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HomeMy WebLinkAbout10179RESOLUTION NO. 10179 A RESOLUTION RESCINDING RESOLUTION NO. 10080 IN ITS ENTIRETY AND AWARDING A CONSTRUCTION CONTRACT IN THE AMOUNT OF $50,977.39 TO MASS SERVICE AND SUPPLY, LLC, AND SETTING FORTH $7,430.00 FOR CONTINGENCIES FOR FY 2004 CITY WIDE CURB RAMPS PROJECT AND AUTHORIZING THE PURCHASING AGENT TO EXECUTE THE SAME WHEREAS, a construction contract for FY 2004 City Wide Curb Ramps 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; and WHEREAS, proposals for FY 2004 City Wide Curb Ramps have been received and examined; WHEREAS, the proposal of Mass Service and Supply, LLC, 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 City Wide Curb Ramps be, and the same is hereby awarded to said bidder in the amount of $50,977.39. 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 - - - $7,430.00 SECTION 4. Resolution No. 10080 is hereby rescinded and cancelled. INTRODUCED July 12, 2004 A -00. # 10179 U� Background Paper for Proposed RESOLUTION AGENDA ITEM # IQ DATE: JULY 12, 2004 DEPARTMENT: PUBLIC WORKS DIRECTOR - DANIEL E. CENTA, P.E. r11rMMy A RESOLUTION RESCINDING RESOLUTION NO. 10080 IN ITS ENTIRETY AND AWARDING A CONSTRUCTION CONTRACT IN THE AMOUNT OF $50,977.39 TO MASS SERVICE AND SUPPLY, LLC, AND SETTING FORTH $7,430.00 FOR CONTINGENCIES FOR FY 2004 CITY WIDE CURB RAMPS PROJECT AND AUTHORIZING THE PURCHASING AGENT TO EXECUTE THE SAME ISSUE Should the City Council rescind Resolution No. 10080 and award a construction contract for FY 2004 City Wide Curb Ramps Project to Mass Service and Supply, LLC, for $50,977.39 and set forth $7,430.00 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 10080. 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 event after several deadline extensions, and the purchasing agent for the City therefore cancelled the award. The next lowest bid, Mass Service and Supply, LLC, is $13,657.74 higher. Attached is a letter from Mass Service and Supply, LLC, agreeing to honor their bid prices. FINANCIAL IMPACT Funds for this project will be paid from Community Development Block Grant funds, CD0337 ($50,407.76) and CDBG Contingency Account ($8,000). Attached is a bid summary showing the results of competitive bids on this project. ' Naomi C. Hedden Director of Purchasing E ED nchedden @ipueblo.us p ° CITY OF PUEBLO PURCHASING DEPARTMENT 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 submitting the proper proof of insurance and required payment and performance bonds. On April 16, 2004, you were notified that unless the proper bands 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 confumed 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 fled by the close of business on June 22, 2004. We have afforded you every reasonable opporhmity 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 Project. This matter will be considered by Council at its regular meeting on July 12, 2004 at City Council Chambers, l City Hall Place, Pueblo, Colorado, 81003. You may be present at that tune if you so desire. Sincerely, Y a&r)^ f A V V A�-- Naomi Hedden Director of Purchasing Cc: Dan Centa, Public Works Mike Beyer, Public Works Tom Florezak, City Attorney's Office a }k a ' 1 ,