work or improvement according to
(3) When the listed subcontractor fails or refuses to perform his or her subcontract.
amount in excess of one-half of 1
s or offers for the construction of (4) When the listed subcontractor fails or refuses to meet the bond requirements of the prime
It tat 1 percent of a prime contractor's contractor as set forth in Section 4108.
*eater. (5).When the prime contractor demonstrates to the awarding authority, or its duly authorized
The rime officer, subject to the further provisions set forth in Section 4107.5, that the name of the
subcontractor under this act
P subcontractor was listed as the result of an inadvertent clerical error.
n as is defined by the prime contractor in (6) When the listed subcontractor is not licensed pursuant to the Contractors License Law.
(7) When the awarding authority, or its duly authorized officer, determines that the work
988, c. 1578, § 3.) performed by the listed subcontractor is substantially unsatisfactory and not in substantial
epee me public of the full benefits of fair txrmptxi- accordance with the plans and specifications,or that the subcontractor is substantially delaying or
disrupting the progress of the work.
ung prime contractors and subcontractor•acid lead
mcies lou of wages to employees,and other evils.-
lion: Gov.C.former§ 4104,formerly§ 4102,en-
Stan.1943,c. 134•§ 4102•amended by Stats1945•
§ 2. renumbered § 4104 and amended by Stan. r .
2125. § 5; Staa1971,c. 376, § 1; Stan.1971, c. -
1.
941,c. 1283, § 1.
!ment to list subcontractors by listing
ime contractor of the requirement under (b) permit any subcontract to be voluntarily assigned or transferred or allow it to be performed by
q anyone other than the original subcontractor listed in the original bid, without the consent of the
actors, by the device of listing another awarding authority, or its duly authorized officer.
he majority of the work covered by the
er and shall subject that prime contractor (c) Other than in the performance of "change orders" causing changes or deviations from the
original contract,sublet or subcontract any portion of the work in excess of one-half of 1 percent of
the prime contractor's total bid as to which his or her original bid did not designate a subcontractor.
i changes or additions by amendment (Added by Stats.1986, c. 195, § 42.1.)
Asterisks Indicate deletions by amendment
7
h
n ri
§ 4107 PUBLIC CONTRACT CODE
Hkbwkal Nota 2. Smhtltutioo of nb000tra .
Derivadom Gov.0 former§ 4107.formerly§ 4104.Co- Substituted subcontractor on government
asci by Stats.1943,t 131,§ 4104,amended by Son.1945, Projea failed to state claim against prune contraet
a 1380. 14, renumbered § 4107 and amended by Stats. alleged breach of duty under Subletting and Subcont
1963, c. 2123, § 8; Stats.1969,a 332. § 1 Stats.1974, c. .Fav Practice Act(Gov.C.former§ 4100 et seq.;
889,§ 1; Stata.1975,c.678, § 2-1 am now.Pub.CaLC § 4100 et seq.)abaent aaegation that
substitution was wrongful or unlawful or that peemissam of
Stats,1941,c. 1283,§ 1. agency to substitute was wrong of unlawful or absent allega.
tvESTIAW Electronic Rmmvb tion of any fact implying that substitution was unlawful or
wrongful and in any event, complaint alleged a statutory
See vIESI'LA W Electronic Research Guide following the defense, i.e..that agency pennined substitution because of
Pref1sce• subcontractor's failure to sign subcontract. late. r Sys-
_ terns,las v. Del E Webb Corp(1981) 175 CaLRptr..301,
121 C.A.3d 312.
Notes of Decisions Prime contractor, faced with refusal by subcontractor to
esecute subrontract for certain underground work called for
to general 1 in proposed project, was no required by Gov.C. former
Setoffs 3 § 4107(repealed; ss..now,this section)to give subcontru-
Substitution of subcontractor 2 for notice of its request to city development agency for
permission to perform underground work in question itself
and did not breach a statutory duty to subcontractor by
substituting itself after affording subcontractor a reasonable
1. Io general opportunity to perform work. W.J. Lewis Corp. V. C.
Mere listing of a subcontractor's name by the prime Harper Const- Co.. Inc. (1981) 171 Cal.Rptr. 806, 116
contractor in its bid to the public agency did not create a C.A.Jd 27.
contract between subcontractor and prime contractor nor 3. Setons
did it create any other common-law right to maintain an Subcontractor's breach of prior public contract between it
action against the primecontractor and"duty"crested was and contractor, which contract violates this section and
Purely a statutory one under Subletting and Subcontracting Public Contract Code § 4106, may not afford contractor
Fair Practices Act(Gov.C.former§ 4100 et seq.; repealed, basis for setoff in suit by subcontractor against contractor
SM now, Pub.Con.C. § 4100 et seq.). Interior Systems. for brcwb of subsequent contract R.M.Sherman Co.,Inc.
Inc. v..Del E Webb Corp. (1981) 175 Cal.Rptr. 301, 121 v. W.R. Thomason, Inc (App. 1 Dist.1987)236 CaLRptr.
C.A:Jd 312: 577, 191 C.A.3d 559.
§ 4107.2. Carpeting; subletting subcontract with respect to labor
No subcontractor listed by a prime contractor under Section 4104 as furnishing and installing
carpeting, shall voluntarily sublet his or her subcontract with respect to any portion of the labor to
be performed unless he or she specified the subcontractor in his or her bid for that subcontract to the
prime contractor.
