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WATER 1 ENERGY I LIFE PUBLIC UTILITIES RIVERSIDE PUBLIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIES DATE: NOVEMBER 13, 2023 SUBJECT: FIND G. HURTADO CONSTRUCTION, INC. IN DEFAULT OF THE CONTRACT FOR THE CONSTRUCTION OF THE BROCKTON AVENUE WATER MAIN REPLACEMENT PROJECT — BID NO. RPU -7816 ISSUE: Consider finding G. Hurtado Construction, Inc. in default of the Contract for the Construction of the Brockton Avenue Water Main Replacement Project — Bid No. RPU -7816 RECOMMENDATIONS: That the Board of Public Utilities: 1. Find G. Hurtado Construction, Inc. in default of the Contract for the Construction of the Brockton Avenue Water Main Replacement Project — Bid No. RPU -7816, as required by the Contract documents; 2. Authorize the City Manager, or designee, to terminate G. Hurtado Construction, Inc's. right to perform under the Contract by issuing a written notice of termination for default to the Contractor and its Surety, United States Fire Insurance Company; and 3. Authorize City Manager, or designee, to execute any agreements or documents necessary to carry out the contract termination and effectuate the completion of the project, including documents and agreements needed to carry out the Surety's obligations under the contract and performance bond. BACKGROUND: On August 23, 2021, the Riverside Board of Public Utilities (Board) awarded a construction contract (Contract) to G. Hurtado Construction, Inc. (Hurtado) in the amount of $1,723,260 for the construction of the Brockton Avenue Water Main Replacement Project. This project is part of Riverside Public Utilities' (RPU) ongoing water main replacement and water loss program to replace high priority waterlines and involves the construction of approximately 3,300 linear feet of 12 -inch ductile iron pipe, 600 linear feet of 8 -inch ductile iron pipe, 48 water services, and 3 fire hydrants, along with all necessary fittings, appurtenances, and related incidental work. The Contract with Hurtado was executed on October 19, 2021, and staff issued the Notice to Proceed on October 27, 2021, which assigned the official start date of construction as November