HomeMy WebLinkAboutPR 14670: LARK GROUP, INC. - DEMOLITIONMemo
To: Steve Fitzgibbons, City,Manager
From: Lawrence Baker, Director of Community Services
Date:. Apri18, 2008
Re: P. R. NO. 14670 - AWARDING A CONTRACT TO LARK GROUP, INC. FOR
ASBESTOS ABATEMENT/DEMOLITION OF SEVEN (7) DANGEROUS
COMMERCIAL BUILDINGS LOCATED THROUGHOUT THE CITY
COMMENT
RECOMMENDATION: Staff recommends that the City CouncIl adopt P. R. No. 14670 authorizing
the City Manager to execute a contract with Latk Group, Inc. in the amount of $116,100.00 for asbestos
abatement and demolition of seven (7) dangerous commercial buildings located in the City.
BACKGROUND: Bids for twelve (12) commercial structures were opened on March 26, 2008. The bid
for Laxk Group, Inc. was received by the City Secretary's office on March 26, 2008, but was not opened on
March 26, 2008. It was later discovered and opened on April 8, 2008; and Inland Environments, Ltd. was
notified that they were not the low bidder on these seven (7) buildings.
Lark Groun. Inc. is the successful bidder for the asbestos abatement/demolition seven
commercial buildings, as noted in the chart below at a price of $116 100 00 to be completed
within thirty-eight (38) dam. Award is based on the lowest and most responsive bid. Arrow Services,
Inc. bid $196,004.00 (29 days); AAR, Inc. bid $275,525.00 (49 days); and Inland Environments, LTD bid
$154,973.00 (55 days). The bid tabulation follows:
ARROW SVCS
HOUSTON AAR, INC.
HOUSTON INLAND ENV.
PORT ARTHUR *LARK GROUP
PORT ARTHUR
ADDRESS BID PRICE BID PRICE BID PRICE BID PRICE
1503 Houston Avenue $19,750.00 $20,275.00 $13,832.00 $8,500.00
848 Houston Avenue 45,794.00 92,900.00 43,740.00 33,000.00
548 E. 5 Street 27,660.00 40,550.00 24,727.00 22,500.00
648 E. 4 Street 21,250.00 26,875.00 14,727.00 11,400.00
1709DeQueenBlvd 26,350.00 46,700.00 24,780.00 17,500.00
3030 Gulfwa Drive .14,350.00 16,125.00 14,440.00 8,500.00
2449 Jefferson Drive 40,850.00 32,100.00 18,727.00 14,700.00
TOTALS $196,004.00 $275,525.00 $154,973.00 $116,100.00
*Successful Biddet
(CONTINUED)
P. R.#14670-ASBESTOS/DEMO CONTRACT -LARK GROUP. INC. 04-OS-08 PAGE 2 OF 2
Eleven other contractors attended the mandatory pre-bid conference, but did not submit a bid. They axe
POM Inc. of San Antonio, Tom; M & M Contracting of San Antonio, TX; Eagle Construction of La Porte,
Tom; Star Demo & Construction of New Caney, TX; JNE Enterprises of New Orleans, LA; A & M
Environmental of Houston, TX; J. T. B. Services of Houston, Tom; AEQ Inc. of Nederland, Tom; and Lazk
Group of Warren, T%; Brock Sen-ice, LTD. of Beaumont, Tai; and Coastal Demolition of Beaumont, TX.
BUDGET AND REVENUE IMPACT: Acceptance of this recommendation will not require a budget
amendment. Funds are available in Account No, 303-1603-591.59-OQ Project No. CIP614 (these funds
were obtained from the EDC fox demolition projects as approved by Res. No. 06-513).
STAFF LEVEL IMPACT: Acceptance of this recommendation will have no effect on current staffing
level.
SUMMARY: Staff recommends that the City CouncIl adopt P. R No. 14670, thereby authorizing the
execution of an asbestos abatement/demolition contract behveen the City of Poxt Arthur and Lack
Group, Inc. in the amount of $116,100.00.
DTP
P. R. No. 14670
04/.08/08 DTP
RESOLUTION NO.
A RESOLUTION AWARDING A CONTRACT TO LARK GROUP, INC.
IN THE AMOUNT OF $116,100.00, AND AUTHORIZING THE
EXECUTION OF A CONTRACT FORTHE ASBESTOS ABATEMENT
AND DEMOLITION OF SEVEN (7) DANGEROUS COMMERCIAL
BUILDINGS LOCATED THROUGHOUT THE CITY; TO BE
CHARGED TO ACCOUNT NO. 303-1603-591.59-00, PROJECT NO.
CIP614 (EDC FUNDS).
WHEREAS, the City Council approved the usage of $250,000.00 of Economic Development Corporation
(EDC) funds fox demolition projects per Resolution No. 06-513; and
WHEREAS, staff indicated that it would report to the City Council when the initial $125,000.00 had
been expended; and
WHEREAS, by the adoption of this Resolution, EDC monies in excess of $125,000.00 will be used in
this fiscal year fox demolition purposes; and
WHEREAS, per this Resolution, the Citp Council is again confirming that they will expend up to
$250,000.00 of EDC funds in this fiscal year on demolition activities; and
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR:
THAT the Ciry Council of the Ciry of Port Arthur hereby awards a contract fox the asbestos abatement
and demolition of seven (7) dangerous commercial buildings located in the City of Port Axthux, to the best and
lowest responsible bidder to-wit: Lark Group, Inc.; and,
THAT the Ciry Manager of the City of Port Arthur is hereby authorized and directed to execute on behalf
of the City of Port Arthur an agreement between the Ciry of Port Axthux and Lark Group~Inc. for
the contract price of $116,100.00 (a copy of said contract is attached hereto as Exhibit "A"); and,
THAT said contract is a duplicate of the standard form Contract previously approved by the City's Legal
Department except for the changes shown on the Certificate of Standard Fonn Contract, a copy of which is
attached hereto and is hereby incoxpoxated.by reference as Exhibit "B", and said changes axe hereby approved;
1
P. R. No. 14670
04/08/08 DTP
and,
THAT a copy of the caption of this Resolution be spread upon the Minutes of the City CouncIl.
READ, ADOPTED, AND APPROVED this the 22na day ofApriL A.D.. 2008, at a Regular Meeting of
the City Council of the City of Port Arthur, Texas ~ by the following vote:
AYES: MAYOR:
COUNCILMEMBERS:
MAYOR
ATTEST:
CITY SECRETARY
APPROVED FOR ADMINISTRATION:
CITY MANAGER
APPROVED AS TO AVAILABILITY OF FUNDS:
" 1 ~~ ~
DIRECTOR OF FINANCE
APPROVED AS TO FORM:
CITY ATTORNEY
1 ~,~~~,~
DI CTOR OF CO ITY SERVICES
2
EXHIBIT "A"
AGREEMENT
THIS AGREEMENT made this day of iri the yeaz 2008, by and between
the City of Port Arthur, a legal entity organized and existing in the State of Texas, hereinafter designated
as the Owner, and Lark Grouu, Inc., hereinafter designated as the Contractor. The Owner and the
Contractor, in consideration of the mutual covenants hereinafter set forth, agree as follows:
ARTICLE 1. THE WORK
The Contractor shall complete the Work as specified or indicated under the demolition and asbestos
specifications of the Owner's Contract Documents entitled:
ASBESTOS ABATEMENT/DEMOLITION OF SEVEN (71 COMMERCLAL BUILDINGS
1503 Houston Avenue
848 Houston Avenue
548 E. 5`" Street
648 E. 4`" Street
1709 DeQueen Boplevard
3030 Gulfway Drive
2449 Jefferson Drive (INCL. WAREHOUSE)
The Work is generally described as follows: Asbestos Abatement and Demolition
ARTICLE 2. TIME OF COMMENCEMENT OF COMPLETION
The Work to be performed under this Contract shall be commenced on the date specified by the Owner in
the Notice to Proceed and the Work shall be fully completed within thirty-ei¢ht (38) calendar days after
the date of commencement of the Work.
