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HomeMy WebLinkAbout11226Docusign Envelope ID: 0B0417E8-400A-82A6-81 B9-F4F22B7DBBB7 ORDINANCE NO. 11226 AN ORDINANCE TRANSFERRING FUNDS IN THE AMOUNT OF $60,000 FROM PROJECT ACCOUNT C12503, MUNI COURT SMALL SUV TO C12443, ADMIN OFFICES RELOCATION PROJECT, TRANSFERRING FUNDS IN THE AMOUNT OF $31,000 FROM THE UNAPPROPRIATED FUND BALANCE OF THE HEALTH SELF INSURANCE FUND, BUDGETING AND APPROPRIATING FUNDS IN THE AMOUNT OF $31,000 TO PROJECT ACCOUNT C12613, EMPLOYEE CLINIC RENOVATIONS, APPROVING CONTRACT AMENDMENT NO. 1 IN THE AMOUNT OF $182,175 TO H.W. HOUSTON CONSTRUCTION, LLC, FOR PROJECT NO. 26-001, BUILDING REMODEL - 650 DITTMER AND AUTHORIZING THE PURCHASING AGENT TO EXECUTE SAME WHEREAS, a Construction Contract was awarded to H.W. Houston Construction, LLC, under Contract Number 26-001; and WHEREAS, a contract amendment is requested for the purpose of completing replacement of eight heat pumps and associated work to complete the project; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 Funds in the amount of $60,000.00 are hereby transferred from Account Project C12503, Muni Court Small SUV to Account Project C12443 - Admin Offices Relocation Project SECTION 2. Funds in the amount of $31,000.00 are hereby transferred from the unappropriated fund balance of the Health Self Insurance Fund and budgeted and appropriated into Account Project C12613 - Employee Clinic Renovation Project SECTION 3. Contract Amendment No. 1 to the Construction Contract for Building Remodel - 650 Dittmer with H.W. Houston Construction, LLC, Project No. 26-001, in the amount of $182,175.00, a copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved, and City Council authorizes the additional work contemplated by the Amendment. SECTION 4. The Purchasing Agent is hereby authorized to execute said Amendment on behalf of the City of Pueblo, a Colorado Municipal Corporation, and the City Clerk shall affix the seal of the City thereto and attest same. Docusign Envelope ID: 0B0417E8-400A-82A6-81 B9-F4F22B7DBBB7 SECTION 5. Funds in the amount of $112,175.00 shall be paid from Project Account C12443, Admin Offices Relocation Project SECTION 6. Funds in the amount of $70,000.00 shall be paid from Project Account C12613, Employee Clinic Renovation Project SEr..TION 7 The officers and staff of the City of Pueblo are authorized to perform any and all acts consistent with this Resolution and the Amendment to implement the policies and procedures described herein. Furthermore, all actions previously taken by officers and staff of the City consistent with the Amendment, including any payments authorized under the contract, are hereby ratified. SEr..TICTN R This Resolution shall become effective immediately upon passage and approval. Action by City Council: Introduced and initial adoption of Ordinance by City Council on June 22, 2026. Final adoption of Ordinance by City Council on July 13, 2026. DocuSignedby: President of City Council Action by the Mayor: ® Approved on ❑ Disapproved on 07/15/2026 based on the following objections: Mayor Docusign Envelope ID: 0B0417E8-400A-82A6-81 B9-F4F22B7DBBB7 Action by City Council After Disapproval by the Mayor: ❑ Council did not act to override the Mayor's veto. ❑ Ordinance re -adopted on a vote of , on ❑ Council action on failed to override the Mayor's veto. President of City Council ATTEST Signed by: Deputy City Cler Docusign Envelope ID: 0B0417E8-400A-82A6-81 B9-F4F22B7DBBB7 City Clerk's Office Item # S16 Ciify of PUEBLO m;µ ...w Background Paper for Proposed Ordinance COUNCIL MEETING DATE: July 13, 2026 TO: President Mark Aliff and Members of City Council CC: Mayor Heather Graham VIA: Clyde Bishop, City Clerk FROM: Andrew Hayes, Public Works Director SUBJECT: AN ORDINANCE TRANSFERRING FUNDS IN THE AMOUNT OF $60,000 FROM PROJECT ACCOUNT C12503, MUNI COURT SMALL SUV TO C12443, ADMIN OFFICES RELOCATION PROJECT, TRANSFERRING FUNDS IN THE AMOUNT OF $31,000 FROM THE UNAPPROPRIATED FUND BALANCE OF THE HEALTH SELF INSURANCE FUND, BUDGETING AND APPROPRIATING FUNDS IN THE AMOUNT OF $31,000 TO PROJECT ACCOUNT C12613, EMPLOYEE CLINIC RENOVATIONS, APPROVING CONTRACT AMENDMENT NO. 1 IN THE AMOUNT OF $182,175 TO H.W. HOUSTON CONSTRUCTION, LLC, FOR PROJECT NO. 26-001, BUILDING REMODEL - 650 DITTMER AND AUTHORIZING THE PURCHASING AGENT TO EXECUTE SAME SUMMARY: This Ordinance transfers $60,000.00 from C12503, Muni Court Small SUV to C12443, $31,000.00 from the unappropriated fund balance of the Health Self Insurance