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    P&D Construction vs. City of Chattanooga

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    P&D Construction vs. City of Chattanooga

    Diunggah oleh

    NewsChannel 9 Staff
    P&D Construction vs. City of Chattanooga

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    © All Rights Reserved
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    IN THE CIRCUIT COURT OF HAMILTON COUNTY CHATTANOOGA, TENNESSEE, ‘TRACY BURTON DIB/A P&D CONSTRUCTION, Docket No. |[GCS1O Division CITY OF CHATTANOOGA, Defendant. ‘Complaint and causes jon against Defendant, PARTIES, VENUE & JURISDICTION 1. Plaintiff Tracy Burton (herein “t resident of He ton County, Tennessee. Plaintiff presenly resides Chattanooga, TN 37419. 2. Defendant, the City of Chattanooga is a Tennessee municipality located in Hamilton County, which operates under a charter granted by the legislature of the State of Tennessee Defendant municipality maintains a physical address at 101 E. 11th St, Ste. 200, Chattanooga, ‘Tennessee 37402 and may be served through th 3. The events that form the basis of his Complaint occurred in Hs ‘and concem a contract between the Plaintiff and Defendant for demolition services to be performed by Plaintiff for Defendant within the geographical boundaries of Hamilton County, ‘Tennessee. 4, The real property, transactions, and demolition work with regard to this matter are located of occured in Hamilton County, Tennesse. Furthermore, the action conduct of the Defendant, and the damages caused by Defendant, all occured within and concem real property in Hamilton County, Tennessee 5. Defendant had contac, ations and involvement with regard to tansactions, conduct and services affecting the contract between the Plant and Defendant in Hamilton County, Tennesse. As such, personal jurisdiction over the Defendant, subjeet matter jurisdetion and ‘venue are proper before this Court EACTS OF THE CASE 66, Plaintiff adopts and incorporates herein by reference the allegations contained in paragraphs | through S as set out above in full and in thei entirety as ifset out verbatim, 1. Plain operates a for profit business knovn as P&D Construction (Herein P&D) 8. As part ofits business, PRD offers demolition services for various structures constructed ‘on real property in Hamilton County and the surrounding area. 9, The City of Chatanooga, through its Purchasing Department procures necessary services foe the operation of the City, including demolition services 10. The demolition services procured by and forthe City are generally performed by private contractors 1.The ity of Chattanooga publishes a document known as the City of Chattanooga Procurement Manual (herein “Manual”. 12, The Manual establishes the policies and procedures required tobe followed by the City of Chattanooga's departments and agencies in fulfilling procurement and related lo responsibilities within the delegated limits when pecforming procurement functions. 13, The Manval states in its prefac 1 adherence to the procurement rules, regulations and procedures as set forth herein shall be followed to ensure and maintain the faimess, efficiency, and integrity of our procurement process.” 14. The preface of the Manual states thatthe City of Chattanooga is in compliance with the Municipal Purchasing Law of 1983. 15. On page 10 of the Manual, itis stated as an objective that the City procure materials and services atthe lowest cost consistent with quality and sevice 16.0n page 16 of the Manual itis stated that puchases of goods or services between $1,001.00 - $24,999.00 must be obtained at the lowest possible cost by obtaining three competitive bids 17..On page 17 of the Manual itis stated that purchases over $25,000.00 are required to be publically advertised, competit ‘id and require the approval of the City Council 18.0 page 30 of the Manual it is stated that all purchases should use the best valve procurement methodology, with the two most important considerations being the purchase price and whether the goods or services meet specifications. 19, Prior to June 13, 2017, City of Chattanooga Purchasing Department sought Request {or Proposals pertaining to Requisition No, RFP ~ 153723. A copy of's attached as Exhibit 1 20. Deidre Keylon was listed as the Buyer for the City regarding that request. 21. During all times relevant, Deidre Keylon worked as a Buyer for the City of Chattanooga Purchasing Department. 22, The Request for Proposals sought demolition services. 23. The Request stated that all proposals must be received by the City of Chattanooga no later than 4:00 pm EST on June 13, 2017, 24, The Request stated that the City of Chattanooga expected to award 3 blanket contracts, consisting of I primary and 2 back up contracts 5. The Request stated thatthe contract would be awarded to a single primary supplier of services and 2 backup suppliers. 26. The Request stated thatthe 2 back-up suppliers would be used in the event the primary contractor isnot available to begin work within 12 business days, the primary contractor lacks caipment related toa particular job, o inthe event of termination ofthe primary contractor. 27 In response to the Request for Proposals in regards to demolition services, Tracy Burton submited a proposal on behalf of PD Construction. 28, The propossl submited by Tracy Burton submited on bebalf of PRD Construction was received prior to the deadline. 29. The proposal submited by Tracy Burton on behalf of PAD Construction was signed by Traey Burton 30. Contained within the proposal submitted by Tracy Burton on behalf of PD Construction ‘were prices related to the cost of des if they were to be performed by P&D ‘Construction, 31. The proposal submitted by Tracy Burton on behalf of P&D Construction met all the requirements of sul ision and was accepted by the City of Chattanooga, 32, The City of Chattanooga Purchasing Department received and reviewed the proposal submitted by Tracy Burton on behalf of P&D Construction, 33. On June 28, 2017, Deidre Keylon, of the Purchasing Department sent a letter addressed to P&D Construction, which served as notification that the proposal submitted on behalf of PD ‘was being recommends tothe City Council for the award as primary contractor in regards 10 RPF 153723 Demolition Services. 