HomeMy WebLinkAbout08/01/1989, C-6 - RESOLUTION CONSENTING TO THE SUBSTITUTION OF A SUBCONTRACTOR ON THE MARSH STREET PUBLIC PARKING STR IIIIII�IR`IIW►Illl�u � I MEETING DATE:
II ► ��U�� city oT" San LUIS OBISp0 8/1/89
OftZe COUNCIL AGENDA REPORT ITEM NUM
-- FROM: Pam Voges, City Clerk
SUBJECT: C '
Resolution consenting to the substitution of a subcontractor on the Marsh
Street Public Parking Structure.
CAO RECOMMENDATION:
Receive and file.
BACKGROUND:
Pursuant to the Brown Act, after Council has taken action at a Closed
Session, that action must be submitted at the next Regular meeting of the
City Council.
At its meeting of June 12, 1989, the City Council passed Resolution No.
6645 granting consent to the requested substitution by Madonna
Construction Company of Regional Steel for Amber Steel on the Marsh Street
parking structure.
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Attachment: Resolution No. 6645
RESOLUTION NO. 6645 (1989 Series)
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO
CONSENTING TO THE SUBSTITUTION OF A SUBCONTRACTOR ON THE
MARSH STREET PUBLIC PARKING STRUCTURE
WHEREAS, a request was received from the prime contractor, Madonna Construction
Company, on the Marsh Street public parking structure for consent to substitute a
subcontractor; and
WHEREAS, a timely objection was received from the subcontractor, Amber Steel
Company; and
WHEREAS, pursuant to Public Contracts Code Section 4100 et seq. , a hearing was
conducted on June 20, 1989, by the Council in chambers at 990 Palm Street, San Luis
Obispo, California; and
WHEREAS, both Madonna and Amber have stipulated :and agreed that Council Member
Jerry Reiss may participate in this matter even though he is involved in the
construction business; and
WHEREAS, at said hearing, oral and written testimony was taken on the merits
of therequest to substitute Regional Steel Corporation for Amber Steel Company; and
WHEREAS, the matter was continued in order to receive additional information
from both Madonna and Amber; and
WHEREAS, said material was received from Amber Steel Company on June 23, 1989,
and Madonna Construction Company on June 26, 1989; and
WHEREAS, said additional material from Madonna was submitted and received as
confidential information since it contained specific bidding and pricing information,
the disclosure of which could unfairly be against the general busi.ness interests of
Madonna Construction Company; and
WHEREAS, the Council has met several times to review all the testimony and.
evidence, the relevant law and the particular facts and circumstances involved in
this request:
. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
1. The Council makes the following factual determinations:
a. Amber Steel Company was in a bankrupt status at the time of the
original bid to the City and at the time of the request for substitution;
b. Madonna Construction Company should and could have been aware of
Amber' s status had it exercised normal and proper management practices prior to the
submission of its bid to the City;
c. Regardless of the fact that Amber gave notice on more than one
occasion of its bankrupt status to Madonna Construction Company, the management of
Madonna Construction had no actual knowledge of said status;
d. Madonna Construction Company has a bona-fide, good-faith belief that
Amber Steel Company's bankrupt status presents an unreasonable risk for it to
undertake over the life of the project.
2. The Council hereby grants its consent to the requested substitution on the
sole and express condition that Madonna Construction Company shall hold harmless and
indemnify the City of San Luis Obispo, its agents, officers and employees from any
and all claims, lawsuits or proceedings of any kind or nature in which it is alleged
that this decision to consent is in error, wrongful , illegal , contrary to public
policy or otherwise defective.
On motion of Council Member Settle, seconded by Council Member Reiss, and on
the following roll call vote:
AYES: Settle, Rei.ss, Mayor Dunin
NOES: Rappa
ABSENT: Pinard
the foregoing Resolution was passed and adopted this 12 day of July Iggg,
a1RON DUNIN
MAYOR RON DUNIN
ATTEST:
s1 kAW VOG
CITY CLERK, PAM VOGES
APPROVE .
City Ad 'nistrative fficer
City Atto
Finance Director