HomeMy WebLinkAbout09 CIP 800053 09-05-95NO. 9
9-5-95
)ATE: SEPTEMBER 5, 1995
Inter-Corn
TO:
FROM:
SUBJECT:
WILLIAM A. HUSTON, CITY MANAGER
· PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION
RESCIND PREVIOUS BID AWARD AND AWARD NEW CONTRACT: TRAFFIC
SIGNAL INSTALLATION AT EL CAMINO REAL/ORANGE STREET
(CIP NO. 800053)
RECOMMENDATION
It is recommended that the City Council, at their meeting of September 5, 1995, rescind the previous
bid award of the noted pr.oject to Superior Signal Service Corporation (SSS), and award the contract
for the subject project to Signal Maintenance, Inc. (SMI) in the amount of $85,680.00.
FISCAL IMPACT
The apparent second low bid for this project by SMI is approximately 8 % lower than thc Engineer's
estimate of $93,227.00. This project will be ffinded with the City's Capital Improvement Program.
BACKGROUND
At their regular meeting of July 3, 1995, the City Council awarded a contract for the subject project
to the low §idder, SSS in the amount of $$4,218.00. However, during review of the contract documents
by. the City Attorney, it was determined that SSS had not provided the proper insurance for compliance
with the b~d requirements.
DISCUSSION
On August 17, 1995, the City received the attached letter from SSS indicating they cannot provide the
insurance r.eq.uirements as called for in the project bid package. In the letter, SSS is also requesting to
withdraw their bid proposal:
According to procedure, when the apparent low bidder cannot fulfill obligations or comply with contract
requirements, the contract with that company i~s rescinded and awarded to the apparent second low
bidder. SMI is the apparent second low b~dder mr mis project. The SMI bid is $1,462.00 higher than
the SSS bid.
The references and the State Contractor's License of SMI have been verified and are appropriate for
the subject construction Project. Furthermore, SMI was awarded the last two traffic signal projects
within the City and both projects were completed to the satisfaction of the City..
The installation of this traffic signal was authorized by. the City Council for school safety purposes.
The work will include'all labor, materials, tools, equipment, appurtenances and incidenhals for the
subject project as detailed on the plans and specifications for this project.
Tim D. Serlet
Director of Public Works/City Engineer
TDS: DA:ccrorang
Douglag/R. Anderson
Transportation Engineer
Attachment
SUPERIOR SIGNAL SER /ICE
7224 SCOUT AVENUE, BELL GARDENS, CALIFORNIA 90201 · (310) 927-4488
FAX (310) 928-9689 - LICENSE NO. 2832O4 · FED TAXPAYER ID NO. 95-2847733
August 17, 1995
City of Tustin
300 Centennial Way
Tustin, Calif. 92680
Attention: Doug Anderson
Reference: Traffic Signal and Interconnect E1Camino Real
and Orange Streets.
Sir,
Apparently we cannot provide the insurance requirements
to satisfy your city attorney. It is to soon to re-write our
policy because our anniversary date is October 29, 1995. Be
assured we will not make this mistake again. We were really
looking forward to working with your city, however, for the
above reasons please withdraw our bid and maybe next time
you will have a project we will have the right insurance to
satisfy your city attorney.
Very Truly,
William R. Hahn
Superintendent
WRH: jhn