13-RESCIND CONTRACT TO CLASSIC PROTECTIVE COATINGS INC

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CITY COUNCIL AGENDA ITEM BRIEFING SHEET Submittal Date: Originating Department: Presented By: Agenda Item No.: 08/23/12 Public Works Ronald J. Sullivan, P.E, Public Council Date: Warks Director 13. 08/27/12 RECOMMENDED MOTION: Rescind a contract to Classic Protective Coatings, lnc. for the Rehabilitation of the East Elevated Storage Tank in the amount of $808,334.00 and award a contract to M.K. Painting in the amount of $837,000.00. POLICY ISSUE(S): Capital Improvements Program BACKGROUND: During the Council Meeting of May 14, 2012 the Council awarded a contract to Classic ProteCtlve Coatings, Inc. for the Rehabilitation of the East Elevated Storage Tank in the amount of $808,334.00. Since that time, Classic has refused to execute the City's contract for the Project and has requested several delays in the start date for the Project. In our most recent communications with the contractor he has requested additional funds in the amount of $40,000. Classic has defaulted under the terms of the original contract award and the City needs to move on to the second low bidder. Our consultant has contacted the second low bidder M.K. Painting and he has indicated that he is willing to honar his bid of $837,000.00 for the base bid and Additives 1 and 2. Note that the additives are contingency items and will only be used if necessary. Therefore Staff recommends that Council pass a resolution rescinding the contract to Classic Protective Coatings, Inc. for the Rehabilitation of the East Elevated Storage Tank in the amount of $808,334.00 and awarding a contract to M.K. Painting in the amount of $837,000.00. BOARD/COMMISSION RECOMMENDATION: EXHIBITS: Bid tab, proposal of low bidder ACTION: BUDGET INFO: ❑ Financial Report ❑ Minute Order Expense $ 837,000 ❑ Department Report Z Resolution Budgeted Amt. $ 900,000 ~ Presentation ❑ Ordinance y'I'D Actual $ 90,000 ❑ Public Hearing ❑ Other Acct. Name Acct. Number FISCAL NOTES: 8/23/2012 ~ - 88