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Home My WebLink AboutCORRESPONDENCE - BID - 6045 ASPHALT SUPPLY (4)QECEIVED FEB 2'8 2011 of City Collins February 24, 2011 Connell Resources, Inc. Attn: Mr. John Warren 7785 Highland Meadows Parkway, Unit A Fort Collins, CO 80528 RE: Renewal, 6045 Asphalt Supply Dear Mr. Warren: MAR 112011 Financial Services Purchasing Division 215 North Mason Street 2nd Floor PO Box 580 Fort Collins, CO 80522 970.221.6775 970,221.6707 - fax fcgov.com/Purchasing The City of Fort Collins wishes to extend the agreement term for the above captioned proposal per the existing terms and conditions and the attached three (3) pages of revised Section 109 — Asphalt Cement Cost Adjustment. The term will be extended for one (1) additional year, May 5, 2011 through May 4, 2012. If the renewal is acceptable to your firm, please sign this letter and Bid Schedule, Page 3 of the attachment in the spaces provided include a current copy of insurance naming the City as an additional insured and return all documents to the City of Fort Collins, Purchasing Division, P. O. Box 580, Fort Collins, CO 80522, within the next fifteen days. If this extension is not agreeable with your firm, we ask that you send us a written notice stating that you do not wish to renew the contract and state the reason for non -renewal. Please contact John D. Stephen, CPPO, CPPB, Senior Buyer at (970) 221-6777 if you have any questions regarding this matter. S' erely, Ja es . O'Neill II, CPPO, FNIGP Director o chasing and Risk Management S! ure Date (Please indicate your desire to renew 6045 by signing this letter and returning it to Purchasing Division within the next fifteen days.) REVISION OF SECTION 109 ASPHALT CEMENT COST ADJUSTMENT Section 109 of the Standard Specifications is hereby revised for this contract as follows: Subsection 109.06 shall include the following: 1. Price adjustments will be paid on a monthly basis for asphalt cement included in the work with the following conditions: A Payment will be based on the pay item quantities per the invoice for the following pay items when asphalt cement is included in the pay items: 403 Hot Mix Asphalt (HMA) B Price adjustments may be either positive or negative dollar amounts. The intention of the monthly price adjustment is to account for direct price increases or decreases due to asphalt cement costs only. Any asphalt cement price decreases will also be passed on to the City in the form of a price reduction. C Vendor will be required to submit HMA monthly pricing including the asphalt cement supplier quote for the upcoming month at least one week prior but no later than the 2" to the last business day of each month. D In the event a vendor does not submit new monthly pricing for the upcoming month, no material will be purchased from that vendor for that month. E No payments will be made to the vendor without receipt of the asphalt cement suppliers' invoice as verification of the asphalt cement price deviation from the original per ton bid price. The prices submitted for verification shall be for delivered asphalt cement for the respective month of invoicing. F Asphalt cement cost adjustments will not be made for any invoices falling wholly after the expiration of contract time. G No payment will be allowed for any HMA material that is deemed to not meet the specifications. The asphalt cement cost adjustment will be the sum of the individual adjustments for each of the pay items. No adjustment will be made for asphalt cement costs on items other than those shown above. EXAMPLE: The bid price per ton listed in Column 1 shall be valid and held firm for the entire month of March 20113he price listed in Column 2 will be the "Price Adjustment Factor' and shall remain fixed throughout the term of the contract. Bidders will be required to state the March 2011 asphalt cement price per ton. This will be the base price per ton. • Price increases based on the cost of asphalt cement will be allowed per the following: Page[ of 3 REVISION OF SECTION 109 ASPHALT CEMENT COST ADJUSTMENT The vendor must use the amount stated for Item A (March 2011 asphalt cement cost per ton) as a base. If the per ton cost of asphalt cement rises, the amount of increase (the new cost per ton less the base amount shown in Item A) will be calculated as "Increment Units" that will be factored into the formula below to establish the,amount of allowable increase for a ton of finished product. Each "Increment Unit' will equal $10.00 (example; a per ton increase of $35.00 for asphalt cement will result in 3.5 Increment Units). Partial increment units of 0.50 and above will be rounded up; partial units of 0.49 and below will be rounded down. This formula will be used to calculate the allowable price increases for each finished product: Allowable increase = number of Increment Units