The Owner and the Contractor recognize that time is of the essence of this Agreement and that the Owner
will suffer financial loss if the Work is not completed within the time specified in this Article 2, herein;
plus any extensions thereof allowed by the City. They also recognize the delays, expense, and difficulties
involved in proving in a legal proceeding the actual loss suffered by the Owner if the Work is not
completed on time. Accordingly, instead of requiring any such proof, the Owner and the Contractor agree
that as liquidated damages for delay (but not as a penalty) the Contractor shall pay the Owner the sum of
$100.00 for each calendar day that expires after the time specified in this Article 2, herein.
ARTICLE 3. CONTRACT PRICE
The Owner shall pay the Contractor for the completion of the Work in accordance with the Contract
Documents in current funds the Contract Price(s), One hundred sixteen thousand, one hundred dollars
and no cents ($116,100.00).
ARTICLE 4. THE CONTRACT DOCUMENTS
The Contract Documents also consist of: this Agreement, Asbestos or Technical Specifications,
Demolition, and all Change Orders and Work Directive Changes which may be issued subsequent to the
Effective Date of the Agreement and aze not attached hereto.
EXHIBIT "A"
ARTICLE 5. PAYMENT PROCEDURES
Payment will be made in full when all of the work is completed and approved by City staff with provision
for damages in accordance with Article 2 of this Agreement.
ARTICLE 6. NOTICES
Whenever any provision of the Contract Documents requires the giving of written Notice, it shall be
deemed to have been validly given if delivered in person to the individual or to a member of the firm or to
an officer of the corporation for whom it is intended, or if delivered or sent by registered or certified mail,
postage prepaid, to the last business address known to the giver of the Notice.
ARTICLE 7. MISCELLANEOUS
The contractor shall comply with State law as to licensing on asbestos abatement and disposal.
No assignment by a party hereto of any rights under or interests in the Contract Documents will be
binding on another party hereto without the written consent of the party sought to be bound; and
specifically, but without limitation, monies that may become due and monies that are due may not be
assigned without such consent (except to the extent that the effect of this restriction may be limited by
law), and unless specifically stated to the contrary in any written consent to an assignment, no assignment
will release or discharge the assignor from any duty or responsibility under the Contract Documents.
The Owner and the Contractor each binds itself, its partners, successors, assigns, and legal representatives
to the other party hereto, its partners, successors, assigns, and legal representatives in respect to all
covenants, agreements, and obligations contained in the Contract Documents.
IN WITNESS WHEREOF, the Owner and the Contractor have caused this Agreement to be executed the
day and yeaz first written above.
CITY OF PORT ARTHUR: LARK GROUP, INC.:
Signature
By: By:
Steve Fitzgibbons Printed Name/Title
City Manager
Attest: Attest:
Date: Date:
*Demolition Specifications aze made a part of and attached hereto as Exhibit "A-1".
*Asbestos or Technical Specifications that have been prepazed by ICU Environmental, Health and Safety
are hereby incorporated by reference.
EXHIBIT "A-1"
DEMOLITION SPECIFICATIONS
CITY OF PORT ARTHUR.
I. TITLE
The provisions embraced within these sections and subsections shall constitute; be known as;
and will be referred to herein and in any relevant AGREEMENT and CONTRACT as
"DEMOLITION SPECIFICATIONS".
II. SCOPE
The scope and purpose of these specifications is to establish certain regulations, general
requirements, and particular requirements necessary for the demolition, removal and cleanup of
the unsafe and/or unsanitary structwe(s) as required by the Inspections Department of the City of
Port Arthw.
III. CONTRACTOR BIDS
Contracts for the demolition of structwes will be awarded in accordance with the terms and
conditions listed in the Community Services Departments BID FORM FOR DEMOLITION.
