AgdaPkt 2010-10-11 - Laserfiche WebLink

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6.1A Page 1 REPORT To the Honorable Mayor and City Council From the City Manager October 11, 2010 SUBJECT 2009-2010 Utility Trench Repair Project RECOMMENDATION 1. Accept by motion the partially completed improvements constructed during the 2009- 2010 Utility Trench Repair Project, from Guerra Construction Group, Inc., San Jose, CA and release the retention in the amount of $7,380.33 withheld during construction in accordance with City procedure. 2. Terminate the contract with Guerra Construction Group, Inc. for convenience in accordance with Section 7.12 of the agreement. 3. Award by Motion the Agreement for the remainder of the 2009-2010 Utility Trench Repair Project to Bay Area Paving, Inc. of San Mateo, CA in the amount of $167,631.00. BACKGROUND On November 9, 2009, the City awarded the 2009-2010 Utility Trench Repair Project contract to Guerra Construction Group Inc. of San Jose, CA for their bid of$242,820, for utility trench repair work on various streets throughout the city, and on both sewer and water utility sites. Guerra Construction Group Inc. has partially completed work under this contract in the amount of $73,803. The work they have completed has been performed to City standards. Guerra Construction Group, Inc. have asked to be released from the contract due to financial hardship encountered during the course of construction. The nature of the Utility Trench Repair project is piecemeal projects requiring travel to Redwood City frequently to perform repairs to relatively small areas. Although the nature of the work for this project was discussed during the pre-construction meeting, the high frequency of travel was not anticipated by the contractor until they actually began working on the project. In accordance with Section 7.12 of the agreement, "Terminate for Convenience" and in the best interest of the City, Staff recommends to terminate the agreement. Bids for this project are submitted with "unit prices" which allows the City to pay for only that work which is actually completed by the contractor. The City does not owe payment for any work pending. The contractor has completed the work that had been assigned to them and there are no utility trenches that have been left in an unsafe condition. Staff does not contest the request to be released from this contract and the contractor who submitted the second lowest responsive bid has indicated a willingness to enter into a contract with the City to perform utility trench repairs. The unit prices submitted by the second lowest bidder, Bay Area Paving, Inc., are very close to the prices submitted by Guerra Construction Group, Inc. and the City will not incur additional expense by awarding to the next lowest bidder. Bay Area Paving, Inc. was the second lowest bidder with a bid of $246,000 when bids were opened on