HunTORTMAfln
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Of tmann Pa I f fg n In es I .
Cityof Pismo Beach Council Meeting
V. Lopez Jr. & Sons ( Lopez
Debarment Hearing
March 7, 2023
John Darling, Esq.
Patricia J . Wolfe, Esq.
oQV.x J R. S
g
SINCE 1979 LIC.#607333A
GENERAL ENG. CONTRACTORS, INC.
SANTA MARIA, CA • (805) 928-1198
Why Are We Here?
Debarment
• Reserved for egregious actions by a General Contractor
• Noy appropriate simply when there is a dispute concerning Project delays
• Not for punishment
• Not to gain leverage
Hum-
Rrm�nr
,
The First Debarment was Unconstitutional
• Pismo Beach Debarred Lopez on November
17,? 2020
• 2ndDebarment - Full circle
1. USED AS LITIGATION LEVERAGE
2. TO PUNISH LOPEZ
• 2nd Debarment based on facts and the law is Not warranted
-M -I
RTMAn.n "I www.huntoftmann.co
The First Debarment was Unconstitutional
• U.S. Constitution was violated
• Debarment is not for:
— Leverage "Debarment is never a manner of small moment .... [¶] But despite its severe — Punishment impact on contractors, debarment is not intended as punishment. It is, instead, a necessary means to enable the contracting governmental agency to deal with irresponsible bidders and contractors, and to administer its duties with efficiency. [Citation.]" (Id. at pp. 703-744.)
A person facing debarment" 'has a constitutionally protected liberty interest at stake,' [Citation]" entitling him or her to due process. (Golden Day supra, 83 Cal.AppAth at p. 746.) What qualifies as due process, and the specific procedural protections required, depends on the particular situation. (Gilbert v. Hoinar(1997) 524 U.S. 924,930 [due process is a flexible concept).)Here, both sides agree that debarment requires due process, but disagree on the parameters of due process to be applied under the circumstances.
Court Ruling, June 23, 2022
• Debarment is for:
— Protecting the Public
• Debarment can very quickly put a contractor out of business.
RTmAn.n ,
Pismo Beach Has No Debarment Standards
• Unlike the Federal government and many cities, Pismo Beach has no debarment standards or
procedures
• The relevant laws fill in Pismo Beach's gaps HunT PRTMOnNS ongw. tman.c,
Debarment:
A Big Deal ; Not To Punish
• Federal Regulations : Debarment is a drastic measure only used when absolutely necessary to protect the public interest and not for the purpose of
punishment. 48 C. F. R. 9.402( b) .
• Federal regulations state that even if potential grounds exist, that "does not necessarily require that the contractor be debarred; the seriousness of the contractor's acts or omissions and any remedial
measures or mitigating factors should be
considered in making any debarment decision . "
RrmAnn I'Iwwuhuntoftmonn.com
The Applicable Standard :
Responsible Bidder
• Public Contract Code § 1103 definition of
Responsible Bidder:
— "A bidder who has demonstrated the attribute of trustworthiness, as well as quality, fitness, capacity and experience to satisfactorily perform the public works
contract:'
HunT PRUMUnNS ongw. tman.c,
Debarment Improper per the Law and Facts
• Trustworthiness NO
• Quality NO
• Fitness N01
• Capacity N01
• Experience N01
Public Contract Code §1103 - Definition Responsible Bidder ORTMAnn liqW.
;
California Case Law Regarding Proper Grounds for Debarment = Improper
=11=1
" FEI Enterprises v. Ogundare v. Dep't of Stacy& Witbeck, Inc.
So. Cal Underground v. City and County of
LACCD Industrial Relations
San Francisco LOPEZ
Fraud/Intent to YES NJOY1ES NO NO
Practices
Prevailing wage violations NO YES NO NO NO Criminal conduct NO NO NO NO NO Filing False Claims NO NOJ NO Y1E5 NO Breach of material term of NO NONONONOcontract JV Inadequate contract performance YES YES NO NO NO Corrupt practices involving the
administration or award of YES NO NO NO NO contract with the
municipality/agency
cRTMAn n 9
Who Is Lopez?
Olpf,Z JRw
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Sim E 1979 LIC.#607333A
GENERAL ENe CONTRACTORS, INC,
ANTA MARI , CA • ( Q ) - 1198
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Lopez : A Family Story
• Public works contractor in business for over 43 years • Local to the area and based out of Santa Maria, California
• Started by Mr. Lopez Sr. in 1979
• His two sons Vince & Butch have successfully managed the company for many years
• Lopez is here today fighting to keep this family-run business from being put out of business by the City of Pismo Beach
2021 Project of the Year
r C%P C-.^
Disaster or Emergency
Construction/Repair $5-$15 Million
Santa Barbara County Flood
Control & Water Conservartio
Randall Road Debris Basin
HunT
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RTrUR EgS
Pismo Beach 's Responsibility
Deficiencies in the plans and
specifications
HunT-11.11111ffA i 7t
Pismo Beach 's Responsibility
• As a matter of law, Pismo Beach, being the Owner is legally responsible for any deficiencies in its plans and specifications
— This means it must pay the General Contractor for any cost incurred because of deficiencies in the plans and specifications
— Pismo Beach, as the Owner, can seek reimbursement from the design professional responsible for the deficiencies — Tetra Tech / John Madonna
RrmAnn ,
Pismo Beach is Responsible for Defects in
their Plans & Specifications
• For Public Works Projects, by law, the Owner bears the risk of design deficiencies
— The Spearin Doctrine (1918)
— Implied Warranty of Correctness ( 1941)
— Public Contract Code §1104 & §7102
RrmAnn ,
What is
from the Staff
Missing
Report
HunTIRTMAnn
RMRnEUS RT LRW
What is Missing from the Staff Report
• Critical objective information not included
• No assessment whatsoever of the Staffs failures or of Water Systems Consulting (WSC)'s failures
WSC was a designer of record for this Project and the Construction Manager
— WSC wrote the PowerPoint slides Ben Fine just presented to you
• Tetra Tech / John Madonna
RTMAn.n ,
How The Project Went
Not in the Staff Report
• Start date : February 2, 2018
• Original completion date : April 16, 2019
• 34 Change Orders = $232,781.23
— Due to defects in the plans and specifications • No complaints about the quality of Lopez' work • No complaints about safety issues
• No indicia in the Project record supporting debarment
RTmAn.n ,
How The Project Went
Not in the Staff Report
• Project Delays
— The Project was supposed to be completed on April 16, 2019 — The Project was actually completed on May 1, 2020 • Approximately 13 months behind schedule
• Pismo Beach's Staff has already acknowledged that Lopez was not responsible for any of the project delays from April 16, 2019, through March 17, 2020
• Pismo Beach, before trying to debar Lopez, had already admitted 85% of the delays were not Lopez' fault
R-TTA n.n ,
How The Project Went
Not in the Staff Report
• The relevant delay is 6 weeks or 15% of total delay at the very end of the Project from March 17, 2020, to May 1, 2020
— This 15% of the delay is 100% Pismo Beach's responsibility, too
• Critical Path Analysis: Pismo Beach is responsible for all delays on the Project
— Electrical design deficiencies (WSC)
— SCADA failures (100% the Staff)
R-TTA n.n ,
The Delays SCADA & Electrical
Design Problems
Lopez vs. Pismo Beach - Delay Analysis (Plan vs. As-Built) - Maintenancr, -New Lift Station L m Ty > L ` Y W
.ni ZO O�G T fj > G 2 Q T L �> y O T G ry n w .i N
W W OD � OD ,O W 4 Q 9 4 P O O 4 4 Maintenance-Generator Building(BaSeline) Nearly every major scope of the Project (between Maintenance-Spyglass Lift Station(Baseline) Maintenance and New Lift Station Construction) Maintenance-Manholes(Baseline) . experienced significant delays to completion ranging from 8 months to well over a year
Maintenance-Foothills(Baseline)
• The critical path ultimately runs through testing/start-up Maintenance-Sunset Palisades(Baseline) delays in the New Lift Station construction.
Maintenance-Vista Del Mar(Baseline) .
New Lift Station-Force Main(Baseline)
New Lift Station-Lin Station(Baseline) 4/16 Maintenance-Generator Building(As-Built) 397 CD Delay Maintenance-Spyglass Lift Station(As-Built) 524 CD Delay Maintenance-Manholes(As-Built) . 13 CD Delay
489 CD (329 WD) Delay
Maintenance-Foothills(As-Built) 242 CD Delay . Maintenance Complete-1/9 T (Maintenance Complete) Maintenance-Sunset Palisades(As-Built) 457 CD Delay; r
Maintenance-Vista Del Mar(As-BuiIt) 252 CD Delay New Lift Station-Force Main(As-Built) 1 601 CD Delay New Lift Station-Lift Station(As-Built) New Lift Station Complete-5/4 384 CD (261 WD) Delay (Lift Complete)
T n g Y H a z 4 t— 3 a $ Y N O Z a -n $ Y $ a to Q C� W 00 00 � b] � � GO � 00 C] �D [� [� � i9 [� � LU sC � L9 •L O O O O N O � N O O H u n T'fill]
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But for the Debarment, This was a Very
Typical Public Works Project, in Fact, Not
Special At All
• In terms of Lopez' performance, nothing occurred on this Project rising to the level of debarment • Other than the highly questionable decision to try to put Lopez out of business, the Staff handled WSC's design deficiencies fairly well
RTMAn.n ,
Awards & Portended Awards to Lopez
Fmc:ChadSmoclr
Sent;Tuesday,May 14.2019 122300 PM
To:Ere Eliridge
Cc.-Bcrdismio Foe
Subject:RE-ASCE SID Branch 2019-2019 Ar%nuul Award Nnmi nations! Se Atilivity.Normal
maybe(Ive cities although it will not be 100%complete by Ihen..,l wl11 visit the application Suide- From:Eric Eidn dge
So nt:Friday,May 4 201910:55 AM
To:C h ad Stoe h r www.huntoftmann.com
The Project - A Summary
Typical Project
• Other than Pismo Beach's debarment of Lopez, this was a typical public works project
• Normal amount of Change Orders
— 34 Change Orders Issued
• WSC's design had significant flaws
• The Staff failed to timely hire a SCADA consultant • The Project was completed 13 months behind schedule
— Due exclusively to WSC's design flaws and the Staffs SCADA problem
RrmAnn ,
The Project - A Summary
Typical Project
• The Project was completed in May 2020
• Competing Delay Claims lingered
• Lopez was willing to give up its Delay Claims if Pismo Beach would also drop its Claims
• This type of "walk away" is typical as Ben Fine testified to
• But not for Lopez' Debarment ! Highly atypical ! RrmAnn 1,1 www.huntoftmann.co
On These Facts - Only One Logical
Explanation . . . Punishment and Protection
• May 2017 - City of Grover Beach awards a $6.3 Million Project to Lopez
• Grover Beach's plans and specifications have a lot of gaps and missing information
• Lopez, as any other Public Works contractor would do, alerts Grover Beach that the Project is going to cost more and take longer because of the problems with their plans and specifications
Debarment Was Not Warranted and
Completely Inappropriate
• Based on the actual history of this Project, the WSC design flaws, the Staffs SCADA failures, the only logical explanation for the 1St Debarment is :
— Punishment of Lopez
— Protect the Staff and WSC from any scrutiny, and Grover Beach
HunT-
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On These Facts - Only One Logical
Explanation . . . Punishment and Protection
• The Director of Public Works at Grover Beach, Greg Ray, is a long-time colleague of Ben Fine as they have both been the Director of Public Works for these two adjoining cities for the past 10 years • November 2, 2017 - Lopez is the apparent low bidder for the Pismo Beach Project
RrmAnn ,
On These Facts - Only One Logical
Explanation . . . Punishment and Protection
• November 2 to mid-December 2017 - Ben Fine performs background checks on Lopez for the
purpose of determining whether Pismo Beach should award the contract to Lopez
• As part of this background check, Ben Fine talks to Greg Ray
HunT-11.1111110nn ,
On These Facts = Only One Logical
Explanation . . . Punishment and Protection
• Ben Fine has a conversation with Greg Ray of Grover Beach in the Fall of 2017
— Benjamin Fine Deposition Transcript, Page 64
A I was told `h- end product you will get will be 21 satisfactory; the road to getting there will be 22 if you can find a way out of the contract , 1 23 highly recommend you do so
TI11Ann 30
On These Facts = Only One Logical
Explanation . . . Punishment and Protection
• From the onset Ben Fine was predisposed to dislike • Ben Fine is already thinking of a way to get rid of Lopez — Benjamin Fine Deposition Transcript, Page 64
- = Q Did you ask him " I f i t ' s a mi eerable situation, i:9 can you give me saute more facts because I would like to 20 just declare them nonresponsive and not have to deal 21 with these yahoos"?