(Added by Stats.1986, c. 195, § 42:1.)
Historical Note
Derivation: GOv.C. former § 4107.2, added by Suits.
1975,c.271, § 1..
§ 4107.5. Claim of inadvertent clerical error in listing subcontractors: notice: objection; hear-
ing
The prime contractor as a condition to assert a claim of inadvertent clerical error in the listing of a
subcontractor shall within two working days after the time of the prime bid opening by the awarding
authority give written notice to the awarding authority and copies of that notice to both the
subcontractor he or she claims to have listed in error and the intended subcontractor who had bid to
the prime contractor prior to bid opening.
Any listed subcontractor who has been notified by the prime contractor in accordance with this
section as to an inadvertent clerical error shall be allowed six working days from the time of the
prime bid opening within which to submit to the awarding authority and to the prime contractor
written objection to the prime contractor's claim of inadvertent clerical error. Failure of the listed
subcontractor to file the written notice within the six working days shall be primary evidence of his
or her agreement that an inadvertent clerical error was made.
The awarding authority shall,after a public hearing as provided in Section 4107 and in the absence
of compelling reasons to the contrary, consent to the substitution of the intended subcontractor.
(a) If(1)the prime contractor,(2)the subcontractor listed in error,and(3)the intended subcontrac-
tor each submit an affidavit to the awarding authority along with such additional evidence as the
parties may wish to submit that an inadvertent clerical error was in fact made, provided that the
Underline indicates changes or additions by amendment
8
PUBLIC CONTRACT CODE PUBLIC CONTRACT CODE § 4109.
nmthra of subeontratas affidavits from each of the three parties are filed within-eight working days from the time of the
up,- .bmuuacor on government construction prime bid opening, or
i tote claim against prime contactor for
ri.- ._.'duty under subletting and subcontracting (b) If the affidavits are filed by both the prime contractor and the intended subcontractor within
:tire Act(Gov.C.former§ 4100 et seq.; tepnlled, the specified time but the subcontractor whom the prime contractor claims to have listed in error
Pub.CaLC § 4100 a seq.)absent allegation that
on was wrongful or unlawful or that permission of does not submit within six working days, to the awarding authority and to the prime contractor,
substitute was wrong of unlawful or absentmega written objection to the prime contractor's claim of inadvertent clerical error as provided in this
BY fact implying that substitution was unlawful or section.
and' in any event, complaint alleged a statutory If the affidavits are filed by both the prime contractor and the intended subcontractor but the
.a, that agency permitted substitution because of
cors failure to sip subcontraa. Interior Sys. listed subcontractor has,within six working days from the time of the prime bid opening,submitted
v. Del I- Webb Corp.(1981) 175 CaMptr. 301, to the awarding authority and to the prime contractor written objection to the prime contractor's
Id 312. claim of inadvertent clerical error, the awarding authority shall investigate the claims of the parties.
:ontractor,faced with refusal by subcontractor to and shall hold a public hearing as provided in Section 4107 to determine the validity of those claims.
ibcontract for certain underground work caned for Any determination made shall be based on the facts contained in the declarations submitted under
ed project. was not required by Gov.0 former penalty of perjury by all three parties and supported by testimony under oath and subject to
:pealed: am now,this section)to give subcontrac. cross-examination. The awarding authority may,on its own motion or that of any other party,admit
Of its request to city development agency for
r to perform underground work in question itself testimony of other contractors,any bid registries or depositories,or any other party in possession of
iot breach a statutory duty to subcontractor by facts which may have a.bearing on the decision of the awarding authority.
g itselfafter affording subcontractor a r nable (Added by Stats.1986, e. 195, § 42.1.)
Y to perform work. W.I. Lewis Corp, v. C.
onst. Co.. Inc. (1981) 171 Cal.Rptr. 806, 116 Historical Note
Derivation: Gov.C. forma § 4107.5, added by Stats.
s 1969,c 332.§ 3.
racmr's breach of prior public contract between it
actor, which contract violates this section and
ntrac Code § 4106, may not afford contractor § 4107.7. Failure of contractor with contract with public entity for investigation, removal or
Mir in suit by subcontractor against contractor remedial action,or disposal relative to release or presence of hazardous material or
of subsequent contract. R.M.Sherman Co.,Inc. waste to pay subcontractor, service of stop notice
homason, Inc. (App. I Dist1987)236 Cal.Rptr.
:.A.3d 559. If a contractor who enters into a contract with a public entity for investigation, removal or
remedial action,or disposal relative to the release or presence of a hazardous in or hazardous
to labor waste fails to pay a subcontractor registered as a hazardous waste hauler pursuant to Section 25163
of the Health and Safety Code within 10 days after the investigation,removal or remedial action,or
:tion 4104 as furnishing and installing disposal is completed,the subcontractor may serve a stop notice upon the public entity in accordance
h respect to any portion of the labor to with Chapter 4 (commencing with Section 3179)of Title 15 of Part 4 of Division 3 of the Civil Code.
lis--her bid for that subcontract to the (Added by Stats.1987, c. 746, § 2.)
