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BACKGROUND <br /> Fire Station No. 4, located at 1600 Oak Vista Way, was constructed in 2004, and almost <br /> immediately started showing evidence of stormwater leaks throughout the building. The <br /> original contractor was called back on several occasions to repair roof leaks in the <br /> station. The leaks were corrected, and the contractor's maintenance period ended. A <br /> few years later, the leaks reappeared. Although the contractor's maintenance period <br /> ended, the roof membrane included a longer warranty period. But, after significant <br /> testing, it was determined that the membrane was intact and not the source of the water <br /> intrusion. City maintenance crews were left trying to address the leaks as they occurred. <br /> A CIP was then created to determine the source of the leaks, followed with the design <br /> and bid for the needed repair. <br /> After reviewing the building "as-built" drawings and dismantling the waterproofing <br /> system installed on the parapet walls, it was determined that the leaks were not <br /> associated with a construction defect but with a faulty design detail for the waterproofing <br /> system in the upper portion of the parapet walls. Since all parapet walls were <br /> constructed in accordance with the same detail, it was determined that in order to stop <br /> the leaks, the water proofing system on all the parapet walls needed to be removed and <br /> replaced with a correct design. The investigation of the parapet walls also revealed that <br /> although the roof membrane itself was intact, water had also made its way under the <br /> roof membrane from the parapet walls and was causing significant delamination from <br /> the roof sub-surface, resulting in significant "blistering" all over the roof. Since the <br /> repairs to the parapet walls would require significant labor traffic on the delaminated <br /> membrane, it was determined that it must also be replaced as the membrane would be <br /> unable to withstand the labor traffic necessary to repair the parapet walls. <br /> Plans and specifications were prepared, and the project was competitively bid in June <br /> 2018. On August 21, 2018, City Council awarded the contract to the lowest responsive <br /> and responsible bidder, Eagle Solutions, Inc. (Eagle), in the amount of$475,000 and <br /> authorized the Director of Engineering to approve change orders up to the project <br /> contingency amount of $46,000. The work began in September 2018, with the goal of <br /> completing the project before the winter rains arrived later in the year. Much of the work <br /> was completed, and the contractor was paid for the significant amount of the work they <br /> had accomplished, but the project was eventually suspended due to a very wet winter in <br /> 2018. The remaining work, as well as corrective action to some work already completed <br /> as discovered over the winter, needed to wait until drier weather returned in spring <br /> 2019. <br /> DISCUSSION <br /> When dry weather arrived, Eagle remobilized to the job. Shortly thereafter, the City was <br /> notified that Eagle was being dissolved by the Alameda County Superior Court for an <br /> issue(s) unrelated to the Fire Station No. 4 project. Since the work was not yet <br /> complete, City staff then notified the surety company, Ohio Casualty Company (Ohio), <br /> who had provided the contract-required labor and performance bonds on behalf of <br /> Eagle. In the meantime, Golden State Roofing (GSR), a subcontractor used by Eagle, <br /> filed a Stop Notice with the City indicating that Eagle had not paid them for work <br /> Page 2 of 3 <br />