The completion of the demolition package will be of vital importance to the City. The number of
calendar days given on the proposal form will be used to establish the completion date as used in
the Contract. In case the work is not completed within the time specified in the Contract, there
shall be liquidated damages of one hundred dollars ($100) per day for each day exceeding the
completion date.
IV. INSURANCE REQUIREMENTS
A. The Contractor shall, upon submission of bid, furnish the City with certificates of
inswance, indicating the existence of Statutory Workman's Compensation Inswance,
General and Auto Liability, Public Liability, and Property Damage Inswance. Such
inswance must be issued by a company authorized to do business in the State of Texas.
Such a certificate must contain a provision requiring not less than fifteen (15) days prior
notice in writing to the City of any change or termination of said inswance. All
inswance is to remain in force until the job of cleazing the premises has been completed
and the work has been accepted by the City.
B. The Contractor/Successful Bidder must obtain and furnish to the City proof of inswance
in the following minimum amounts:
1. Statutory Texas Workman's Compensation Insurance;
2. Commercial General Liability:
a. General Aggregate $500,000
b. Products-Comp/Ops Aggregate $500,000
c. Personal & Advertising Injury $500,000
d. Each Occurrence $500,000
EXHIBIT "A-I"
e. Fire Damage $ 50;000
3. Automobile Liability
a. Bodily Injury (per person) $300,000
b. Bodily Injury (per accident) $500,000
c. Property Damage $100,000
4. Contractor Surety Bond $ 5,000
V. PERMITS
The Contractor/Successful Bidder must obtain from the City of Port Arthur and all other
governmental entities, at his own expense, all necessary general and special permits and pay any
and all fees for said permits and~any other fees, public or private.
All Contractors are required to have a Landfill Permit, which includes a minimum escrow
account of five hundred dollars ($500). If you opt not to set up an escrow account, you
must pay cash or bycashier's check as you dispose.
VI. GENERAL CONDITIONS AND REQUIREMENTS
The following list of conditions and requirements are to be understood as being a general guide
in the demolition of structures. It must be noted, however, that there are special requirements
listed below in Section VII of these specifications, which aze in addition to these general
requirements for demolition, and that it is the responsibility of the Contractor/Successful Bidder
to comply with all particular requirements.
A. It is understood and agreed that the Contractor/Successful Bidder will function and
operate as an independent contractor. Any liability incurred by the Contractor/Successful
Bidder will accrue only to that party as an independent contractor and not to the City of
Port Arthur.
B. No work under a City DEMOLITION CONTRACT shall be subcontracted by the
Contractor/Successful Bidder without prior, written approval of the Community
Services Department. No subcontractor will be approved unless that subcontractor meets
the same insurance requirements specified for and required of the Contractor.
C. The demolition work specified herein shall be performed in a safe, satisfactory condition,
starting with the ioof and working down, with the safety and welfaze of all people and
property being of the highest priority.
D'. All materials, debris, and rubble from the demolition of the structure(s) specified herein
will become the property of the Contractor/Successful Bidder. Salvage can only begin
immediately prior to the beginning of demolition.
E. The Contractor/Successful Bidder will be held responsible for repair of broken or
damaged water; gas, or any other type of lines, which occur during the course of the
demolition work. The Contractor shall repair or replace, if necessary, to the City's
. 2R
EXHIBIT "A-1"
satisfaction, any damage to the work site, the adjacent azeas, the access azeas to the work
site and to any elements within these areas that may have suffered damage as a result of
the Contractor's or any of the subcontractor's operations. The Contractor shall leave
these areas in a satisfactory condition.
F. The Contractor/Successful Bidder shall haul off all debris and unsalvageable materials;
and no debris or rubble which may pose a threat to public safety will be left on the site
overnight. No such debris or material will be placed on a sidewalk or public right-of--way
so that it poses a danger to any person.
G: All demolition work must be carried out to the satisfaction of the City s Inspections
Official.
