HomeMy WebLinkAbout10178RESOLUTION NO. 10178
A RESOLUTION RESCINDING RESOLUTION NO. 10079 IN ITS ENTIRETY AND AWARDING A
CONSTRUCTION CONTRACT IN THE AMOUNT OF $76,944.84 TO TONY J. BELTRAMO & SONS,
INC., AND SETTING FORTH $7,978.00 FOR CONTINGENCIES FOR FY 2004 ATLANTA AVENUE
STORM SEWER PROJECT AND AUTHORIZING THE PURCHASING AGENT TO EXECUTE THE
SAME
WHEREAS, a construction contract for FY 2004 Atlanta Avenue Storm Sewer Project was
awarded to FEDCO, Inc., on March 22, 2004;
WHEREAS, FEDCO, Inc., has failed to timely provide a performance bond and proof of insurance
in accordance with Article 3 — General Provisions;
WHEREAS, proposals for FY 2004 Atlanta Avenue Storm Sewer Project have been received and
examined; and
WHEREAS, the proposal of Tony J. Beltramo & Sons, Inc., of Pueblo, Colorado, was the second
lowest of those bids determined to be responsible;
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
A contract for FY 2004 Atlanta Avenue Storm Sewer Project be, and the same is hereby awarded
to said bidder in the amount of $76,944.84.
SECTION 2.
The Purchasing Agent be, and she is hereby authorized to execute said contract on behalf of
Pueblo, a Municipal Corporation, and the City Clerk shall affix the seal of the City thereto and attest the
same.
SECTION 3.
In addition to the amount of the bid set forth, as aforementioned, an additional amount as
stipulated in this section is hereby established for contingencies and additional work.
Contingencies and Additional Work - - - $7,978.00
.q F (T InN d
Resolution No. 10079 is hereby rescinded and cancelled.
INTRODUCED July 12, 2004
BY Michael Occhiato
'IF
ID
Background Paper for Proposed
RESOLUTION
kw o. W - lOr 7?
AGENDA ITEM # +-:� I
DATE: JULY 12, 2004
DEPARTMENT: PUBLIC WORKS
DIRECTOR - DANIEL E. CENTA, P.E.
TITLE
A RESOLUTION RESCINDING RESOLUTION NO. 10079 IN ITS ENTIRETY AND
AWARDING A CONSTRUCTION CONTRACT IN THE AMOUNT OF $76,944.84
TO TONY J. BELTRAMO & SONS, INC., AND SETTING FORTH $7,978.00 FOR
CONTINGENCIES FOR FY 2004 ATLANTA AVENUE STORM SEWER PROJECT
AND AUTHORIZING THE PURCHASING AGENT TO EXECUTE THE SAME
ISSUE
Should the City Council rescind Resolution No. 10079 and award a construction contract
for FY 2004 Atlanta Avenue Storm Sewer Project to Tony J. Beltramo & Sons, Inc., for
$76,944.84 and set forth $7,978.00 for contingencies.
RECOMMENDATION
Approval of this Resolution.
BACKGROUND
On March 22, 2004, City Council awarded a construction contract to FEDCO, Inc., for
the FY 2004 City Wide Curb Ramps Project by Resolution 10079. As a condition of the
contract documents, the contractor was required to provide a performance bond and proof
of insurance within 10 days of bid award. FEDCO, Inc., was unable to meet this
requirement even after several deadline extensions, and the purchasing agent for the City
therefore cancelled the award. The next lowest bid, Tony J. Beltramo & Sons, Inc., is
$2,000.58 higher. Attached is a letter from Tony J. Beltramo & Sons, Inc., agreeing to
honor their bid prices.
FINANCIAL IMPACT
Funds for this project will be paid from SW0404.
Attached is a bid summary showing the results of competitive bids on this project.
'Naomi C. Haddon
Director of Purchasing
ncheddenQpueblo.us
ED
CITY OF PUEBLO
PURCHASING DEPARTMENT
1 _
June 24, 2004
FEDCO, INC.
Attention: Dick Federico, President
2037 Pepper Lane
Pueblo, CO 81005
Re: City of pueblo project No. 04 -020 (FY 2004 City -Wide Curb Ramps)
City of pueblo project No. 04 -015. (FY 2004 Atlanta Avenue Storm Sewer)
Dear Mr. Federico: .
230 S..Mechanic
Pueblo, CO 81003
719-553 -2350
719-553 -2351 FAX
Since March 26, 2004 when FEDCO was notified of bid award on the above referenced contracts, it has delayed
submitt rig the proper proof of insurance and required payment and performance bonds. On April 16, 2004, you
were notified that unless the proper bonds were provided by the close of business on April 23, 2004, FEDCO
would be held in default and the projects would be awarded to another bidder.
On April 23, 2004 FEDCO furnished bonds which were not in the format mandated by the bid solicitation and
contract documents. At that time FEDCO still had not provided proof of all the required insurance coverages.
On June 14, 2004, Mike Beyer, Sam Vigil, and I met with you to discuss the contract situation and You indicated
that FEDCO still desired to perform these contracts. Consequently, I requested that you file the proper bonds by
no later than June 18 and advised you that the bid award for these projects would be rescinded if you failed to do
so. I also confirmed this with you by my letter to you dated June 14, 2004.
On the afternoon of June 18, 2004 you advised Sam Vigil that the bonding company could not have the bonds to
the City until June 22, 2004. Whatever the situation, no bonds were filed by the close of business on June 22,
2004. We have afforded you every reasonable opportunity and several extensions of time to file the required
bonds and you have failed to do so.
Please be advised that, pursuant to Section 3.113(a) of Article 3, General Provisions in the bid documents, you
have failed to timely fulfill the requirements concerning the filing of bonds, which is a condition precedent to
acceptance of FEDCO's bid Consequently, we are requesting that City Council rescind Resolution Nos. 10079
and 10080 awarding these contracts to FEDCO, and that it award each contract to the next low bidder for each
ProjecL This matter will be considered by Council at its regular meeting on July 12, 2004 at City Council
Chambers, 1 City Hall Place, Pueblo, Colorado, 81003. You may be present at that time if you so desire.
Sincerely,
A ll v � ---- N
Hedden
Director of Purchasing
Cc: Dan Centa, Public Works
Mike Beyer, Public Works
Tom Florczak, City Attorney's Office