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HomeMy WebLinkAboutContract Cancellation - Cancel Gemini at Colfax – Exterior Renovations - Windows Contra – Vic Butcher Construction ELIZABETH A. MARADIK JOSEPH R. MOLNAR GARY A. GILOT JORDAN V. GATHERS MURRAY L. MILLER 1316 COUNTY-CITY BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601-1830 PHONE 574/ 235-9251 FAX 574/ 235-9171 CITY OF SOUTH BEND JAMES MUELLER, MAYOR BOARD OF PUBLIC WORKS April 26, 2022 Mr. Westley Butcher Vic Butcher Construction 23934 Edison Rd. South Bend, IN 46628 wbutcher8903@gmail.com RE: Contract Cancellation Dear Mr. Butcher: At its April 26, 2022 meeting, the Board of Public Works approved the cancellation of the Gemini at Colfax – Exterior Renovations - Windows Contract, Division E, Project No. 119- 103E. Enclosed please find a copy of the contract for your records. If you have any further questions, please call this office at (574) 235-9251. Sincerely, /s/ Theresa Heffner Theresa Heffner, Clerk Enclosures TH/lh Page 1 of 1 INTER-OFFICE MEMORANDUM DEPARTMENT OF PUBLIC WORKS DIVISION OF ENGINEERING TO: Theresa Heffner, Clerk Board of Public Works FROM: Zach Hurst, Project Engineer SUBJECT: Contract Cancellation – Contractor Default 119-103 Gemini at Colfax – Exterior Renovations – Division E DATE: March 17, 2022 Notice to Proceed for Division E of project 119-103 Gemini at Colfax – Exterior Renovations – Window Replacement was issued in August of 2020, and Vic Butcher Construction (VBC) began work. Work continued for several months until April 2021, when a site visit from Indiana Department of Environmental Management (IDEM) noted that lead paint may be present at the building. At the time of construction, VBC did not have the proper Environmental Protection Agency (EPA) certification to perform renovations which may disturb lead paint. VBC then began the process to gain EPA certification to be able to resume work at the building, replacing the remaining windows – covering a total of 6 apartment units. In March of 2022, the City was notified by South Bend Heritage, owner of the Gemini-Colfax Apartments, that VBC no longer existed as a Contractor. VBC had lost all their skilled-trades employees during the labor market disruptions seen during the Covid-19 pandemic. To that end, in accordance with the City’s Standards and Specifications included in Public Works contracts, VBC was notified of their Event of Default – namely an unauthorized discontinuation of work. VBC was given a 10-day period to cure the Event of Default, beginning on April 7, 2022. A copy of that notification is attached. The 10-day period to cure has passed, and the City now intends to cancel the remainder of the contract, totaling $58,001.28. The funds will be used to find a contractor to install the remaining windows in accordance with EPA requirements. April 26, 2022 04/06/2022 Victor A. Butcher 23934 Edison Road South Bend, IN 46628 RE: Event of Default Dear Mr. Butcher: This letter serves as notice of an “Event of Default” under the agreement you entered into with the City of South Bend (the “City”), dated July 14, 2020, to install windows at the Gemini-Colfax apartment building (i.e., City project number 119-103E). The scope of work for the project included replacement of 220 windows, covering all units of the building. At the time of this letter, six (6) units remain unfinished, and the substantial completion deadline of August 31, 2020, has passed. Per Section XV (‘Default and Termination’) of the Special Provisions of the agreement, the unauthorized discontinuation of work constitutes an Event of Default. You have 10 days from the date of this letter to cure the default. The default may be cured by providing to the City a detailed plan outlining how the remaining windows will be installed within a timeframe acceptable to the City. The plan may be submitted to the project manager, Zach Hurst, at zhurst@southbendin.gov. If the plan is not received within the 10-day timeframe, the agreement will terminate on day 11 without the requirement of further action or notice from the City. Sincerely, Clara McDaniels Assistant City Attorney cc: Zach Hurst BOARD OF PUBLIC WORKS AGENDA ITEM REVIEW REQUEST FORM Date 04/19/2022 Name Zach Hurst Department DPW BPW Date 04/26/2022 Phone Extension 3057 Review and Approval Required Prior to Submittal to Board Diversity Compliance and Inclusion Officer Officer Name BPW Attorney Attorney Name Clara McDaniels Dept. Attorney Attorney Name Purchasing Check the Appropriate Item Type – Required for All Submissions Professional Services Agreement Contract Proposal Open Market Contract Amendment/Addendum Special Purchase, QPA Bid Opening Bid Award Req. to Advertise Title Sheet Quote Opening Quote Award Reject Bids/Quotes Proposal Opening C/O & PCA No. PCA Chg. Order, No. Traffic Control Resolution Other: Contract Cancellation Ease./Encroach Required Information Company or Vendor Name Vic Butcher Construction New Vendor Yes If Yes, Approved by Purchasing No MBE/WBE Contractor MBE WBE Completed E-Verify Form Attached Yes No Project Name Gemini at Colfax – Exterior Renovations – Windows Project Number 119-103, Division E Funding Source RWDA TIF Account No. PO-0006609 Amount $58,001.28 remaining Terms of Contract See Memo Purpose/Description Cancel remainder of contract due to contractor default For Change Orders Only Amount of Increase Decrease $ ($ ) Previous Amount $ Current Percent of Change: Increase Decrease % ( %) New Amount $ Total Percent of Change: Increase Decrease % ( %) Time Extension Amount: New Completion Date: