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AGENDA ITEM REVIEW FORM |
12.A.
Regular City Council Meeting
- Meeting Date:
- 09/25/2019
- Department Head:
- Kay Macuil
- Submitted By:
- Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding settling the City's claim against LPC Construction, Inc., for the failure of the trench work along Cesar Chavez Boulevard for the Lift Station Project. (Kay Marion Macuil, City Attorney)
SUMMARY:
The Project
The city put out to bid the construction of a lift station and force main for the project known as the Juan Sanchez Boulevard Lift Station Project. (This year, the city renamed the road Cesar Chavez Boulevard). This project diverts sewage from the West Wastewater Treatment Plant to the East Wastewater Treatment Plant.
Failure of the Construction Work
In September 2016, the city awarded the construction contract to LPC Construction, Inc. The force main was buried along Cesar Chavez Boulevard on the south side of Cesar Chavez Boulevard from the lift station through 10th Avenue. That trench is on the south side of the paved road surface. The way LPC did the trench work, it caused the road surface to cave, most likely a compaction issue.
Settlement Agreement
On February 18, 2108, LPC's owner, Drew Pilkington, died. As a result, LPC went out of business. The city has been dealing with the surety company that issued the performance bond. Public Works Director Eulogio Vera has been monitoring the affected road since LPC completed the construction. He has determined that the trench work does not have to be re-done, but the surface caving can be repaired for $65,000. Without accepting any fault on LPC's part, the surety has agreed to settle for $65,000. This settlement will release the performance bond and will bar the city from bringing any more claims regarding LPC's work on the Juan Sanchez Boulevard Lift Station Project.
Staff recommends approval of the settlement.
Staff recommends approval of the settlement.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE THE SETTLEMENT AS PRESENTED IN THE AMOUNT OF $65,000.00.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- No
- CITY/STATE/FEDERAL FUNDS:
- N/A
- TOTAL:
- N/A
- BUDGETED AMOUNT:
- N/A
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- N/A
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
It is anticipated that the $65,000 will pay for the cost to repair the construction work still needed.