HomeMy WebLinkAboutAmerican Asphalt Repair and Resurfacing 2023-10-13 Termination Ltr City of Ukiah
March 4, 2024
American Asphalt Repair&Resurfacing Co., Inc_
Attention- Sieve Aguirre
24200 Clawiter Road
Hayward, California 95482
Re Notice of Termination for Convenience--Spec 23-12- 2023 Slurry Seal Project
Dear Mr.Aguirre:
I hope this correspondence finds you well.The purpose of this letter is to formally notify you of the Citys decision to
exercise its rights under Section 7-12 of the contract for the 2023 Slurry Seal Project—Specification 23-12,Contract
2324-101. to terminate the contract for convenience.
As you are aware,the weather this fall did not cooperate and was not conducive to performing the work of the
contract The delay of the contract until the spring of 2024 was decided in a conversation between Danie'Flores,the
City's project manager for the project, and Allan Henderson, Project Manager for your company This delay was
further confirmed in a letter written by you. (Please refer to Attachment 1.)Due to this agreement, a Notice to
Proceed has not yet been issued.
After the City,further consideration of the large amount of other construction projects that will be taking place this
spring the performance of this contract during that time will no longer work.
Therefore,as per Section 7-12 of Specification 23-12,the City is exercising the right to terminate for convenience. In
accordance with those provisions,the City is hereby initiating the termination process, effective immediately upon
receipt of this notice.
Outlined below are the obligations incumbent upon the Contractor(as applicable)following receipt of this termination
notice. (As noted above,the Notice to Proceed was never issued,so most, if not all of these are anticipated not to
apply.)
1, Cease all work as delineated in the notice of termination,
2. Expedite the completion of any remaining work as specifed in the termination notice,prioritizing efficiency and
cost-effectiveness while upholding the quality standards mandated by the contract documents.
3. Ensure that the premises where work was being conducted, includ<ng any associated facilities,are left in a
safe and hygienic condition that poses no threat to public health or safety.
4. Terminate any subcontracts pertinent to the terminated portions of the work.
5. Refrain from entering into additional subcontracts or orders, except those essential for fulfilling the remaining
obligations under the contract.
6. Furnish the City Engineer with all requisite documentation within ten(10)calendar days from the effective date
of the termination notice,substantiating all costs incurred by the Contractor for labor,materials, and equipment
up to the effective date of termination Additionally,any documentation pertaining specifically to costs incurred
due to the City's exercise of its termination right must be submitted within 30 calendar days following the
effective date of termination,clearly identified as"Termination Costs occasioned by the City's Termination for
Convenience."
Please also note that the termination of the contract pursuant to this clause does not absolve the Surety of its
obligations concerning just claims arising from the work performed. Upon submission of the requisite documentation,
the City shall compensate the Contractor in accordance with the following provisions:
1. Reimbursement of all actual costs incurred as per the contract stipulations.
300 Seminary Avenue• Ukiah •CA •95482-5400
Phone. (707)463-6233 • www.cityofukiah.com
2 A reasonab;e allowance for profit, not to exceed fifteen(15%)percent of the costs,corrlmgefit upon the
Contractor demonstrating to the satisfaction of the Engineer that a profit would reasonably have been realized
had the contract been completed.
3 A reasonable allowance for Contractor's administrative costs incurred in determining the payable amount
consequent to contract termination.
We understand the implications this decision may entail for your organization and are committed to facilitating a
smooth transition process.Should you require any explanation or have questions regarding the termination
procedure,please do not hesitate to reach out to me directly at(707)463-6233 or by email at
mhoraer@cityofukiah.com.
Thank you for your attention to this matter,and we appreciate your cooperation in ensuring the expeditious and
amicable conclusion of our contractual obligations.
Warm regards,
Mary Ffarg l '�
Financial Services Manager
Enc.
Cc: Kristine Lawler,City Clerk
Tim Eriksen,City Engineer
Daniel Flores,City Project Manger
file
American Asphalt ATTACHMENT 1
Repair& Resurfacing Co., Inc. Am i
24L00 Clawiter Rd.Hayward,CA 9-o'iv u0114 la 10) 723-0280 • Fax (5 i 0) 723.0288 • UL 439591 • www.ameritah..-t,' al,.Lo:n
October 17,2023
Daniel Flores
City of Ukiah
300 Seminary Avenue
Ukiah,CA 95482
Re: Slurry Seal of Local Streets
Specification No.23-12
Dear Daniel,
This letter will confirm your conversation with Allan Henderson. Due to weather conditions and cold
temperatures it's advisable to postpone the Slurry Seal of Local Streets project until the spring of 2024.
American Asphalt will honor the same bid item prices performing the work next year.
Sincerely,
.&"' �A
Steve Aguirre
V.P.