H. The City (without prejudice to any other right or remedy it may-have) has the right to
terminate the contract in the event of any default by the Contractor after giving the
Contractor seven (7) days written notice. Such notice of termination shall be subsequent
to default by the Contractor and a8er receiving written notice :from the City certifying
cause for such action. In addition to other events of default or grounds for termination
identified in the contract, it shall be considered default by the Contractor whenever he/she
shall:
1. Declare bankruptcy, become insolvent, or assign his/her assets for the benefit of
his/her creditors.
2. Violate or disregard provisions of the Contract or instruction from the Owner.
3. Fail to prosecute the work according to the agreed Schedule of Completion,
including amendments and/or modifications thereof.
4. Fail to provide a qualified superintendent, competent workmen or subcontractors,
or proper materials, or failure to make prompt payment therefor.
I. If the Contract is terminated as provided above or as provided in the Contract, the City
will engage another contractor to complete the work. Payment for the completion of such
work will come from funds obligated by the City under its contract with the original
Contractor.
J. METHOD OF PAYMENT
Payment shall be made as provided in Section II of the contract.
K. PAYMENT WITHHELD
Any part or the whole of any payment may be withheld by the City to the extent deemed
necessary and reasonable should evidence of the following be discovered:
Defective work not corrected.
2. Claims filed against the Contractor.
EXHIBIT "A-I"
Reasonable evidence indicating the probability of filing claims against the
Contractor.
4. Failure of the Contractor to make proper payments to subcontractors or for
materials or for labor.
5. The contract cannot be completed for the then unpaid balance.
6. Unsatisfactory progress of the work by the Contractor.
When the above grounds are removed, the amount withheld because of them shall be paid to the
Contractor subject to and within the other terms of this contract.
L. CONTRACT PAYMENT RETAINAGE
Contract payment retainage shall be as provided in the Contract.
VII. PARTICULAR WORK REQUIREMENTS
The following particular work requirements and conditions apply specifically to the building(s)
or structure(s) which are located at and described as:
ASBESTOS ABATEMENT/DEMOLITION OF COMMERCIAL STRUCTURES (7)
1503 Houston Avenue
848 Houston Avenue
548 E. 5`h Street
648 E. 4`h Street
1709 DeQueen Boulevard
3030 Gulfway Drive
2449 Jefferson Drive (INCL. WAREHOUSE)
A. Before any building or structure is demolished, its utilities shall be safely disconnected.
The Contractor shall serve notice to all suppliers of utilities to the building to be
demolished and have them disconnect the services and remove all meters and equipment
belonging to them. Forty-eight (48) hours' written notice must be given the City for
termination of their utilities. All piping and wiring shall be properly terminated. Any
costs incurred in the termination of utilities and services shall be borne by the Contractor.
B. Demolition and clean-up includes, but is not limited to, the removal of all lumber, doors,
wiridows, wire, sheet metal, appliances,. furniture, loose rock, brick, mortar, concrete, and
the cleaning and removal of all rubbish, trash or other debris that would inhibit or prevent
the mechanical mowing of said lot and premises.
C. Fill, grade and level with clean fill dirt all depressions in the earth which exist beneath
demolished building(s) or structure(s) and all ruts or other depressions created during the
demolition work when the average depth of such depressions exceeds three (3) inches.
` EXHIBIT "A-I"
D. Any trees and shrubs designated by the Community Services Department will be cut
down and removed from the premises.
E. The grass at the demolition site shall be mowed to a height noY exceeding two (2) inches.
F. All sewer lines exposed through demolition work must be cut off within two (2) inches of
the surface to the ground or concrete slab and must be plugged with concrete in such a
manner as to prevent ground water incursion into the City's sanitary sewer system.
G. REMOVAL OF STEPS AND CONCRETE PORCHES UNLESS OTHERWISE
NOTED.
H. HAZARDOUS MATERIALS
Materials defined by the Environmental Protection Agency to be hazardous to the
environment or persons, shall be disposed of in accordance with all local, state and
federal government regulations and governing laws. This shall be the responsibility of
the Contractor. The Contractor shall furnish written proof of such disposal.
