City ends paving contract

The City of Warren has terminated a contract for paving and hired a new company.

Department of Public Works Director Mike Holtz said Signature Paving and Sealcoating of Jamestown was the apparent low bidder of four bids received for the 2018 paving program.

City Council approved a contract with Signature in May.

“Signature was to begin the project on Aug. 6 but did not begin milling until Sept. 11,” Holtz said. “The contract called for the project to be completed by Sept. 15 and, as paving has commenced, Signature is now in breach of its contract with the city.”

He said the city “contacted Signature multiple times to provide the company an opportunity to cure the breach.”

On Friday, city officials gave the company a deadline of 7 a.m. Monday to have equipment in place to commence paving, he said. “That did not occur.”

Council Member Greg Fraser asked if the city had formally terminated its contract with Signature.

Holtz said it had.

“It is imperative that the paving work be completed as soon as possible as the streets have already been milled and exposure to winter conditions would cause significant damage to the streets,” Holtz said. “Such damage would result in an even greater expenditure if paving did not occur until 2019.”

The city staff recommended seeking compensation for damages and excess expenditures.

Fraser made a motion to approve the second lowest bidder, IA Construction “for the unfulfilled portion of the contract,” and to seek that compensation.

IA noted that its bid would no longer be at the May price.

Holtz said IA offered to complete the project for $215,319.07.

The five members in attendance unanimously approved moving forward with IA.

Holtz said the company has agreed to begin paving no later than Oct. 22.

He said there is about four days of work left on eight streets.

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