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City Clerk's Office Item # M15
Background Paper for Proposed
Resolution
COUNCIL MEETING DATE: April 14, 2025
TO: President Mark Aliff and Members of City Council
CC: Mayor Heather Graham
VIA: Marisa Stoller, City Clerk
FROM: Andrew Hayes, Public Works Director
SUBJECT: A RESOLUTION RESCINDING A CONSTRUCTION CONTRACT TO
PYRAMID CONSTRUCTION, INC., FOR PROJECT NO. 24-041,
ASPHALT IMPROVEMENTS - COURT STREET.
SUMMARY:
Attached is a resolution rescinding a construction contract to Pyramid Construction, Inc.
PREVIOUS COUNCIL ACTION:
Resolution 15596, dated April 22, 2024, awarded a construction contract to Pyramid
Construction, Inc. in the amount of $724,041.55 for Project No. 24-041, Asphalt
Improvements - Court Street, setting forth $144,958.45 for contingencies.
BACKGROUND:
This project consisted of asphalt improvements to Court Street, from City Center to 24th
St, including mill, overlay and striping.
A Notice to Proceed was issued to the contractor for June 21, 2024, and a Notice of
Suspension of Work was issued on May 30, 2024, suspending the contract start date
until September 1, 2024. The project was then further delayed starting until September
30, 2024, due to a potential change order negotiation. Due to the inability to come to a
resolution on the potential change order and the time needed for the City to investigate
other means to accomplish the necessary changes, on October 2, 2024, the Public
Works Department issued Notice of Suspension of Work #1, delaying the start of the
project until November 2, 2024. As the November 2nd date approached, it was
determined that weather conditions would make it too cold to pave the road in 2024. The
contractor agreed to maintain their pricing through the spring of 2025.
Public Works has since learned from the Stormwater Department that the existing
conditions of the stormwater piping in Court Street require immediate repairs before
paving can begin. At this time, Public Works foresees that the project delays could
potentially last through the end of 2025. It is unreasonable to expect the contractor to
maintain their pricing for over a year.
When the Stormwater project is complete, the Public Works Department will rebid the
project.
FINANCIAL IMPLICATIONS:
Funding, in the amount of $869,000.00, was to be paid from Project Account CI2415,
Street Rehabilitation. The contractor had pre-ordered materials and provided some
initial traffic control. The contractor will provide an invoice to the City to be paid for any
materials delivered to the City and initial traffic control completed. Those expenses will
be paid from project account CI2415, Street Rehabilitation.
BOARD/COMMISSION RECOMMENDATION
None.
STAKEHOLDER PROCESS:
None.
ALTERNATIVES:
A denial of this resolution will result in not rescinding the construction contract to Pyramid
Construction, Inc.
RECOMMENDATION:
Approval of the Resolution.
ATTACHMENTS:
1. 24-041 Letter to Rescind Agreement - Asphalt Improvements Court Street
2. Resolution15596
RESOLUTION NO. 15959
A RESOLUTION RESCINDING A CONSTRUCTION CONTRACT
TO PYRAMID CONSTRUCTION, INC., FOR PROJECT NO. 24-
041, ASPHALT IMPROVEMENTS - COURT STREET.
WHEREAS, Resolution 15569, dated April 22, 2024, awarded a construction contract to
Pyramid Construction, Inc.; NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that
SECTION 1.
The City Council rescinds the previously awarded construction contract to Pyramid
Construction, Inc.
SECTION 2.
Funding for initial traffic control and materials provided to the City will be paid from project
account CI2415, Street Rehabilitation.
SECTION 3.
The officers of the City of Pueblo are authorized to perform any and all acts consistent
with this Resolution to implement the policies and procedures described herein.
SECTION 4.
This Resolution shall become effective immediately upon passage and approval.
INTRODUCED: April 14, 2025
BY: Brett Boston
MEMBER OF CITY COUNCIL
APPROVED: __________________________
PRESIDENT OF CITY COUNCIL
ATTESTED BY: ________________________
CITY CLERK
