PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #12.A
Meeting Date: August 6, 2024
TITLE:
Recission of Resolution Declaring V. Lopez Jr. & Sons as a Non-Responsible Bidder
RECOMMENDATION:
Adopt a Resolution rescinding Resolution R-2023-018, relating to the declaration of V.
Lopez Jr. & Sons, General Engineering Contractors, Inc., as a non-responsible bidder.
DISCUSSION:
On March 21, 2023, the City Council adopted Resolution R-2023-018, declaring contractors V. Lopez Jr. & Sons as a non-responsible bidder (debarment), thereby disqualifying the company from bidding on City of Pismo Beach projects for a period of five years.
Prior to, and following the adoption of Resolution R-2023-018, the City and V. Lopez were involved in litigation in San Luis Obispo Superior Court. The parties have entered into a settlement agreement to completely and finally resolve the litigation, and as part of that settlement agreement, City has agreed to rescind the debarment.
Conclusion and Recommendation
In order to comply with the settlement agreement in this matter, staff recommends that the City Council adopt a resolution that rescinds Resolution R-2023-018, thereby rescinding the debarment of V. Lopez Jr. & Sons General Engineering Contractors, Inc. as a bidder on City projects.
FISCAL IMPACT:
There is no fiscal impact associated with revoking the debarment imposed in March 2023.
ATTACHMENTS:
1. Resolution rescinding R-2023-018
2. Resolution R-2023-018
Submitted by: Jorge Garcia, City Manager
City Manager Approval:
12.A-1Council Agenda 8-6-2024
RESOLUTION NO. R-2024-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA RESCINDING RESOLUTION R-2023-018, RELATING TO THE DECLARATION OF V. LOPEZ JR. & SONS, GENERAL ENGINEERING CONTRACTORS, INC., AS A NON-RESPONSIBLE BIDDER
WHEREAS, on March 21, 2023, the City Council adopted Resolution R-2023-018, declaring contractors V. Lopez Jr. & Sons General Engineering Contractors, Inc. as a non-responsible bidder, thereby disqualifying the company from bidding on City of Pismo Beach public works projects for a period of five years; and WHEREAS, prior to, and following the adoption of Resolution R-2023-018, the City and V. Lopez were involved in litigation in San Luis Obispo Superior Court; and WHEREAS, the parties have entered into a settlement agreement to completely and finally resolve the litigation, and as part of that settlement agreement, City has agreed to rescind the debarment imposed by Resolution R-2023-018.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby rescinds Resolution R-2023-018, lifting the debarment imposed thereby, and the City apologizes for any damage it caused to V. Lopez Jr. & Sons General Engineering Contractors, Inc.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 6th day of August 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Pismo Beach, California, on _______________________. ________________________
Erica Inderlied, City Clerk
12.A-2Council Agenda 8-6-2024
Attachment 1
RESOLUTION NO. R-2023-018
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA DECLARING V. LOPEZ JR. & SONS, INC. A NON-RESPONSIBLE
BIDDER THEREBY DISQUALIFYING THEM FROM PERFORMING FUTURE WORK
FOR THE CITY OF PISMO BEACH FOR A PERIOD OF FIVE YEARS
WHEREAS, on December 19, 2017 V. Lopez Jr. & Sons (V. Lopez) was awarded a contract in the amount of $2,901,486 for the Five Cities Lift Station and Lift Station Maintenance Projects; and
WHEREAS, several significant issues were encountered with V. Lopez's project understanding and public works competence over the course of the project; and 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; and 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.
UPON MOTION OF Council Member Newton, seconded by Mayor Pro Tern Reiss, the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 21st day of March 2023, by the following vote:
AYES: 4
NOES: 1
ABSENT: 0
ABSTAIN: 0
RECUSED: 0
Newton, Reiss, Guthrie, Waage
Inman
Approved: titt{:��
PAGE 1 OF 1
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R-2023-018
12.A-3Council Agenda 8-6-2024
Attachment 2