22 A I asked him if - - I asked him if he had 23 anything that - - basically, I asked him if there was a - w_av }o not award it .
ORTmAnn
On These Facts - Only One Logical
Explanation . . . Punishment and Protection
• May 2017 - Grover Beach for the first time awarded a contract to Lopez
• December 17, 2017 - Pismo Beach awarded the contract to Lopez
• April 16, 2019 - The original Project completion date • July 2019 - After completing the Grover Beach Project on time, and only after Grover Beach refused to consider mediation with Lopez, Lopez filed suit against Grover Beach for the extra costs associated with Grover Beach's defective plans and specifications
RrmAnn I'Iwwuhuntoftmonn.co
On These Facts - Only One Logical
Explanation . . . Punishment and Protection
• Also, by July 2019, it had become very clear that the missing elements in WSC's plans and specifications were going to substantially delay completing the
Project
• As described more fully below, from July 2 through April 1, 2020, Pismo Beach issued several change orders to pay Lopez for a portion of the extra costs and time to complete this Project because of WSC's incomplete design and the Staffs SCADA
failure
R-TTA n.n I'Iwwuhuntoftmonn.co
On These Facts - Only One Logical
Explanation . . . Punishment and Protection
• Lopez completed the Project on May 1, 2020 • Lopez had properly reserved its right to submit a Delay Claim, but hoped not to do so
• Summer 2020 - Lopez tells Pismo Beach we will give up our delay claim if Pismo Beach does the same • Pismo Beach says no
• Summer 2020 - Lopez and Grover Beach are in active litigation
RrmAnn ,
On These Facts - Only One Logical
Explanation . . . Punishment and Protection
• August 2020 - Even though there were no issues with the quality of Lopez' work and even though there was absolutely no legitimate basis to debar Lopez
— Ben Fine and Chad Stoehr hatched a plan to debar Lopez — They enlisted WSC to concoct a story that was used to convince the City Council to debar Lopez
• The same exact story is being used again for the exact same reasons today
RTMAn.n ,
On These Facts = Only One Logical
Explanation . . . Punishment and Protection
This email tracks the Staff (ICA4 d,3020mi 5 �7 PM PDT,fir* "`' 1 Report verbatim.
Please see Page 11A-3
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RTMAn.n wwuhuntoftmonn.com 36
On These Facts = Only One Logical
Explanation . . . Punishment and Protection
The Staff and WSC
collaborating to punish
Lopez
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RTmAnn ,
On These Facts - Only One Logical
Explanation . . . Punishment and Protection
• It was inappropriate and a conflict of interest for Ben Fine and Chad Stoehr to ask WSC to put together the debarment package
• By the Fall of 2020, when WSC was actively preparing the debarment package, the Staff was NOT asking
WSC some very basic questions
RTmAnn ,
On These Facts - Only One Logical
Explanation . . . Punishment and Protection
• Why was the Project completed 13 months behind schedule?
• Why was WSC's electrical design deficient?
• Why did Pismo Beach have to pay Lopez
approximately $230,000 in change orders to
overcome WSC's design?
RrmAnn I'Iwwuhuntoftmonn.co
On These Facts - Only One Logical
Explanation . . . Punishment and Protection
• While Ben Fine and Chad Stoehr were concocting the debarment story with WSC, they could not find the time to look in the mirror and ask some very basic questions
— Why did we delay the Project by not hiring a SCADA consultant when we should have?
— Why did we allow WSC's plans to go out for bid containing significant design deficiencies?
— Why did we pay Lopez and WSC a lot of extra money? — What did my team do wrong?
RTmAn.n ,
On These Facts - Only One Logical
Explanation . . . Punishment and Protection
• None of these compelling questions were asked by Ben Fine or Chad Stoehr
• In fact, Ben Fine couldn't - recall" whether before deciding to debar Lopez he, as the Director of Public Works, tried to figure out if his staff or WSC was responsible for what they later called Lopez' "mess- u ps"
HunT_
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On These Facts - Only One Logical
Explanation . . . Punishment and Protection
• Instead, Ben Fine and Chad Stoehr thought it would be better to punish Lopez by debarring them,
because to do so protected Mr. Fine and Mr. Stoehr from scrutiny, protected WSC from scrutiny, and
protected Grover Beach
• In fact, Mr. Ray and Mr. Fine were in communication and apparent coordination relating to Lopez'
debarment
On These Facts = Only One Logical
Explanation . . . Punishment and Protection
• Chad Stoehr Fli°
SeatMrrndey,No,emb« Iz,2020 3L4600 Phi
To:Msfmad Goymetac
requests help C�'° '�
Sad;ecr:Po-rrpoir> uon-NatAsspomlbic B;ddrr• V 3 t_l 7-20 seesitfvtiW:Nodn,s_l
from WSC days x,X Rcpun Non ReWonsibIle Bidder Vl,da,x; These are the best the CM had to offer
before the in support of
debarment
DebarmentBen lust notified me he wants me to start a powerpol nt prese Mali on for the rneetsng next Tuesday,It 17, He warmts,ots of pittures of their mess ups to€oiritido with what we dlscussinthe at xl*d Suff Report.
Hearingcar,Yau gr,}rs proym-ktures of: "mess-ups"
o Spygt&aPark EYcavaaico not debarment
Deposition Exhibit 129 • Use ofGtyVactor truck when they were not prepared • At the five diiei Is,rope:drilling a dow lair hole In*e bottom of the premtoonerete YaIMe Mault to fit a wmare wrmerete sump andgrate wrthata Pri*raw5lideratlon for how the InstallaUlon would be cornpreted or waterproofed, All are design * Issue with twassing at the Su n se t Pal i sade LifkSuVan flaws Float andelectriw rnsinterpretatlan,etr-at FiveCitiesLS • Nkrer panel si s4 at Flve Crties LS
• El bowflangeanddJfferenimaterialprpiogat Five❑tiesIS
None of these Sores For the latt notice,but I would Iilce to have a dradtof&&pow#rpolntto San by end of day tomorrow,sc if you could get reasons are worthy rmv as those to map that would be aw so e me_ of debarment Also,I would Hke to dump all your phptogra^into our server,can you send me a link or I can stop by your oFF1oe tomorrow 0r rheet you somewhere to pick up a flash drive with,,Q tha Wiclos an it? Thanksi
Chad
.--R-TAIAn.n ,
On These Facts = Only One Logical
Explanation . . . Punishment and Protection
• Chad Stoehr Fro=Q%WSI,xhr
Searle Tue%day,November 10,21D20 9JO5:10 P
prepared the To.Be Ferc Design Flaws - -Sublecl.V. Lopez Non-Respor�sb�13makdown ofll�ma WSC costs not on damages breakdown " "rt" '`°' Lopez' Dime (See §1104)
for Ben Fine days Ben,
before the Here Is the 4reakdnwn for the$34M
co r$5t"Kt on Manageme rrt wsc(Amendment a41);$�6%94D
Debarment Hearing Constructi on Management W5�(Ameodrrwnt 921:$W.Oo nstnxtl an ktana ment L45C{Amendment#31_$ft645
Additional Engineering Servloes[ludrgCanstruction WSC(Arm end mera#7 to W5C's design contract).$]S,3% • To t a I I y invalid CCOV22.S42M(20 wo rking days @SLOW per day I$MWD)a nd�4283 additi oval Cost}—see d i scuss Ion i r,the seuion Inbeled 9X*Of undernending of PG&E standards"within the staff report,this change order was issued for the change to a 40famp panel and thr:City was not ultimately Obligated to issue this flange order,it was issued to maintaln progress on the • Not worthy of project and the elecEd cal Mrn wat 00 the VIUCal pith.
CCOM-W,Z A.75 147 wor#f ng days MODD per day($47,Mo and$SCr 214,75 addltionm cost)—see diatussio n in th e debarment section labeled"poor pump control petrol tsstretpaine within the staff report this change orde r was another that the City was not obligated to i$5tm put did so to malntaln progress and the work was critical to getting Lire project tom Ietad, — Deposition Exhibit 131 #tal;SM07.75
Chad
The Change Orders are
a Done Deal - Cannot revisit
them
H u uoi PLI i i'nowis I
1 1 44
On These Facts = Only One Logical
Explanation . . . Punishment and Protection
WHEREAS, the project experienced significant delays and resulted in the City extending the contract time 159 days past the 300-day contract time to a total of 459 days; a n d
WHEREAS, V. Lopez completed the work 69 days past the contract time, for which the City withheld 69 days of liquidated damages for a total of $69,000; and
WHEREAS, the total approximate financial loss to the City as a direct result of V. Lopez is $322,500.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby declares V. Lopez Jr. and Sons as a non-responsible bidder, thereby disqualifying them from performing future work for the City of Pismo Beach for a period of five years from the date of this action.
Resolution R-2020-094
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On These Facts = Only One Logical
Explanation . . . Punishment and Protection
From:Benjamin Fine
Sent:Monday, Flovember2,20209:51 AM
TcK Greg Ray Ben Fine wants Greg Ray
Subject Re.Wetingwith State Parks from Grover Beach to It was ltlFt:k. weigh in on Lopez'
debarment
On another topi c,can you come to ou r V-Lopez hearing on 11/17 vi a zoorn Please forgive typa's,5errr from my iPad
From:Greg Ita+l gzray0izroverheach-org>
Benjamin A. Finer P-E- Sent:Monday, November 2r 20202:06 PM Director of Public Works/ To; Beniami n Fine c&Finc a Pisr�r q ach,or�€r City Engineer Subject: PE=Meeting with State Parks
City of Pirimc Beach
{$)5}M 7037
O k,
Our counsel re present i ng the City on the V. Lopez claim doesn't think it is a good idea for me to attend/comment on your V.
Lopez item-
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On These Facts = Only One Logical
Explanation . . . Punishment and Protection
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CRTmAn.n
1 o 1 4
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On These Facts = Only One Logical
Explanation . . . Punishment and Protection
Why was Chad Stoehr so Happy?
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Chad Stoehr
reveals his animus
towards Lopez
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----------------------------
Deposition Exhibit 128
-R-T.m An.n wwuhuntoftmonn.com 48
On These Facts = Only One Logical
Explanation . . . Punishment and Protection
• Ben Fine wanted to punish Lopez
Punishment
— Benjamin Fine Deposition Transcript, Page 47 7Z - My hope was to not prevent there from getting 22 work . It was to prevent other cities from having to -2? deal With we deal -,
• To put Lopez out of business
— Benjamin Fine Deposition Transcript, Page 102
- � THE WITNESS ; It protects us from having to do
3.3 business with Lopez in the future .
Hum-
liff , .
RAM � ;
November 2020 Debarment:
Punishment
• Ben Fine said the end product was satisfactory — Benjamin Fine Deposition Transcript, Page 41
Quality work can he a factor .
Q was it in this one:
- - A The end product was satisfactory . 19 Q So it t s not in this one .
20 A The end product was satisfactory . 21 Q You mean the lift station works fine . 22 A To my knowledge , yes .
23 Q Well , you could know if it didn ' t , wouldn ' t .24 t
25 I -mould
.--R-TMAnn wwuhuntoftmonn.com
November 2020 Debarment :
Punishment
• Chad Stoehr believed Lopez was trustworthy
— Chad Stoehr Deposition Transcript, Page 42
= ' Q . Did you think they were untrustworthy? -- A . NO .
