CC SR 20180605 D - ABNY Hesse Park ADA ImprovementsRANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 06/05/2018
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA DESCRIPTION:
Consideration and possible action to approve a Settlement Agreement with ABNY
General Engineering, Inc., for the termination of the ADA Access Improvements Fred
Hesse Park construction contract
RECOMMENDED ACTION:
(1) Approve the Settlement Agreement with ABNY General Engineering, Inc., for the
termination of the ADA Access Improvements Fred Hesse Park construction
contract.
FISCAL IMPACT: The settlement in the amount of $39,500.00 will be paid from the
General Fund.
Amount Budgeted: $0
Additional Appropriation: $39,500
Account Number(s): 101-400-2999-4703
ORIGINATED BY: James Flannigan, Assistant Engineer
REVIEWED BY: Elias Sassoon, PE, Director of Public Works
APPROVED BY: Doug Willmore, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Settlement Agreement with ABNY General Engineering, Inc. (page A-1)
BACKGROUND AND DISCUSSION:
The approval of this settlement agreement will allow the City to terminate a construction
contract with ABNY General Engineering, Inc. (ABNY).
On June 20, 2017, the City executed a construction contract with ABNY for bringing the
bathrooms, doorways, parking, walkways, and kitchen counters at Hesse Park into
compliance with the requirements of the Americans with Disabilities Act (ADA) in the
amount of $367,460.90. The project design was completed by Creative Design
Associates. ABNY subsequently completed the exterior work initially in the amount of
$199,547.11.
During construction, the City’s current Public Works Director, who is well versed in ADA
compliance, made an on-site inspection of the interior work and noted that all of the
interior items—a subtotal of $167,913.79—were already ADA compliant. At the
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direction of the Public Works Director, the work was halted on the project on February
20, 2018, and the contract with ABNY was terminated. The contractor requested
$58,769.83 as a settlement for the terminated contract.
Subsequently, at the direction of the City Council, the Public Works Director negotiated
a settlement amount of $39,500.00 to cover the expenses and additions, performed
drainage work not shown on the plans, purchased non-refundable sinks/accessories/
doors, lost profits and encountered delays. As part of this settlement agreement, the
City will take possession of all the purchased items. The City also will pursue the errors
and omissions insurance of the project’s designer to recover the settlement amount.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative actions are available
for the City Council’s consideration:
1. Do not approve this Settlement Agreement and direct Staff to renegotiate
with ABNY.
2. Take other action as deemed appropriate by the City Council.
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