HomeMy WebLinkAbout08/31/1989, C-2 - REQUEST BY MADONNA CONSTRUCTION TO SUBSTITUTE ITSELF FOR A SUBCONTRACTOR ON PARKING STRUCTURE #2 PR �- • MEETING DATE.,
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COUNCIL AGENDA REPORT C-NUMBER:
FROM: Roger Picquet, L gal Consultant
SUBJECT: Request By Madonna Construction to Substitute
Itself for a Subcontractor on Parking Structure #2 Project
CAO RECOMMENDATION:
Consent to Request to Allow Prime Contractor to Perform
Structural Steel Subcontract Portion of the Project
DISCUSSION:
The Council recently considered and approved a request by Madonna
Construction to substitute Regional Steel Corporation for Amber Steel
Corporation to perform the structural steel portion of the public works
project known as Parking Structure #2. The request was a difficult one to
analyze and make a decision on because of conflicting testimony from
Madonna and Amber and because the law did not directly address the
peculiar set of circumstances . Council approval was conditioned on
Madonna agreeing to "hold harmless and indemnify" the City.
Madonna has reported that subsequent negotiations with Regional Steel have
reached an impasse and, accordingly. Madonna is requesting permission to
do that structural steel portion of the work itself . Staff has reviewed
the request and came to the following conclusions:
1 . Madonna is fully qualified to perform the structural steel work.
2. The request to substitute the prime contractor for a
subcontractor does not violate specifications for the job or
contravene any state rules regarding contractors .
3. The request does not appear to involve the potential for bid
shopping or bid peddling and therefore falls outside the scope of
Public Contracts Code § 4107 et seq. (See Lewis Corp. v. Harper
Const. Co. (1981) . 171 Cal .Rpt. 806, 116 Cal .App.3d 27. )
Staff appreciates Council's concerns regarding the difficulties in getting
this particular project (and prime contractor) "on track. " Nonetheless,
this request appears to be appropriate and staff recommends approval
subject to the same condition as before (Madonna Construction to "hold
harmless and indemnify" the City from any and all claims or lawsuits of
any nature arising or alleged to have arisen out of this decision) .
RP/sw
RESOLUTION NO. 6670 (1989 Series)
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SAN LUIS OB_ISPO CONSENTING TO THE
SUBSTITUTION OF A SUBCONTRACTOR ON THE
MARSH STREET PUBLIC PARKING STRUCTURE
WHEREAS , a prior .request was received from the prime contrac-
tor, Madonna Construction Company, on the Marsh Street public
parking structure for consent to substitute a subcontractor; and
WHEREAS, pursuant to the procedures and criteria for consider-
ing such a request set forth in State and local law, the Council
gave its consent in Resolution No. 6645 (1989 Series) ; and
WHEREAS , a similar and later request was made by the prime
contractor for consent to allow it (Madonna Construction Company)
to do the work originally indicated to be done by the original
subcontractor, Amber Steel Company, and the subcontractor which was
substituted in, Regional Steel Company; and
WHEREAS, the Council has met to discuss, deliberate and
consider the request.
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS :
The Council hereby grants its consent to the request to allow
Madonna Construction Company to substitute itself for a subcontrac-
tor to perform that portion of the project, generally described as
the structural steel work, 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 defec-
tive .
On motion of Council Member Settle, seconded by Council Member
Reiss, and on .the following roll call vote:
R 6670
J
Resolution No. 6670
AYES : Settle, Reiss , Mayor Dunin, Rappa, Pinard
NOES : None
ABSENT: None
the. foregoing Resolution was passed and adopted this 7th day of
August 1989 .
MAYOR RON DUNIN
ATTE
a%�
CITY CLERK, P�AM GES
APPROVED:
ity A i.nistrative Officer
City Att ney