To: BOARD OF SUPERVISORS
From: General Services Agency
Meeting Date: February 25, 2025
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Department Contact: |
Doug Anderson |
Phone: |
707-234-6050 |
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Department Contact: |
Matthew Kiedrowski |
Phone: |
707-234-6885 |
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Item Type: Consent Agenda |
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Time Allocated for Item: N/A |
Agenda Title:
title
Approval of Settlement Agreement with Coleman Environmental Engineering, Inc., PG&J Environmental, Inc., and the County of Mendocino Authorizing the Payment of $21,080.45 In County Project Retention Funds from BOS Agreement 23-103 for the Demolition of Structures at 131 Whitmore Lane in Ukiah
End
Recommended Action/Motion:
recommendation
Approve Settlement Agreement with Coleman Environmental Engineering, Inc., PG&J Environmental, Inc., and the County of Mendocino authorizing the payment of $21,080.45 in County Project Retention Funds from BOS Agreement 23-103 for the demolition of structures at 131 Whitmore Lane in Ukiah; and authorize Chair to sign same.
End
Previous Board/Board Committee Actions:
The Board of Supervisors approved BOS Agreement No. 23-103 with Coleman Environmental Engineering, Inc., on June 20, 2023.
Summary of Request:
Upon Board and Measure B approval of the PHF feasibility study option 2, calling for the demolition of the existing skilled nursing facility at 131 Whitmore Lane, project staff and consultants began the development of the project plans in two phases. The first phase provided for the demolition of the existing skilled nursing facility at 131 Whitmore Lane in Ukiah and initial preparations for the PHF to be built on the site under a separate contract. Coleman Environmental Engineering (“Coleman”) was determined to be the lowest responsive and responsible bidder, and a contract with the County was approved on June 20, 2023, in the amount of $480,199.50.
Following the completion of the demolition, the County received an invoice from Coleman for the entirety of the value of the contract minus the 5% Project retention amount (Coleman did inadvertently leave out $0.50 from its invoice as well). The County paid the invoice to Coleman. However, Coleman did not timely pay the invoice of a subcontractor, PG&J Environmental (“PG&J”). A stop payment notice was filed, and the County was aware that Coleman and PG&J were negotiating a resolution. PG&J filed a lawsuit in Orange County that included the County as a defendant, but the County was never served. Coleman and PG&J eventually entered into a settlement agreement between each other calling for the County to pay the retention amount directly to PG&J instead of Coleman.
While the dispute was resolved between Coleman and PG&J, a settlement agreement including the County was the appropriate vehicle to direct payment of the County’s retention funds between the parties. County Counsel negotiated the proposed settlement agreement. The only funds being paid by the County are the retention funds from BOS Agreement No. 23-103, which were already owed to Coleman. The County is also receiving a release of all claims from both contractors.
Alternative Action/Motion:
Do not approve; provide direction to staff.
Strategic Plan Priority Designation: An Effective County Government
Supervisorial District: All
Vote Requirement: Majority
Supplemental Information Available Online At: N/A
Fiscal Details:
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source of funding: Remaining funds in BOS agreement 23-103 |
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current f/y cost: None, funds were already encumbered |
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budget clarification: See above |
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annual recurring cost: N/A |
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budgeted in current f/y (if no, please describe): Yes |
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revenue agreement: N/A |
AGREEMENT/RESOLUTION/ORDINANCE APPROVED BY COUNTY COUNSEL: Yes
CEO Liaison: Darcie Antle, CEO
CEO Review: Yes
CEO Comments:
FOR COB USE ONLY
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Executed By: Atlas Pearson, Senior Deputy Clerk |
Final Status: Approved |
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Date: February 25, 2025 |
Executed Item Type: Agreement |
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Number: 25-019 |
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