I. BOND REQUIREMENTS
If the amount bid on the contract exceeds $25,000, the Contractor will be required to
famish a Performance Bond and a Labor and Material Payment Bond in the amount of
$100% of the Contract on forms furnished by the :City.
5
P. R. N14670
Exhibit"B"
(City of Port Arthur)
(Law Department)
(Required Form)
(07!08/88)
(10!05/89)
(03!15/90)
(p. 2 Revised 09/18/90)
CERTIFICATE OF STANDARD FORM CONTRACT FOR LAW
DEPARTMENT REVIEW AND CITY COUNCIL AGENDA
I certify that the contract (hereinafter called "said contract") affixed to the attached proposed City Council
Resolution No. 14670 is an exact duplicate of an applicable standard form contract (the title of which is shown
below) previously approved by the Law Department and adopted as a standard form by City Council Resolution, except
for the blanks that have been filled in with all necessary information and except for the changes described below.
The title of the applicable standard form contract is
[ ] Federally Funded Construction Contract, Revised 01/05/88, 07/89, 08/89
[ ] Non-Federally Funded Construction Contract, Revised 01/05/88, 07/89, 08/89
[ ] Federal -Professional Services -Engineering Contract, Revised 01/05/88, 05/89,.07/89, 04/91
[ ] Non-Federal -Professional Services -Engineering Contract, Revised Ol /05/88, 05/89(§ 10), 07/89(§8)
(] CDBG -Professional Services -Engineering Contract, Revised Ol/OS/88, 05/89,§ 07/89§
[ ] Federal -Professional Services -Non-Engineering (Consultant) contract, Revised Ol/OS/88,
05/89(§10),07/89(§8)
[ ] Non-Federal -Professional Services -Non-Engineering (Consultant) Contract Revised 01/05/88, 05/89
(§t0), 07/89(§8)
[ ] CDBG -Professional Services -Non-Engineering (Consultant) Contract Revised 01/05/88,
05/89(§10),07/89(§8)
[X] Other Standard Form Contract, described as follows:
CDBG Asbestos Abatement/Demolition Contract
The changes are as follows: (Put an "X" in the appropriate [ ]).
~X] None.
[ ] The following described provisions at the indicated page, section, etc. of the standard form have been
deleted from said contract.
DELETIONS
Section or Section or
Page Number -Paragraph No. Subparagraph No.
Where Deleted and Captiori and Caption
Provision is Which Contains Which Contains Description of
Found On Provision Deleted Provision Deleted Provision
Standazd Form From Form From Form Deleted
1
P.R. #14670
Exhibit "B"
~ ] The following described provisions at the indicated page, section, etc. of the
standard form have been altered, modified, replaced or otherwise changed:
ALTERATIONS, MODIFICATIONS, REPLACEMENTS, ETC.
Sub § or Page, § & caption;
Page No. § or § No. Sub § No. sub § & caption,
Where & Caption of & Caption' etc. of said contract
Provision Standard of Standard Description which contains
Found On Form which form which of Provision altered, etc. provision; &
Standazd Contains Contains in Standard Description of Alteration
Farm Provision Provision Form etc.
[ ] The fallowing provisions have been added to Said Contract:
ADDITIONS
Page, Section and Caption Subsection and
Caption, etc. of said Contract Which Contains
the Added Provision and Description Thereof
I further certify that said attached proposed City Council Resolution contains the following provision: "That said
contract is an exact duplicate of a City Standard Form Contract except for the changes described in the Certificate of
Standard Form Contract, a copy of which is attached hereto as Exhibit "B" and is hereby incorporated by reference, and
said changes are hereby approved."
I understand that this certificate will be relied on by the Law Department in reviewing and approving
(or rejecting) as to form and by the City Council in reviewing and adopting (or rejecting) said
Resolution and Contract.
Signed this Sth day of Aori1, 2008.
Lawr ce Baker
Director of Community Services
2