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Home My WebLink About25- Public Works CITY OF SAN BERM' 1RDINO - REQUEST ' R COUNCIL ACTIO File Nn 1 . 855 Status of Contract with Gutierrez From: ROGER G. HARDGRAVE Subject: Construction - Widening Mill St. , Z "I" St. to "H" St. , and Dept: Public LJorks Modifying Traffic Signals, per Date: 12-04-95 Plan No. 9276 Synopsis of Previous Council action: June, 1994 - Allocation of $50 , 000 in 1994/95 Gar: Tay Fund Budget approved. June, 1995 - Supplemental allocation of $50 , 000 in 1995/96 Gas Tax Fund Budget approved. 07-24-95 --- Plans approved and authorization granted to advertise for bids. 10-16-95 -- Resolution No. 95-365 adopted awarding a contract to Gutierrez Construction. Recommended motion: 1 . That supplemental funds, in the amount of $10 , 973 . 00 be provided for widening Mill Street, from "I" Street to "H" Street; and Change Order No. Two approved, in principle, to increase the contract price from $107 , 762 . 00 to $118 , 735. 00 . (Motions continued on second page) CC . Gutierrez Construction Shauna Claris Jim Penman / A �—� Signature Contact person: Roger G Hardgrave Phone:_ 5025 Supporting data attached: Staff Report Ward: 3 FUNDING REQUIREMENTS: Amount: N/A Source: (Acct. No.) 126-369-5504-1724 (Acct. Description) Mill Street -- "I" St. to "H" St Finance: Council Notes: �ali�l9s, 75-0262 Agenda Item No. a� T- Public Works File No. 1 . 855 RECOMMENDED MOTIONS (Continued) OR 2 . That the rescission of the contract with Gutierrez Construction for widening Mill Street, from "I" Street to "H" Street, be approved in principle; and the Director of Public Works/City Engineer be authorized to re--advertise for bids. OR 3 . That the City Attorney be directed to take the approropriate legal action to collect the bid bond filed by Gutierrez Contruction, for widening Mill Street from "I" Street to "H" Street, for failure to file the stipulated documents and enter into a contract. CITY OF SAN BERA..ARDINO - REQUEST L JR COUNCIL ACTION STAFF REPORT The low bid for widening Mill Street, from "I" Street to "H" Street, was submitted by Gutierrez Construction, in the amount of $107 , 762 . 00 . A contract was awarded to Gutierrez Construction on 10-16-95 , and Deductive Change Order No. One was approved to reduce the contract price by $8 , 000 . 00 , due to a decrease in the scope of work for modification of the traffic signals . A letter has been received from Gutierrez Construction, dated 11-28-95 , stating that Lauren B. Brown, Inc. , the sub- contractor for traffic signal work; has gone out of business. Lauren B. Brown, Inc. originally quoted a price of $39 ,700 . 00 to Gutierrez Construction , and this was reduced to $31 , 700 . 00 by Change Order No. One. The best other price for the traffic signal work that Gutierrez Construction can obtain is $42 , 673 . 00 , which is $10 , 973 . 