Fund, budgets and appropriates the funds transferred from the Health Self Insurance Fund to account C12613, and approves Contract Amendment No. 1 in the amount of $182,175.00 to H.W. Houston, Construction LLC, for Project No. 26-001, Building Remodel - 650 Dittmer. PREVIOUS COUNCIL ACTION: Resolution 16249, dated February 9, 2026, awarded a construction contract to H.W. Houston Construction, LLC for Project No. 26-001, Building Remodel - 650 Dittmer. Ordinance 11144, dated April 13, 2026, established Project No. C12613, Employee Clinic renovations, and transferred, budgeted and appropriated funds in the amount of $60,000.00 to the project account. Docusign Envelope ID: 0B0417E8-400A-82A6-81 B9-F4F22B7DBBB7 BACKGROUND: The original project, awarded to H.W. Houston Construction, LLC, consisted of the interior renovation of the 2nd floor of the 650 Dittmer Building, including: • Selective demolition of existing walls, doors, casework, and MEP components. • New construction included walls, doors, casework, and associated MEP systems. • New finishes included painting throughout and replacement of select flooring and ceilings. • Associated plumbing, electrical and mechanical work was included, including flushing of the existing mechanical system (including heat pumps). During flushing of the heat pumps (16 of them on all floors of the building), it was discovered that approximately half of them could not be flushed as they were completely clogged and rusted. The other eight are crawling along. With this contract amendment, eight of the heat pumps will be replaced. All 16 will receive y -traps to act as a filter, so the sludge in the old heat pumps will not clog the new heat pumps. In addition, all units will be chemically flushed, and the existing units will receive new connection hoses and parts. A portion of the work (5 heat pumps) are on the first floor of the building and the work shall be done for the benefit of the employee health clinic. The cost of the additional work exceeds the threshold for administrative approval of a change order and a contract amendment will be required to award and complete the additional work. FINANCIAL IMPLICATIONS: Funding in the amount of $60,000.00 will be transferred from Account Project C12503, Muni Court Small SUV into Account Project C12443, Admin Offices Relocation Project. Funding in the amount of $31,000.00 will be transferred, budgeted and appropriated from the unappropriated fund balance of the Health Self Insurance Fund into Account Project C12613, Employee Clinic Renovations Project. Funding in the amount of $112,175.00, will be paid from Project Account C12443, Admin Offices Relocation Project. Funding in the amount of $70,000, will be paid from Project Account C12613, Employee Clinic Renovations Project. BOARD/COMMISSION RECOMMENDATION: None. STAKEHOLDER PROCESS: None. Docusign Envelope ID: 0B0417E8-400A-82A6-81 B9-F4F22B7DBBB7 ALTERNATIVES: Denial of this Resolution would cancel the additional work necessary to complete the project. RECOMMENDATION: Approval of the Resolution. ATTACHMENTS: 26-001 Amendment Not - Building Remodel 650 Dittmer Docusign Envelope ID: DFDEEOD9-CBEF-8A65-83BE-01229B80C3A9 AMENDMENT NO. 1 TO CONSTRUCTION CONTRACT This Amendment No. 1 to a construction contract ("Amendment") is executed to be effective as of July 14, 2026, by and between the City of Pueblo, a Colorado Municipal Corporation ("City") and H.W. Houston Construction, LLC, a Colorado Limited Liability Company ("Contractor"). WHEREAS, City and Contractor entered into that certain construction contract dated February 24, 2026, for Project 26-001 Building Remodel — 650 Dittmer (the "Construction Agreement"); and WHEREAS, City and Contractor desire to amend the Construction Agreement subject to the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the foregoing and the mutual promises set forth herein and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, City and Contractor hereby agree to the following: 1. 