Resolution No. 71991
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RESOLUTION NO. 7199
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF VERNON REPEALING RESOLUTION NO. 7125 AND
RESCINDING THE AWARD OF A CONTRACT TO DE LA
CRUZ CONSTRUCTION COMPANY, INC. FOR VERNON GAS
DISTRIBUTION SYSTEM PHASE III IN ACCORDANCE
WITH CONTRACT NO. 540 OF THE CITY OF VERNON
WHEREAS, on May 5, 1998, Contract No. 540 was awarded by
the City Council of the City of Vernon to De La Cruz Construction,
Inc. ("De La Cruz") for Vernon Gas Distribution System Phase III,
based upon De La Cruz' proposal in the sum of $4,927,019.08; and
WHEREAS, De La Cruz has since advised the City that it
is unable to enter into Contract No. 540 because it cannot obtain
the bonds required under the contract or the necessary resources
to complete the project; and
WHEREAS, based upon De La Cruz' inability to perform
Contract No. 540, the City Council of the City of Vernon believes.
it to be in the best interests of the City to rescind its approval
of Contract No. 540 and consider other options for constructing
Vernon Gas Distribution System Phase III.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon
hereby finds and determines that the recitals contained
hereinabove are true and correct.
SECTION 2: Resolution NO. 7125 is hereby repealed, and
the award of Contract No. 540 for Vernon Gas Distribution System
Phase III to De La Cruz is hereby rescinded.
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SECTION 3: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 4th day of August, 1998.
" EONIS C. BURG, Mayor
ATTEST•
BRUCE V. MALKENHORST, City Clerk
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1 STATE OF CALIFORNIA )
)ss
2 COUNTY OF LOS ANGELES )
3 I, BRUCE V. MALKENHORST, City Clerk of the City of
4 Vernon, do hereby certify that the foregoing Resolution, being
5 Resolution No. 7199, was duly adopted by the City Council of the
6 City of Vernon at a regular meeting of the City Council duly held
7 on Tuesday, August 4, 1998, and thereafter was duly signed by the
8 Mayor of the City of Vernon.
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BRUCE V. MALKENHORST, City Clerk
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