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HomeMy WebLinkAbout13441RESOLUTION NO. 13441 A RESOLUTION RESCINDING RESOLUTION NO. 13024 AND TERMINATING A SUBSEQUENT CONSTRUCTION CONTRACT BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND FEDCO, INC., A COLORADO CORPORATION, RELATING TO CITY PROJECT NO. 14- 006, TRANSIT CENTER PASSENGER SHELTER INSTALLATION WHEREAS, Resolution No. 13024, passed and approved on August 11, 2014 awarded a Construction Contract to Fedco, Inc. for City Project No. 14-006; and WHEREAS, Fedco, Inc. has materially breached its Construction Contract with the City; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. Resolution No. 13024 shall be and hereby is rescinded. The subsequent Construction Contract with Fedco, Inc. shall be and hereby is terminated. SECTION 2. The officers and staff of the City are directed and authorized to perform any and all acts consistent with the intent of this Resolution to effectuate the transactions described therein. SECTION 3. This Resolution shall become effective immediately upon passage and approval. INTRODUCED: May 23, 2016 BY: Ed Brown City Clerk’s Office Item # M-3 Background Paper for Proposed Resolution COUNCIL MEETING DATE: May 23, 2016 TO: President Stephen G. Nawrocki and Members of City Council CC: Sam Azad, City Manager VIA: Gina Dutcher, City Clerk FROM: Daniel C. Kogovsek, City Attorney SUBJECT: A RESOLUTION RESCINDING RESOLUTION NO. 13024 AND TERMINATING THE SUBSEQUENT CONSTRUCTION CONTRACT BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND FEDCO, INC., A COLORADO CORPORATION, RELATING TO CITY PROJECT NO. 14-006, TRANSIT CENTER PASSENGER SHELTER INSTALLATION SUMMARY: Attached is a proposed Resolution rescinding Resolution No. 13024 and terminating the subsequent Contract with Fedco, Inc. Fedco, Inc. failed to perform in accordance with the terms of its Contract with the City. PREVIOUS COUNCIL ACTION: On August 11, 2014, City Council passed Resolution No. 13024 which awarded a construction contract to Fedco, Inc. Fedco, Inc. breached the Construction Contract by failing to install a red roof and a dark bronze aluminum frame. BACKGROUND: Paragraph 2.22 of the Construction Contract between the City and Fedco, Inc. specified that a red roof and a dark bronze aluminum frame were to be installed at the Transit Center Shelter. Fedco, Inc. failed to comply with the Contract’s specifications. A black roof was improperly installed. To date, Fedco, Inc. has refused and failed to correct its error. FINANCIAL IMPLICATIONS: The City will hire another contractor to complete the work on the Transit Center Shelter. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Resolution. STAKEHOLDER PROCESS: Not applicable to this Resolution. ALTERNATIVES: The City could give Fedco, Inc. more time to correct its error, however, Fedco, Inc. has been given several weeks to comply with the Construction Contract. RECOMMENDATION: Approval of the Resolution. The prior Resolution No. 13024 must be rescinded and the Contract with Fedco, Inc. must be terminated before a new contractor can be hired. Attachments: