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CITY of RAPID CITY Agenda Item Summary |
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Meeting Date: 2/25/2014 |
Commission, Board or Committee: |
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Staff Contact: Joel Landeen |
PW Committee or L&F Committee: |
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Petitioner: None |
City Council 1st Reading: |
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Location: |
City Council 2nd Reading: |
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Agenda Title: |
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A RESOLUTION TO DECLARE HIGHMARK, INC., AND DALE SCHUELKE NON- RESPONSIBLE BIDDERS ON THE AWARD OF FUTURE CITY PROJECTS. |
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Summary: |
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The City entered into a contract with Highmark, Inc., to construct a water transmission main to the new Jackson Springs Water Treatment Plant. Highmark is owned by Dale Schuelke. Highmark contracted with Northwest Pipe, an Oregon company, to supply the pipe for the project. A significant amount of the pipe installed by Highmark failed to meet the minimum specifications of the contract. Highmark’s contract with the City made it responsible to remedy all defects in workmanship and materials at its sole expense. Highmark has failed to honor its obligations under the contract and remedy the defective pipe. City staff has refrained from recommending that Highmark not be awarded additional contracts while we made efforts to settle this matter. At this time, it does not appear that a settlement that is acceptable to the City is likely and staff can no longer support the award of public improvement contracts to a contractor who has failed to honor his obligations to the City on a previous contract. State law authorizes public entities to refuse to award public improvement contracts to “non-responsible” bidders. Mr. Schuelke and Highmark’s refusal to comply with the contract and remedy the defects with the pipe on this project justifies the Council declaring them non-responsible bidders on future City projects. |
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Funding Source & Fiscal Impact (if applicable): |
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None. |
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Recommendation: |
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Action: Approve the Resolution Notes: |
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Options: |
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1) Approve the Resolution. Mr. Schuelke and Highmark will not be awarded any City projects until the issues with the Jackson Springs project are resolved and the Council allows them to bid on projects again; or 2) Reject the Resolution. Mr. Schuelke and Highmark will continue to be able to bid on and be awarded City projects. |
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Attachments & Links: |
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