HomeMy WebLinkAbout25017RESOLUTION NO. 25017
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, FINDING THAT FAST -TRACK
CONSTRUCTION CORPORATION, A CALIFORNIA
CORPORATION, IS IN DEFAULT OF THE CONSTRUCTION
CONTRACT (AGREEMENT NO. 8395) FOR' THE
DOWNTON PARK, CITY PROJECT NO. 15-07;
AUTHORIZING ISSUANCE OF A NOTICE OF
TERMINATION OF FAST -TRACK CONSTRUCTION'S
RIGHT TO PERFORM UNDER THE CONTRACT.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, HEREBY
RESOLVES, DETERMINES AND APPROVES AS FOLLOWS:
SECTION 1. The City Council of the City of Palm Springs finds and declares as
follows:
A. Following a competitive and open public bid process, the City Council of the
City of Palm Springs awarded a construction contract (Agreement No. 8395)
(the "Contract"), to Fast -Track Construction Corporation, a California
corporation, ("FTC"), in the amount of $7,600,000 for the Downtown Park,
' City Project No. 15-07 (the "Project").
B. On November 20, 2020, FTC was issued a notice to proceed with an
allowable contract time of 365 calendar days. The City approved time
extensions amounting to 106 calendar days and extended the completion
date to March 3, 2021.
C. Construction of the Project suffered delays caused by the COVID pandemic
and FTC failure to adequately administer the Project and manage its
construction, including, but not limited to the following delays in preparing
submittals; preparing and updating the construction schedule accurate
timelines; ordering long -lead time materials; properly staffing the project;
and monitoring subcontractors.
D. On March 8, 2021, the City, through its construction manager, Willdan
Engineering (Willdan), issued a notice of contract time expiration and
informed FTC that liquidated damages would be assessed beginning March
4, 2021. Liquidated damages continue to accrue on the Project.
E. Between March 4, 2021 and October 31, 2021, FTC was unable to provide
and maintain realistic schedule for final completion of the Project. In
October of 2021, six (6) distinct lists were provided to FTC of outstanding
items required for final completion ("Punch List") of the Project. The
Punchlist remains incomplete.
F. In addition to not completing the Punchlist, FTC has failed to complete the
Resolution No. 25017
Page 2
repair of the defective water feature. The City believes correcting the ,
defects will require significant work and expense, as the water feature's
mechanical equipment is located underground.
G. On April 19, 2022, the City issued a Notice to Cure Default letter ("Notice
Letter") to FTC and Great American Insurance Group ("Great American"),
FTC's performance bond surety, demanding that FTC complete the Project.
For the reasons explained in Notice Letter, the City considered FTC in
default for among other things, abandoning the Project by failing to report
to the Project site and failing to diligently prosecute the Project to
completion. The Notice Letter is incorporated herein by reference.
H. The Notice Letter allowed for five (5) working days for Fast Track to
commence satisfactory correction of the defaults, or to diligently continue
satisfactory and timely correction of the defaults. FTC failed to respond to
the Notice Letter.
I. Upon adoption of this Resolution, the City will terminate FTC's right to
perform under the Contract by issuing a written notice of termination for
default to FTC and Great American.
SECTION 2. Pursuant to Section 6-7.3 of the Special Provisions of the Contract, '
the City Council of the City of Palm Springs hereby finds that FTC is in default of the
Contract.
SECTION 3. Upon adoption of this Resolution, the City will terminate FTC's right
to perform under the Contract by issuing a written notice of termination for default to FTC
and Great American. Pursuant to Section 6-7.4 of the Special Provisions of the Contract,
upon receipt of the written notice of termination for default, Great American shall
immediately assume all rights, obligations, and liabilities of FTC under the Contract.
SECTION 4. This Resolution will become effective immediately upon adoption
and remain effective unless superseded by a subsequent resolution.
Resolution No. 25017
Page 3
PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS 16' DAY OF JUNE 2022.
JUSTIN CLIFTON
CITY MANAGER
ATTFST-
' CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS)
I, Monique M. Lomeli, Interim City Clerk of the City of Palm Springs, hereby certify
that Resolution No. 25017 is a full, true and correct copy, and was duly adopted at a
regular meeting of the City Council of the City of Palm Springs on the 16th day of June
2022, by the following vote:
AYES: Councilmembers Holstege, Kors, Woods, Mayor Pro Tem Garner, and
Mayor Middleton
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of Palm Springs, California, this _ day of l2�
iM NI E L ELI, CMC
INT IM CLERK