 |
AGENDA ITEM REVIEW FORM |
13.A.
Regular City Council Meeting
- Meeting Date:
- 06/13/2018
- 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 authorization of litigation against LPC Construction, Inc., its bonding company or companies, and any other person or entity who may be legally responsible for substandard work and the failure of the trench along Juan Sanchez Boulevard as a result of the contract for the Juan Sanchez Boulevard Lift Station Project. (Kay Marion Macuil, City Attorney)
SUMMARY:
In September 2016, the City of San Luis awarded a contract to LPC Construction, Inc. to construct a lift station and force main for the project known as the Juan Sanchez Boulevard Lift Station Project. This project diverts sewage from the West Wastewater Treatment Plant to the East Wastewater Treatment Plant. The force main was buried along Juan Sanchez Boulevard on the south side of Juan Sanchez Boulevard from the lift station through 10th Avenue. That trench is on the south side of the paved road surface. Due to apparent faulty compaction or other causes, the trench is failing, and the road surface is caving in. The City is still in the warranty period. The City has given LPC Construction, Inc. and its principal bonding company notice, but recently they have been non-responsive. Due to the death of its owner, Drew Pilkington, on February 18, 2018, LPC is defunct, and it has turned everything over to the bonding company. If the City is to achieve relief, it appears litigation will be necessary. The purpose of this item is to request the authority to proceed.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO AUTHORIZE THE CITY ATTORNEY TO PURSUE ANY AND ALL LEGAL REMEDIES THAT MIGHT BE AVAILABLE TO THE CITY OF SAN LUIS, INCLUDING LAWSUITS, AGAINST LPC CONSTRUCTION, INC., ITS BONDING COMPANY OR COMPANIES, AND ANY OTHER LEGALLY RESPONSIBLE PARTY INCLUDING SUBCONTRACTORS AND MATERIAL SUPPLIERS FOR ANY AND ALL CLAIMS ARISING OUT OF THE CONTRACT AWARDED TO LPC CONSTRUCTION, INC. FOR THE JUAN SANCHEZ BOULEVARD LIFT STATION PROJECT.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City
- TOTAL:
- $7,500.00
- BUDGETED AMOUNT:
- yes
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- Legal Services 100-117-80003 $51,000 Fiscal Year 2018-2019
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
At this time, we anticipate that the City Attorney will handle the matter in-house. This budget would be for expenses such as possibly transcription of depositions and other costs incident to litigation.