HunT-11,1.111110 �I�I
,
.
November 2020 Debarment :
Punishment
• Ben Fine never even met Vince or Butch Lopez — Benjamin Fine Deposition Transcript, Page 74
= Q Do I �ow -"ince or Hu n Lopa v = A No
1. 14 Q Have you ever met them?
15 A I don ' t recall meeting them. I may have popped 16 =n a m-aeting and they ' ve been there.
HunTUTMAnn j www.huntoftmonn.com
Pismo Beach v. Tetra Tech Inc.
1 DAVID FLEISHMAN(BAR NO. 156695) ELECTRONICALLY
CHY ATTORNEY FILED
2 =. OF PISMO BEACH sm w
3 RIC'HARDS, WATSON&GERSHON BY 1%fto�
A Professional Corporation '+
4 STEVEN A-NGi7Y(BAR NO. 307263)
5 O�+F i��GANSER(BAR NO. 329337)
agans glaw.cam
6 350 So Grand A-venue_37th Floor
Los Angeles,California 9D071
7 Tclrphone: '213'626.8484
Facsimile= 213-626.007a
Attomevs Sox Plaintiff
9 crrY of PISMO BEACH
10 SUPERIOR COURT OF THE STATE OF CALIFORNU
11 COUNTY OF SAN LUIS OBISPO
1�
1 THE CITY OF PIS'.%iO BEACH.a Case No. 22CV-0520 Yet another Pismo Beach Caldomia 1wAirlrcipal Coxpumtion, Public Works project rife 1 CONSTRUCTION DEFECTS Plamta� COMPLAIN'FOR I}A-NL�GES
with design errors V.
(1)BREACH OF IN ITTEY
1 TETRA TECH, INC., a Delaware COS—M4('T&EXPRESS WARRANT' Conpoodon; and DOES I through 10, (2)PROFESSIONAL NEGLIGENCE- 1 mchisivr, DESIGN ERRORS ND 011ISSIONS
(3)BREACH OF LIIPLIED NVAR&A T4-
1 Defaaduit (4)INJURY TO REAL PROPERTY
19 F-Zff t frm fllmg fees p2m mt to God.Code§610.1 �0
RTMAn.n ,
Pismo Beach v. Tetra Tech Inc.
11 Pr.rtr. Def&nd=ts, and tach of't 1, have bwcache-d their obliga.rion� tinder the' 12 reW ,c s j 5-e iiyi rteu ageenients with Ph mi b ff among ether t1u,1 p_ for the fbUmvmg M3&=s- 13 Fmhng to gerfor� t obh ps thacander i�t a good, pr-ofessio l 14 r
%vor ina ulike wanner_ or at al]_
1.5 b. Failing to rtim the stx a & of the pwfessior► en-±xAed there inrluditie failure to identify and remedy the nuniucus desiEll errors aad o1Yuss O115 III the Why is Pismo Beach going
after the construction plates and specificataons; manager here instead of
the general contractor? C. F�vling to adegw-itely supers-ise the work p�effomied by thelr employees_ agents 19 .3nd or sobc ntmctm,
20 J. Fiihng to fmaish anNor eirsive ffie furnishing of labor_ sm-ices, goods, 21 rmteml s and equipmmr of the gmIlry required by the Agreement, and the 22 slandards of the mdustry
23 C. F.-Uhng to satisfy their mwective obligations un&-r the team of the a pee %Y.urauries and obligations contained in the Agretax-nt_ TAIAnn
The 2ndDebarmentm March 7, 2023
• Debarment to punish Lopez = Wrong
• Debarment used to gain litigation leverage over Lopez = Wrong
• No public protection needed
• Lopez fully performed the Contract
• Pismo Beach got the benefit of its bargain HunT PRTrUROnNS ongw. tman.c,
The 2ndDebarmentm March 7, 2023
• No contemporaneous evidence supporting the Staffs complaints that were concocted after the fact
— Not to be found in the extensive meeting minutes or any correspondence
• Throughout the Project, the Staff could never point to any delay to the Critical Path that was caused by Lopez RrmAnn ,
The 2ndDebarmentm March 7, 2023
• In fact, the Staff waited until 4 months after the Project was completed to claim that Lopez had caused delay damages
— This belated contention was purposeful
— By September 2020, the Staff was finally ready to do what Ben Fine wanted to do before the Project was awarded to Lopez
RrmAnn ,
The 2ndDebarmentm March 7, 2023
• No contemporaneous meeting minutes or
correspondence exists regarding defective work or
problems with Lopez' performance
• If debarment was truly warranted, the Project records would include :
— Notice of potential terminations letters
— Notice to cure letters
— A demand on Lopez' performance bond surety
HunT-9"Rnm�nn ,
The 2ndDebarmentm March 7, 2023
• None of that exists because Lopez fully performed the contract and most importantly, debarment was never proper, and it is certainly not proper now • Absent this debarment, what remains of this Project is a garden variety public works lawsuit, where
Pismo Beach has a right to convince a jury that Lopez is responsible for the last 6 weeks of delay on the project
• Using debarment to gain leverage in that lawsuit is completely improper
lid ------ IX %11:11 L
R-TTA n.n lwwuhuntoftmonn.com
Debarment Issue :
Spyglass Park Staff's Position
7 Z
issue #1 : V. Lopez beginning work
without proper planning Notavalidbasis
for debarment
0 Excavated — Sept. 25, 2018 7'
Parts is for repair not ordered
Not any Area closed for 14 weeks -
violation ■ Filled — Jan. 2, 2019
of the
contract • Re-excavated March 2019 _ e Park rents $25/hour
■ Average income 300/month
• Approximate lost rental $1,800
f55
HunT
Zm1rI www.huntoftmann.com
Debarment Issue : Spyglass Park
• The Truth = No debarment warranted
• Pismo Beach could have stopped this
Means & Methods • No contemporaneous complaints No contract issue
14 1C.11_lSt STATUS OF PLUG 1 AIVES AND EXCAVATOON AT:SPTGLASS jARk Reben Carnes�Iffl C 0 ��• � Discussed the fact d%t the Ping Vahms for the ISVpass are nat as vie Jnd 14Mt t*fA*has b:trti0avated Itham�ftsof 0*tWwx9 on 1w emsting PCW F V a nd,&e 90 in Uha wvwell. Vww*W-get hml tea the Qtw with delmsy date tar wales. If ciw fi ndi th a 4�r��!��� Q n� d,mtr to tw to Ipn p'.j I r.ad COv rnay dlrrrt to ,;1p WrVill 97 �
10 201a emuwdfian-
11111201. LOPEZ FLOG SACKr ILL ED E MCAVA EION IN THE PARK. Robin CanieL fvIfsc� L1�€��n� 111?2ti�lll
1.6 CONURACTMS USE of I,=
T 7rhrf use of SiteW �—� IYV 1.V 11lI Ql.I IJJUe
1- W -
2. Accessi to RV Wbazage yard by RV !iwrkge yard ov%ter and employoft
1.7 WORK SEQUENCE [No contract issue
A. t~ t t'4irork i.oar to keep the a-ushag lift ststioa operation.2d until die cww lit Statim and fowe i5 c ed� Cawdmate c�nswmriouwhedWe and raxvi= wilL City. .--R-TAIAn.n 61
Debarment Issue : Staff's Position
Exactly - Not a
breach of contract ` Not a valid basis
0Y - - - _...-- —� .- ._ — for debarment Issue #1 -. V. Lopez begf n n ir g work
without proper planning False Statement
Plan details 18-in square sump in the bottom of the -"W' concrete vault
9 The plans do not specify the means or methods , ■ Normal process is to submit a Request for
Clarification (RFC) prior to initiating the work if there is confusion
• On March 19, 2019, V. Lopez drilled a round hole in
Details [7t the bottom of the sump
always . Then asked for a detail to allow for a functional " s needed
waterproof installation.
Additional time and costs to the City .
• Proper planning would have identified the need for
this sump and incorporated it into the precast vault
157
Lopez did
HunT-
TIA�I�I
Debarment Issue No. 1
The Truth
• Means and Methods = Not a contract issue • A precast concrete vault
• Watertight sump = No design
• RFI 21 = Proper planning
• PCC § 1104
• End Product: Fully functional valve
• No contemporaneous complaints
• No debarment warranted
RrmAnn ,
Debarment Issue No. 1
The Truth
V.Lopez Jr. &Sons,Inc.
20 E_F@Slar Stmat,#101
Santa Maria,CA,93454
REQUEST FOR INFORMATION RFI No. 21
§ 1104/ No
To. Water Straiema Consulting,Inc. oats:3JfN24119
W5 Aemista Place,Sute 201 Respond ay:ASAP contract issue San I ups Opispa.CA 934a1
Project No.:
Atw.: Joshua Retrntllds,P.E. Project; ca.o-iPan bmhUMStifwp caa Hw*I] Wan regards to the 6 CIdes lift Station JHwyi i 11'x7'Vault- Please provide a detall far the matlfod fora watertight seal birwmi the vytve vault ano drain hpx_(Please Sc*Attamted Photosl keason thing wo grouna water ts6te Is sametknos only Afoot down.
Co tlmpa[t U• 5 SlgnaVe
S&-edwls hnp&a U^K-c+r• UnknoOrn bay$ PagaE Altwhea' Trsee�Cantraclar. Schedule TaskNoJltem
Trte mo Hall tla carted uA n a[a laanoe wr i ele k vmrKl e(4VhVrm 4 B%k s)n aepnNnee wlh rie Centres a� .. uf'IswR mukpa it ec Cwtred fhaa a Ca* TSne. Pmwdr a aids W WoFt n aokvd Wx*wart Vl a♦qL xwe Indrtu V" •rraxe19mer'1 mat mere Will he ro rnaga et me Comer:[&n or CmUnka Ties. t s-e Catac � that die awppaa uI irahLc4 n"Wo c s lath Cd'IVYc!Sum o-r Canted rove,Ma CQr.0W r Jet nd pmacew wn Inr Wm%and iy"pmpaw abWd to
x 1.6df ry errs,ekar,erg HQJIIeR,(�ryal v%VLw 1 n wP w ume%aded dl s Ca &kp Aus dye Dffea.* Ref.rred To: tigr$rrgp wte Retrn bate:
SUPPLEMENTAL INSTRUCTIONS'
','ws letiri Sgnaswre. Engimeen Spnntu m:
Dew: Bab:
Copy. '—'N rjl^aor__ "'eel .:Lab r'9l1wcr"'J 1' Ilk" L�. L110et P%KA=*W:
RTMAn.n ,
Debarment Issue No. 1
The Truth
Not a valid basis
for debarment ,I Fully functional valve / No delay/
Full performance
t
�Orr,
1 HunT- W Lij uhuntoftmonn.com 65
PRMRntqsT'n'
Debarment Issue : Staff's Position
False Statement " - Not a valid basis There was NO - for debarment
leak I . In'1rr �G �l�ln
• Late May 2019,V. Lopez installed bypass pump system at Sunset Palisades Lift Station
Bypass system leaked
■ V. Lopez had no contingency plan
City staff had to: -- 1
Assist V. Lopez With pumping the wet well down
* Monitor the system
• Provide guidance to get the bypass system functioning Pismo Beach Impacts to project
always had staff ■ It took several days longer to coat the wet well than planned present on the ■ Required the City to keep a presence on the site in order to Project respond to issues
I m p a cts to staff
• Regular duties
Impact to other projects
• Backlog
ir.
H u n T
I�Mffllwuio f tma n n.c ,
Debarment Issue : The Truth
• Installation of sewage bypass pump system at Sunset Palisades Lift Station
• Until the project is completed the old lift station must stay 100% operational
• Standard procedure is to have a vacuum truck onsite and ready to be used in case there is a sewage spill during the bypass work — Lopez was ready to provide a vacuum truck
• Pismo Beach offered to provide one of its vacuum trucks instead — Lopez agreed and agreed to reimburse Pismo Beach for the cost of the vacuum truck
R-TTA nn o ,
Debarment Issue : The Truth
• On these types of sewage Projects (i .e., working on an existing sewer facility) City Staff always has to be on site during construction
— It was nothing out of the ordinary for them to be on site, especially during a bypass
• Staff falsely claimed there was a sewage leak — There was no sewage leak. If there was, Staff had a legal obligation to report that to the regulatory authority • No contemporaneous correspondence from Staff about this "issue"
R-TTA n.n ,
Debarment Issue : The Truth
• According to Russell Fleming, there was no spill or leak.
Pismo's utilities
manager on-site
virtually daily at the S Q, Okay. go what happened? Project
A. Tim, I remember the line was still live, I 10 believe they thought it was isolated and so they had I1 made a saw cut and they Tealized that it was still. live, 12 and so until they could figure out how to stop the flow, 13 it ' s just going to keep going. That ' s my recollection 14 of that particular one.
15 Q. And so what did the vac truck do that day, if is anything? Fleming not aware of
any sewage spill
17 A. We kept up with the flow coming out of the 18 pipe.
19 Q. Just taking it so it didn't spill? 20 Right .
Russell Fleming, Utilities Manager, Deposition Transcript, Page 38 YRTMAA11 41
Debarment Issue : Staff's Position
r Issue #1 ; V. Lopez beginning work
without proper planning Not a valid basis
WORK ORDER ■HLSVW ®sNVE for debarment
wi*"WQT I-M Hum Ian fro na •
YA=b...*
01 }.SO Ik3in �7 Md !}�.7� •
iYl��Tty}
Less than $500 issue
L n- user. we Cox lam
VA M11[IrKbf5 1..A 7MM L
TOM y IOM
rf"C45t
s�aa
ORTmAnn
,
Debarment Issue : Staff's Position
§ 1104 Violation Not a valid basis for debarment
slue # ; Lack v un ers n_ Ing a munlCp ' No breach of sewage pump station practice and materials contract
ept. 2018 V. Lopez interpreted plans to replace only one set of the existing plug valves
• "the picture" suggested that there was only one set of plug valves False Statement
0 Notes on the plans Clearly show two for a total of four plug valves.
+ Municipal lift stations almost always include two pumps • Provide redundancy in case of faifure Not shown on plan • To keep the project moving, V. Lopez was compensated for the cost of replacing the other two plug valves
=Lopaid! '1
NO CONTEMPORANEOUS COMPLAINTS
Debarment Issue No. 1
Not proper basis for The Truth
debarment WORK DIRECTIVE CHANGE
(Instructions Follow)
§ 1104 Violation /
"ect: F1ve Clues L.ftSUVanardLift. Implied warranty Da,eflflssuance OCtobur6.201e of correct plans cantraCloF V.L0PE2 1R.&SONS and specifications You are dsegod to make the rolkYmng chsnge(S1: In conformance with RFI#022 Resoanse Dated On 27-18 Contractor! cl r yWJ2 g total of
A plun valves as per ngla q7 5_h_pot C-107
descrobor1: Contractor shall provide and Install a total of A Plug Valve6_in conforma nee with Plan and Bases!Sheaf C-107 attachadl.
Purpose W.Work Drechve Change_ Contractor contends thal only 2 Piug VatvQs arc an own on SheaLC-Tg7,_Showl 10 of 27 ver Noty M7 as Indlcaled on the atichod drawing. Co a r;%?prQvide rQZ1 19 pripviOe
1 I Valve .
Attachments:(Lill documentssLWor(ing Change]
Shrat C-107.Sham 10 of 27.
If a claim is made lhat the above change(3)have affected ConlracL Price or Conlract Time.any claim nor a Ci1a'xge Order based theron wal Involve one of the following methods of determirting the effect of the changes)
Method of determining Method of determining
change M Contract PnCe. Oange rn Contract Time
Lopez paid! °n.r*and"'tLu5 °`W `em'"s ❑� Unit Fmce6 En gneer;QRCO 5
❑floc PA ILred nee
❑ott 1 ❑mw-_
Estimated increrase Estimated increase
in Cons s t P1. (decrease)in Gontract Time
S SAN to 7. 0 1 days
in the cNVW Involves an increase,Inc If the charge Iryolves an Increase.the estimated amoutil is not to t7e exceeded estimated time is not to be exceeded vAhout further avlhorLmbon without further authonxatlon.
Recommend ALrthgr
ti
h Tk-
1, r
Chad Stoe . . Ben;amm Fine,P-E.
'r. Engineer Cly EnglneerlDIrector of Public Works UmAn n il www.huntoftmann.com
Debarment Issue No. 1
The Truth
Mhn
Seplember 27,2018
Rot Cames.RC
Con**ion Manspr
Water Syslems ConsOinq,Inc.
S 5 Asmistsal Ln..Surte 201
San Luis Obispo.CA 9,Wl
°eorM' Ca1�es, § 1104 Violation /
Construetfun Phase RFI Ravltw Implied warranty Pismo Beach uft Statwn Maintenance ill of correct plans RFI No.022-Sovalan Lift Statlan Plua Valv*a and specifications Michael I{.NUnley and A66ociale6 In IMKN)has revkmmed the anachet RequeST for Intofmgt on repardmg The numbee of valves located rrMin the Spyplea6 Lrft Stefan dry well end have'h4 fcl9owing cornmen1*:
+ Sheet C-107 shaves a sea ion view d a duplex purro station(incruding inlet and d scharc; pip RO)for darikc bn wr hin the dry well. It - , - Not shown on the vaf„es(q totai)would be included within they plans or specs -
Not bid on! �,.n�r�y "It is intended that replacement of both sets of
plug valves (4 total) would
/Jnec`hr,&,. EX be included within the
Anachmews. work."
V.Lcpu RFI*022
RTMAAr 11 www.huntoftmann.com
Debarment Issue No. 1
The Truth
V,Lopez Jr.&Sons, Inc.
300 E, Feslar Street,0101
Santa Marla,CA.93454
REQUEST FOR INFORMATION RFI No. 22
To: MKN AuxWes Date; 1i 016
530 Paulding CIrve Respond By:
Arroyo(,rands,CA 93420
Not shown on the Project No.:
plans or specs! Ann.: JJ Rctchmuth pro*t: OL«ONIAFVULHASQu ZkSyMM=grloc:.
INFORMATION REGLESTEO: § 1104 Violation /
Oa Sheet C-107,CWHa udlion kola Item Na-P calls W rttiryt00 afid replue rxlsting p1Ug VA Vid iL2.01 Implied warranty ;hOWStwoper pie is. A[eor0ingioour Inspector there are 4 Plug valveeregUITingreplacement M of correct plans 'espectu fregmlachingoorderforthe2PlugValva4norshownont o014m- and specifications "...which only shows two
per plans."
:u►1ltnpad JnknCwn $gna:ure
Schedule lmnd. Un►nwr r Unknw Dv ROW5+ xftd; TrioderGonr uiv SC-iedu,e TasaNO111OM:
-e*rk hull be cyned ocl r mordmar wrrh the ldlwriq u u rs wo4 itsw In Kaaoo weh rw Ga"Dwwn rb wtwwcrl{hr�p�Ifrt CNltrld SuM�Cd+tut Tme PrvvvvdlQ Wih QeY Work iM1 idWEMClYhlCifilNh114CF4r#bxl{iIN rWr iduovtdorro Ihat inert"t tv rK Ghrrrea O k Cow Sdrr a Cakop Trrrra �.�C4Atft"ar tarT artiti etr tNr uy�IrmrtrU�rm�pn riquror e W r�h tnr Cme�d scm or CaV�tl Tin,ea GorrrraorlttN :1VxnaowrltIMFWOands�gWvmuh%&rtm*m to VOW atriaAmMEW*don¢IhOv*t KyWopo"0WN1D :+SM10day and r LW Ihi Wunkmedll Fr9kd onA be rTpfflaft ty i Cenrhuclan owce DrKive.
T.- Refa -ed Dare
T ,
. , rWLRWfP 1,
Debarment Issue : Staff's Position
§ 1104 Violation / Not a proper basis Implied warranty for debarment
�_. _,
- iYp ---�-� i_
of correct plans ' `S xIssue #2 : Lack of underst � ��ai�a�tn of municipal and specifications �
sewage pump station practice and materials
• The technical specifications for the Five Cities Lift Station - project addresses general pump station controls operations.
Two paragraphs appeared to be in conflict regarding how the floats are to operate if the PLC (programmable logic controller) goes down
• The PLC is intended to operate the pumps based on input from the submersible level sensing transducer
False Statement • Backup operation is provided by mechanical float switches. ather than submitting an RF"I or RFC, V. Lopez, its - subcontractors, and suppliers moved forward with fabrication and installation of the control panel based on a loose interpretation of one section of the specifications, without consideration of other paragraphs in the same section.
NO CONTEMPORANEOUS COMPLAINTS
01 lirl
HunT, 1TfnA�l�l1 ,
� ;
Debarment Issue : Staff's Position
l issue #2: Lack of understanding of municipa . sewage pump station practice and materials
* Their interpretation—that there would he no independent float back Delays were not up—is an unconventional way of controlling the pumps for a critical False Statement caused by Lopez asset like a sewage lift station.
• V. Lopez's abnormal assumption and failure to submit an RFC I resulted in:
Additional delays and inefficiencies ` t • Additional project management and inspection costs �. * April 20, 2020— change order for$50,214.75 and 47 working days to: False Statement
• Modify the incorrect installation that was completed Complete the configuration in accordance with the project specifications and industry standard practices.
False Statement
HunT_ 1
TIA�I�I ,
Debarment Issue No. 2
The Truth
• September/October 2019 - More Pismo Beach
design problems come to the surface
• Pismo Beach realizes it has �o SCADA vendor to make the Lift Station work
— This was Pismo Beach's responsibility
• The Program Logic Controls (PLC) system must be able to function through a SCADA system to make the sewage Lift Station operational
R-TTA n.n ,
Debarment Issue No. 2
The Truth
• This Pismo Beach failure resulted in Project delays from October 2019 to May 2020 and additional
money being correctly paid to Lopez
• October 2019 - RFI 29 Design Change 1
False Statement
• December 2019 - RFI 29. 1 Design Change 2 — False Statement
RrmAnn "I www.huntoftmonn.co
Debarment Issue No. 2
The Truth
• December 10, 2019 - Pismo Beach issues Work Directive Change 13
— Pismo Beach pays for part of its design flaws 1 and 2 • December 17, 2019 - CO 25 (SCADA)
— Pismo Beach takes responsibility for all SCADA delays up to that point
• February 2020 - Pismo Beach still makes more design changes to the Lift Station
R-TTA n.n ,
Debarment Issue No. 2
The Truth
• April 1, 2020 - CO 26
— Pismo Beach takes full responsibility for all delays as to those issues from October 2019 to the end of February 2020 • Finally in September 2020, Pismo Beach took full responsibility for all delays from April 16, 2019, to March 17, 2020
— 85% of the overall sewage Project delay, on Pismo Beach RrmAnn ,
Debarment Issue No. 2
The Truth
• The relevant delay is 6 weeks or 15% of total delay at the very end of the Project from March 17, 2020, to May 1. 2020
— This 15% of the delay is 100% Pismo Beach's responsibility for the SCADA issues
• Critical Path Analysis: Pismo Beach is responsible for all delays on the Project
• May 1, 2020 - When the SCADA system is finally working - the sewage Lift Station is operational • The old system is off line = Project Completion RTmAnn
Debarment Issue No. 2
The Truth
For purposes of this subdivision, "completion means any of the following:
The occupation, beneficial use, and enjoyment of a work of improvement, excluding any operation only for testing, startup, or commissioning, by the public agency, or its agent, accompanied by cessation of labor on the work of improvement.