§ 4108. Faithful performance and payment bonds of subcontractors
(a) It shall be the responsibility of each subcontractor submitting bids to a prime contractor to be
prepared to submit a faithful performance and payment bond or bonds if so requested by the prime
contractor:
(b) In the event any subcontractor submitting a bid to a prime contractor does not, upon the
!contractors: notice; objection: hear- request of the prime contractor and at the expense of the prime contractor at the established charge
or premium therefor, furnish to the prime contractor a bond or bonds issued by an admitted surety
wherein the prime contractor shall be named the obligee,guaranteeing prompt and faithful perform-
ivertent clerical error in the listing of a ance of the subcontract and the payment of all claims for labor and materials furnished or used in
the prime bid opening by the awarding and.about the work to be done and performed under the subcontract,the prime contractor may reject
nd copies of that notice to both the the bid and make a substitution of another subcontractor subject to Section 4107. The bond or bonds
intended subcontractor who had bid to may be required at the expense of the subcontractor only if the prime contractor in his or her written
or published request for subbids(1)specifies that the expense for the bond or bonds shall be borne
ime contractor in accordance with this by the subcontractor and (2) clearly specifies the amount and requirements of the bond or bonds.
ix working days from the time of the (Added by Stats.1986, c. 195, § 42.1.)
authority and to the prime contractor Historical Note
!nt clerical error. Failure of the listed Dmvayaw. Gov.C.former§ 4108,added by Sms.1%3,
days shall beprimary evidence of his c. 2125, § 9,amended by Snus.1974,c. 544, § 6.
e:
ided in Section 4107 and in the absence § 4109. Subletting or subcontracting portion in excess of certain percent of prime contractor's
itution of the intended subcontractor. total bid to which no subcontractor was designated in original bid
error,and(3)the intended subcontrac. Subletting or subcontracting of any portion of the work in excess of one-half of 1 percent of the
r with such additional evidence as the prime contractor's total bid as to which no subcontractor was designated in the original bid shall only
r was in fact made, provided that the be permitted in cases of public emergency or necessity, and then only after a finding reduced to
hanges or additions by amendment Asterisks a ' 'indicate deletions by amendment
9
C
§;4109 PUBLIC CONTRACT CODE'
writing as a public record d.the awarding authority setting forth the facts constituting the
emergency or necessity.
(Added by Stats.1986, C 195, § 421.)
Historical Note c. 1380, § 5, rmtmtbered § 4109 and amended by Sou.
Derlmtlom.Gor.0 former.§ 4109,formerly§ 4105,en- 1963,c.2125, § 10.
acted by Stara.1943,c. 134,§ 4105,amended by Stats 1945, Stats 1941,c. 1283,§ 1.
§ 4110. Violations of chapter and contracts; cancellation or penalty; notice and hearing
A prime contractor violating any of the provisions of this chapter violates his or her contract and
the awarding authority may exercise the option, in its own discretion, of (1) canceling his or her
contract or(2)assessing the prune contractor a penalty in an amount of not more than 10 percent of
the amount of the subcontract involved,and this penalty shall be deposited in the fund out of which
the prime contract is awarded. In any proceedings under this section the prime contractor shall be
entitled to a public hearing and to five days' notice of the time and place thereof.
(Added by Stats.1986' c. 195, § 42.1.)
Historical Note and amended by Stats1%3. a 2125, § 11, amended by
Der_nHom Gov.C.former§ 4110,krmc:iy§ 4106,en- Stats.1969,c. 332, § 2.
acted by Stats.1943,a 134,§ 41M amended by Stats 1945,
c. 1380. § 6; .Stats Stats.1941,c 1283,1961,c. 1%3, § I,renumbercit§ 4110 § 1.
§ 4111. Violations of chapter by licensee under Contractors' State License Law; grounds for
disciplinary action
Violation of this chapter by a licensee under Chapter 9(commencing with.Section 7000)of Division
3 of the Business and Professions Code constitutes grounds for disciplinary action by the Contractors
State License Board, in addition to the penalties prescribed in Section 4110.
(Added by Stats.1986, c. 195, § 42.1.)
Historical Note
Derivadom Gov.C. former § 4111, formerly § 4106.5,
added by Stats.1961,c. 1%3, § 2, renumbered§ 4111 and
amended by Stats.1%3,c 2125, § 12.
§ 4112. Failure of contractor to comply with chapter,no defense in action against contractor by
subcontractor
The failure on the part of a contractor to comply with any provision of this chapter does not
constitute a defense to the contractor in any action brought against the contractor by a subcontrac-
tor.
(Added by Stats.1986;c. 195, § 42.1.)
Historical Note Stats.1941,c. 1283. § 1.
Derivathm: Gov.C.former§ 4112,formerly§ 4107,en-
acted by Stan.1943,c..134,§ 4107,renumbered§ 4112 and
amended by Stars 1963,c. 2125, § 13.
§ 4113. Subcontractor and prime contractor
As used in this chapter, the word "subcontractor"shall mean a contractor, within the meaning of
the provisions of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and
Professions Code, who contracts directly with the prime contractor.
"Prime contractor" shall mean the contractor who contracts directly with the awarding authority.
(Added by Stats.1986, c. 195, § 42.1.)
Historical Note amended by Stats.1%3, e. 2125, § 14, amended by Stats.