34. The reason indicated for being recommended to the City Council for the award as ‘primary contractor in regards to RPF 153723 Demolition Service was tha the proposal submitted on behalf of PRD Construction was deemed by the Evaluation Commitee o be the best proposal meeting specifications 35.On August 29, 2017, Deidre Keylon, of the Purchasing Department sent a eter dressed to P&D Construction, which served as notification of the award to PAD that was approved by the City Counc the award as primary contractor on August 22, 2017 in regards 0 1723 Demolition Services 36. The reason indicted for being recommended to the City Council forthe award as primary contractor in regard to RPF 153723 Demolition Service was thatthe proposal submited on behalf of PAD Construction was deemed bythe Evaluation Commitee to be the best propose! meeting specifications 37.0n September 9, 2017 the City of Chatanooga issued Blanket Purchase Order No, 545658, naming P&D Construction as the Vendor. Said Purchase Order is attached as Exhibit 2. 38. Blanket Purchase Order No, 545658 stated that the items being purchased were ‘demolition services. 39, Blanket Purchase Onder No. 545658 contained an itemized description of demolition services to be provided by P&D and a price for each item. +40, Blanket Purchase Order No, 545658 stated “This Shall Be A Twelve (12) Month Blanket Contract to Supply Demolition Services for the Department of Feonomic and Community Development 41. Blanket Purchase Order No. 545658, referenced Resolution No, 29148, adopted August 22,2017. 42, Based on information and bel night that the referenced Resolution Number refemed to the resolution of The Chattooga City Council acceping PRD Constructions proposal and thereby awarding P&D Construction as primary contractor status in regards to RPF 159723 Demolition Services. 48, Based on information and bei tis thought that the mater came before the City Counci based on adherence to the policy as stated on page 17 of the City of Chattanooga's Purchasing Manual, where it is stated that purchases over $25,000.00 are required to be publically advertised, competitively bid and requte the approval ofthe City Council 44, Blanket Purchase Order No, 45658 stated that it was not o exceed $410,000.00 45, Blanket Purchase Order No, SAS6SS stated the effective dates as 09/25/2017 through os24n018, 46, Blanket Purchase Order No. 5 58 stated that a contract was attached. That Contract and its exhibits are attached as Exhibit 3 47. The Contract attached to Blanket Purchase Order No. 545658 was a 12-month contract between The City of Chattanooga and P&D Construction for Demolition Services to be provided by PAD. 48. In Paragraph 2 the Contract stated thatthe effective date of the Contract was the date of Which the Contract was signed by the City. 49. tn Paragraph 10 the Contract states thatthe “Contractor shall acknowledge each Job within 72 hours ofthe City Sending the Job tothe Contato.” 50, The Contract was signed and executed by Purchasing Director Bonnie Woodward on behalf ofthe City on September 21,2017 51. The Contract was signed and exccuted by Tracy Burton on behalf of P&D Construction on October 9, 2017 52. By its owm language the contract was effective on September 21,2017, when signed by Bonnie Woodward. 53. The Contract contained an Exhibit A 54, Exhibit A addressed and explained the cost schedule as related to the Contact. 55. The Contact contained an Exhibit B 546, Exhibit B adaressed the terms and conditions as related tothe Contact. 57. Paragraph | of Exhibit B sated thatthe contractor's commencement of work on the ‘goods/services subject othe purchase order or shipmenv/performance of those goods or services, whichever occurs first, is considered an effective mode of Contractor's acceptance of the purchase onder. 58, Paragraph 9 of Exhibit B states tha the City of Chattanooga is liale in the event of ‘reach ofthe Contract. 59, Paragraph 9 of Exhibit B stats the City of Chattanooge is the event of breach of the Contract for the unit price allocable of goods and services which gives rise to the claim. 60, Paragraph 12 of Exhibit B states that the City of Chattanooga reserves the right to terminate the purchase order at its sole convenience with lays written notice. 61. Paragraph13 of Exhibit B states thatthe City of Chattanooga may cancel this order for ‘cause with 7 days written notice 62, Paragraph3 of Exhibit B describes cause as failure on the pat ofthe contractor to fil to comply with the terms and conditions, sies of products which are defective or which do not conform to this order, and failure to provide City, upon request, with adequate assurances of fture performance 63. Paragraph 15 of Exhibit B states tht neither the City f Chattanooga nor the Contactor shall be considered in default for delays in performance caused by circumstances beyond the reasonable control of the nonconforming party. (64, Paragraph 15 of Exhi circumstances beyond the control of the nonconforming party. B states that abnormal weather conditions and floods as included 65. Prior to the execution ofthe Contract by either party, it was represented tothe Plaintiff by ‘agents of the Defendant that $400,000.00 was budgeted for demolitions related to the Contract and Purchase Order No, 545658. 66, Prior to the execution ofthe Contract by either party it was represented tothe Plaintiff by agents of the Defendant that it was estimated that the average number of demolitions per year was 60-70. 67, Prior tothe execution of the Contract by either party it was represented tothe Plaintiff by agents of the Defendant that the primary contractor will be sent the demolition work all of the time unless that contractor cannot perform in which c go t0 backup contractors 68, Defendant knew or should have known that lantiff would rely on the statements addressed in paragraphs 65, 66 and 67 to the detriment of Plaintiff. 69, PAD Construction was named the primary contractor under Blanket Purchase Onder No. 45658, 70. The Contract executed between the PlantifT and Defendant was in regards to the performance of demolition services for the Defendant under Blanket Purchase Order No. 545658 71, PRD Construction accepted the Contact. 