Resolution No. 72211
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RESOLUTION NO, 7221
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF VERNON ACCEPTING THE WORK OF KENKO, INC.
IN ACCORDANCE WITH CONTRACT NO. 524
OF THE CITY OF VERNON
WHEREAS, Kenko, Inc. was awarded Contract No. 524
for work on Vernon Gas Distribution System, Phase I pursuant
to Resolution No. 6915 of the City of Vernon; and
WHEREAS, on August 4, 1998, by adoption of
Resolution No. 7194, the City Council approved a Settlement
Agreement between the City and Kenko to resolve disputes
concerning Kenko's performance of Contract No. 524 and to
provide for the orderly winding up of this project;
WHEREAS, the Settlement Agreement provides that a
claim filed by Advanced Boring Specialists of California,
Inc., on or about November 10, 1997, alleging non-payment by
Kenko for work performed on Contract No. 524 in the amount
of Thirty-four Thousand Fifty-four Dollars and Forty-nine
Cents ($34, 054.49), plus interest, shall be treated as a
stop notice claim; and
WHEREAS, on or about August 6, 1998, the City
received a stop notice claim from Crossroads Construction,
Inc., alleging nonpayment by Kenko for work performed on
Contract No. 524 in the amount of Eight Thousand Five
Hundred Ninety-three Dollars and Seventy-two Cents
($8,593.72), plus interest; and
WHEREAS, California Civil Code Sections 3186 and
3187 require a public entity, upon receipt of a stop notice,
to withhold from any money due to a contractor on a public
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works project an amount sufficient to pay the amount of the
claim, including interest, and an additional sum to cover
the reasonable costs of any litigation between the
contractor and the claimant, including the amount of
attorneys fees to which the claimant may be entitled; and
WHEREAS, the generally accepted practice of public
agencies in the state of California is to withhold 125% of
the face amount of a stop notice claim in order to meet the
statutory withholding obligations imposed by Civil Code
Sections 3186 and 3187; and
WHEREAS, Samuel Kevin Wilson, Director of
Community Services & Water has reported to the City Council
of the City of Vernon on September 23, 1998 that said work
has been completed and recommends that the work be accepted
and payment be made to the Contractor in accordance with
Contract No. 524 as modified by the Settlement Agreement,
and that 125% of the amount of any claims filed be withheld
until the claims are settled or the funds are subject to
release in the manner provided by law.
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: The work of Kenko, Inc. pursuant to
Contract No. 524 is hereby approved and accepted by the City
Council of the City of Vernon.
SECTION 3. The total contract amount including
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Change Orders and Extra Work Orders is One Million Six
Hundred Forty-nine Thousand Three Hundred Eighty-seven
Dollars and Eighty-five Cents ($1,649,387.85). There is now
due to the Contractor a final partial payment totaling
Two Hundred Two Thousand Three Hundred Fifteen Dollars and
Ninety Cents ($202,315.90) which is payable at this time.
The remaining ten percent (101-o) of the total contract
amount, or the sum of One Hundred Sixty-four Thousand Nine
Hundred Thirty-eight Dollars and Seventy-nine Cents
($164,938.79) is payable thirty-five days after the adoption
of this resolution; provided that 1250-. of the amount of the
amount of the stop notice claims filed by Advanced Boring
Specialists of California and Crossroads Construction, Inc.,
shall be withheld from said amount until the claims are
settled or the funds are subject to release in the manner
provided by law.
SECTION 4: The City Council of the City of Vernon
hereby directs payment of said sums as set forth to Kenko,
Inc. and instructs the City Clerk to file a notice of
completion with the County Recorder.
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SECTION 5: 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 6tn day of October, 1998.
Lf-O C. MALBUR Mayor
ATTEST•
BRUCE V. MALKENHORST, City Clerk
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STATE OF CALIFORNIA )
)ss
COUNTY OF LOS ANGELES )
I BRUCE V. MALKENHORST, City Clerk of the City of
Vernon, do hereby certify that the foregoing Resolution,
being Resolution No. 7221, was duly adopted by the City
Council of the City of Vernon at a regular meeting of the
City Council duly held on Tuesday, October 6, 1998 and
thereafter was duly signed by the Mayor of the City of
Vernon.
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BRUCE V. MALKENHORST, City Clerk
(SEAL)
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