For City Council Meeting [December 12, 2017]
TO: Honorable Mayor and City Council
APPROVAL: Michael E. Story, City Administrator
FROM: Robert G. Eisenbeisz, P.E., Public Works Director/City Engineer
Title
Request City Council to (1) Accept the Baseline Road and Acacia Avenue Traffic Signal Upgrade Project , City Project 140815; (2) Authorize Filing of the Notice of Completion; and (3) Authorize Release of Retention to Old Republic Surety Company.
Body
BACKGROUND:
On October 25, 2016, the City Council approved the construction plans and contract specifications, and authorized the release of Request for Bids No. (RFB) 17-004 for the Baseline Avenue and Acacia Avenue Traffic Signal project, City Project No. 140815.
On January 12, 2016, City Council awarded a construction contract to Smart Tech Group, Inc, (Smart Tech) in the amount of $208,000 for the Baseline Road and Acacia Avenue Traffic Signal Upgrade Project, City Project 140815 and delegated authority to the City Administrator to approve and execute construction contract change orders up to a cumulative amount of $20,800.
Smart Tech encountered financial difficulties and defaulted on its contract with the city to deliver the traffic signal improvements. On November 23, 2016, the City Attorney mailed a formal request to indemnify and to hold harmless the City in connection with the Complaint for Recovery on Payment Bond and Enforcement of Stop Payment Notices filed by Smart Tech's subcontractors. On February 16, 2017, staff, and the City Attorney initiated the takeover agreement with Old Republic Surety Company to complete the project for the upgrade of the traffic signal.
The agreement is included as Attachment 1. The agreement consisted of two notices to proceed in order to account for the pole fabrication and anticipated delivery date. One notice was an administrative notice to proceed and the second is the actual physical notice to proceed. A pre-construction meeting was held on March 22, 2017, ...
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