Derivation: Gov.C. former § 4113, formerly § 4108. 1974,c.423. § 3.
added by Stau.1945,c. 1380, § 7, renumbered§ 4113 and
Underline Indicates changes or additions by amendment
10
V
PUBLIC CONTRACT CODE § 7102
PUBLIC CONTRACT CODE § 4114. Counties with population of 6,000,000 or more; board of supervisors as awarding
et�¢ forth the facts constituting the authority; delegation of certain functions to hearing officer; recommendations
In counties with a population of 6,000,000 or more,the county board of supervisors,when it is the
awarding authority, may delegate its functions under Sections 4107 and 4110 to a hearing officer
designated by the board.
§ 5, renumbered § 4109 and amended by Stan. The hearing officer shall make a written recommendation to the board of supervisors. The board
.125, § lo. of supervisors may adopt the recommendation without further notice or hearing, or may set the
41,c. 1283, § 1. matter for a de novo hearing before the board.
(Added by Stats.1986, c. 195, § 42.1.)
,tion or penalty; notice and hearing
H4torical Note
chapter violates his or her contract and
Derivation: Gov.C. former§ 4114,added by Sutu.3982,
n discretion, of (1) canceling his or her c. 362.§ 1.
a amount of not.more than 10 percent of
ill be deposited in the fund out of which CHAPTER 5 RELIEF OF BIDDERS
his section the prime contractor shall be
time and place thereof. 5101. Consent to relief b
§ y awarding authority; action for recovery of amount forfeited; coats
and fees
ded by Stats 1963, c: 2125, § 11, amended by Notes of Decisions and an opportunity to respond before contract was awarded
,-Q 332, § 2. 1. In general to lowest bidder, therefore,where that claim was not raised
al,c. 1283.§ 1. There were disputed factual issues raised by unsuccessful below itwas not reviewable on appeal Menefee v..Fresno
bidder's claim that it was the apparent low bidder before County(Brewer-Kalar)(App.5 Dist.1985)210 Cal.Rptr.99,
meeting of board of supervisors and was entitled to notice 163 C.A.3d 1175.
:tors' State License Law; grounds for
CHAPTER 6. AWARDING OF CONTRACTS
mmencing with Section 7000)of Division
'or disciplinary action by the Contractors Section
in Section 4110. 6100. Verification of appropriate licensure of contractor prior to awarding contract; presentation of
license and statement in lieu of verification
Chapter 6 was added by Stats.1986, a 1230, § 2.
§ 6100. Verification of appropriate licensure of contractor prior to awarding contract. presen-
tation of license and statement in lieu of verification
(a) Any state agency or department, as defined in Section 10357, which is subject to this code,
de ense in action against contractor by shall, prior to awarding a contract for work to be performed by a contractor, as defined by Section
7026 of the Business and Professions Code,verify with the Contractors'State License Board that the
person seeking the contract is licensed in a classification appropriate to the work to be undertaken.
any provision of this chapter does not Verification as required by this section need only be made once every two years with respect to the
against the contractor by a subcontrac- same contractor:
(b) In lieu of the verification, the state entity may require the person seeking the contract to
present his or her pocket license or certificate of licensure and provide a signed statement which
swears,under penalty of perjury,that the pocket license or certificate of licensure presented is his or
hers, is current and valid, and is in a classification appropriate to the work to be undertaken.
1,c. 1283. § 1. (Added by Stats.1986, c. 1230, § 2.)
CHAPTER 7. CONTRACT CLAUSES
Section
7103. Contracts by state entities for public works in excess of$5,000, necessity of payment bonds
pan a contractor, within the meaning of by contractors.
10) of Division_ 3 of the Business and 7106. Noncollusion affidavit; form. [New]
tractor. § 7102. Contractee delay; limitation of liability to time extension; damages; waiver, arbitra-
s directly with the awarding authority.
tion
Contract provisions in construction contracts of public agencies and subcontracts thereunder which
limit the contractee's liability to an extension of time for delay for which the contractee is responsible
y Stats 1963, a 2125. § 14, amended by Stats and whirls delay is unreasonable under the circumstances involved,and not within the contemplation
3.§ 3. Asterlsks • • Indicate deleftu by amendment
changes or additions by amendment 11
C
AMBER STEEL COMPANY, Inc. u I .216175
•207 EastTerrace Way •816 North Ventura Avenue leo Tram(
Bokersfield,CA93307 Ventura,CA 93001 IDEN,
)805)327-7241 (805)643-9988 nude Tromel`
FAX 327-8246 FAX 643-6910 ESIDENT
23 May, 1989
Mr. Dave Romero
Public Works Director
San Luis Obispo, CA 93401
Dear Mr. Romero -
Re: Marsh Street Parking Structure
City File #89-02
1 am writing this letter because of rummors l have heard
that Madonna Construction' Co. is trying to have our company
removed as the reinforcing bar subcontractors.
We have spent a lot of time and money preparing our bid for
this project and are very much looking forward for it to
begin. \
In closing, 1 would like to say that we are very pleased
to have this project and we know we will do a fine. job
for Madonna Construction Co. and for the City of San
Luis Obispo.
Sincerely,
MSP STEEL CO 1NC.