— Public Contract Code §7107(c)(1)
Debarment Issue No. 2
The Truth
• A Relevant Specification from Pismo Beach's bid documents, before the contract was awarded
SUMON 40 6100-COMMON WORK RESULTS FOR MOMS CONTROL ANO
PART I GENERAL INSTPLUMENTATTON SYSTEMS
SCADA
I UM-M RY specification
A. tir�1rt�lui ;
I- Ocneral dui rcm=applicable to all Procem C&n $nd IrulrunLvn1&4 WOjm ".. 2_ {L-Ueral mgij i rernen6i for proms conLwl and insrrumenta imr submittals,. a. As specirwd 4;thiS 'iryn,$onu N W0 9mar1n1iII�! atLd -SCADA INf F�vft�3.q �•rnfi4ura1;on'oU) N 11)ovidtd 11}: 1 iu Q%%rie _ 1�T-jkjr.Ir. Iht' wrvi of L-LvflSl11U1 "PLC programming l mina er r.,ro red ith-as th,Prv�xxnoi-r. and SCADA HMI 4, PLC p rvgmFuniiug at the lit su6oa wi U Mac pe c��i d;d � thc,pLprn , ccarrn I pane software configuration
will be provided by the
Owner. .--R-"
TAIAn.n 1,1 www.huntoftmann.com 83
Debarment Issue No. 2
The Truth
What i's SCADA?
LIper Isory Control and Data Aquas an
HunT
• • ■ W
PRTrUROnNSI�Iw. � n.c :.
� ;
RF1 29 : Design Change 1
October 2019
The first design change REQUEST FOR INFORMATION RA No. 29 To; VY 1$yAMS Ganst,M%Inc. o#t4:10MI2410
• Two different specifications 805Aaro sfte.We201 RowdBY:AW in conflict regarding how to San LAOb!W.CA Vol Pro,eeiNo.:
Alb.; MURReynolds,P.E. Praed City Wfr5'j, „NWRlwrq make the sewage Lift
INFORMATION REQUESTED:
Station Pumps work 104m wee Ox4d from my El'odrical Sua_Cnntridar MON land Thompoeon'nc.I Cannon Corp. Mind correctly
• RFI 29 submittec by Lopez
o n October 21, 2 019 co Unaw $ s`wire S*dule InhpWM unlaxm U D3ye Pgge&AN#O: to False Statement Trao CanRrader Scut TockNallhn T're VYark shell�grr+ec a!,n hrmor>yrca,hMh the brartip YoP�anre��n,d�wa�u�d�,�o+o.a,rMA�Gandrel Ovr rneMi +�' �w+p�h AM� i 5��GvN19t'�±a nrol�d+'q w�itra wok n wm lAiye+�naon k�ales your Id�rrd�ad�Yrw�irel dope w�Ge rcr�qt In ex Canrod S�rn a QeNharl T�.
Ir h10vox 0r ?d hi Flpp WVW ff%kWw WArn a fia o in the Contact&in or Ca M T Te.the C&k8aff el>911 rrGlpr1Y41dY�M1'�ri'GM Ind lrgaplrhpylhrwhhMtlndhrnl��d� lol•a Adr;ed{qr epr�Can wok N 1�RnCPo4W 4 f�nc to be N&hby am herder,lhh npdemengl Yr A*AP n$$W%A Gyejrzw Cnv l J■� Worrvd TQ: Re;ened O&. Return Dot$,
SUPPLEMENTAL INSTRUCTIONS-.
.---R-TmAnn "I www.huntoftmann.com 85
RF1 29 Response : Design Change 1
October 2019
• The response to RFI 29 results in a design change § 1104 Violation /
Implied warranty
of correct plans
SUPPLEMENTAL INSTRUCTIONS: and specifications
Responses befowobrrk+.spond ID numbAN7g of qurrstons prcMda+d 12yCnnnnn. 1 Section 3=19 states the hqg-tsmperalura and+rrotuture ir#ert0{kS Mil 9mvent the pump"m Pmriinw m all modes-Nble spw-Afra;roc aonNat wEth 2-4.1<.1-a.1 (hardwired Iaw-Mvn!K+tel'Iock)and 2.4 E 1,d.1.9(Iiawievel ktaeotx*will prevent pumps)train operating taelcr level in auto mope only). The hardii0red kw-*Yel Interlock must kox9on in the hand mode per 2A.12.1.oL1.Provide Interlpck to motor starts,pane�(a)from LSLL-653 and LSL-654 tau low IaYW and low ICI mnr ral rely w+lhin VCP 50.
Changing the a. To marntsin funrtinnarl irr hand and hnvp.oDmtiiDn be irdeoe ndef+t of PLClSCAQA rovrde adustable contract ..rclwired delay b-nw(s)vvithln rnoCcr starW oane'(s�to im&n'tain it,n t-or.nl try.
2. OrigirkW des Igrt tad the motor starters inicgrai to VCP-650.w specification'I SL7'iswrilton to be the oornhlbrl MOA at VCP$�b to clear aDy Fault owxffhon.This indudes 333210 2.4.E-1.d.2-a high temp and rridStUre alarm nnat aSwo4l uS 24.E 1 a 2 high Iiwrolswitch alarm reel.where motor starlar cmwkw new Es Implod-tamale rmeer from Z A is ry r uired nor desimd. Provlda cornnnDr+ 'RESET'at VCP-650 fcr Any Fault
ConsuHant's,5ipraturo: Engrneert Sic luro
t I7prle:
HunT-
P"RenmsI�I :.
Cannon Proposal re : RFl 29 . 1 :
Design Change 2 = December 2019
The second design change cannon
• More Pismo Beach design
changes per RFI 29. 1
l�Corg►6nd Th 17
ames,Ino,
• Cannon's cost of design Or � 74)rl, changes: $17,800 for design QC'! $YrMw 7*+FoR FNE CM"Lr7 STA7*, SUWL FA`Qpalln�'W"L C'MUCE'KMTION,MMF1CA710f4R PEA RFI N[M 29.1 of the control wiring and Dear Mr.rfiomp%m.
As requee4ed,rv'o"wr d wi FRIF
The mnoldrq circuitry iir4'7,tad lri r^y irKiWkV rwrkGMp b ;,Q " „p Li' ,{, � . „ ' {allram +.*1rq and itaa�ur Wd 4' -PA zddrlcn of 0 rrra�arx:uMro ro aaaa�rvnoda.e dog ad rardw�rq,
The=t10 rrdeeign UM ONVrd tirirfrg"Cj+CL&j,for QM LL)WAftI bro Rib71Kw nNap3me,qc Redesign Work PLUMt s&MOMrta-&E� WI-dprow;eglaparlornoAUftdmc* siR;17,&W-Waqi�anWdr-lotsrr {i G}r rklr�Oyu.The ad(1SLrw1 wod ft Cirys WO r@;rI d fpr 4 Igi,au4]m*W.pUr @re fni'�Ue�o� Wc4hy ftm are—'*OW on rwaw lima a 9d the materiel Ind Grua.V th4 r+6Eft . .
Nppmwsi,PM—OW and fohyn to ma_
§ 1104 Violation / 1,yam,hang any"NW 4 or ccmMWt1,00 a dv RX hboutoto C84 m•at 5C 5.236.1 Z4b W em.
Implied warranty [email protected];.
of correct plans Srecaray,
and specifications
C 90131
RTmAnn A
www.huntoftmann.com
Work Directive Change 13 : Design Changes 1 & 2 December 2019
Work Directive Change 13 is WORK DIRECnVE CHANGE VU&IMCWrl6 Fallow)
for design changes 1 and 2 NO 13
Project Fhr6 CAMPS L!!f Statlon and L.S Ma oftirkance Prove Pismo Beach issues Work DaLb e Lilsuanoff December i4 2014 • Contraelor V.Up=Junlor_and Sore,Inc- �Five Citi*4 LSProjeuf
t provide indNioual b"alarms rgr roar(4)ddHorer tauits with ohe rat Tar ell.Task 2-rewire Directive 13 on December Wis TV to the matorcanbp rather then the PLC 1112019 Dv&€'Mien: Tesk 1 and Task 2 m descnped mare PLuruasa or Weds❑ircctive Change' Task 1 atld Task 2 as daa[xdhed nbow- • The City pays for the money
AI[achrnenls:(list documerite scppadrrQ prar-ge)
See s4IK11W sJpQorring dgrurrentetion-Coniracto•'t propaad cost and time associated with K e elm is made Thai the above champ{=}have a eded Controa Pride or C criftc!Tune,any ctalm for a Crmnge 4rdar t>ased the�wi)nvohke one of the faM-Acing methods qT delefml"Inp vre enact of&* design changes arising from
Method al Bator-n!rIng Mothod of determining
chmtga In CanwixI Puce: change to Can ract Tir m
RFIs 29 and 29. 1 ❑urn
Pri 4 °"'u Rzimirds
0 t«°t� o t tt�
❑rW trlu.Pond roa
o ottr.r
coat proposed from V.LoPM
Eslimaled i w""Me Eahmalad ke amw
Pismo Beach pays for cereal",in C-or4r@cl price
S _ (decrease}inGOnsy'ect Thine
the design changes 24,7E12-85 10 din
missing from RFIs 29 If thtrchanee krrmlveaan"'�° ,(roe If thee cnarrge,hvohres an irxasase.the cat'matnd amount Ip rO t❑W exceeded estimated*re is not to be eKauadoti and 29.1 wltitvt,tfurtheravltsor4zaoon. vrithoul*jrtherALdlcrf¢ation _____......
IZerrnreneneed� q.
h b
Ch&dMtaetr.P.E. 9e LA.F en._* P.E
Title: Engrtear City En9W~ADftetor of Pubiic Works i ill.,
r i �
Debarment Issue No . 2
SCADA CO 25 = December 2019
CHMIGE ORDER
• Pismo Beach takes full (Instructions Follow) "Additional working days N, 2S for delays associated with
responsibility for all SCADA schedule of City's SCADA Project. Flva Cities Lift Starlon lmproverrrents and 4,itr ;: integrator," Cate of Issuance December 1T,2019
related delays from October contractor: �.Ltlpe j,,ior&sons,inic. 211 2019, to December 12, `'ou are directed to make the fotlowing charyys in the Contract t7aCunenl5.
Description; ND COST CHANGE ORDER•Add(=aI workin da for deia associated wlh schecule of Cif s SCADA inteamiry
2019 wh r pese rrrr°Order beta s associated wlltt Ci 's SCAGA Int ration.Delp b CIl began en ConlrWor corn feted wo*w;thin the elect ical cabinel.Delay ended when QJ4 integrator was read for starlu of the new lift stet on.Nutt,Contraclar's V E_p V&Sons startu and 105Vn suornitlal, which is on the critirai th has not ei been approve C. • §11041 Implied Warranty Daydeia Se nis10.28.2D19enddata end is72.i2.24i9 Attachments:(List documents supporting change) The SCADA design flaw
• Per the contract terms, Change in Contract Price Change in Contract Time:
Criglnal Contract Pr:�
Lopez protests validity z`9o1,4ea.ao Qriginal Contras Time 31a0 days Previous Change Orders; Prevous Change Orders:
No. f :a Ne. 1 to
No. _24 No. 24
S 142.608.13 70 Days
Contract Puce Prior to this Change Order Contract Time Prior to this Change Order:
S 3,044 094.13 370 ,^ays
Ne;increase(decrease)of This Change Order Net cnange of:his Change Order:
S 0.00 32 dqs
Contract Price wlih a approved Change Orders Contract Time tvttr all Mraved Change Orders & 3044,094.13 _402 days
lAnnwww. ,PRMRnNs
wl
The Maintenance Project is Completed
• On January 9,, 2020, the Maintenance Project is completed
HunT-
=IM 90
Debarment Issue No . 2
February 2020 "First, after the award of
"Contract Modification per
The third design change RFI NO. 29.1"' the City AmUn(Spklox) bompsm requested additional
• More design changes to the P.°.f�t 7�rT ,lnc modification." Orcuir CASU574717
ftwechardware, software and 4UBJECT' sYSTErkjuf OhTRAr PC R lrMDOWg T)ON. T$iaT1U':
$i'HJt CT' pRtlpUSED C8hTRAGi fn109F['.J,1?nH,
AGGMOmAL voDirCATlO"PER RFI hlo.29.1
control standby for the New Ce&NF.Thompson.
The purpose of thEe wnvad modlneabon Is to aciam5 two mnri s.
