REPORT TO THE CITY COUNCIL July 24, 2014 FROM: SCOTT L. MOZIER, PE, Director Public Works Department THROUGH: ROBERT N. ANDERSEN, PE, Assistant Director Public Works Department, Construction Management Division BY: PHILLIP TARVIN, Construction Manager Public Works Department, Construction Management Division SUBJECT ..Title Approve a substitution of a listed subcontractor Halopoff & Sons, Inc., for the Herndon Avenue Eastbound Widening from Brawley Avenue to Blythe Avenue - Council District 2 ..Body RECOMMENDATION It is recommended that the City Council approve the request from Mass X, Inc., to substitute Halopoff & Sons, Inc., and utilize Fresno Concrete Construction, Inc., for the concrete work on Herndon Avenue between Brawley Avenue and Blythe Avenue located in Council District 2. EXECUTIVE SUMMARY Mass X, Inc., the General Contractor for the referenced project, has requested to substitute Halopoff & Sons, Inc., who is listed in the bid documents as the concrete improvements subcontractor. Mass X, Inc., notified the City by an e-mail correspondence letter dated January 29, 2014, that their concrete improvements subcontractor, Halopoff & Sons, Inc., has refused to perform his or her subcontract. Mass X, Inc., is asking that they be allowed to use Fresno Concrete Construction, Inc., to perform the concrete improvements portion of the project. This action requires Council approval because Public Contract Code Section 4107 requires consent of the awarding authority to a request by a prime contractor for a substitution of a subcontractor. BACKGROUND On October 24, 2013, a contract was issued in the amount of $1,252,853 to Mass X, Inc., for the Herndon Avenue Eastbound Widening from Brawley Avenue to Blythe Avenue project; the Notice to Proceed was issued on January 9, 2014. In the original proposal Halopoff & Sons, Inc., of Porterville, California, was listed as the subcontractor for all concrete improvements and related work associated with the contract. On January 29, 2014 Mass X, Inc., provided the City a written request to substitute the listed subcontractor, since the listed subcontractor has refused to perform his or her subcontract under Public Contract Code Section 4107(a)(3). In accordance with Section 4107 of the Public Contract Code, a Prime Contractor may substitute a listed subcontractor, with the consent of the awarding authority, when the listed subcontractor has refused to perform his or her subcontract. Mass X, Inc., has requested that they be allowed to utilize Fresno Concrete Construction, Inc., for the concrete improvements subcontract work in place of Halopoff & Sons, Inc., by letter dated January 29, 2014. Section 4107 of the Public Contract Code allows the Prime Contractor to substitute listed subcontractors with prior consent from the awarding authority. In accordance with provisions of the Public Contract Code, the City has notified Halopoff & Sons, Inc., of the proposed substitution by certified mail delivered February 6, 2014. Halopoff & Sons, Inc. did not provide written objections to the substitution. In accordance with Section 4107, the failure to file these written objections within five working days of receipt of that notification ended at 5 p.m. on February 13, 2014, which constitutes the listed subcontractor's consent to the substitution. The City has not received an objection in accordance with Public Contract Code 4107. The City Attorney's Office finds the proposed substitution of subcontractor to be legal and proper if Council consents to the substitution. The replacement of the subcontractor for the concrete improvements portion of the contract will not increase the cost of the project. This project does not contain a Disadvantaged Business Enterprise (DBE) requirement and therefore will not affect the DBE status of the contract. ENVIRONMENTAL FINDINGS This is not a "Project" for the purposes of CEQA pursuant to CEQA Guidelines section 15378(b)(5), as it is an administrative action that will not result in direct or indirect physical changes to the environment. LOCAL PREFERENCE Local Preference was not considered because this action does not include a bid or an award of a City construction contract. FISCAL IMPACT There will be no impact to the General Fund or the project budget by this substitution of subcontractor.