1. The proposed additional work items identified as "COP #7b Heat Pump Replacement (8 clogged Pumps)" on the proposal attached hereto, and labelled Exhibit 1, are hereby accepted and approved. The Construction Agreement is amended to incorporate all additional work to be performed as contemplated by and at the prices set forth in Exhibit 1, and such additional work shall become a component part of and incorporated into all work contemplated by the Construction Agreement. Contractor shall perform all such work subject to and consistent with all requirements and provisions of the Construction Agreement. Contractor shall perform all acts necessary or required as a result of this Amendment, including, but not limited to, furnishing Performance and Payment Bonds in compliance with Section 5.20 of the Invitation for Bid. The Performance and Payment Bonds shall be in the total amount of $579,181.00, which includes the original contract amount of $370,162.00, Change Order No. 1r1 in the amount of $24,121.00, Change Order No. 2r1 in the amount of $3,701.00, Change Order No. 3 in the amount of ($978.00), and the additional contract amount of $182,175.00 contemplated by the additional work performed under this Amendment. The time for completion of all work under the Construction Agreement including the additional work to be performed under this Amendment is increased by thirty (30) days. 2. Except as expressly modified by this Amendment, the Construction Agreement shall remain in full force and effect. Except as modified by this Amendment, any obligations to be performed under the Construction Agreement by either party are not waived nor excused in any manner but shall be performed in accordance with the terms and conditions of the Construction Agreement as it existed prior to this Amendment. 3. This Amendment and all other documents contemplated hereunder may be executed using electronic signatures with delivery via facsimile transmission, by scanning and transmission of electronic files in Portable Document Format (PDF) or other readily available file format, or by copy transmitted via email, or by other electronic means and in one or more counterparts, Project 26-001 Amendment No. 1 Page 1 of 3 Docusign Envelope ID: DFDEE0D9-CBEF-8A65-83BE-01229B80C3A9 each of which shall be: (i) an original, and all of which taken together shall constitute one and the same agreement, (ii) a valid and binding agreement and fully admissible under state and federal law, and (iii) enforceable in accordance with its terms. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. H.W. HOUSTON CONS CTIO LC By Louis Nazario, President CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION Signed by: By l' Yt$ L M4 f7tAflAS ty w. 2 SEDE99C24 4 eresa ay Burns, Director of Purchasing ATTEST: �DocuSigned by: �1�AF87 �171e Bishop, City Clerk BALANCE OF APPROPRIATION EXISTS FOR THIS CONTRACT AND FUNDS ARE AVAILABLE: Signed by, °"FB"S19anny Nunn, Director of Finance APPROVED AS TO FORM DEPARTMENT OF LAW: DocuSigoed by: L!1u 9 v 502 °ober P. Jagger, Deputy City Attorney Project 26-001 Amendment No. 1 Page 2 of 3 Docusign Envelope ID: DFDEEOD9-CBEF-8A65-83BE-01229B80C3A9 EXHIBIT 1 H.W. Houston Proposal (3 Pages) Project 26-001 Amendment No. 1 Page 3 of 3 Docusign Envelope ID: DFDEE0D9-CBEF-8A65-83BE-01229B80C3A9 Dittmer Offices Remodel Houston 101 W Riverwalk ; gj�,w Construction Pueblo, CO 81003 ft ,,,, May 18, 2026 Lolorndo COP #7a Heat Pump Replacement (Replacement of all 16 Heat Pumps) Sys Description of Work Replace ALL existing heat pumps in building. Cost % of Cost COP #7a Heat Pump Replacement (Replacement of all 16 Heat Pumps) 2100 Demo Ceilings 2,550 0.74% 8100 Provide Access Doors at two Pump Locations in Gyp. Ceilings 2,400 0.70% 9100 Repair Ceilings 20,000 5.84% 21000 Fire Sprinkler System Relocation 10,625 3.10% 26000 Olson Plumbing - See attached Scope 255,910 74.72% Subtotal Direct Costs 291,485 85% Indirect Costs Plan Review and Permit Builder's Risk Insurance Performance and Payment Bond - Not Included Contractor's Insurance General Conditions CM/GC Fee Design Fee - Not Included - 308 3,082 3,082 34,248 10,274 - 0.00% 0.09% 0.90% 0.90% 10.00% 3.00% 0.00% Subtotal Direct, Indirect & Contingency Costs 50,995 :i 14.89% ii iii Time Increase 30 Days COP #7b Heat Pump Replacement (8 clogged Pumps) Sys Description of Work Replace 8 existing heat pumps in building. Cost % of Cost COP #7b Heat Pump Replacement (8 clogged Pumps) 2100 Demo Ceilings 1,280 0.37% 8100 Provide Access Doors at two Pump Locations in Gyp. Ceilings 2,400 0.70% 9100 Repair Ceilings 10,000 2.92% 21000 Fire Sprinkler System Relocation 5,320 1.55% 26000 Olson Plumbing - See attached Scope 136,049 39.72% Subtotal Direct Costs 155,049 45% Indirect Costs Plan Review and Permit Builder's Risk Insurance Performance and Payment Bond - Not Included Contractor's Insurance General Conditions CM/GC Fee Design Fee - Not Included - 164 1,640 1,640 18,217 5,465 - 0.00% 0.05% 0.48% 0.48% 5.32% 1.60% 0.00% Subtotal Direct, Indirect & Contingency Costs 27,126 7.92% Time