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T I C -+ Interstate Grading & Paving, Inc. October 24, 2003 Page 2 of 2 Interstate Grading & Paving can guarantee that no extra work charges will be made to The City for delays caused by weather. Interstate Grading & Paving, Inc. can also guarantee that no labor or material cost increases will be assessed if Interstate Grading & Paving Inc. is awarded the Contract as bid. Furthermore Interstate Grading & Paving will honor their bid amount if The City desires for work to commence in March of : 1 004, (Spring), instead of commencing right away. Interstate Grading & Paving has also offered to commence work immediately and to perform the work in such a fashion, maintaining slope and optimizing drainage during construction, so that inclement weather would have as minimal effect as is reasonable. Either way, whether the City elects to proceed with the work right away or have Interstate Grading & Paving proceed with work next Spring, awarding the Contract to Interstate Grading & Paving is a win - win situation for the City of Redwood City residents, users of the School field, AYSO Soccer, Little League, the Fair Oaks School and it's students. Interstate Grading & Paving wishes to proclaim these guarantees in order to guarantee work for Interstate personnel as well as desiring to perform the work Interstate Grading & Paving is very good at, sport fields. The benefit to The City and The School in having a field sooner than later is an obvious benefit. Also the City would not be risking a higher cost should the bids of 10/08/03 be rejected. Fiscal Impact Should all Bids be rejected, the City will certainly incur the additional expenses to re -bid the work. • Re -bid costs would include the services needed by the City contracted consultant, beal sport and many other incurred costs for plans, specifications, etc. • The costs for re- advertisement. • The cost for City staff for time to go through the Bid process again. The City would also be taking the following risks, (that would otherwise be eliminated if the project was awarded to Interstate Grading & Paving): • Potential increases in Material costs upon re -bid. The turf, (a petroleum based product), cost is subject to increase if there is an increase in oil prices. • An increase in Labor costs, should work occur past the June, (Union contract cost increases). • An increase in cost by bidders due to re -bid occurring at a typically busy time of year. City Engineering has told us that a re-bld would occur next Spring. Spring is Typically time when most projects start to come out for bid. The bid cost could rise if prospective bidders find bid & work demand abundant. No prospective bidder can contractually guarantee that the re- bid amount will be lower than our current bid. Interstate Grading & Paving Inc. has submitted the lowest responsible bid that can be guaranteed should the City award the work to Interstate Grading & Paving, Inc. Please do not reject all bids and instead, award the Contract to Interstate Grading & Paving, Inc. Thank you for your time in reviewing this request. Please do not hesitate to give me a call at (650) 952 -7333 to discuss this or if I can be of any assistance. Very truly yours, INTE ATE ADING AND PAVING, INC. e Caron, Vice President