HomeMy WebLinkAbout10/17/2001 - STAFF REPORTS (8) DATE: October 17, 2001
TO: City Council
FROM: Director of Public Works/City Engineer
BRIDGE REPAIRS PROJECT
RECOMMENDATION:
That the City Council terminate Agreement No. 4387 with Commercial Diversified,
Inc., for the Bridge Repairs Project, City Project 97-20, and authorize staff to
readvertise for bids.
SUMMARY:
City Project 97-20 facilitates repairs to the Ramon Road bridge at the Whitewater
River, and the Sunrise Way bridge at Tahquitz Creek. The cities of Palm Springs
and Cathedral City jointly share in the responsibility of maintaining the Ramon
Road bridge, as the two cities share a common boundary along the centerline of
Ramon Road. Award to Commercial Diversified, Inc., was limited to the Sunrise
Way bridge to allow staff to coordinate with Cathedral City to secure additional
funding for the cost of the Ramon Road bridge repairs. After securing Cathedral
City's concurrence with Commercial Diversified's bid for the Ramon Road bridge
repairs, Commercial Diversified has refused to perform the additional work,
requiring staff to recommend termination of their agreement.
BACKGROUND:
The City advertised a project which consisted of repairs to both the Ramon bridge
and the Sunrise Way bridge. Each bridge was a separate bid schedule (B for
Sunrise and A for Ramon). The low bidder for the combined project was
Commercial Diversified, Inc., however,the Ramon Road bridge bid was higherthan
the Engineer's Estimate.
On August 1, 2001, the City Council made award to Commercial Diversified, Inc.,
for Bid Schedule B (Sunrise Way bridge) only. Award was limited to the Sunrise
Way bridge, as the low bid for the Ramon Road bridge exceeded the Engineer's
Estimate, and the maximum provided for in the City's agreement with Cathedral
City, requiring staff to coordinate with Cathedral City prior to proceeding with any
award of that work. Staff successfully coordinated with Cathedral City to amend
the terms of the Reimbursement Agreement between the City of Palm Springs and
Cathedral City, initially approved by the City Council at its August 1,2001, meeting,
to facilitate Commercial Diversified's bid forthe Ramon Road bridge repairs. That
amendment was approved by the City Council on September 5, 2001.
During this period of time, staff repeatedly advised the contractor that the Ramon
Road bridge repair work would be added to their contract as it was initially bid. It
should be noted that the Caltrans Standard Specifications regulating this project
allowthe City Engineerto add extra work to their contract through Contract Change
Orders. Furthermore, although a contractor may object to the terms of additional
work, most often relating to the scope, quantity, or cost of the additional work, a
contractor is required to perform the additional work and resolve its disagreement��
over the terms through procedures outlined in the Standard Specifications.
Bridge Repairs Project
October 17, 2001
Page 2
As Commercial Diversified had submitted a separate cost(Bid Schedule A)for the
Ramon Road bridge repairs with its bid, a Contract Change Order was given to the
contractor that reflected that cost, and extra time for the work was allowed, as
provided for in the project specifications. However, despite efforts from August 7,
2001,through October4,2001,to obtain the contractor's agreementto perform the
Ramon Road bridge repairs, the contractor has objected to the additional work on
grounds that it lacks the time and manpower to perform the work as required.
Although the Caltrans Standard Specifications regulating Commercial Diversified's
contract require the contractor to perform any additional work directed by the City
Engineer, their refusal to do so limits the City's recourse to termination of their
agreement. Furthermore, efforts by staff to have this work performed prior to
season have failed due to the time spent coordinating with the contractor in an
attempt to add the Ramon Road bridge repairs to their contract. Any work
performed under this contract would have to be postponed until next spring to
avoid the delays the work would cause to the increased volume of traffic that
occurs during the winter months.
Upon termination of their agreement, it will be necessary for staff to readvertise for
bids for City Project 97-20. Unfortunately, there is no guarantee that bids received
at that time will be lower, equal to, or greater than the bids received during the first
bid solicitation. However, in light of Commercial Diversified's refusal to cooperate
with the City, and to perform additional work as required and directed by the City
Engineer, this action is the only method by which the City can seek resolution in
this matttterr'.
Yojll
DAVID J. BARAKIAN
City Engineer
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APPROVED:
City Manager
ATTACHMENT:
1. Resolution
�1
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, TERMINATING AGREEMENT
NO. 4387 WITH COMMERCIAL DIVERSIFIED, INC., FOR
THE BRIDGE REPAIRS PROJECT, CITY PROJECT 97-20,
ANDAUTHORIZING STAFFTO READVERTISE FOR BIDS
NOW THEREFORE BE IT RESOLVED as follows:
1. That Agreement No. 4387 with Commercial Diversified, Inc., is hereby terminated.
2. That staff is hereby authorized to readvertise for bids for City Project 97-20.
ADOPTED this day of , 2001.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By:
City Clerk City Manager
REVIEWED AND ADOPTED AS TO FORM:
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