Bill. Bence
Manager
BB/gwm
MAY 24 '89 13:29 AMBER --c EL CO VTA 805 643-69100 P.2/2
AMEREEL COMPANY, Inc. UeenseNa216i75
•816 North Ventura Avenue Cleo FRiSIOEMEN
�.• al
207 EOst Terrace Woy T
Bakersfield,CA93307 Venwsa,CA93601 ClaudeLframel
(805)371-7241 jabs)64-9988 VKEPRE&DENT
FAX 327-8246 FAX 643-6910
May 25,'1989
To Madonna Constructican
P.O. Box 3910
San Luis Ohispor Ca. 93403
Att: Bill Morris
RE: Marsh Street Parking Structure
City File No. 89-02
Dear Bill,
As 1 told you in our telephone convensaticn today, our C ly
is not going into chapter seven. We are still in chapter eleven,
as your company already knew.
We have notified our lawyer of your =rpanies intentions and
we have told him to contest any steps to have us renoved frm this job.
He is now trying to get hold of your lawer.
The first. and only time our co>�r:y lt;iEant theze was any problem,
with. using us was when we received a copy of the letter sent to the city.
we received this letter on May 19,1989.
Sincerley,
Bill Bence
Manager
cc: Dave Ro11>er0, Public Works Di.reator
City of San Luis Obispo
Micheal Worthing
Attorney at Law
C
1 DAVID F. LEVI
United States Attorney
2 LARRY J. GALLAGHER
Assistant United States Attorney
3 Federal Building, Room 4304
1130 "0" Street
4 Fresno, California 93721
ANDREW D. WEISS
5 Special Assistant United States Attorney
55S. Market Street, Suite 505
6 San Jose, California 95113
Tel . No. ( 408) 2.91-4.262
7
8
Attorneys for the United States of America
9
10 IN THE UNITED STATES BANKRUPTCY COURT FOR THE
11 EASTERN DISTRICT OF CALIFORNIA
12
In The Matter of : ) Case No. 186-03432
13 )
AMBER: STEEL COMPANY, INC. ) Chapter 11
14 )
Debtor . ) NOTICE OF MOTION AND MOTION
15 ) FOR DISMISSAL OF THE CHAPTER
11 PROCEEDING OR CONVERSION TO
16 ) CHAPTER 7
17 ) DATE: June 7, 1989
TIME: 9 :00 a.m.
18 ) PLACE: Bakersfield
JUDGE: Dorian
19
20 PLEASE TAKE NOTICE that on June 7, 1989 . at 9 : 30 A.M.
21 or as soon thereafter as counsel may be heard, before the
22 Honorable Brett Dorian, United States Bankruptcy Judge,
23 United States Courthouse, 800 TrUKtun Avenue, Bakersfield,
24 California, the United States of America, a creditor in
25 the above-entitled Chapter 11 proceeding, will move the
26
Court pursuant to Section 1112 (b) of the Bankruptcy Code
�
27 ( 11 U.S .C. 51112 (b) ) for a dismissal of the Chapter 11
28
I proceeding or in the alternative, for conversion of this
2 action from Chapter 11 to Chapter 7.
3 PLEASE TARE FURTHER NOTICE that the- preceding motion
4 will be based upon the Memorandum of Points and
5 Authorities, copies of which may be examined during
6 regular business hours in the office of the clerk of the
7 court, the record of this case and such arguments of
8 counsel and evidence as may be made and received,
g respectively, at the hear-ing on the said motion.
10
DAVID F. LEVI
11 United States Attorney
12
13 Dated: MAY 1 2 1989 By:
ANDREW D. WEISS
14 Special Assistant United
States Attorney
15
16
17
18
19
20
21
22
23
24
25
26
0 27
28 =2
NOTICE OF MOTION AND MOTION FOR DISMISSAL r
airV40
AMBER STEEL COMPANY, Inc. License No.216175
•207 East Terrace Way •816 North Ventura Avenue Cleo S.Tramel`,,
Bakersfield,CA 93307rrtu ,CA93001 PRESIDEN
(8051327-7241 (805)643-9988 Claude.L.Tromei-.
FAX 327-8246 FAX643-6910 VICEPRESIDENT
5 June, 1989
Mr. DAve Romero
Public Works Director
City of San Luis Obispo
955 Morro St.
San Luis Obispo, CA 93401
Dear Mr. Ranero:.
Re: Marsh Street Parking Structure
City File #89-02
It has cane to my attention, today, that Madonna Construction
has selected R. P. S. Cable Corporation to furnish and install
the reinforcing bar for the caissons for this project, and the
reinforcing bar will be delivered sanetime this week.
As stated in my letter dated May 25th, 1989 to Madonna Construction
of which 1 sent you a copy, our calpany will take all steps
necessary to block our retboval as the reinforcing bar sub-
contractor for this project.
Our canpany was listed for the reinforcing bar and we expect
to do this project.
Sincerely,
STEEL CO 1NC.
Bill Bence/Manager
CC:
Madonna Construction
Micheal Worthing - Attorney At Law
)2'1- 3051
I ' '
cityo san huis oBispo
990 Palm Street/Post Office Boz 8100 • San Luis Obispo,CA 93403-8100
CERTIFIED MAIL
June 8, 1989
Amber Steel Company, Inc.
816 N. Ventura Ave.
Ventura. CA 93001
Dear Sirs:
Please be advised that a request has been received from Madonna
Construction Company. Inc. . (dated May 18 and amended May 26. 1989) that
Regional Steel Corporation ( "Regional " ) be substituted in place of Amber
Steel Co. , Inc. as subcontractor on the Marsh Street Public Parking
Structure. City Plan :89-02.