72, PRD Construction began performance upon the Conta. 73. PRD Construction acceped Blanket Purchase Order No. 545658 74, PRD Constuction began performance upon Blanket Purchase Order No, 545658. 175. PRD Construction expended financial resources inorder to perform under the Contract and Blanket Purchase Order No. 548658, 176. The City of Chattanooga knew or should've known that PAD Construction would expend financial resources in order to perform under the Contract and Blanket Purchase Order No, 545658, 77. Atal mes relevant, P&D Construction never received any writen notice oF warning that it was not performing under the Contract or Purchase Order No, 45658 pris terms. 78a levant, P&D Construction was notin breach of the terms of the Contract or Blanket Purchase Onder No, 545658, 79, At all times relev . P&D Consruction acknowledged within 72 hours of the City sending job to PAD, 480, Atal times relevant, PAD Construction was never unavailable to begin work within 12 business days, lacked equipment related to panicular jb, or was terminated as the primary contractor. 81, At all times relevant, Paint notfed the City of Chattanooga per the terms of the contact when PAD Constuoton completed a job 82. At all times relevant, Painff frequently communicated with the appropriate City of CChatanoogs officials that PAD was ready and available to take on more jobs under the Contract and Blanket Purchase Order No, 545688. 483, At all times relevant, the only ovcasions in which Plainf’s performance was delayed ‘was du to conditions beyond ther contol as contained in Paragraph 15 of Exhibit B. #4. Acall times relevant, The City of Chatanooga never sent writen notice to Plaintif that the City was cancelling the Contract and/or Blanket Purchase Order No, 545658 for convenience as deseribed in Paragraph 12 of Exhibit B. 85, Atal times relevant, The Cty of Chatanooga never sent written noice to Plait that the City was canceling the Contrast andor Blanket Purchase Order No. S4S6S8 for cause as described in Paragraph 13 of Exhibit B 46, Begining in approximately Marchand April of 2018, Plaintiff began to comespond with the employees of Defendant questioning the volume of work they were receiving under the Contact andor Blanket Purchase Order No. 545658 87. In response to Plaintif's questions and concems regarding the volume of work they were receiving under the Contact and/or Blanket Purchase Order No, S45658, Defendant through its employees falsely represented that Plaintiff would demolish 60-70 structures as part of the Contact andor Blanket Purchase Order 88. The Defendant secreted its actions of diverting demolition work rightfully to Plaintiff per the Contract and/or Blanket Purchase Order No. to other contractors, never informing Plaintiff of such, 89, Plaintiff continued to operate under the Contract and/or Blanket Purchase Order No. 545658 in good faith in reliance that Defendant was doing the same, 90. In approximately May of 2018, Plaintiff began to suspect that demolition jobs which they should have been awarded under the Contract and/or Blanket Purchase Order No. S45658 were being sent to other contractors. 91. Based upon information and belief itis now thought that employees of the Defendant began allocating demolition jobs which should have gone to Plaintiff under the Contract and/or Blanket Purchase Order No. 545658 as early as February of 20 ot earlier. 92. The actions of allocating demolitions jobs to other contractors besides Plaintiff without following the toms regrating such as desribed in the Contract andor Blanket Purchase Onder ‘No, $45658 amounts to breach ofboth, 193. The Defendant did breach the Contract andlor Blanket Purchase Order No. S45658 by allocating jobs to other contractors and not the Plant 94, By allocating demolition jobs to contractors other that Plaintiff without the eceurrences allowing for such per the Contract and/or Blanket Purchase Order No, 545658, Defendant was ot providing work to the Plaintiff, whose proposal was deemed by the Evaluation Committee to bbe the best proposal meeting specifications. 95, By allocating demolition jobs to contractors other that Plaintiff without the cceurrences allowing for such per the Contract and/or Blanket Purchase Order No, 545658, Defendant ‘violated its own purchasing regulations as described in its Purchasing Manual, 96. By allocating demolition jobs to co allowing for such per the Contract and/or Blanket Purchase Order No, 545658, Defendant violated the Municipal Purchasing Law of 1983, 97, Based on information and belief, itis thought that the Defendant was in breach of the Contract andr Purchase Order No. 545658 forthe remainder its actions of providing demolition jobs to other contractors which ri Plain. 98, Defendants materially breached Contract and/or Blanket Purchase Order No, 545658 and Auties owed to Plaintiff when they failed to provide demolition jobs to the Plaintiff pursuant to contract and blanket purchase order. 99, The injuries caused to the Plaintiff by the actions of the Defendant have caused the Plaintiff to suffer injuries, financial and otherwise not common to the public at large and traceable tothe actions and omissions ofthe Defendant 100. Because of the breach of the Contract andlor Blanket Purchase Order No. 545658, Plaintiff has suffered and continues to suffer financial losses. 101. Plaintiff is still in the process of determining the full extent of his damages as a result of these breaches, as Plaintiff has not fully discovered how many demolition jobs were secretly diverted to other contractors, however, plaintiff has incurred costs, damages and expenses as a direct and proximate result of the actions of the Defendant. COUNT 1 BREACH OF CONTRACT lege and incorporate herein by reference the allegations set forth in and in their entirety as if fully set forth verbatim. 