HomeMy WebLinkAboutRes1981-057
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12/10/81
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 81-57
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, PERMITTING WITHDRAWAL OF BID
BY J-I-J CONSTRUCTION COMPANY AND AWARDING
PHASE III, DREDGING, BULKHEADS AND SHIPLIFT
PIERS TO THE NEXT LOWEST BIDDER, CHRIS BERG,
INC.
WHEREAS, Phase III, Dredging, Bulkheads and Ship1ift
Piers, of the continuing construction of the Seward Marine
Industrial Park at 4th of July Creek was advertised for public
bid, and
WHEREAS, Phase III is an integral part of an ongoing
construction effort to construct public harbor facilities in the
vicinity of 4th of July Creek on Resurrection Bay, Seward,
Alaska, and
WHEREAS, Phase II includes the placement of an order
for a ship1ift facility to be placed upon the ship1ift piers to
be constructed in Phase III, and
WHEREAS, the variations in ship1ift design and
manufacturers make it impossible to technically design in advance
of award of the ship1ift facility contract specifications for the
shiplift piers upon which the shiplift can be placed, and
WHEREAS, there is a considerable time-lag between the
ordering of a ship1ift and the time it can be delivered, and
WHEREAS, it is in
Seward to move forward as
construction of the ship1ift
Marine Industrial Park, and
the public interest for the City of
expeditiously as possible in the
and harbor facilities for the Seward
WHEREAS, the City has contractual obligations to third
parties and others to construct the public harbor facilities, and
WHEREAS, there is an anticipated delay from the time
that the contract is awarded on Phase III for Dredging, Bulkheads
and Ship1ift Piers before some of the materials can be received
by a contractor who is a successful bidder, and
WHEREAS, there is a limited construction season
available for underwater work on Resurrection Bay and pursuant to
permits granted by the Environmental Protection Agency to the
City of Seward for such work, and
WHEREAS, Phase III bids were submitted by various
contractors and were opened on December 3, 1981, and
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REsA8l-57
Page 2 of 4
WHEREAS, engineers employed by the City of Seward have
reviewed the bid documents submitted by the various bidders and
have recommended that the bid be awarded to the apparent low
bidder, J-I-J Construction Company, and
WHEREAS, J-I-J Construction Company has advised the
City of Seward by letter dated December 9, 1981, that it requests
to withdraw its bid on the project or adjust the contract price
upward to reflect an alleged error made by J-I-J Construction
Company, and
WHEREAS, J-I-J Construction Company has
the City Council at its meeting of December
presentation as to how its asserted mistake was
reasons therefore, and
presented to
14, 1981, a
made and the
WHEREAS, the facts as asserted by representatives of
J-I-J represent more than mere clerical but in addition sloppy
management policies and skills which same skills are esentia1 for
proper and timely completion of the project, and
WHEREAS, if the assertions by representatives of J-I-J
are not accurate then they represent an attempt by a bidder to
unjustifiably withdraw a bid, and
WHEREAS, a modification of the contract would not be in
the public interest as it could tend to encourage bidders on
future projects to modify bids and could discourage bidders from
bidding in good faith if such contracts were routinely modified
for the reasons suggested by J-I-J, and
WHEREAS, it is harmful to the public interest for any
delay to occur in the awarding of the contract for Phase III
construction for the reasons set forth above, and
WHEREAS, by its letter of December 9, 1981, J-I-J
Construction Company has made it clear that an award of the
contract to J-I-J Construction Company for the price bid would be
a fruitless jesture on behalf of the City of Seward in that J-I-J
has requested to withdraw its bid at the price bid, and
WHEREAS, the second low bidder, Chris Berg, Inc., has
been found to have bid in accordance with the bid specifications
and engineers for the City of Seward have advised to award the
contract to Chris Berg, Inc., for the price set forth in its bid,
and
WHEREAS, by awarding the contract to the second low
bidder, Chris Berg, Inc., the City of Seward will fullfil1 its
obligations to mitigate its damages caused for the reasons set
forth above by any delay in the project, and
WHEREAS, by awarding the contract to the second low
bidder, Chris Berg, Inc., the City of Seward does not intend to
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RES.1I81-57
Page 3 of 4
waive its rights against J-I-J Construction Company
damage that the City may have suffered but rather to
such damages 7
for any
mitigate
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, that
Section 1. An award of the contract for Phase I I I,
Dredging, Bulkheads, and Ship1ift Piers, is hereby made to Chris
Berg, Inc., for a price not to exceed ---$9,134,955 ----------------- .
Section 2. This award of the contract to Chris Berg,
Inc. , DB ( does not) include an award in the amount
of ------$3,094,000 --------------- for Additive Alternative No. 1.
Section 3. This award of contract to Chris Berg, Inc.,
~ (does not) include an award in the amount
of -----($211,000)---------------- for Additive Alternative No.2.
Section 4.
instructed to enter into
Seward, Alaska, with Chris
documents.
The City Manager is authorized and
a contract on behalf of the City of
Berg, Inc., in accordance with the bid
Section 5. The City Manager is instructed to review
and recommend action to the City Council for the City of Seward
in pursuit of its rights and/or remedies against J-I-J
Construction Company.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, this 14th day of December, 1981.
Q~~ ALASKA
Donald W. c'rif::: Mayor
AYES:
NOES:
ABSENT:
CRIPPS, BURGESS, CAMPBELL, MEEHAN, O'BRIEN, SORIANO, SWARTZ
NONE
NONE
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REs.ff8l-57
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ATTEST:
Q~L,j,~"
JoA ne E. Shanley 0
Ci ty Clerk
(City Seal)
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APPROVED AS TO FORM:
HUGHES, THORSNESS, GANTZ,
POWELL & BRUNDIN, Attorneys
for the City of Seward
CZlflt~
Fred B. Arvidson, Esq.