In accordance with Public Contract Cade Section 4100 et seq. , you are
hereby noticed that you have five working days within which to submit
written objections to the substitution to the awarding authority. Failure
r' to file these written objections shall constitute the listed subcon-
tractor' s consent to the substitution.
This action will be considered by the San Luis Obispo City Council at its
meeting on .Tuesday. .lune 20. 1989, at 7:00 p.m. , in the Council Chambers
at City Hell . 990 Palm Street., San Luis Obispo. The staff report will be
available by the Thursday prior to the meeting,. For further information,
please call City Engineer Wayne Peterson at 549-7200 or myself at
543-7103.
�STf1l�ere 1
y.
Pam Voges. CMC
ity Clerk
c: Dave Romero, Director of Public Works
Wayne Peterson, City Engineer
Vicki Finucane. Acting City Attorney
Roger Picquet. Consulting Attorney, Lyon and Picquet
Regional Steel Corporation
PV:klc
1'
NEEDING ASECIA
DATE L ITEM #
LAW OFFICES OF
F.E.BORTON(16"-1946) GORTON PETRINI & CONRON SANTA MARIA,CA 93454
JAMES RETAIN$(1697'1978) 301 SO.MILLER,SUITE 121
HAPPY M.CONPON(1907.1971) WESTCHESTER CORPORATE PLAZA TELEPHONE(605)9228265
KENNETH D.PINSENT(1953.1964)
1800 30TH STREET,4TH FLOOR SANTA BARBARA,CA 93101
REGIONAL OFFICESSANTA
E.DE LA GUERRA ST.,2ND FLOOR
SACRAMENTO,CA 95815 POST OFFICE: BOX 2026 -
TELEPHONE(805)564'Z404
1545 RIVER PARK OP.,SUITE 350 BAKERSFIELD, CALIFORNIA 93303
TELEPHONE(916)920.2812
(BOS) 3223051 SAN DIEGO,CA 92101
- 401 WEST^A^STREET,SUITE 1905
FRESNO,CA 93721 CABLE:"VERDICT" TELEPHONE(619)232'2424
T.W.PATTERSON BLDG.,SUITE 830
FAX: (BOS)322'4628
20I4 TULARE STREET
TELEPHONE(209)266'0117 LOS ANGELES.CA 90017
CITICORP CENTER
725 50.FIGUEROA ST.,SUITE 2030
VISALIA,CA 93291 TELEPHONE(213)6242589
206 SO.MCONEY BOULEVARD
TELEPHONE(209)6275600 MODESTO,CA 95354
THE TURNER BUILDING
0-H-STREET,SUITE D
NEWPORT OAON CENTRE 92660 June 9 , 1984TELEPHONEO (209)5761t701
1300 DOVE STPE ET,SUITE 200
TELEPHONE(714)752-2]3]
$1N FRANCISCO.CA 94104
44 MONTGOMERY ST.,SUITE 2220
SAN LUIS OBISPO,CA 93401 TELEPHONE(415)961-4415
1035 PEACH STREET,SUITE 203 -
TELEPHONE(605)541•4340 ...
- I. REPLY REFER
TO OUR FILE NO.
Bakersfield
45237/21455
City of San Luis Obispo
990 Palm Street
P . 0. Box 8100
San Luis Obispo , CA 93403-8100
ATTN: Pam Voges
City Clerk
RE: Madonna Construction, Marsh Street
Public Parking Structure, City
Plan No . 89-02
Dear Ms. Voges:
We are in receipt of a copy of your letter of
June 8 , 1989 to Amber Steel Company, Inc. , Ventura,
California. On behalf of Amber Steel Company, Inc . we
object to the proposed substitution of Amber Steel Company
as a subcontractor in the above job. The reasons are set
for in our correspondence of May 24 , 1989 regarding this
matter, a copy of which we enclose for your information
and reference .
Ver.y .truly yours,
MICHAEL D. WORTHING
MDW/rr ' action by Lead
Enclosure ;✓counci�
V --AO
cc w/encl : Lyon. & Picquet C✓�C(tyAny. l:9Nuc4.aE
Attn: Roger Picquet Vc4rc-ggp.
Sinsheimer , Schiebelhut & Baccet Ca '
Attn: Martin J. Tangeman l-! �
^�lo -
L
ETING AGFNDA
(1A �a?0•f91r
I-Po # _ -
JUN 13 '69 14=28 AMBER STEEL CO VTA 805 643-69100 P.1i4
AMBER STEEL COMPANY, Inc. Lkwi*No.216175
207 East TerroceWoy •816North VenturaAvenue CIeo5.7ramet
80kersfieW,CA93307 Ventura.CA 93001 P.Tra el
(8051327-7241 1805)643-9988 Claude L.Tramel
FAX 327.8246 FAX 643-6910 VICE MSIDENT
•
DATE �Y�g
TO: C-_ ; oNAc�l �J �
ATTN. :
FROM:
COMMENTS:
f
Dy Lv:iC'NI SCI'
!:✓1 zwlCii
RECEIVED ffV,CAO
JUN 1 3 1989 /CBrk-
xo��Po
v equer
CITY CLERK
SAN LUIS OBISPO,CA /(
This transmission is `"r pages, including this page.
if there were any prob''Nms with this transmission,
please call us at 805-643-9988.
