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HomeMy WebLinkAbout1991-11-12 - AGENDA REPORTS - TRAFSIG PROJ 89 12 (2)w AGENDA REPT NEW BUSINESS DATE: November 12,.1991 SUBJECT: VALENCIA BLVD AND CREEKSIDE ROAD TRAFFIC SIGNAL - PROJECT 89-12 .SIERRA HWY AND RAINBOW GLEN TRAFFIC SIGNAL - PROJECT 89-18 DEPARTMENT: Community Development BACKGROUND Staff was advised on Friday, November 8, 1991 that Intersection Maintenance Service (IMS) has defaulted on the subject projects (see attached letters). IMS has requested their surety, Safeco Insurance Company of America, to take appropriate action to arrange for completion of the work in accordance with the Faithful Performance and Material and Labor bonds; and Safeco has advised staff that they have been in contact with Steiny and Company, the second low bidder for both projects. Steiny is a member in good standing, and has previously performed work for the City.. Staff is currently working with Safeco to determine the most expeditious manner to proceed with the work. The specifications require the surety to assume control and perform the work as successor to the Contractor. Other options include execution of a transfer agreement through Safeco, or execution of a contract directly with Steiny. In any event, the City's -liability would be limited to the IMS contract amounts for each project. It is in the best interest of the City to proceed with work as quickly as possible for both the Rainbow Glen and Creekside traffic signals. With this in mind, staff recommends that Council permit the Mayor the enter into either a transfer agreement with Safeco or a contract with Steiny and Company for completion of this work, should that be more expeditious than having the surety assume control and perform the work. The Rainbow Glen signal was scheduled for completion the first week of December, and the Creekside signal was scheduled for completion in January 1992. Staff recognizes the need to complete these projects as quickly as possible, and is looking into the possibility of purchasing equipment, and materials from IMS, LA County, or Caltrans; or, paying additional costs to expedite delivery from various suppliers. If these . efforts are not successful, a 3 to 4 month delay for each project can be expected. RECOMMENDATION Authorize the Mayor to enter :into either a transfer agreement with Safeco or a contract with Steiny and Company should assumption of control and performance of work by the surety not be the most expeditious manner to complete the projects. ATTACHMENT: Letters fr Intersection Maintenance Service (IMS) - APPROVED a� !viv vim 71 14:44 Intersection Maintenance Service 244 E. Avenue K-4 Lancaster, CA 93535 November 6, 1991 Safeco Insurance Company 16320 Roscoe Blvd. Van Nuys, CA 91406 City.of Santa.clarita 23920 Valencia Blvd. Suite 300 Santa Clarita, CA 91355 Attn: Mr. John E. Medina Dir. of Public Works 1J. .ale Re: Installation, of Traffic Signal & Highway Safety Lighting for the Intersection of Valencia Blvd. -,& creekside Road Proj.eCt No. 89-12 IMS Job. No. 1037 Safeco Rend No, 5680837 Gentlemen: :his is to acknowledge that the undersigned is ifinancially .:.unable to complete the construction contract referred' to above or to pay for the required labor and materials necessary for the commencement and prosecution of the work covered by the referenced contract. By reason of the undersigned's admitted default regarding this contract, we request our surety, Safeco Insurance Company of America, to take appropriate action to arrange for completion of this project in accordance with the Safeco bond referred to above. Ini By . I lV V VlJ Jl 14' YJ r • . Intersection Maintenance Service 244 E. Avenue R-4 Lancaster, CA 93535 November 6, 1991 Safeco.Insurance Company 16320 Roscoe Blvd. van Nuys, CA 91406 City of Santa Clarita 23920 Valencia Blvd. Suite 300 Santa Clarita, CA 91355 Attn: Mr. John E. Medina Director of Public Works Re: Sierra Highway & Rainbow Glen Drive Project 89-18 TMS Job No. 1028 Safeco Bond No 5680831 Gentlemen: r. ale This is to acknowledge that the undersigned is financially unable to complete the construction contract referred to above or to pay for the required labor and materials necessary for the commencement and prosecution of the work covered by the referenced contract. By reason of the undersigned's admitted default regarding this contract, we request our surety, Safeco Insurance Company of America, to take appropriate action to arrange for completion of this project in accordance with the Safeco bond -referred to above. Intersection Maintenance Service By:,