103. Plaintiff was party to the Contract and/or Blanket Purchase Order No. 545658, 104. Plaintiff has performed all conditions precedent and necessary to require and consideration from Defendants under the Contract and/or Blanket Purchase Order No. 545658, 105, Defendant materially breached the tems of Contract and/or Blanket Purchase Order No, 545658 by secretly diverting work rightfully due tothe Plaintiff, and failing to actin good faith 106. Asa direct and proximate result ofthe acts and omissions and conduct of Defendants, Plsinti has incurred and will incur damages an losses to his business, out-of-pocket payments and expenses, plus other consequential and incidental damages in an amount to be proven ati, exclusive of court costs, interest and attorney's fees. 107. Plaintiff repeats, realleges and incorporates herein by reference the allegations set ‘orth in paragraphs 1-106 above, in fll and in their entirety as if fully set forth verbatim. 108, Defendant represented to Plaintiff that as the primary contractor he would receive most, if not all of the demolition work under the Contract and/or Blanket Purchase Order No. 545658, 109. Defendant further represented it would comply with the terms of the Contract and/or Blanket Purchase Order No. 545658 and perform under same in good faith 110, Plaintiff relied upon these representations and entered in to the Contract and/or Blanket Purchase Order No. 545658, with an anticipated work of 60-70 demolitions with a budget ofa least $400,000.00. 111, However, instead of providing Plaintiff all the demolition jobs they were entitled to Defendant concealed and secretly diverted demolition jobs due to Plaintiff under the Contract andlor Blanket Purchase Order No. 545658 to other contractors. 112, In fact, when Plaintiff expressed questions and inquiry about the volume (or lack of) of demolition jobs he was receiving under the Contract andlor Blanket Purchase Order No. 545658, tand the protocol for the same, Defendant through its employees falsely represented the assignment of demolition work by Defendant and continued to deliberately conceal from Plaintiff that such work was being diverted to other contractors. In retaliation against Plaintft for making such inquiry, Defendant falsely informed and threatenes the Contract ‘would not be renewed, and falsely told Plaintiff that he would not receive any further work under the Contract due to lack of funds within the budget. Despite terms of the Contract andlor [Blanket Purchase Order, Donna Casteel of Defendant also misrepresented to Plaintiff that the assignment of demolition work for Defendant was allocated “at her diseretion.” Based on the inquiry by Plaintiff, Defendant representatives to include Bonnie Woodward, Donna Castel, Diedre Keylon, Sharon Martin, and others, continued to deliberately conceal from the Plaintiff that demolition work was being diverted to another contactor, and continued to maintain the above misrepresentatons. All the while, Defendant through its employees Knew that such sctions and conduct by Defendant were in breach ofthe City's ovm purchasing regulations and in breach ofthe Contract and Purchase Order with Plinti 113, Plait, on August 31, 2018, made complaint that resulted a City audit. Said audit ‘of Defendant's actions, conduct and misrepresentations were confirmed in an audit report by the City auditor. Said audit report is attached to this complaint as Exhibit 4. 114, Plaintif, individually and through counsel, thereafter made multiple open records requests fo Defendant pursuant to Tennessee Public Records Act, Tenn. Code Ann. § 10-7-503, et seq, 115, Based on those multiple requests, Defendant either unreasonably delayed or frustrated the timeliness of providing ssid records to Plaimtff, and has entirely failed to provide certain specifically requested information to particularly include, but not limited to, invoices from and paid to Tower Construction and P&C Construction for demolition work or services during the tem of Defendant's contract with Plaintiff 116, Based on the foregoing, Defendant has intentionally and deliberately violated the ‘Tenmessee Public Records det, Tenn. Code Ann. § 10-7-503, of the Defendant constitute continued fraudulent efforts and actions on the part of Defendant of seq. and such actions on the part concealment, fraudulent non-disclosure and misrepresentation, 117, When Defendant made these representations, Defendant knew or should have known, that Plaintiff would rely on such to his detiment and enter into the Contract and/or Blanket Purchase Onder No. 545658. 118, Plaintiff dettimentally relied upon such conduct, representations, and imisrepresentations of Defendant and has sulfered damages as result of same, Said concealment, representations of Defendant consiue intentional or negligent misrepresentation or fraud or gross negligence and reckless conduet and ation onthe par of Defendant, 119, The actions, conduct and mistepresentations of Defendant constitute unfiir and deceptive acts or practices of Tenn. Code Ann. §§ 47-1 ascertainal ses of money and/or property asa result of said violations by Defendant 120. Asa proximate resll of said conduct and actions of Defendant, Plaintiff has incured and will incur damages and losses to his business, outof-pocket payments and expenses, plus other consequentil and incidental damages in an amount to be proven at al, exclusive of court costs, intrest and atlomey’s fees. Defendant is liable to Plintift for compensatory and punitive damages as a result. PRAYER FOR RELIEF WHEREFORE, premises considered, PlaintifF requests and pray forthe following: 1. That this complaint be fled and that process be issued and be served upon Defendant. 2, Thatthe patios be sent to meditation as provided for in Paragraph 14 of Exhibit B of the Contract regarding Blanket Purchase Onder No, S45658. 3. That if mediation should be wnsuecesful in flly resolving this mater, that, Defendant be required to make answer to this Complain as required bylaw, and this proceeding move forward through discovery, proof and tri 4, That Plaintiff be awarded a judgment aguinst Defendant for breach of contact for any monctary damages and compensatory damages, plus consequential and incidental damages, pre and post judgment interest and attomey’s fees 5. That Plaintiff be awarded a judgment against Defendant for compensatory and economic damages against Defendant to include, but fed to, any and all monetary damages based on Defendant's actions, conduc, mise ns, and unfie deceptive acts and any other related compensatory damages in an amount to be proven atta, plus pre and post {judgment interest and attorney's Fes. 6 That Plaintiff be awarded a Judgment against Defendant for punitive and/or tweble damages and atomey's fees. 7, ‘That Plaintiff be awarded a judgment against Defendant for both pre and post judgment interest, court costs and discretionary costs to prosecute this ation, 8 That PlaintifT be avarded such other, further and general reli as may be deemed appropriate in this cause. 