JUIY 1J O'v L-4-co HI'iLLR C ''.LL LV V IH bels n..Lj oviod - C-1-4
1
AMBER STEEL COMPANY, Inc.
License No.z,e175
•207 E=rTerrace Way •816 North Venturo Avenue Cleo S.Tmmel
Bakersfield,CA 93307 Venturo,CA 93001 PRESIDENT
(805?327-7241 (805)643-9988 Claude L.Tromel
FAX327-8246 FM643-6910 VICE PRESIDENT
June 13, 1989
City of San Luis Obispo
990 Palm Street
P.O. Box 8100
San Luis Obispo, CA 93403-8100
Gentlemen:
Attention: Pam Voges, CMC - City Clerk
This letter is . in reply to your letter dated June
8, 1989.
We wish to advise you that we do abject to the sub-
stitution of Regional Steel Corporation in place of
Amber Steel Company, Inc. on the Marsh Street Public
Parking Structure.
We are well qualified contractors and are very capable
of completing this project successfully. '
We recently completed a larger parking structure in
Santa Barbara for A. J. Diani Construction, Inc. The
same efficient crew is still in our employ.
We are attaching a list of some contractors in the area
with whom we have previous and/or are currently working.
We urge you to contact them for further information
concerning our performance.
Thank you very much for your consideration to our objection.
and the opportunity to reply.
Sincerely,
AMBER STEEL COMPANY, INC.
Bill Bence
BB/ek Manager - Ventura
` Page 1 of 2
AMBER S MEL COMPANY, Inc.
Ucen;o No 216175
•207 Cast Terrace Way 816 North Ventura Avenue
Bakersfield,CA 93307 Ventura,CA 93001 CeoS.Tramel
(805)327-7241 (805)
327.8246 18051 9988 Claude L.Tramel
FAX 643-6910 VICE PRESIDENT
City of San Luis Obispo (continued)
CONTRACTORS
R. Burke Corporation (Steve Souza)
P.O. Box 957
865 Capitolio Way
San Luis Obispo, CA 93406
805 543-8568
A. J. Diani Construction Co. , Inc. (Mike Diani)
P.O. Box 636 ( 93456)
295 North Blosser
Santa Maria, Ca 93454
805 925-5333
Maino Construction Company (Denny Larsen)
P.O. Box 1347
1122 Laurel Lane
San Luis Obispo, CA 93401
805 543-7411
Nick E. Pokrajac, Inc. (Nick Pokrajac)
P.O. Box 539
110 Main Street
Templeton, CA 93465
805 434-2219
c: Dave Romero
Wayne Peterson
Vicki Finucane
Mike Worthing
JIAV 13 '89 14:29 HMbtk ~'''-.:-.L CO V1 H 805 b49-6'J16U 4/4
}
A,1.DIANI A.J. DIANI CONSTRUCTION CO., INC.
CONTRACTORS•ENOtNEERS
YYY
June 13, 1989
To Whom It May Concern:
The Amber Steel Company, Inc. has recently completed a subcontract
with our company in excess of $650,000.00.
They porformed the reinforcing work, bonded tendons., and barrier
cables on the City of Santa Aarbara, Lot 10 Parking Structure which was
opened to thc 'public on M.ty 8, 1989.
Amber Steel Company's performance on this project was excellent
and we recommend their company for any tyFie of reinforcing work.
A. J. Diana Construction Co., Inc.
Mi ,ael J. Dia i
vice President
"ORA,CALIFOANIA 93454 (805)92S•9533 FAX(805)922.9983
M" -ING AGENDA
DATE -AQ-9`? ITEM # �.
LAW OFFICES OF
F.E GORTON(1877-1946) B O R T O N P E T R I N'1 & C O N R O N SANTA MARIA,CA 93454
JAMES PETRINI(1097-1978) 301 50.MILLER,SUITE 121
HARRY M.CONRON(1907-1971) WESTCHESTER CORPORATE PLAZA TELEPHONE(605)9Z2-6285
KENNETH O.PINSENT(1953-1984)
1800 30TH STREET,4TH FLOOR SANTA.BARBARA,CA 93101
REGIONAL OFFICES 120 C.OE LA GUERRA ST.,2NO FLOOR
POST OFFICE BOX 2026 (
SACRAMENTO,CA 93813 TELEPHONE 805)564-2404
1545 RIVER PARK DR.,SUITE 350 BAKERSFIELD, CALIFORNIA 93303
TELEPHONE(916)OZO-2812 SAN DIEGO,CA 92101
(605)322-3051 401 WEST"A"STREET,SUITE 1905
FRESNO,CA 93721 - CABLE:"VERDICT- TELEPHONE(616)232-2424
T.W.PATTERSON BLDG.,SUITE 630
2FAX:(605)322'4626
014 TULARE STREET
LOS A , 90017
TELEPHONE(209)268-0117 CITICORPKELP CENTER
725 50.FIGUEROA ST.,SUITE 2030
VISALIA,CA 93291 TELEPHONE(213)624.2669
206 SO.MOONEY BOULEVARD
TELEPHONE(209)627-5600 MODESTO,CA 95354
THE TURNER BUILDING
NEWPORT BEACH,CA 92660 900"H"STREET,SUITE O
OAON CENTRE June 9 , 1989 TELEPHONE(209)576.1701
1300 DOVE STREET,SUITE 200 -
TELEPHONE(714)752.2333 SAN FRANCISCO,CA 94104
44 MONTGOMERY ST.,SUITE 2220
SAN LUIS OBISPO,CA 9340r TELEPHONE(415)981-4415
1035 PEACH STREET,SUITE 203
TELEPHONE(805)541-4340 :'-+ ✓.l i.T= :...ve "'•, IN REPLY REFER
TO OUR FILE NO.
