REPORT TO THE CITY COUNCIL
June 22, 2017
FROM: SCOTT L. MOZIER, PE, Director
Public Works Department
BY: ROBERT N. ANDERSEN, PE, Assistant Director
Public Works Department, Construction Management Division
BILL HERR, Construction Manager
Public Works Department, Construction Management Division
SUBJECT
Title
Approve a substitution of a listed subcontractor Steven’s Electrical Contracting, of Madera, CA for the 2 MW Emergency Generator Installation at the Northeast Surface Water Treatment Facility, Project ID WC00021 (Council District 6)
Body
RECOMMENDATION
It is recommended that the City Council approve the request from Davis Moreno Construction Inc., (Davis Moreno) to substitute Steven’s Electrical Contracting, of Madera, CA (Steven’s Electrical) and utilize Industrial Electrical Company to install the electrical portion on the 2 MW Emergency Generator Installation at the Northeast Surface Water Treatment Facility project (Project) located in Council District 6.
EXECUTIVE SUMMARY
Davis Moreno, the General Contractor who was awarded the referenced Project, has requested to substitute Steven’s Electrical who is listed in the bid documents as the electrical subcontractor. In accordance with the bid documents, Davis Moreno listed Steven’s Electrical for the electrical portion of the Project because the work exceeds one-half of 1% of the total contract amount. Davis Moreno notified the City by a letter dated April 17, 2017, that their Electrical subcontractor, Steven’s Electrical after having a reasonable opportunity to do so, has failed or refused to execute a written subcontract. Davis Moreno is asking that they be allowed to use Industrial Electrical Company to perform the electrical installation portion of the Project. This action requires Council approval because Public Contract Code Section 4107 requires consent of the awarding authority to a request by a prime contractor for a substitution of a subcontractor.
BACKGROUND
On April 6, 2017, a contract was awarded in the amount of $782,719 to Davis Moreno for the Project; the Notice to Proceed has not yet been issued.
In the original proposal, Steven’s Electrical was listed as the subcontractor for the electrical portion of the contract. On April 17, 2017, Davis Moreno provided the City a written request to substitute the listed Subcontractor, since the listed Subcontractor has refused to perform his or her subcontract under Public Contract Code Section 4107(a) (1).
In accordance with Section 4107 of the Public Contract Code, a Prime Contractor may substitute a listed Subcontractor, with the consent of the awarding authority, when the listed subcontractor has refused to perform his or her subcontract as set forth in Section 4107.
The Subletting and Subcontracting Fair Practice Act requires the Prime Contractor to secure the permission of the awarding agency before substituting a non-listed subcontractor for a listed subcontractor in order to protect the public and subcontractors from bid shopping and bid peddling. (Southern California Acoustics Co., Inc. v. C.V. Holder, Inc. (1969), 71 Cal.2d 719,726
Davis Moreno has requested that they be allowed to substitute Industrial Electrical Company to perform electrical subcontract work in place of Steven’s Electrical by letter dated April 17, 2017. Section 4107 of the Public Contract Code allows the Prime Contractor to substitute listed Subcontractors with prior consent from the awarding authority.
In accordance with provisions of the Public Contract Code, the City has notified Steven’s Electrical of the proposed substitution by certified mail delivered on April 27, 2017. Steven’s Electrical did not provide written objections to the substitution. The City Attorney’s Office finds the proposed substitution of subcontractor to be legal and proper if Council consents to the substitution.
The replacement of the Subcontractor for the electrical portion of the contract will not increase the cost of the Project.
This substitution does not affect the Disadvantaged Business Enterprise goal because there is no goal listed in the Contract Documents.
ENVIRONMENTAL FINDINGS
This is not a project for the purposes of CEQA pursuant to CEQA guidelines section 15378(b)(5), as it is an administrative action that will not result in direct or indirect changers to the environment.
LOCAL PREFERENCE
Local Preference was not considered because this action does not include a bid or an award of a City construction contract.
FISCAL IMPACT
There will be no impact to the General Fund or the Project budget by this substitution.
Attachments:
Request for Substitution