Sewage Lift Station ModiFcatwt a•R tc.Qi theC rs uasradra0lisnotmad ,and % vlry on thin purmle of the
existing m*nw%.she adailton of ao a 5D,%t.And intilary iuu0cns and pau conf*ow wShrine �t vKes.
• More design work by �r .,r rxl'E,rr, tt t.L 5 it sn;T Il n n gj.uas,Ain Lho waral GGMRG nal Corm guratlon mrAaJ rmd ire inn arc+ t+ real,tno rmnrw[tefiei mom not Dow the uL 5Oe A stickar,The prevkxet; :cnlract modfic�tcn coWainad the rant to move these ISFU to a new endeerure whlcN,once mmpleled, Cannon f i I I i n i n t h e gaps Al allow the panel to bear a UL 50d4 sticker.The C y would also like tho new[SR andoaurs to be r Jw UL 690A etirAar.UL requElse tat lafiais addax to endasuoes alraetly inataJen In the frotd ha aw;EHEt by their irt¢ppctare_Tne coal far tile~WgLS no%InCIA9d in trio 4,,n9]rtal cbntratt"Odificirl r}belt iS oduded belvw-
Cbani n the r1m a0AIMOel eM to fu.0ar deaign the mn"l wtdng and*cultry,addttional mabodsle,and labor to g g take the additional dmnges is$7.190.00 and an esllmeie often(10)work"days.rttd additional contract world'9 de}FE are mq`lirt-d on
W pucl*am,instala5 ,mid tesu g d conu ng.worKnays are n0&rt on ^taterial lead time.n thts maxis yourspprayst,pleasa airy end mium to rrie.
UL hag not prcvWed us a quala for the initellaUan of trm UL SCRA stldcer eta have vorhally quaten tw-WA3an 31,500 and SUM Tne gwmei to fr&Wl tft0 A 606 A otinkme icon att�hnd)to twrwom$4.400 and Wu are 8ddlriq tlltrse at opburtnl Germ ahauid Ilze City wt5n t4 add them. if you Itava arty olio tx carrxnante.pbaee tip r+vt h'r5ttate to rail rna at t105 235,12dfy or email j0 S*CsnnonCorp.Us.
$lrtrgrgly, CL'4 asaxmr,the Sf
regwrnd tlL irr�pedlen
� �. rOe0rp rsaaa err rnot
*d
[email protected] Irglirsd, .
LOp62 b.�iC/1'e Wie
JO Spannba LK r,PEad&6ww CCt]tdYolt w
pBegar,Autnmatron A.EkKl irk Engtr+eerrnp
C 16131
.--R-TAIAn n 91
Debarment Issue No . 2
Design Changes 1, 2 and 3 CHANGE ORDER
(Inshcllad6 Folkaw)
• CO 26 NO 25
pp Je - ✓k0 Gft LJR Wd W"mnenfr and L A S aum hfamutrrrr;e f rof eGd Dale of NUNO April 1,2M
Corr"a w. Y.LAP"Jg4lor i Somr.ku. .�
Eva rAdee Lift S 26m pea�Oct
You sm dhrrdad to rnrrk,rr mr tk wlrq cNnps h1 th9 cahw vo wm4e , 0maiplla8l ktxtrk4 mkftvtana associated w1b RF IS.i,us rr*W ir,WCO ill pnd'MP Pismo Beach takes C-� "rkodw CORN 9.
responsibility for all PU"o(th°°'Drdv. eln 'oOltai 'r�lydWL4�" `entfti l andre„�, to Ocala p Y ra 1� ktcC rwca13,MvdNfcr+tlor.b na8; et6Qona.eddltlan a dhke ao.t and these issues �� 3endd�EAcM�haugofundour�eC+t�mar�edup�Qfi! . nd0e.µ�m� rhe'H required'IJL d90A d�rpeeAan faCeBnd task m.,rml he ne�r� �ran ire¢,Ikon V.Lvpea 8 5ar Wit be Carnowu ed vU an H[WltonO=to TAW uparr mcdV a!pald Ovrfm6 tom UL See aftachec Now Pismo Beach le'tar for teoplan enof4h" 5;nx` owtM x.
Adad r+enu {Lbt dxumenir eoPP %IfiQ ihlft�l� loiter.mwted WOW W and wants to debar ON makgdups$,
Lopez for them
ConM Prd Pfiof tD ti Charm Older Cdn400 rlmp R V is Up i Iwgg@ Ordar $ 3 S",09 u 407
Nei inumso(deaaeea)d hi Chanpq 0rea Net ci my of Ihta Ciery 0mr:
S $��id 7� ar dar•,
CO is a
co*pd Nu we gI gVuwo chomp O= cans'ect rrr*whW apQravW Cc arge a m,. Done Deal Av emmi and lima prop oed in 06 aoetred rhmp order are a fu1 end Anal ftWYd&W aeil ftft for cwLs and 11-ne 6rec"y a M ndl redly Ttaled IAd d dhrcYkms .e L;CMrl=MIS mmm rw plang#ng I MISenpe lhere'�F.,,
Acov r+Rbtl far in W 811= rtt IaWW WIKK rrrert
RTMAnn A
www.huntoftmann.com
Lift Station Project is Completed
DATE: DAY: M T W T F S Su
FOREMAN: -
CANTRAGT
WEATH - vi�yTaRS
AM
HOURS LOST DUE 70 BAD WEATHER:: -- --
—_ _SCREDL_ PROBLEMSIDELAYS:
-�rnpledon Datj
Days A of Schedule ...___-
f�ys Behind Sehedufe � -- -- _
T SAFETY ISSUES: �� ACCIDENTSAMODENTS:
May 1, 2020:The Lift Station
Project is completed _ __ _ SUMMARY OF WORK PEP FORMED TOWN �.•- � T ram tU:.�..��^,�1���� � `'���- la;C�.� HunTIRTMAt�11, 21ww93
Debarment Issue : Staff's Position
False Statement Not a proper basis
for debarment
— sae #2: Lack of understanding of municipal
al
p
se e pump station practice and materials
* V. Lopez interpreted t electrical portion of the project plans and False Statement I plie Violation / specifications to call for a new 225-amp residential electrical panel to re Implied warranty the existing 200-amp electrical panel at the Five Cities Lift Station of correct plans � PG&E handout
and specifications package for the service relocation called for a 201-400 amp commercial service
• Plans and specifications placed all responsibility on the Contractor for:
• The electrical service relocation
■ Communicating confirming PG&E requirements for the service relocation July 22, 2019 -- change order for costs ($2,283) and 20 working days • Maintain progress on the project since the electrical work was on the critical path and V. Lopez was refusing to work
• Resulted in additional project management a inspection fees to the City 164
Because Pismo
Beach's plans
were wrong
W... ,
Hum, ., T
225=amp vs . 400 =amp Issue
The Truth
• PG&E provides the power for Pismo Beach's Lift Station
• In 2016, a year before the contract was awarded to Lopez, PG&E's designer and Pismo Beach's electrical engineer ( EEOR) agree a 400-amp panel is required for the design of the new Lift Station
RTmAnn ,
225=amp vs . 400 =amp Issue
The Truth
• Fast forward to 2019
• RFI 26 and PG&E's responses reveals that the PG&E requirement for the 400-amp panel was not
included in the plans and specifications by Pismo Beach's designer
• A design error by Pismo Beach - Not Lopez • Pismo Beach issues CO 21
RrmAnn 1,1 www.huntoftmann.co
Debarment Issue
Fn" &rice Radert tkMBPpge-toms
Sync Tuesday,5ep➢emheria 20167,51AM
To: Tyler T rep
Cc 105hel21".golds
Subject HE,-1011559aI PU9-S CWmK L5 5enrke WtStatian HI Tyler,Thanks for the clarification.And yes,you are correct about the panel and CT's. I will turn this in for estimating.
Regards,
Bob
9/20/2016: Pismo's
Po6EB°`kE ElectPG& rical Engineer
Sesricr Mew Business Royrrsentative
4325 S.Htguera St.
San Luis Wspa,CA 9.14V 1
805.546.5236
From:Tyler T—V[rraAo:TT—VGq rgllp,mJ
"I believe we need a 400 Sw*Tumdgy,S'"hwZD 20167:41AM
t'YI Burke,Robot
three phase service s `'w"a nir10 amp p REt 307i 55963 l'L •5 Opdes LS Six+Itce uR Smden meter panel for the lift This is an EXTERNAL EMAIL Stag and think before clicking links or opening attachrWrim station." .,.......................I...........
Good mornne Bob,
I WlieveWe eftO a b{1Pam lhrce phase service Rater Panel for the llfi stalion,This Is w1y Keynote 5 ondrawing E-101 r. sonirlli(Pr th15 mie i5 the nor5neded
bad 4 snowing to be just under 200 amps(main breakerfienrke dkconnert%Lwd for a bit mare),ono I ndefft;with demand faelors the operatlrtg load win be less However,sae hart prau dw prcv-irans far a powmLtl Fiji um chemkar teed wf.Lem hot odor rontral et the Ift station iu I think the 49d amp nnal iulu-r load added a part Pl the•rhernkal feedsyalem- The 400-amp At this time there n m antkiirated dare Tar adding She chemical system to Jre iiR st&tton iltr nor projected lnaas, eery tt t re m e nt Correct me lr I'm wrong hers:the stake meterpanrh are purchased and Installed by Nia Contractor wPG&E �7 gMenbquk standards.a:sd the contrprtor then m rjinares Ip NWP PCKF to Insull Crs I&S rttededi and met4rlrg equipment within the meler panek.
I can confirm the 100 amp RV park service will he 240f120 V single phase, Place Wt nie know tE you halle any pthlr qrl sWris or wmertt4, UmAn.n ,
Debarment Issue
From: Tyler Troup 7/1/2019: WSC
Senn Monday,July 1,2019 11:50 AM
Tor la5hua Reynolds;-Adam Rwanda'
Cc: Tyler Troup
Subject: P+smo 5 Citics LS RFIC26 conference call O7/Otr 9 notes HI guys,
Notes from our call today.
Sa round
• AF1026 PG&E Meter and Response
• Conlrw P9Cuments
• PG&E Project DWG(Service Details)
• Submittal No 762416 1.5C•£Panelboards 2-12-LB:Contractor submitted on metering equipment within panel board suhmitlatcover(not acceptable).No comments were made by Engineer on metering equipment via submittal process(metering equlpmentwas never Intent Of panel;Km rd submittal revlew,whlch Is LN1).
Metering equipment/compatibility per PG&E's standatds igreenbook and project drawing)- tte
City:Chad S
Carollo•Tyler Troup
WSC,Josh R and Adam R
K:Vince Land Butch;
Wit Spider LLopez can get the
Nlte�fmrn;gIl. 400-amp panel
WSC and Pismo . Looking to quickly resolve RP10261ResponSeand fend path forward to keep project on schedule Beach confused • Contractor cIalmed they can get a 400amp service equ-pment as shown an ihedrawinRs and spew and rotroborated by PG&E dwg.Acknowledged that a standalone switchboard with pull section not antItlpated per about the 400-amp PG&E's stondardsusedanthapleCt,all houghsw1chboandiscommon for 400ampserncesiae • QiSw slon onsubmhtal262.41Cr15C•E Panotboards 7-17-18 122S amp meteringequiprnent), requirement Metering equipment submitted but never commented on Submittal Is not an appropriate channe1Inthan"CCnlr0d requirements(less than 400A,1.a.a 77SA servicej'.The Cument metering equlpment submitted will not he com pat ble wil h PG&E's connections per the PG&E drawing.
• Confusion as ro PG&E's standards(7DO A or 400 Al compared to ci stomer•s equipment(225 A31 and cable siring,and interface between the two at metertngequlpment/PG&E's connection.Contra rtorsized merenng equipment per rurtomer service entranvu disconnect/circuit hreakerATS-W and not per refere nced PG&E's standards{DWG E-103 Keynote and Z60NO31 4 A.2.a).