Bakersfield
45237/21455
JUN
City of San Luis Obispo
990 Palm Street
P . 0. Box 8100 , ' _ O.CA
San Luis Obispo, CA 93403-8100
ATTN: Pam Voges
City Clerk
RE: Madonna Construction, Marsh Street
Public- Parking Structure, City
Plan No. 89-02
Dear Ms . Voges:
We are in receipt of a copy of your letter of
June 8 , 1989 to Amber Steel Company, Inc. , Ventura,
California. On behalf of Amber Steel Company, Inc. we
object to the proposed substitution of Amber Steel Company
as a subcontractor in the above job. The reasons are set
for in our correspondence of May 24 , 1989 regarding this
matter, a copy of which we enclose for your information
and reference.
Very�tr
MICHAEL D. WORTHING
MDW/r r s L cnao£ett on`by Lead Per c;,•t
R35pwd by:
Enclosure 117,councT
PrqA0
cc w/encl: Lyon & Picquet V54yAfty I..41W
Attn: Roger Picquet WClenc-Ig
Sinsheimer, Schiebelhut & Baccet ar 2 '`'ew4ft-r
Attn: Martin J. Tangeman p b. Oho
' LAW OFFICES OF
r.aeowTON pen•1we) BORTON PETRINU& CONRON SAN LUIS G616Po,CA 93401
.MM[e PCTMN1(1007•1976) 687 SANTA NOOA STREET
NARRT K COMMON(1007•1971) WESTCHESTER CORPORATE PLAZA . T[L[PHOM[(GOO)5414340
. KENNETH 0.PINSCNT(1983•1004)
I800 3OT64 STREET ATN FLOOR
R[aIOMAL arrICES SANTA MARIA,CA 93454
SACRAMENTO,e.956u POST OFFICE BOX 2026 301 00.MILLER,SUITE 1sT
TEL[PNOM[.(00519Es-azee
.-woo a STREET,SUITE 350 BAKERSFIELO, CALIFORNIA 83303
TCLLPNONC(090)4A3•4727
(505)322.3081 SANTA SARGARA,CA 93101
1[O L.O[LA GUERRA ST.ENO I'LOOR
' MCONO,CA 93721 CABLE:-VERDICT- T[LCPNONE 16081564.2404
L W.PATTERSON.SLOG,SUIT[O.TO
„ 8014 TULARC OTPCCT
T[LEPHOME(E09)goo_0S" SAN OIE60,CA 92101
May 24, 1989 556 W.e[CCN STREET.SUIT[400
TLL[PNON[1019)E]L•E4E4
VISALUI,CA 93291
THL C0L0NU1L eLOG.ENO rLOOR
601 WEST AC[OU1A STREET LOS ANGELES,CA 90017
TILLC�Oftlt=9)627-54500 ONE WILSHIRE BUILDING
694 SO.OMANa AVC.SUITE 9900
TELEPHONE(213)400.6050
MCWPORT SLAC H,CA 92660
CAON CENTRE
L30000VC STM[[T,SUITE 200 MOOESTO,CA 95354
T[LEPMON[(!14)!69.2]]]
62113TH pMC[T,SUITE OI
TELEPHONE(209)5!6.1701
IM REPLY MErER
TO OUR rILL NCL
Bakersfield
45237/21455
HAND DELIVERED
San Luis Obispo City Clerk
990 Palm Street
San Luis Obispo, CA 93403
Attention: Ms. Pam Voges
Re: Amber Steel Company, Inc.
Dear Ms. Voges:
This firm represents Amber Steel Company, Inc.
We have been provided a copy of a letter from Martin J.
Tangeman, Esq. , regarding the Marsh Street Public Parking
structure, City File 89-020 wherein Mr. Tangeman .requests on
behalf of Madonna Construction to substitute that firm in
place of Amber Steel Company, Inc. , as a subcontractor on the
job. This request is made under Public Contract Code
section 4107.
Amber Steel Company, Inc. , does not consent to the
request, and pursuant to section 4107, requests a hearing on the
request. Our client' s objection is based upon the fact that
Madonna Construction was aware at the time the bid was
submitted, and apparently utilized by Madonna, that Amber Steel
was, and is, in a Chapter 11 proceeding. Further, the motion
referred to in Mr. Tangeman' s letter is a renewal of a
motion which was denied by the Bankruptcy Court approximately
one month ago, and there has been no decision by the court
as yet which changes the circumstances extant at the time
Amber Steel submitted, and at the time Madonna used, its bid
for the subject subcontract.
GORTON, PETRINI CONRON
San Luis Obispo City Clerk
May 24, 1989
Page 2
Any questions, and future notices or correspondence
pertaining to this matter should be addressed to Michael D.
Worthing of our Bakersfield office, at the address and/or
telephone number set forth above for that o 'ce.
V y trul rs
Mich el D- o ing
MDW:cls
cc: Public Works Director
City of San Luis Obispo
Attn: Mr. Dave Romero
Martin J. Tange an, Esq,
b