Agenda - Council - 10/09/2001 - Laserfiche WebLink

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Background (the 2000 Bid Process): As you know, the City did award a contract to Infinity Builders per the 2000 bid process. Infinity at that time was the lowest bidder. Because of the year plus delay in giving a Notice to Proceed to Infinity caused by the City's inability to obtain access to the site, City Staff felt it prudent to rebid the project in 2001. The results of that bid process are as cited above, City Staff now recommends terminating the contract with Infinity. Infinity is willing to do this in return for a $29,000.00 payment representing its out-of-pocket expenses and some lost profit as a result of its not performing the contract. The delay in the Notice to Proceed and the City's rebidding has angered both Infinity and the 2001 bidders, each complaining that they are not being treated fairly and threatening to sue the City for various reasons. Infinity is entitled to increase the original contract price because of the delay. Staff has carefully analyzed the "bottom line" cost of either accepting the lowest responsible 2001 bid and settling with infinity or rejecting ail of the 2001 bids and performing under the Infinity contract. Staff concludes that the best interests of the City will be to accept the lowest 2001 bid and settle with Infinity and terminate its contract. This recommendation is made with the following factors in mind: 1. Threat of suit from the 2001 bidders. While it appears they have no cause of action, the defense costs could be substantial. 2. The relationship with Infinity and the City at this time could be better and this could make for a difficult construction project. Most importantly, awarding the contract to the lowest 2001 bidder and settling with Infinity will still cost the City less than pursuing the contract with Infinity. The dollar comparison is as follows: I I [ ! ! I ! ] I I Infinity Builders Magney Construction Original Bid $503,300 $495,500 Added Cost due to Delay $31,814 $0 Terminate Infinity Contract $29,000 Total $535,114 $524,500 I I I -108- I I I I