REPORT TO THE CITY COUNCIL FROM: SCOTT L. MOZIER, PE, Director Public Works Department BY: WILLIAM C. HERR, Assistant Director Public Works Department, Construction Management Division KELLY YOST, PE Construction Manager Public Works Department, Construction Management Division SUBJECT ..Title Approve a substitution of listed Subcontractors Fresno Fab-Tech and Boneso Brothers for FAX Facility Improvement Project (Council District 3) ..Body RECOMMENDATION It is recommended that the Council approve a substitution of listed Subcontractors Fresno Fab-Tech and Boneso Brothers for FAX Facility Improvement Project. EXECUTIVE SUMMARY AMG, the General Contractor who was awarded the referenced project, has requested to substitute Fresno Fab-Tech and Boneso Brothers, who are both listed in the bid documents as performing the Structural Steel Framing and HVAC, Plumbing & Central Vacuum System portions of the project. In accordance with the bid documents, AMG listed Fresno Fab-Tech and Boneso Brothers for this portion of the project because the work exceeds one-half of one percent of the total contract amount. AMG notified the City by letter dated October 6, 2022, that their Subcontractors, Fresno Fab-Tech and Bonseo Brothers after having a reasonable opportunity to do so has failed or refused to execute a written subcontract. It is recommended that the City Council approve two requests from AMG Associates (AMG) for the substitution of subcontractors for the FAX Facility Improvement Project. The first request is to substitute Fresno Fab-Tech and utilize two new subcontractors, Accelerated Construction & Metal for the Structural Steel Framing portion of this project, and Linden Steel Construction for the Replacement Metal Decking for this portion of this project. The second request from AMG is to substitute Boneso Brothers and utilize two new subcontractors, Todd Companies for the Plumbing and Central Vacuum System portion of this project, and D&S Mechanical for the HVAC portion of this 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 February 17, 2022, a contract was awarded in the amount of $11,631,119.00 to AMG, for the Fresno Area Express Facility Improvement Project; the Notice to Proceed was issued with a start date of March 21, 2022. In the original proposal, Fresno Fab-Tech and Boneso Brothers were listed as the subcontractor for the Structural Steel Framing and HVAC, Plumbing & Central Vacuum System portions of the project. On October 4, 2022, AMG provided the City a written request to substitute the listed Subcontractor, since the listed Subcontractor has refused to perform its subcontract under Public Contract Code section 4107(a)(1 ). 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. The Subletting and Subcontracting Fair Practice Act requires the Prime Contractor to secure the permission of the awarding agency before substituting a non-listed subcontractor for a listed subcontractor in order to protect the public and subcontractors from bid shopping and bid peddling. (Southern California Acoustics Co., Inc. v. C.V. Holder, Inc. (1969), 71 Cal.2d 719,726) AMG has requested that they be allowed to substitute Fresno Fab-Tech and Boneso Brothers to perform the Structural Steel Framing and HVAC, Plumbing & Central Vacuum System portions of the project Fresno Fab-Tech and Boneso Brothers by letter dated October 4, 2022. 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 notified Fresno Fab-Tech and Boneso Brothers of the proposed substitution by traceable methods on October 9, 2022. In accordance with section 4107 the failure to file these written objections within five working days of receipt of that notification ending at 5 p.m. on October 19, 2022, constitutes the listed Subcontractor's consent to the substitution. The City has not received an objection to the proposed substitution. ENVIRONMENTAL FINDINGS This substitution of sub-contractor is not defined as a project under CEQA because it involves continuing administrative activities, such as contractor-related actions, general policy and procedure making (Section 15378(b)(2) of the State CEQA Guidelines). Accordingly, no further CEQA documentation is necessary for the City Council to act on the proposed substitution of sub-contractor. LOCAL PREFERENCE Local preference was not implemented as the use of federal funding precludes the use of local preference. FISCAL IMPACT The replacement of the Subcontractor(s) for the Structural Steel Framing and HVAC, Plumbing & Central Vacuum System portions of the project portion of the contract will not increase the cost of the project or have any fiscal impact. Attachment: Contractor's Request for Substitution Letters