• PG&E Drawing per CC NOW referenced)applicable details and backboard DWG details—no switchboard type construction shown
• PG&E's schedule becoming larger concern
HunT_
www.TIA� I�I ,
RTrURnEUS
R ;
Debarment Issue
CHANGE ORDER
(Instrudfions Fallow)
No 21 Not a proper basis
' for debarment
§ 1104 Violation / Project: Five Cities Lih Sfadon Improvemems and Lift Station Malnfernance Project Implied warranty Date oi issuance Jul! ?z,2019
of correct plans Convactor: V,Lopez Junior&Sans,inc. and specifications FiVe CITIES LIFT STATION
You are dVwAed to make the foflowing changes in the C0ntrdcta=Xlerlts, oeswption: Provide and iIsla,!e00 am p,24OV 3 phe so*rmination caDirlenl and 400 amp fusible dis cc n nect with 2z5A fuses
Purpose of Gbange Orde^ Pr❑vide 400 arr ,240 V 3 plime ter minatlon cabinert and 400 amp fusible disconnect to s upport 400 amp panel per PGE requ ire ments Attschrnwnls:(List documents supporting change) Change Order Re Vest from V.Lopez Charge in Contract Price Change In Contract Time:
Original Contraci Price'
€ 2,901 486.no Original Conlracl Time: 300 days
Previous Change Orders- Previous Charge Orders:
Na. No. 1 to
No. — 2� — No. 20
S 139.807.60 49 Days
Contract Prfee Prior to this Change Order Contract Time Prior to this Change Order CO is a S 3,041,373.60 349 days Done Deal
Net irxrease(decrease)of this Change Order Net change of IM Change Order; $ 2,283,00 20 days
Contract Price with all approved Change Orders Contract Time with all approved Change Orders' 3,043.656.6D 369 days
TIA�I�I Hum-
www.huntoftmann.com
Issue 3 :
V. Lopez Demonstrated a Lack of
Understanding of Public Works
• The Staffs "Issue 3" slide and the "Schedule Challenges" slides represent complaints by the Staff with regard to:
— Change Orders
— Lopez reserving its rights under the contract
— Delay issues
• None of these complaints rise to the level of debarment
RTMAn.n ,
Issue 3 :
V. Lopez Demonstrated a Lack of
Understanding of Public Works
issue #3: V. Lopez demonstrated a lack
of understanding of Public Works
Common delay
Not true
issues are improper process
for debarment
• Failure to request compensatory days when submitting False Statement change order requests
• Submitted a claim for extra working days after change orders had been finalized
• Failed to accelerate work effort to recover the ro ect Pismo Beach delays p acceleration not
schedule warranted
165 �4
TmAnnIR
Issue 3 :
V. Lopez Demonstrated a Lack of
Understanding of Public Works
Change Order a Issue #3: V. Lopez demonstrated a track processing not of understanding of Public Works
warranted for
debarment Not true
process
• Multiple times throughout the project, V. Lopez provided change order proposals
• with a proposed cost increase 5 Not true • no request for additional working days
• Staff informed V. Lopez multiple times that its change order proposal should include
• proposed cost and additional working days to complete the additional work
166 �5
RTmAnnwwuhuntoftmonn.cofn 102
Issue 3 :
V. Lopez Demonstrated a Lack of
Understanding of Public Works
Lopez reserved its
right under the
V. Lopez demonstrated � contract by refusing
Lopez agrees; only Issue #3: p crack to sign Cos which did not reflect the
Pismo Beach does of understanding of Public Works actual delays to the not to follow this
language. See CO 21 project
FOLLOWING THE
and 25 process
CONTRACT DOES
• ange order form includes the following disclaimer: NOT WARRANT
DEBARMENT
• "Th ount and time provided in this contract change order are a full and final accord and satisfaction of all costs and time directly and indirectly related and all other claims related hereto are hereby waived. The Contractor has reviewed the 0ans and specifications related to this change order and all changes thereto are accounted for..." 167 a6
Hum-
ZMr ,
RAM � ;
Issue 3 :
V. Lopez Demonstrated a Lack of
Understanding of Public Works
►N. -.-.- - -
�� . Claim Letter
�Af
FOLLOWING THE
CONTRACT DOES • January 7, 2020 — V. Lopez submitted a letter seeking 120 NOT WARRANT working days
DEBARMENT • Based on needing additional days for each executed change order
• Made claims that limiting sections of the Contract Documents did not apply because its delay claim "declares void any arguably exculpatory contract clauses..."
• The City Attorney responded to this claim, although V. Lopez has insisted on this and since submitting the letter, V. Lopez refused to sign working day statements or contract change orders with the stated contract days.
16� 17
HunT PRTrUROnEgSI�I o o ..
� ;
Issue 3 :
V. Lopez Demonstrated a Lack of
Understanding of Public Works
Issue #3: V. Lopez demonstrated a lack
Before the
debarment, Pismo of understanding of Public Works Beach took
responsibility for all process
delays from 4-16-19
to 3-17-2020. • May/June 2019 Staff had concerns of timeline A dispute over 6
weeks of delays •June 29, 2019 staff memorialized these concerns in a does not rise to the letter to V. Lopez
Dap: 6/29/2019
level of debarment
To: Dutch Lopez
V.Lopez Jr.&Sons
,Is small
Prepared by: Ad..Nende,PE
P,Q*L. FNre Giles Life Station Replacement/Lift Station Melnpnana SUBJECT: PROGRESS AND SCHEDULE ASSESSMENT
Burch,
This memo Is to Inform you of your program status compared to the remaining ononct time per the Weekly Statement of Working Den.The status assessment is based an wrrent Pregrew end schedule updates prodded W V lopes&Sens it toper)at the last bFweekly meeting Ouly ZSj and compared tothe eurrem Cmmded Deus R of Completlon afAugust 23,2019.Scheduled Work sequence and Items of toner are summardad helpv.. ISO RTmAnnwww. ,
i ill.,
a s �
Issue 3 :
V. Lopez Demonstrated a Lack of
Understanding of Public Works
_ Delay disputes do
Misleading! Staff - not warrant failed to tell the y_—_, _ _ debarment.
Council that Pismo
f cz—ax Debarment is far too
�'
Beach was ,M Schedule Challenges serious a remedy responsible for at
least 85% of all the • The project experienced significant delays resulting in:
Project delays giving
the impression that • The City extending the Contract time 159 days past the 300-day Lopez should be contract time
debarred
• 459 days total
• 153% of the original contract time
• V. Lopez provided 2-week look-ahead schedules at each progress meeting
• But was inconsistent with updating the overall project schedule • Went several months between updates
170 3z
RTMAn.n tma ,
Issue 3 :
V. Lopez Demonstrated a Lack of
Understanding of Public Works
Delay disputes do
not warrant
debarment.
Debarment is far too
Schedule Challenges serious a remedy
• V. Lopez built the schedule linearly
• Creating a single-track critical path
• When it became apparent V Lopez was not going to complete the project on-time
• No effort was made to perform multiple tasks
• Or otherwise recover the project schedule
• This resulted in the City assessing V. Lopez 69 days of liquidated damages for a total of $69,000 Legally and factually invalid
171 33
RTTA11 www.huntoftmann.corn
Debarment Issue : Staff's Position
Not a proper basis
for debarment
Y -
- Fiscal Loss ---.---_--
The total approximate financial loss to the City as a direct result of V. Lopez is $323,437.75 comprised of the following:
,vr
Construction Management Amendment #1 $69,900.00 I plie Violation / Construction Management Amendment #2 $49,000.00 Implied warranty
of correct plans Construction Management Amendment #3 $69,645.00 and specifications Additional Engineering Services Amendment #7 $15,395.00 CCO 421 - additional costs $2,283.00
CCO #26 - additional costs $50,214.75
Subtotal (Direct Costs) $256,437.75
CCO #>f21 - 20 working days @ 1r000Jday $20,000.00 CCO #26 - 47 working.days @ S1,000/day $47,000.00
Total loss $323,437.75
172
Debarment Issue : Fiscal Loss
• Staff gave the erroneous impression to the Council that somehow Lopez's performance caused Pismo
Beach over $300,000 in damages
— This is a false statement!
• Apparently, this "Fiscal Loss" story was intended by Staff to make sure the Council debarred Lopez and to ensure no scrutiny was placed on Staff or WSC, the designer and Construction Manager
Debarment Issue : Fiscal Loss
• The truth behind the four construction management amendments was not presented by Staff to the
Council at the November 17, 2020, debarment
hearing
• The truth is not being presented today
• This is no accident - The amendments deal with design flaws
• These are § 1104 and Implied Warranty issues
Debarment Issue : Fiscal Loss
Ws
WAIEg SYSTEMS COMbUl.rING,INC.
4/1f2019
Mr,Chad 510chr,NE
Cl-yof PismoSeadi
760 Ma We Road 1st WSC payment
Pismo Reach,CA 914A5
increase
StJBIECJ:AMfNOMENTIll TO TIE FM CfTIFS LIFTSTATION CONS TRUCTION MANAGUA€FTT
SER VI US AGREEM ENT
near Chad,
This IctWr is intended to 3arve as a proposal for Amendment Ill to lute Fhre Cities Lift Statian Constrrtrtion Managenwf?k Services Agreement between Water Systems Consulting,Inc.(WSC)and the City of Pisma Beach(CitVl dated January 17,7017. Tl+a proposed amendment covers the following scope:
AddibanaLCGnsTAtton Phase_SerVrces; The original prepoul was based on 160 wanting days to Gompietc the Five Citi"Lift Station"JLcct_ When the five Cltmtl Lift Stall cm was combated with the• Lift Stallion Maintenance Piraject, the combined schedule for both prejects was extended to 300 working days. It is YVCs understanding tnat the Gty combined the two projects to leverage project ;nterest W gel rhore ton tractors to bid-on the pmjlCt SrnCe the City recewed no bids In response to the first advertisement for the Lift Slat lan Mal ntenancc Project. This strategy was successful as the City received siz olds from respansible contractors. Furthermore, a is our understanding tttat the Gill} s hope was the low bid Contractor would pursue both pro)ecis agpressively to save money. This strategy was also successful in that V.Lopez Jr.and Soto'bid tar both projects was apprvximati ly S250,01M less than the second rowiast bidder, However,V.i.apct Jr.and 59nS have built their schedule to maximize their use of avaiLaNt time- At this time the Contract days have been a:tended to 323 ttraridngdays § 1104 Violation / Implied wtthl CUFflent scheduled compretion date W Jury 10,2014 Dell r wWv c rusnd by nrtra,uhtgrkWeo warranty of correct plans circumstances including.
and specifications a damaged e)iisring storm drain encountered under Highway 1 from Senior Mobile Home Part,
Not a Lopez Issue • the mislacabonof the cnisttngBfinchforccmain due minaCCUraterewrddrawimgs,and, + above average rainfall in th?2018/2019 winter,
This schedue e,rension nos requi•ed WSC to provide addrhonal constrtsttion phase serOCClir whrCh will induce Constructfon obse*vat on,routine progress meetingr,and revipw of mpnthly Rripgrem parr r•.iirnatec
15 HunTimo a ,
r , r i
Debarment Issue : Fiscal Loss
wsC
WATER SYSTEMS CONSULTJNG,INC.
10/11/2019
Mr.Chad Stoehr,PE
City of Pismo Beach
760 Mottle Road
Pismo Beach,CA93449 2nd WSC payment
SUBJECT:AMENDMENT#Z TO THE FIVE CITIES LIFT STATION CONSTRUCTION MANAGEMENT i ncrease
SERVICES AGREEMENT
Additional Construction phase Services: On April 4,2019,WSC requested Contract amendment#1 to provide additional construction prase services to accommodate project extensions caused by various delays.At the time Amendment#1 was prepared,the combined contract days for the five Cities Lift Station project and the Lift Station Maintenance project had been extended to 323 working days with a scheduled completion date of Juiy 10,2019.Since Amendment#1 was prepared,the contract days have been extended to 371 woWq days.The addition of these working days rorresponds with a Completion date of October 14,2019.The extension of contract days,with respect to the five Cities § 1104 Violation / Implied Lift Station project can primarily be attributed to following unforeseen circumstances:
warranty of correct plans the changefrom ductile Iron to stainless steel discharge piping at the Five Cities lift station; and specifications L Design Flaws Not a Lopez Issue and,
misperception regarding the PG&E requirements and the lead time associated with ordering anew 400-amp,Z40 V termination cabinet.
