R2002-70 ACCEPTING THE BID AND AUTHORIZING A CONTRACT

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� - Page 4 I� 7. The City will hold a 5% to 10% retainage on all payments to the contractor to assure contract compliance which encompasses quality of work, prevailing wage compliance ' and adherence to construction standards. Staff is confident that proper controls are in place that will assure proper and timely compliance by Kinney Contractors, notwithstanding the ongoing presence of complaints which have been issued against them. • Options for the City Council A copy of the State Policies governing the disbursement of Motor Fuel Tax (MFT) funds is included herewith and are summarized below. Option#1: Make an award to the lowest responsible and eligible bidder. Option#2: Reject all bids and readvertise without any changes. If IDOT does not concur with the City's reason for rejecting the bids received, IDOT will consider the low responsible bid as the established price for comparison against bids received at any subsequent letting for the same work. The rebidding process will take four to six weeks to complete. Assuming that acceptable bids are received, the project will not begin until mid June resulting in a significant delay which will push back the completion dates of other projects. If the resulting bids are too high to be funded through MFT sources, funding will need to be reallocated among the projects in the General Fund or the project postponed until Fiscal Year 2003-2004. - Option#3: Select a bidder other than the lowest responsible bidder and finance the project from other non-MFT funds. Funds are not currently proposed or available within the General Fund. As with Option #2, funding will need to be reallocated among the proposed capital projects. Other projects will need to be delayed or canceled to make funding available. POTENTIAL OBJECTION: Michael Goetz, with the Midwest Region Foundation for Fair Contracting, Inc., has informed City staff that additional information will be provided to the City Council by Monday, Apri122, 2002. It is staff s understanding, as indicated by Mr. Goetz, that this information is to contain material dealing with the various lawsuits pending against Kinney Contractors.