In a significant legal victory, the city of Fresno has won a $322,000 lawsuit against Kertel Communications Inc., also known as Sebastian, for failing to adhere to contractual standards in a streetlight improvement project. The project, which commenced in 2018, involved upgrades to street lighting around Blackstone Avenue and Abby Street, between Shields Avenue and Divisadero Street. However, the contractor’s work was marred by delays and a critical breach of contract, specifically, the failure to use steel manufactured in the United States, as stipulated by the contract.
The legal dispute began in October 2023, when Fresno City Attorney Andrew Janz initiated legal proceedings against Kertel Communications. The core issue revolved around the contractor's non-compliance with the Buy American provision, a requirement that was integral to the contract. This provision was intended to support local industries and ensure the use of domestic steel in municipal projects. Despite an initial agreement for the contractor to repay $142,000, further disagreements over the remaining balance of $180,000 led to protracted legal negotiations.
The city’s Public Works Department, under the leadership of Director Scott Mozier, played a crucial role in bringing the case to a successful resolution. Their diligence in enforcing the contract’s terms and their steadfast pursuit of legal recourse were instrumental in achieving this outcome. The city’s commitment to upholding procurement standards reflects a broader effort to ensure that public contracts are fulfilled with the required quality and compliance.
A tentative decision handed down on July 31, 2024, sided with the city of Fresno, affirming both the contractor’s breaches and the city’s claims. This ruling reinforces Fresno’s stance on enforcing Buy American provisions and ensuring that city contracts are executed to the highest standards. City Attorney Janz emphasized the importance of these provisions, stating, The City Attorney’s Office will continue to enforce ‘Buy American’ provisions in our city contracts.
The ruling highlights the challenges municipalities face in managing contractor compliance and ensuring adherence to contractual obligations. The failure of Kertel Communications to meet the required standards not only affected the project’s timeline but also violated the terms that aimed to support American manufacturing. This case serves as a reminder of the importance of rigorous contract management and the enforcement of local procurement standards.
The $322,000 judgment serves as a significant financial penalty for the contractor and underscores the city's resolve in safeguarding its procurement policies. The outcome also reflects the broader implications for contractors working on municipal projects, emphasizing the necessity for adherence to specified standards and the consequences of non-compliance.
