TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Stephanie Katsouleas, Public Works Director
Prem Kumar, City Engineer
SUBJECT:Title
Settlement Agreement with Swinerton Builders, Tri State Inc dba Journey Electrical Technologies (Journey), and Golden Eagle Insurance Company (Kumar) (Public Works Director Katsouleas).
APPROVE
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council approve a settlement agreement with Swinerton Builders, Journey, and Golden Eagle Insurance Company.
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FISCAL IMPLICATIONS:
$100,000 will be deposited in the City’s General Fund.
BACKGROUND:
Swinerton was the general contractor on the Fire Department & Police Department Facility construction (“Project”). The Project included the construction of a new combination Fire Department & Police Department facility, one level of underground parking (public and secure areas), a plaza common to the existing City Hall and the Fire & Police Facility, and site development to support the new facility. The Project has been completed.
DISCUSSION:
Swinerton entered into a subcontract agreement with Journey where Journey’s specific role was to perform electrical services. In mid-2014, the City discovered defects consisting of improperly installed electrical conduits, resulting in damage to the conduits, and resultant damage to various wires, circuit breakers, and other equipment detailed below. Some emergency repairs were necessary to power feeders, broken underground conduits, incorrect wiring and fuse sizes, circuit breakers, and the public safety cooling tower.
After unsuccessful informal settlement efforts, the City filed its action against Swinerton, and Swinerton subsequently cross-complained against Journey. After mediation, the parties have reached a settlement under which the City will receive $100,000.
Consistent with Council direction to place proposed settlements on Council agendas, the proposed settlement agreement is attached for Council consideration.
CONCLUSION:
Staff recommends that City Council approve the settlement agreement with Swinerton Builders, Tri State Inc., and Golden Eagle Insurance Company.
1. Settlement Agreement