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HomeMy WebLinkAbout20-123 TABLED Resolution No. 20-123 TABLED RESOLUTION TERMINATING THE CONTRACT BETWEEN THE CITY OF ELGIN AND MUSCAT PAINTING & DECORATING AND AWARDING SAID CONTRACT TO ERA VALDIVIA REGARDING THE RIVERSIDE WATER TREATMENT PLANT SECONDARY CLARIFIER REHABILITATION PROJECT (Bid 20-013) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that the contract between the City of Elgin and Muscat Painting and Decorating for the Riverside Water Treatment Plant Secondary Clarifier Rehabilitation Project dated May 27, 2020, effective June 29, 2020, be and is hereby terminated due to a breach of said contract by Muscat Painting and Decorating. BE IT FURTHER RESOLVED that Bid 20-013 for the Riverside Water Treatment Plant Secondary Clarifier Rehabilitation Project is hereby awarded to Era Valdivia in the amount of $487,300. BE IT FURTHER RESOLVED that City Manager, Richard G. Kozal, be and is hereby authorized to execute all documents necessary and associated with the termination and award of such contract. BE IT FURTHER RESOLVED that the City of Elgin fully reserves all of its rights and remedies. • s/David J. Kaptain David J. Kaptain, Mayor • Presented: : TABLED Adopted: : TABLED Vote: Yeas: 9 Nays: 0 Attest: s/Kimberly Dewis Kimberly Dewis, City Clerk D � O III b E LG I N MEMORANDUM THE CITY IN THE SUBURBS- To: William Cogley, Chief Corporation Counsel From: Eric Weiss, Water Director Date: September 16, 2020 Re: Recommendation to cancel contract with Muscat Painting and Decorating and award contract to Era Valdivia Contractors, Inc. for Bid 20-013 Riverside Water Treatment Plant Secondary Clarifier Rehabilitation Project The city council awarded Bid 20-013 Riverside Water Treatment Plant Secondary Clarifier Rehabilitation Project to Muscat Painting and Decorating in the amount of$261,581 at the city council meeting on May 27, 2020. The contractor reported to the project site to begin work on June 29, 2020. On July10, 2020 the contractor submitted a change order request for 161 553. g q $ , Initially, the contractor claimed that an error was made in the math on his bid. Per the direction of Purchasing Officer, Daina DeNye, a change order over 50%of the original contract value must be rebid. It should be noted that in addition to the change order being over 50% of the original contract value, the contractor's proposed change order also included a reduction of or complete elimination of many scope items. City staff spoke with the contractor to determine if there was any flexibility in his requested change order value, so that he could continue working on the project, he indicated that he would be unable to complete the project for his bid amount. At the time of the change order the contractor had begun to remove the paint on the clarifier. Once it was determined that Muscat Painting and Decorating would be unable to complete the project without the change order approval, it was requested that he cease work in order to prevent further paint removal, which leaves the equipment susceptible to increased corrosion. Muscat Painting and-Decorating was required to provide a surety bond to ensure the completion of the bid work. Since they are not able to complete the work, their bond company, West Bend Mutual, has indicated its willingness to provide a settlement payment to the city for. the difference of the bid of Muscat Painting and Decorating and the next lowest bidder, Era Valdivia Contractors, Inc.. The difference between the bids is $225,719. In order to ensure the most expeditious completion of the Secondary Clarifier Rehabilitation Project, staff have reached out to Era Valdivia. Era Valdivia is willing to hold their bid price. Era • • Valdivia will complete the abandoned portion of the work this fall to ensure that the clarifier can be returned to service through the winter, then return and complete the remaining contract work in the spring of 2021. Era Valdivia has previously completed satisfactory work on multiple projects for the city. Staff recommends cancelling the contract with Muscat Painting and Decorating for Bid 20-013 Riverside Water Treatment Plant Secondary Clarifier Rehabilitation Project. Staff recommends awarding a contract to Era Valdivia of Chicago, Illinois in the amount of $487,300 for Bid 20-013 Riverside Water Treatment Plant Secondary Clarifier Rehabilitation Project. Please let me know if you have any questions on this matter.