200 S. Anaheim Blvd.
Suite #276
Anaheim, CA 92805
Tel: (714) 765-5176
Fax: (714) 765-5161
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: AUGUST 15, 2023
FROM: DEPARTMENT OF PUBLIC WORKS
SUBJECT: CONTRACT FOR BROOKHURST COMMUNITY CENTER -
TEEN ROOM ADDITION PROJECT
ATTACHMENT (Y/N): YES ITEM # 15
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion, approve an agreement with Great American Insurance Company ("GAIC"), corporate surety for HYM Engineering, Inc. of Fullerton, CA ("HYM") to assume the obligations and complete the Brookhurst Community Center – Teen Room Addition Project and authorize the Director of Public Works to execute all documents in furtherance thereof.
DISCUSSION:
On November 2, 2021, the City Council awarded a contract to HYM Engineering, Inc. ("Existing Agreement"), in the amount of $985,435, for the construction of the Brookhurst Community Center - Teen Room Addition Project ("Project"). Nearly at completion of the project construction, HYM Engineering ceased work on the Project for reasons internal to the company, and its surety, Great American Insurance Company, has agreed to assume the obligations of the agreement and complete the work. There is no financial impact to the Project, except for the additional staff time associated with the project delay.
On June 19, 2023 HYM sent correspondence to City staff indicating that their bond company is to take over all of HYM’s projects and that HYM ceased to implement work in accordance with the project documents and agreement. With HYM’s company default and their inability to offer a satisfactory completion of the project, it is necessary to terminate the Existing Agreement.
On June 28, 2023, GAIC notified the City of its intent to assume the obligations under the agreement and satisfactorily complete the work of the Project on behalf of HYM.
GAIC and the City have reviewed the original and remaining scopes of work, visited the project site, inventoried the materials on-site and on order, accounted for the stop notices and preliminary liens on file, and mutually reviewed the language of the Takeover Agreement. Except as specifically modified in the Takeover Agreement, all other requirements of the original project documents remain in full force and effect throughout the satisfactory completion of the Project.
Contract for Brookhurst Community Center – Teen Room Addition Project August 15, 2023
The City will pay the contract balance of $86,776.00 in installments upon the satisfactory completion of the bid items of work as described in the scope of the original contract, subject to the applicable provisions in effect.
The project will consist of constructing an approximately 735 square foot teen room addition to Brookhurst Community Center with an interior restroom, new sewer connection, concrete pathway and other hardscape, striping, landscaping, and all appurtenant work as shown on the approved plans and specifications.
IMPACT ON BUDGET:
Sufficient funds are available in Housing & Community Development’s and Community Services’ Capital Improvement Program budget from Community Development Block Grant (CDBG) funds and Development Impact fees.
Respectfully submitted, Concurred by,
Rudy Emami Sjany Larson-Cash
Director of Public Works Director of Community Services Attachments:
1. Takeover Agreement
2. Existing Agreement with HYM Engineering, Inc.