Increase 30 Days Docusign Envelope ID: DFDEEOD9-CBEF-8A65-83BE-01229B80C3A9 4rndoTrnnL PLUMBING & HEAlING CO. 5/13/2026 To: Mr. Louis Nazario HW Houston RE: Dittmer Building Heat Pump Replacements Industrial Plumbing and Heating are pleased to offer the following proposal for your consideration based on walkthrough and meeting. o Provide and install the necessary labor and materials to replace 8 or 16 existing FHP Heat Pumps with Trane Heat Pumps on a 2 -week quick ship. ■ Electrical ■ Sheetmetal ■ Regional Permit ■ Complete Flushing of the heat pump mains and add Y strainer to all heat pumps. ■ Previous cost to get 7 heat pump coils cleared as best as possible. o Disposal of the existing heat pumps. o Pricing is based on working normal working hours. o 16 Heat pumps with quick ship $255,910.00 ■ Please deduct $34,00.00 if quick ship is not needed. o 8 Heat pumps with quick ship $136,049.00 ■ Please deduct $17,00.00 if quick ship is not needed. • Pricing breakouts for 8 HP's o Labor for HP's - $43,494.00 o Materials - $3,200.00 o Equipment - $43,855.00 o Previous Cost - $12,500.00 o Two Week Quick Ship - $17,000.00 o Electrical Subcontractor - $16,000.00 (Allowance) • Pricing breakouts for 16 HP's o Labor for HP's - $78,914.00 o Materials - $6,400.00 o Equipment - $92,096.00 o Previous Cost - $12,500.00 o Two Week Quick Ship - $34,000.00 o Electrical Subcontractor - $32,000.00 (Allowance) • Exclusions: 11 g Docusign Envelope ID: DFDEEOD9-CBEF-8A65-83BE-01229B80C3A9 o Engineering o Fire Protection o Ceiling grid removal or replacement o Premium time o Controls o Painting or patching of drywall. Thank you very much for the opportunity to provide pricing for this project. Please do not hesitate to contact me with any questions or concerns. Sincerely, John Hill Vice President 21 P age Docusign Envelope ID: DFDEEOD9-CBEF-8A65-83BE-01229B80C3A9 RIDER TO CORPORATE SURETY BOND Principal: H.W. Houston Construction, LLC Obligee: City of Pueblo, Colorado Bond Number: 108387960 Description: Performance Bond and Payment Bond — Dittmer Building Remodel 101 West Riverwalk, Pueblo, CO 81001 - Project No. 26-001 (C12443) Surety: Travelers Casualty and Surety Company of America Contract Date: February 24, 2026 Effective immediately, this bond is hereby amended as follows: The bond amount is changed from: Three Hundred Seventy Thousand One Hundred Sixty Two and 00/100 Dollars ($370,162.00) to: Five Hundred Seventy Nine Thousand One Hundred Eighty One and 00/100 Dollars ($579,181.00) Per Contract Amendment No. 1. All other conditions under this bond obligation remain unchanged. Signed, sealed and delivered this 31st day of July, 2026. H.W. Houston Construction, LLC Digitally signed by Louis Nazario DN C=US, E=lowsn@hwhouston com, O -"H. W. Louis Nazario Houston Construction, LLC", s N 'H W Houston Construction, LLC , CN=Louis Nazario Date 2026.08.04 08:46:44-0600' Travelers Casualty and Surety Company of America By. Q.,.m p. w. Nicole L. McCollam, Attorney -in -Fact 170 9.7111 trc et, Suite 100 Denver. CO 80202 (::10) 53.4-4.567 Docusign Envelope ID: DFDEE0D9-CBEF-8A65-83BE-01229B80C3A9 Travelers Casualty and Surety Company of America A Travelers Casualty and Surety Company TRAVELERS w St. Paul Fire and Marine Insurance Company POWER OF ATTORNEY Travelers Casualty and Surety Company of America, Travelers Casualty and Surety Company, and St. Paul Fire and Marine Insurance Company are corporations duly organized under the laws of the State of Connecticut (herein collectively called the "Companies"), and the Companies do hereby make, constitute and appoint Nicole L McCollam of DENVER , Colorado , their true and lawful Attorney(s)-in-Fact to sign, execute, seal and acknowledge any and all bonds, recognizances, conditional undertakings and other writings obligatory in the nature thereof on behalf of the Companies in their business of guaranteeing the fidelity of persons, guaranteeing the performance of contracts and executing or guaranteeing bonds and undertakings required or permitted in any actions or proceedings allowed by law. IN WITNESS WHEREOF, the Companies have caused this instrument to be signed, and their corporate seals to be hereto affixed, this 13th day of May, 2026. State of Connecticut City of Hartford ss. By: Bryce Grissom, Senior Vice President On this the 13th day of May, 2026, before me personally appeared Bryce Grissom, who acknowledged himself to be the Senior Vice President, Surety, Bond & Specialty Insurance, of each of the Companies, and that he, as such, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing on behalf of said Companies by himself as a duly authorized officer. IN WITNESS WHEREOF, I hereunto set my hand and official seal My Commission expires the 31st day of March, 2031 Marie E. Sorensen, Notary Public This Power of Attorney is granted under and by the authority of the following resolutions adopted by the Boards of Directors of each of the Companies, which resolutions are now in full force and effect, reading as follows: RESOLVED, that the Chairman, the President, any Vice Chairman, any Executive Vice President, any Senior Vice President, any Vice President, any Second Vice President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary may appoint Attorneys -in -Fact and Agents to act for and on behalf of the Company and may give such appointee such authority as his or her certificate of authority may prescribe to sign with the Company's name and seal with the Company's seal bonds, recognizances, contracts of indemnity, and other writings obligatory in the nature of a bond, recognizance, or conditional undertaking, and any of said officers or the Board of Directors at any time may remove any such appointee and revoke the power given him or her; and it is FURTHER RESOLVED, that the Chairman, the President, any Vice Chairman, any Executive Vice President, any Senior Vice President or any Vice President may delegate all or any part of the foregoing authority to one or more officers or employees of this Company, provided that each such delegation is in writing and a copy thereof is filed in the office of the Secretary; and it is FURTHER RESOLVED, that any bond, recognizance, contract of indemnity, or writing obligatory in the nature of a bond, recognizance, or conditional undertaking shall be valid and binding upon the Company when (a) signed by the President, any Vice Chairman, any Executive Vice President, any Senior Vice President or any Vice President, any Second Vice President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary and duly attested and sealed with the Company's seal by a Secretary or Assistant Secretary; or (b) duly executed (under seal, if required) by one or more Attorneys -in -Fact and Agents pursuant to the power prescribed in his or her certificate or their certificates of authority or by one or more Company officers pursuant to a written delegation of authority; and it is FURTHER RESOLVED, that the signature of each of the following officers: President, any Executive Vice President, any Senior Vice President, any Vice President, any Assistant Vice President, any Secretary, any Assistant Secretary, and the seal of the Company may be affixed by facsimile to any Power of Attorney or to any certificate relating thereto appointing Resident Vice Presidents, Resident Assistant Secretaries or Attorneys -in -Fact for purposes only of executing and attesting bonds and undertakings and other writings obligatory in the nature thereof, and any such Power of Attorney or certificate bearing such facsimile signature or facsimile seal shall be valid and binding upon the Company and any such power so executed and certified by such facsimile signature and facsimile seal shall be valid and binding on the Company in the future with respect to any bond or understanding to which it is attached. I, Kevin E. Hughes, the undersigned, Assistant Secretary of each of the Companies, do hereby certify that the above and foregoing is a true and correct copy of the Power of Attorney executed by said Companies, which remains in full force and effect. _ SUaEt y. �tY ANO .G Datedthis 31st dayof Jul 2026I:D AL E. Hughes, Assistant Secretary To verify the authenticity of this Power of Attorney, please call us at 1-800-421-3880. Please refer to the above -named Attorney(s)-in-Fact and the details of the bond to which this Power of Attorney is attached. Docusign Envelope ID: DFDEEOD9-CBEF-8A65-83BE-01229B80C3A9 TRAVELERS SURETY BOND SEAL ADDENDUM TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA Travelers Casualty and Surety Company of America ("Travelers") has authorized its Attorneys -in -Fact to attach this Addendum to any bond executed on behalf of Travelers by any such Attorney -in -Fact. Travelers hereby agrees that the seal below shall be deemed affixed to the attached bond to the same extent as if Travelers' raised corporate seal was physically affixed to the face of the bond. Dated this 1st day of April, 2024. Travelers Casualty and Surety Company of America SEAL By: ryce rissom, Senior Vice President