9. That this cause be tried by a jury of 12. Respectfully submitted, SPICER RUDSTROM, PLLC o _fplueulh, ‘Robdt J. Uhorchuk (BPR #017599) Attorneys for Plaintiff VERIFICATION STATE OF TENNESSEE | I COUNTY OF HAMILTON | Before me, the undersigned, personally appeared Tracy Burton, individually and on the propriet -&D Construction and on behalf of the same, after being duly makes oath that ly authorized to execute on behalf of the same and thatthe facts set forth in the complaint are true and correct, to the best of his knowledge, thatthe complaint is not made out ofl Defendant, but in sincerity and truth, forthe causes mentioned there P&D CONSTRUCTION ‘Swom to and subscribed before me this oye day of 2019. My Commission Expires: 5/7/90, MS at Request for Proposal (RFP) #153723 For Demolition Services Porpose The Git of Chatanoge (Ci) i sctng ropes am dif propo einer Po a che (1) tombe win ae open of exendng th conor ve) ein twelve (12) month terms, Definitions, For the purpose of his proposal the definitions shall mean: Proposal means offer Proposer means offeror, bidder, contractor oo (2 uso rele otis RFP shoul mde ei Kevin, Bayes, Phasing ‘e-mail i the preferred method, (Pease include the RFP page, and paragraph number related to each question to ensure accurate and correct responses. (©) Sufficient time should be allowed for rcpt and response to questions submitted by syoten oo te nan ef ont cama af he enn so that be Spurn! wil identity the envelope correctly. 20f 19 (ty of Chataneope, Purchasing vision Primary Award/Back-Up Contractors ‘The City reserves the fight to establish an agreement that will incinde multiple awards to Sat ae its egal hes pra, oie en ef teemination ofthe primary contractor. 30819 ‘ty ot Chattanooga, Puhating Dvn ‘To be eligible to respond to this RFP, the proposing contactor must demonstrate that three (3) years. The Contractor shall surveys or abatements, (Department of Economic and Community Development). ‘The contactor is responsible for tking precautions to prevent damage to all underground and above ground public utlity services and is liable for fines and fees associated with damage. Indemnification of City of Chattancass and the Chattanooga Department of ‘Eeonomic and Community Development (@) The Contractor agrees to indemnify and hold harmless the City of Chattanooga and its Economie and Community Development Department from al ibility for any injuries or damages to any person(s) or property resulting from its performance of work under tis tssesents ae delinquent All work 1s fo be provided ina immer tnd tine Hane consistent withthe needs ofthe City 40f19 ‘yf Catanoopa, Purchasing Dien ‘Termination or Suspension from the Contract (RivREHRISee nay’ Be Yefnithdted or suspended from she Contract for poor performance, ‘failure to perform, fraud, or other cause with written notice by the City of Chattanooga, (Contractors may be tenminated fom the Contract with thirty G0) days prior writen “notice with justified cause other than the above stated performance issues, Insurance (9 Mee Contractor sal ais he Parsing Apt ofthe Cty wih copes ferent {nccorance with the Tenessee Workmen's Compensation avs. (©) Couracor pes wo cay and provide a copy ft cen gene abi israex {om operations of the Contractor under this Contract. Such insurance shall cover the use ofall equipment, hoists and motor vebicles on the site or hauling materials or debris from the site Safer. possible. The contractor agrees to take appropriate precautions related to asbestos and ‘other hazardous materials. (0) The Contractor agrees to maintain accurate records ia any case of death, occupational ‘eihborbood Services and Community Developmen Administrator or designe) and Sorls (yf Catancopa, Purchasing Dien shal provide any requested reports concerning these mates. ‘Removal and Salvage of Existing Buildings (®) The Contractor shall demolish andlor remove all buildings and structures as romises ina whole or substantially whok (©) Upon the demolition and/or removal from the premises of « building or structure in accordance with the Contract, such building or structure or the remains thereof shall ‘become the property ofthe Contractor. ‘Local Public Agency. (@ Prior to completion ofthe assigned job all salvage materials shall be transported {© appropriate City disposal locations, other legal disposal locations orto the Contractor's privately owned and properly zoned storage facility. ia ‘nt to a height of no more than three (3) inches and premises shall be raked clean. The to be smoothed toa mowable condition and covered with gras seed and straw. Sanitary sewer lines are to be caped. Septic anks are o be crushed afer ist esoving all sewage, During demolition, water shall be used to contol and reduce dust and its ‘impact on neighboring properties. The sit shall be lft clean and in a safe condition ‘Regulations Pursuant to the “AntisKGck Back Act” Tae Contractor agrees to comply wit all applicable regulation ofthe Secretary of Labor ‘of the United States made pursuant tothe socalled “Anti-Kick Back Act” at 18 U.S.C. 8574 and aay amendmeots or modifications thereto. Contractor shall cause appropriate 6 of19 tye catancons, Purchasing Osan provisions to be inserted in any subcootracts to ensure compliance therewi Subcontractors subject thereto and shall be responsible for the submiss requirement of subcontractor thee under, except as otherwise provided by of Labor. 