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HomeMy WebLinkAbout2005-05-27; City Council; Resolution 2005-1631 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 E $m3l7- 1 RESOLUTION NO. 2005-1 63 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ACCEPTING A LETTER OF CREDIT AS SECURITY FROM A CONTRACTOR FOR ABATEMENT WORK IN THE AREA OF THE LA COSTA DE MARBELLA CONDOMINIUM COMPLEX. WHEREAS, on April 26, 2005 the City Council declared the abatement of the impending peril of earth movement and authorized the expenditure of public money to safeguard life, health, or property; and WHEREAS, at that time, damage had been caused to La Costa Avenue and various utilities in the area; and WHEREAS, La Costa Avenue is now being further threatened by the earth movement and measures are being taken to protect the road; and WHEREAS, the City is preparing an emergency contract with Zamborelli Enterprises, Inc., to construct a retaining wall to abate the earth movement; and WHEREAS, Civil Code section 3247 requires every original contractor who is awarded a contract over the amount of $25,000 by a public entity to file a payment bond with the public entity; and WHEREAS, the exact amount of the contract is unknown but will exceed $25,000; and WHEREAS, the contract with Zamborelli Enterprises, Inc., is being entered into under the emergency provisions of Public Contract Code sections 22035 and 22050; and WHEREAS, Public Contract Code section 22035 allows the public entity to proceed at once under an emergency contract to repair any public facility without adopting plans, specifications, or working details, or giving notice for bids to let contracts. The work may be done by day labor under the direction of the governing body, by contractor, or by a combination of the two; and WHEREAS, the purpose of Civil Code section 3247 is to ensure that subcontractors and material men are paid; and Ill 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, Zamborelli Enterprises, Inc., will provide payroll certification, fund control and a deposit of $125,000 in a bank account set aside for the protection of subcontractors and materials suppliers, which amount is sufficient. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the City Council of the City of Carlsbad finds that the contract with Zamborelli Enterprises, Inc., is not the type of public works contract for which Civil Code Section 3247 requires a payment bond in that: a. The contract has not been bid and is being performed on a time and materials basis. b. The contract is not for a fixed amount. c. These alternative measures are being taken to ensure that the purposes of Civil Code section 3247 will be met. Special PASSED, APPROVED AND ADOPTED at df-egde~ meeting of the Carlsbad City Council held on the 27th day of May , 2005 by the following vote, to wit: AYES: Council Members Hall, Kulchin, Packard, Sigafoose NOES: None ABSENT: Maypr LBwis CLAUDE%: L(EwIS, Mayor ' MATT HALL , LMayor Pro-Tern ATTEST Karen R. Kundtz, Mistant City Clerk (SEAL)