HunT1 .1 im www.huntoftmann.com
Debarment Issue : Fiscal Loss
vs
w ODU S-yGTEAISL0k-iU01.-9C,INC.
SISY2020
Not a proper basis Mr.Chad Stoehr,Pt
Gtyof Pismo Beach
for debarment ?G0 Mottle Roan 3rd WSC payment Pismo Beach,CA 92"11 increase
SUBfECT:AMENOMENT 03 fO THE RVE CRIES LIFT STATION CGKFS7 fUCTION hILANlIIGIEFAMT SERVICES A$TtE EM ENT
7earChad,
This letter it intended to Serest as a prapasal for amendment 413 tO the Flye Utles Lilt Station CmtryWori Management Services Agreement between Water Systems f onsuiting, Inc.{Vvsq and the Citygf Pismo Beach(City)datedJanuarY 17,2017. The proposed amendment cave rsthe follawing cape.
Additional Comtrgoon Ph - On October 11,2019,WSC requefted Contract Amendment 02 t6 provide additional wnsttuctjon phase Services tG accomrnvdate project extertsicns CaWCd bV various delays.At the time Amendment 02 was prepared,the campined onntract day,for the FIv" ClUes Uft Statlon projecrt and the Lift Staticn Malntenante protect had been extended to 371 work,,;, "These delays have days with a sthedWed cGmplellark date of Water 14,2019.It was known that the contractor woLj:,; not be meetirxg the peoJect completion date, therefore, Arnendment 42 was prepared under tli primarily been associated amniptionthat the protect wauldcome Iocompleban bymid-November.Since Amendment awl w.. with SCADA Integrations submitted,the project has expenenrodadditianpldesays,estimatedbytfieEngineerandCltytaontn and electrical order of appro°tdmate3y Bd warldng days. These delays have primarily been associated with SCADA s integration and electrkal mudiflcatluns Whtte construcl�on observat-on needs during the past serrera' modifications.rr § 1104 Violation I Implied manthshas been little to none,time has been Spent bywSCmanailyng the(diiowing; warranty of correct plans , Mims to ail dhornWerontractarregardingIigWclinrddamages. and specifications a Coordination and submittal review assaoated wlthi!IWYCraf rnodlfitations(RFI029.1), Not a Lopez Issue u CoordlnatlanWOCItySCADAintegratarrand o Rowirmbi-weekiympetingsandweeklystatemtntsofworlangdays.
The corltfact tdmplctlon date has continued to ship, making dcwnate project+an of the ling) cnnstruenon administration fee d"rL)lt. this Amendment 03 is intended to provide fee to close the PP from the I,st amendment and prow do,fee for WSC to support the City through June 202O HunT
izwwwuhuntoftmonn.com
r , r R ;
Debarment Issue : Fiscal Loss
,,: ems c
WATElt Y$-l1IS{`ORMTlrst;,INC.
1d/1419
Mr.Chad Stoehr,PE
Cdtir of Pisrmo Beach
160 milaie RpbG
Plsrno EkocK CA 93449
7t" WSC payment
increase Su9JfCr.AMENDMENT 07 TO THE FM LTIE5UFF 57AT40N REPLACEME TPROFESSIONAE SERVICES A43REEMEIYT
More work by Pismo
agar t nay, Beach's designers for
Thn alter Is intended to serve e- e proposal stir Am end mex e7 to the Five CIJes lift Stahel responding to RFIs ReplacemrnSPrmtbSlanal54MMS Agree rnentbelweariWatuSyti on*CpfliulUrlg,Inc-{'MC;and the about Pismo Beach's City of aamo Beath (cty)dared IlKemher It 201.2, The Propa:eo arhaulrnenr is s�petik to the Incomplete Design Englneenng smbtes Uarims Corstruakm IE.SDq and ctivers the folInwirig sroPe-
1. Fsttndt!d Pfoied Marwprment. Carullo Engineers,Inc, {Carona}w-11 ptcwkle addwtlonal projw mi ramp rn m services,Fmclwding t he preparviipn of manthle progress reports,for addtt6orral four- mgrdh perlod-
7. Additiaail Submittal The or glnirlly es:Im d t[d qusnl+tx 0 nine(9)submittals and tie(;y re,iubrnfil als was eoceecW by la wwri Ili)submittals And thirteen(13I re-submatrlr,fix a mW of tw evity-1 hfee 123I submittals and elghtetri�10)re- ubmMilis reviewed thus lat.it Es&M.ailed Thar ioprasrnwtelw six 16) ttditional sulxivok ird egWPment opermtiaes and nuirpterarvae rna nuals wel ke su bfnijted by the Contractor for rev irw by Caroi'a.The grope and bwdeet amounts for the previowsN exceeded subrnixul reviews end mEiuriw apixeiimmlely 3 hours for initial rtv,ew pt adcrnk); ml sut mitla.ls mod 2 boars my"of ne-sub miltals.
The tutat b&dget increase far this rmendmeM i9$15,355,as sh"n kn the table an the next paW The curreateantrad amount is$3,52,239 for Ihe Fb,r{rtles UtStatinn Construction MoWmentservPces, 44;Yh this irnendment,the new contract amount will oe$377rG39.
HunT
9ffMRnRtu�sRtLRWw1
Debarment Issue : Fiscal Loss
• Pismo's employees also tried to reverse the time and money added to the contract on Change Orders 21 and 26 through their fiscal loss slide as follows :
Not a proper basis
►�Y , _ - - -- __ �_ _ for debarment Fiscal Loss
The total approximate financial loss to the City as a direct result of V. Lopez is $323,437.75 comprised of the following:
Construction Management Amendment #1 $69,900.0❑
Construction Management Amendment#2 $49,000.00
Construction Management Amendment #3 $69,645.00
Additional Engineering Services Amendment #7 $15,395.00 CCO #21 - additional costs $2,283.00
CCO #26 - additional costs $50,214.75
Subtotal (Direct Costs) $256,437.75
CCO #21 - 20 working days @ $1,000/day $20,000.00 CCO #26 - 47 working days ALL1,00OZda A-7 000.00
Total loss $323,437.75
H u n T
�Mff ,
Debarment Issue : Fiscal Loss
Not a proper basis
CHANGE ORDL-R for debarment
(Instructions Fallow)
No 21
Project' Five Wes Lift Station Improvemems and Lift Station Maintenance Project 100 Date of Issuance July 22 2019
Contractor; V,Lopez Junior&Sans Inc.
FIVF_CITIES LIFT sTAnom
You are dVected to make Ile to6owing changes in the Contract DocurDents, Description: Provide and instaii 400 am p,240V 3 phase lerminatlon cabmen! and 400 am fusible disconnect with 275A fuses
Purpose of Change Order: Provide 4DO am 240 V 3 phase tamrinatlon cabinert and 400 amp fusible disconnect to svopo rt 400 am net r FGE uiraments
Attachments:(Lis t dow ments sup porthip change) Change Order Rg tfrom V.Lopez Charge in Contract Price Change In Contract Time:
Original Contract Price: CO is a Done Deal E 2 901 4B6,00 Original'Contract Time: 300 days
Previous Chango Orders- Previous Charge Orders:
No. ;i No. 1 t0
No. 27 No. 20
$ 139.807.60 49 Days
Contract Prloe prior to lhis Change Order Contract Time Priar to this Change Order $ 3,041,373.60 349 days
Net increase(decrease)of this Change Order Net change of thi8 Change Order; $ 2,283.00 20 flays
Contract Price with all approved Change Orders Contract Time with all approved Chango Orders- 3,043,656,60
369 days
RTmAn n i I wlLuuhuntoftmonn-com 116
Debarment Issue : Fiscal Loss
Not a proper basis
CHANGE ORDER for debarment
1fnshuckia Follow)
No 24
PraJecf' "0165 im Shffan ftimyrmgnts fnd Lrh Statron hfrhatarl+nce Pra�oct MO V.lesuisnca A rip I f'2020 _
Caitractor V.Lou+z Jwntor 8 8oas,krm.
Five Cltioa LM Sutidrl Pr919Ct
Yuu are directed to make tnn fagowtng changes In the Contract Comments.
Dascfipdant Ell�cai madlltatiana as9Cc;i+W with RF:•29.1.es ri;NKo ed M WCD 013 and the C ty reuriOd up CORD19.
Ixurpasr of ChanQa Order. PnNWe indvidjal Eghtt 4MM and fox(4)a ftrartt faults Ono rvo,e the loak:
to 90 to IPL'MCA parWCV 413,Modific1110M tD ttt4 OXW1199 float aparatk n4,u(dNlori of e Utkd feat;and UL 5M and 696A inSP1Gd vlobol,ng 4'erdulurCa per City marked uC COR19.Th1s CC❑msumas the',1"vinw'L1L URA inspa tan iolwing Wk vfi&nal ba rrraaesary.K required,than V.tope2&Sw . will be compermted vla en addiumai CCO m fnitow upan mim1pt of paid nvacas from U .See artgaed letter for furitw eVianatioln 4f 01l9nges wr contra prrog and lirr►C.
Attachnunis;�Liat dasuments supporting change) City provided letter`s:eCuted WGD#13 and C, marK@dqp COR4113,
Change In Contract Fria Change In Canteaet Time;
OdginarCart'!ad Pricy:
S 2rq01'-I8Sw -�^ D%i%CantractTrw 310 day` CO is a Done Deal Previous r. anga Orders; Piweiau9 Charge Orderer
No. 1 to Na. 1 io
No. 2255 ND.. 25
5 i42.608,13 1QJ Days
Contract Price PrO t4 1f1Ic Charge Ofdar Contract Tlme Pnor la this Gunge Order; S 3.044,Q94.13 407 daps
Net IncFOase Mecrea*of 1118 Cnanga O:daf Biel cnanQg of I-t-4 Omngo Order:
S 50.214.15 — 47 days
Co^,crALI PrICe wrlh atr apprmvod Chang4 Ora US COV9.-fame%0 all appivAd CIt9rlga Orders, f 3 09a 30b,59 454 bays
HunT311 -MR. ,
Debarment Improper per the Law and Facts
• Trustworthiness IN 0
• Quality NCO
• Fitness NCO
• Capacity N01
• Experience N01
Public Contract Code §1103 - Definition Responsible Bidder ORTMAnn liqW. -
;
California Case Law Regarding Proper Grounds for Debarment = Improper
=11=1
" FEI Enterprises v. Ogundare v. Dep't of Stacy& Witbeck, Inc.
So. Cal Underground v. City and County of
LACCD Industrial Relations
San Francisco LOPEZ
Fraud/Intent to YES NO YES NO NO Practices
Prevailing wage violations NO YES NO NO NO Criminal conduct NO NO NO NO NO Filing False Claims NO NO NO YES NO Breach of material term of NONONONONOcontract
Inadequate contract performance YES YES NO NO NO Corrupt practices involving the
administration or award of YES NO NO NO NO contract with the
municipality/agency
TAIAnnwwuhuntoftmonn.com 119
Some Perspective
• This sewer improvement Project was 100%
successful !
• Debarment is very serious
• No basis for Debarment
• Before you decide whether or not to debar Lopez a second time, PLEASE:
— Take some time to think about what is fair and what is lawful
— Ask your Staff some hard questions about their
performance and WSC's performance
RTMAnn 7WWWf
,
HunTORTMAfln
At I -
Of tmann Pa I f fg n In es I .
Cityof Pismo Beach Council Meeting
V. Lopez Jr. & Sons ( Lopez
Debarment Hearing
March 7, 2023
John Darling, Esq.
Patricia J . Wolfe, Esq.
oQV.x J R. S
g
SINCE 1979 LIC.#607333A
GENERAL ENG. CONTRACTORS, INC.
SANTA MARIA, CA • (805) 928-1198