00 higher than the current price. An inquiry is contained in this letter if it will be possible to have this project go out for rebid, to release Gutierrez Construction without any fines or penalties, and to release their bid bond. The contract documents state that the bidder, to whom the contract is awarded, shall file with the Engineer all required bonds and insurance policies , and execute the contract within 10 calendar days after receiving Notification of the Award. Furthermore, failure to file the stipulated documents and execute the contract within the prescribed time shall constitute good and sufficient grounds for rescission of the award and payment of 10% of the bid to the City as liquidated damages. A Notice of Award, dated 10-24-95 , was provided to Gutierrez Construction. The required bonds and insurance have not been filed, due to the fact that Lauren B. Brown, Inc. will not be available to perform the traffic signal modifications. Below are some options relative to this requesti 1 . Provide supplemental funding in the amount of $10 , 973 . 00 , and approve Change Order No. Two to increase the contract price by this amount. 2 . Rescind the award of contract to Gutierrez Construction, and authorize the project to be re-advertised. 3 . Direct the City Attorney to undertake appropriate legal action to collect the amount of the bid bond, in the amount of $10 , 776 . 20 . A copy of the letter from Gutierrez Construction is attached for reference. 12-04-95 GUTIERREZ CONSTRUCTION COMPANY AvAv,&. 15534 Rodeo Slice[•►icsperia,Ca. 92345• Tcicphom(G19)956 1252•fax(619)956 2034 'ICJ: CITY OF SAN BERNARDINO NOVEMBER 28, 1995 300 NORTH "D" STREET SAN BERNARDINO, CA. 92418 SUBJECT: PROJECT NO. 9267. WIDENING OF MILL, STREET BETWEEN "H" STREET AND "I" STREET (STREET IMPROVEMENTS) AND TRAFFIC SIGNAL MODIFICATION AT MILL STREET AND "I" STREET'. TO: TIT, MAYOR, COMMON COUNCIL AND MR. HARDCRAVE; GENTLEMEN; GUTIERREZ CONSTRUCTION HAS MADE EVERY EFFORT TO CONTACT OTHER ELECTRICAL COMPA= TO MEET THE PRICE FROM OUR SUBCONTRACTOR, LAUREN B. BROWN INC. , WITH NO SUCCESS. GUTIERREZ CONSTRUCTION BID THIS PROTECT USING LAUREN B, BROWN INC. 'S PRICE OF $39,700.00. THE PRICE INCLUDED ALL TRAFFIC CONTROL AND CLEANUP FOR HER PORTION OF WORK. GUTIERREZ CON- STRUCTION'S CONTRACT PRICE WAS AT $107,762.00. SINCE THE FIRST TIME GUTIERREZ CONSTRUCTION WAS AWARDED THIS PROJECT, BEING LOW BIDDER, A RESOLUTION WAS ADOPTED ON OCTOBER 16, 1995 BY THE MAYOR AND COMMON COUNCIL FOR THE AMOUNT OF $99,762.00. AT THAT TIME A NEW PRICE WAS NEGOTIATED WITH LAUREN B. BROWN, INC. AND THE CITY OF SAN BERNARDINO- HER NEW PRICE WAS $31 ,700.00, A DIFFERENCE OF $8,000.00 FROM HER ORIGINAL• BID PRICE. A PRICE THAT CANNOT BE MATCHED BY ANY OTHER ELECTRICAL CON- TRACTOR. GEN'I'LF..MIN, GUTIERREZ CONSTRUCTION HAS MADE SEVERAL ATTEMPTS TO CONTACT OTHER ELECTRICAL CONTRACTORS DUE TO THE FACT THAT LAUREN B. BROWN, INC. IS NO LONGER IN BUSINESS. CON- TRACTORS SUCH AS, DE LA CRUZ INC. , $48,682.00, FIVE STAR ELECTRIC, $51 ,470.00, MOORS ELECTRICAL CONTRACTING INC. , $46,700.00, PAUL GARDNER CORPORATION, $44,293.00. AS YOU CAN SEE, THERE IS A BIG DIFFERENCE IN PRICE BETWEEN THEM AND LAUREN B. BROWN INC. GUTIERREZ CONSTRUCTION IS ASKING AT THIS TIME, WILL IT BE POSSIBLE TO HAVE THIS PROJECT' GO OUT FOR REBID AND TO RELEASE GUTIERREZ CONSTRUCTION WITHOUT ANY FINES, PENALTIES AND TO RELEASE OUR BID BOND SO THAT WE MAY BID ON OTHER PROJECTS. =,F,RREZ CONSTRUCTION SINCERELY WOULD LIKE TO THANKYOU, MR. MAYOR AND THE COMMON COUNCIL FOR BEING UNDERSTANDING AND CONSIDERATE ON THIS MATTER. THANKYOU. SINCERELY, RAMON GUTIERREZ OWNER