7of19 yt Chatanoge, Purchasing Don Anspection by City of Chattanooga, ‘Tee Cy of Chataoogs and any oft officers, gets ar employs al ae ths ih assigned work. The work site will be reviewed by NSCD staff within 72 hours of otifeation. Satisfactory completion of demolitions must be confirmed by an inspector from the Land Development Office and the Manager of Code Enforcement in the Department of Economie and Community Development, or designee before payment requests willbe processed. Subcontract Contractor shall not execute any agreement with any subeontrictor or permit aay Department of Neighborhood Services and Community Development, ‘General Requirements 2) The succossfilcontractor(s) shall provide all materials, penmts, equipment and labor as required for the demolition of the designated site, and disposal of debris ‘generated during the couse o b) Actual demolition shall incorporate the demolition and disposal of the main structures, removal of footing slabs, asphalt pavement parkways and driveways, fences, debris and other undesirable object. Al work is tobe performed in fll accordance withthe Construction Standard and cation ofthis contact. 8) Remove and dispose ofall excess Material, Debris and Trash developed during the course of providing the contacted service. ©) All excavations and other cavities shall be filled entirely with clean fil it noncombustible, inorganic material smaller than 8 inches (crushed brick, Block oF concrete from the demolition site) topped with no less than 2 feet of clean fil dst back up to grade, The yard shall be smoothed to a mowable condition, and covered with an adequate amount of grass seed and straw to grow grass 1) Sower lines shall be capped 12 inches above grade. Septic tanks shll be crashed Boris (ty of Cratarcon, Putas Dvn after frst removing sewage 2) Water shal be used during demolition to contol and reduce dust 1b) The ste shall be left clean and ina safe condition |), Upon completion, the Contractor shall be responsible for leaving the jobsite ree of all construction debris and in an orderly state, Clean all walks, paving, and site features ‘of dre and other debris, 4) _LandBil Roosipe must be kept on file by the Contractor and a copy of the receipt ‘must accompany the invoice for payment. REP Release Date: _June 2, 2017 [Non-mandatory Pre-Bid Meeting: _ Wea, June 7, 1:00 pm est, at City Hal, Ste. @-13_ Deadline for Questions: __June 8, 2017, 4:00 pmm_ RFP Due Date: _June 13,2017, 400 pan__ ESTIMATED Fist Evaluation Commitee Meeting: week of June 19-23, 2017_ ESTIMATED Recommended Awardee Notification: _ week of June 26-30, 2017 9of19 ‘ty of Crataroon,Puchoena Dien ‘The Contractor(s) shall fumish all supervision, labor, materials, machinery, soos, equipment, and services a8 well as perform and complete all Job Requests (ExtubitA), issued to himthem during the term ofthis contract in a timely, cost ef Safe, and professional workmanlike manner. ontrsctor shalt acknowledge each Job within 72 hours. Contractor's Job Acknowledgment, (Exhibit-A) shall include specific demolition Equipment Mobilization Dae, the Commencement Dae, and the Completion Dae. {All work shall be performed in strict accordance withthe technical specifications issued with each Job, andlor incorporated herein and made apart of thie Requirements Contra. In addition, the Contractor shall perform all Jobs in compliance with al applicable local, state, andlor federal codes, laws andor regulations. Bemtition shall bo completed by the date specified in the Letter to Proceed unless changed by mutual writen const. Cost PROPOSAL. ‘The Contractor agrees to supply the products or services at the prices proposed below in “Masonry, beck, block structure structures up to 2000 square fet) Demolish and dispose of designated structures) Price per square foot - 8 “Masonry, brick, block structure (square footage above 2000) Demolish and dispose of designated structures) Price per square foot -$, Wood frame strstr (6) rcs up 10 2000 sare fet ‘Demolish and dspoee of designate stacures Prive per squae foot- §. ‘Wood frame structure (3) (square footage above 2000) Demolish and dispose of designated structures 100f19 ‘ty ofChatanooga, Purchasing Dion ‘Tiler and Mobile Home Demolish ad dispose of designated structures Price per square foot -$, Miscellaneous Structures Remove, demolish and /r disposal of small accessory type structure (9), carports, sheds, fencing, retaining walls etc Price per square foot -$ Basement Area or In-ground Pool Complete demolition and disposal of designated structusl area ‘that is below grade and fill with clean fill ir Price per square foot -$ Excess Asphalt and Conerete ‘Remove of pavement driveways, slabs sidewalks, and other undesirable objects in demolition and disposal of designatod structure Price per square foot -$ Excess Debris and Overgrowth Removal and disposal of all excessive trash and overgrowth found on site that is not apart ofthe debris and overgrowth developed in providing ‘demolition services based on general demolition items. Rate per Cubie Yard -$, _Ashestos Related Work Removal and disposal ofall asbestos materials in designated structure must be Mofl9 ef Cnatnooge, Purctasing Divison remediate by a licensed asbestos contractor. Price per square foot - negotiated per job ‘Backfill blow grade "Non-regulated and acceptable fill appropriate for growth and vegetation, Prive per Cubic Yard—S___ ProblemExtreme Condition and Extreme Areas Demolition and disposal of designated structures or conditions that are not a part OF the site development in providing demolition services based on gencral demolition items shall be reviewed and agreed upon by the Contactor and City representative. List of demolition equipment owned: List of transportation equipment owned: The City of Chattanoogs (Economic and Community Development serves the ight to ‘compete or negotiate on structures that are not ntact, fre damaged debris, ec “The City of Chatanooga (Economie snd Commnity Development reserves the right to compete or negotiate structures that are aver 5,000 square fet. Contractor and the City representative before any work commences. ers ‘cy ot Chatanoops, PuchzengDvon ‘The total demolition and disposal rate fora specific location shall be determined by _slzin the total square footage agreed upon by both parties and multiplied bythe contacted unit price foreach item ofthe work. [No contract willbe awarded to any proposer who, 3s determined by the City, bas an unsatisfactory performance record, or inadequate experience lack of ere=nization, labor andlor equipment to perform the required services. All work isto be provided in & ‘manner and time frame consistent with the needs ofthe city Bofl9 Cty of Chatanaags, Purchasing Don Special Conditions ‘Customer Listing 6) Cheats contact refereace name and carrot eephooe munber TL Providea listing of any contracts Offeror had with any government entities within the last five years in which the contract was terminated or not renewed. 69 Nane of contac referece ame and caret telepooe number ‘BinansiaLInformation Offeror must include with your proposal your business's public financial reports for ‘the last two years. 8) Opposing company's name and address ») Company contaet reference name, and current telephone number «) Specific nature ofeach contractual issue, and the final decision 4) Status of each issue ors Cy ot Cnatanoops, Puchsing Dvon IV. Offeror shal state and provide spevifie details of any plans to negotiate the sale or merge of this company prio toa contract award, or diring the contract term. Note: Failure to provide complete and accurate client information, or financial {information as specified herein, may result alificaton of your proposal and/or breach of contract. the City about all of ts company’s acquisition or sells EACH PROPOSAL MUST CONTAIN THE FOLLOWING: © PRICE © Speci pie fer cah ine of Cox ops secon bpaing 0 7510 © Provide documents to give evidence of your company's healt, safety, and environmental compliance history for the past three yeas (2014-2016) ‘© AVAILABILITY as specified in the document ‘© CUSTOMER REVIEWS ‘* ORGANIZATION & DOCUMENTATION (©. Provide some evidence (for example, two copies of samples of good documents ands two referal letters flom past customers) that workers will ty of Chattanooga with legible, dated, auresses and information ‘© demolition and transportation equipment owned (andor rental pla if your company’ does not ova equipment) 150f19 (ty of Cnatncops, Purchasing On CRITERIA Weight PRICE 25% [EXPERIENCE 25% [COMPLIANCE HISTORY 20% "AVAILABILITY 10% (CUSTOMER REVIEWS 396 ORGANIZATION & 10% DOCUMENTATION [EQUIPMENT 5% (COMPLETED AND SIGNED PAGES TO RETURN WITH PROPOSAL PAGES 1, 18, AND 19 16 0819 (tye cstnoops, Purchasing Dion Affirmative Action Plan For Cavitation or REP No, ) ‘Nae of Contractor The above named Contractor isan equal opportunity employer and during the performance of this contact, the Contractor agrees to abide by the Affirmative Action Plan ofthe City of Chattanooga as follows: 1 Te Conner wi rn sa oy empay t eptia t in conspicuous places available to employees and applicants for employment. 4. During the term ofthis contract the following non-discrisnatoy hiring practices stall be employed to provide employment opportunites for minorities and women: All help wanted ads placed in newspaper or other publications shal Seek ani mainin conics with mor op and man elationg _ Encournge pesca employes to refer qualified minority group and female Vers yo chatansops, Purchasing Dion applicants for employment opportunites, 4. Use only recruitment sources which stats in writing that hey practice ‘equal opportunity. Advise all recruitment sources that qualified minority _oup members and women will be sought for consideration forall, positions when vacancies occu. 5. Minority statistics are subject wo audit by City of Chattanooga staf or other governmental agency. 6. The Contractor agrees to notify the City of Chattanooga of any claim or investigation by tate or Federal agencies as to diserimination. ‘Gignature of Contract) (Title and Name of Construction Company) 18 of 19 ‘hyo cratsncop, Purchasing Oven (ty of Chattanooga, Pucasing Dison Purchase Order Pane a BLANKET r Purchase Order Namiber 545658, INVOICES: Direct inves in DUPLICATE tothe Ince, address shown below. PO Date: 21-96°-17 ‘Buyer: Dero Moore-Keyon FOB: DESTINATION ‘Terms: Immediate Purchase Order mee 24 phere rn ast oom @ tere sana Ven Naa vendor tomate. 771160 fi | P80 Construction £2205 Kelys Fery Rosd 8 | Chattanooga, IN 37419 Se fe ie ia eae SE ue eee near tres Scere aoeeresosap osteo aces onevon sar omemas eameninnmeaepenmme Purchase Order Pege sot pLAMIE? Panta 09212017 042-20 || sooEme Seeeor eens iene teen City of Chattanooga, a Tennessee Municipal C 3205 Kellys Ferry Road, Chattanooga, ‘This Contract for demolition servis 3741 In consideration the mutual promises: follows: ‘Scope, The Contractor shall provide certain demolition services (the “Services”) upon 2. request of the City consistent with the requirements set forth herein, Parties agree as ‘Term, The iil term shall be fora period of twelve (12) months fom the Effective | 14 49 Date. (ietifiective Date shall be the date on which the Contract is signed by the City Ae 318 Renewal. This Contract may be renewed for two additional rwelve (12) month terms ‘upon written agreement by both Parties for all damage to persons or propery that may occur as a negligence in connection with the performance of any Set Contractor shall be responsible for the proper care and complet ‘The Contractor agrees to comply with all applicable rule OSHA, any other state or federal agency regulations and City of Chattanooga. Contractor shall agree to comply with ‘and health measures as are determined to be reasonably nocessary performance of any work. (b) The Contractor agrees to maintain accurate records in any case of death, ‘cccupational disease and/or injury requiring medical attention or causing loss of time of work, arising out of and in the course of performance of work under the requirements set forth herein and shall provide any requested reports concerning. these matters General Requirements, 8) Contractor shall provide all materials, permits, equipment and labor as required structures, removal of footing slabs, asphalt pavement parkways and driveways, fences, debris and other undesirable objeets. ©) Upon completion, the Contractor shall be responsible for leaving the jobsite free ofall construction debris and in an orderly state, including cleaning all walks and paving. 