x Price Adjustment Factor Note: The above calculation will also be utilized for any price decreases. Item A: The following bid price is based on the March 2011 price for: Asphalt cement (PG 64-22) 300.00 /ton MIX DESIGN COLUMN 1 COLUMN 2 Mix Design Method PRICE ADJUSTMENT FACTOR SHRP N DESIGN 75 OR 100 GR S (PG 64-22) with 20% RAP $ 35.00 /ton $ 0.39 /ton The following example illustrates a price adjustment using the above examples: March per ton cost of asphalt cement = $300.00 April per ton cost of asphalt cement = $335.00 Note: the figure in Item A will always be the figure that is subtracted from each respective increase per ton cost of asphalt cement. Increment Units = $335.00 - $300.00 divided by $10.00 = 3.5 (rounded up to 4.0) 4.0 Increment Units x $0.39 Price Adjustment Factor = $1.56 Original Bid price per ton in Column 1 for GR S (PG 64-22) with 20% RAP = $35.00/ton New April price per ton for GR S (PG 64-22) with 20% RAP = $ 36.56 /ton Page 2 of 3 BID SCHEDULE ITEM NO. 2011 CITY OF FORT COLLINS ASPHALT SUPPLY CONTRACT Hot Mix Asphalt Pricing (FOB Plant) ITEM ESTIMATED UNIT DESCRIPTION QUANTITY PRICE 403.10 HMA GR SX (PG 58-28) 20% RAP 100 tons $ i13' Zs /ton q3 —'00 403.15 HMA GR SX (PG 64-22) 20% RAP 100 tons $ /ton 403.20 HMA GR S (PG 58-28) 20% RAP 100 tons $ `•13' sro/ton 403.25 HMA GR S (PG 64-22) 20% RAP 12,200 tons $ 142.0 /ton 403.30 HMA GR S (PG 64-28) 20% RAP 100 tons $ 5-8 •'"1° /ton 403.40 HMA GR SG (PG 58-28) 20% RAF 18,580 tons $ 3 $ • /ton 403.45 HMA GR SG (PG 64-22) 20% RAP 27,515 tons $ 38 • V /ton Note: The quantities listed above are estimates only. The City of Fort Collins reserves the right to modify the quantities for any or all items listed. IN ADDITION TO THE BID SCHEDULE PRICES FOR EACH MIX DESIGN LISTED ABOVE, VENDORS MUST SUBMIT THE FOLLOWING COSTS FOR MARCH 2O11: Asphalt Cement (PG 58-28) $ 1440' 0 /ton Asphalt Cement (PG 64-22) $ A00• — /ton Asphalt Cement (PG 64-28) $ 660• /ton Price Adjustment Factor: GR SX (PG 58-28) 20% RAP GR SX (PG 64-22) 20% RAP GR S (PG 58-28) 20% RAP GR S (PG 64-22) 20% RAP GR S (PG 64-28) 20% RAP -�- GR SG (PG 58-28) 20% RAP GR SG (PG 64.;2A 20% RAP (Sign (Company) 00-nnCA I PeSQUf C(0—S,) nc . Check One Individual Doing Business in Company Name _ Partnership Corporation $ O I6 /ton $ O '� /ton $ OYs /ton $ O — /ton $ O Y /ton $ /ton $ 0. -- /ton City of Fort Collins Page 3 of 3 rlienMf• 9dd97 rnNIRFI ACORD- CERTIFICATE OF LIABILITY INSURANCE 310i 011°"YY' PRODUCER Flood & Peterson Ins., Inc. Corporate Mailing Address: P. O. Box 578 Greeley, CO 80632 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIC III INSURED Connell Resources, Inc. 7785 Highland Meadows Parkway Fort Collins, CO 80528 INSURER A: Travelers Insurance Company INSURER B: Pinnacol Assurance INSURER C: INSURER D: INSURER E: rnvcoAcc¢ THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. LTR NSR TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE MM/DD POLICY EXPIRATION DATE MM/DD LIMITS A GENERAL LIABILITY DTC04794N532- 06/01/2010 06/01/2011 EACH OCCURRENCE $1 000 000 DAMAGE TO RENTEDrr $300 000 X COMMERCIAL GENERAL LIABILITY TIL10 MED EXP (Any one person) $1 O 000 CLAIMS MADE FX1 OCCUR PERSONAL &ADV INJURY $1 00O 000 GENERAL AGGREGATE s2,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG $2000000 POLICY 7X PRI LOC A AUTOMOBILE LIABILITY ANY AUTO 8104794N532TIL10 06/01/2010 06/01/2011 COMBINED SINGLE LIMIT (Ea accident) $1000 ,OOO X BODILY INJURY (Per person) $ ALL OWNED AUTOS SCHEDULED AUTOS X BODILY INJURY (Per accident) $ HIRED AUTOS NON -OWNED AUTOS X X PROPERTY DAMAGE (Per accident) $ Drive Other Car GARAGE LIABILITY AUTO ONLY - EA ACCIDENT $ OTHER THAN EA ACC $ ANY AUTO $ AUTO ONLY: AGG A EXCESSNMBRELLALIABILITY DTSMCUP4794N532- 06/01/2010 06/01/2011 EACH OCCURRENCE $10000000 AGGREGATE $1000O 000 X OCCUR CLAIMS MADE TIL10 $ DEDUCTIBLE $ X RETENTION $ 10000 B WORKERS COMPENSATION AND 4029651 06/01/2010 06/01/2011 TH- X WcsLATUIMIT CER E.L. EACH ACCIDENT $SOO OOO EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? E.L. DISEASE -EA EMPLOYEE $SOO OOO If yes, describe under SPECIAL PROVISIONS below E.L. DISEASE - POLICY LIMIT 1 $500OOO OTHER DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT / SPECIAL PROVISIONS RE: Asphalt Supply Certificate holder is named as additional insured, but only as respects liability arising out of work performed by the named insured (Excluding Workers' Compensation). A waiver of subrogation applies. li Pl7 l9C1 City of Fort Collins Purchasing Division PO Box 580 Fort Collins, CO 80522 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 'An DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR AUTHORIZED REPRESENTATIVE ACORD 25 (2001108) 1 of 2 #S595157/M531286 NIK o ACORD CORPORATION 1988 IMPORTANT If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. ACURo 25-5 Vuovoa) 2 of 2 #S595157/M531286