1) A landfill receipe must be Kept on file by the Contractor and a copy of the receipt ‘must accompany the invoice for payment. (b) Upon the demolition and/or removal from the premises of a building or structure in accordance with the Contract, such building or structure or the remains thereof shal become the propery ofthe Contact. public or City owed pope. The City is not espns for any oso he of Contractor equipment or materials. (@) Prior to completion of the assigned job all salvage materials shall be transported unfilled areas. All wells, cites, septic tanks and cesspools shall be properly filled to grade with existing terrain in a manner that will ensure proper drainage across the 2 property without causing erosion. Vegetation, with the exception of the trees, unless atersn specifi wil be cut a eat of m0 more than te) inches and premises i ity of Chattanooga, The City of Chattanooga and any of its officers, agents or employees shall have the right to inspect the work at all tmes and atthe completion thereof, Vendor must notify the designated @ityorepresentative within 24 hours of completing the Job: The work will be reviewed by designated City staff within cease feneeeeeseamseneet Se EaaaE ‘demolitions must be confirmed by the appropriate City designee’ in writing before Sead ect sant to the “Anti-Kick Back Act”, The Contractor agrees to comply regions of the Soty of Lar of he Usted St made thereunder, except as otherwise provided by the Seeretary of Labor. ‘Subcontract Contractor shall not execute any agreement with any subcontractor or permit any subcontractor to perform any work included inthis Contract without prior express written approval of the City signed by the Administrator, or Council approved designee, of the Department of Economie and Community Development. (City Standard Terms and Conditions ‘This Contract shall be governed by the City Purchase Onder Standard Terms and Conditions (“Standard Terms”) attached hereto as Exhibit B and incorporated herein by 3 Donn Wiliams, Admnisrte rer cy tty Development Purchasuny Oregon pae_/D-7-/'7 EXHIBIT A ‘The Contractor agrees to supply the products or services at the prices proposed below in accordance with the terms, conditions and specifications contained inthis Contract and specific job request, 1. Masonry, brick, block structure (structures up to 2000 square fet) Demolish and dispose of designated structures) Price per square foot - $3.50 2. Masonry, brick, block strcture (square footage above 2000) Demolish and dispose of designated structures) Price per square foot - $3.25 3. Wood frame struct (6) rotures upto 2000 square fst) Demolish and dispose of designated stractres Price per square foot- $5.00 4. Wood frame structure (s) (square footage above 2000) Demolish and dispose of designated structures Price per square foot - $3.00 5. Emergency Services Demolition and disposal of designated structur(6) in an emergency situation, when the contractor is required by the City to commence work in less than three (3) calendar days or less ‘of notification. An emergency demolition may involve any type or size structure and requires immediate response. Flat rate fee - $500.00 6. Trailer and Mobile Home Demolish and dispose of designated structures Price per square foot ~ $4.00 Price per square foot $4.00 8 Basement Area or I-Ground Poo! Complete demolition and disposal of designated structural area thats below grade and fill with clean fil i Price per square foot- $10.00 — Cusloic feet 9. Excess Asphalt and Concrete Removal of pavement driveways, slabs, sidewalks, and other undesirable objects ia demolition and disposal of designated suucture Price per square foot - $4.00 10. Excess Debris and Overgrowth Removal and disposal of all excessive trash and overgrowth found onsite that is nota part of the debris and overgrovith developed in providing demolition services based on general demolition items. Rate per Cubic Yard - $10.00 IL. Asbestos Related Work Removal and disposal ofall asbestos materials in designated Structure must be remediated by a licensed asbestos contractor. Price per Square foot - negotiated price per job 12, Backfill below grade [Non-regulated and acceptable fill appropriate for growth and vegetation, 7 Price per Cubie Vard — $14.00 are not a part ofthe site oltion items shall be reviewed and agreed upon by the Contractor and City representative. 14, Structures in excess of 2 stories above grade Complete demolition and disposal of designated structural area ona third floor and above Price per Square Foot ~ $7.50 The City reserves the right to compete or negotiate on structures that are not intact, fre damaged debris, ee, “The City eserves the right to compete or negotiate structures that are over 5,000 square feet the roof overhang. Ifthe structure consists of more than one story, the area ofeach story will be obtained inthe same manner. The total footage figure shall be reviewed and agreed upon by both the Contractor and the City re any work commences, and disposal rate fora specific location shall be determined by agreed upon by both parties and multiplied by the contracted ech item of the work. ibis CITY STANDARD TERMS AND CONDITIONS Acceptance-Agreement, Contractor's commencement of work on the goods/services Governing Law, This Agreement shall be govemed by the laws of the State of “Tennessee and the Codes of the City of Chattanooga ("City"). tion and Payment Terms. For the completion of the Work, City shall pay ‘unpacking, examining me. rckng oa abi owe pods in the event City receives goods whose defects or nonconformity is not apparent on examination, City reserves the right to require replacement, as well as payment of damages. Nothing contained in this purchase order will relieve in any way the Contractor from the obligation of testing, without City’s express written limited to, shipping, packaging, l crating 6. Standard of Care. Contractor shall exercise the same degree of care, skill, and diligence” in the performance of services as is ordinarily possessed and exercised by a professional Contractor under similar cirumstances in the same area of practice. Contractor makes no ‘warranty or guarante, cither expressed or implied, as part ofthis agreement. 7. Indemnification, Contractor must defend, indemnify and hold harmless the City, its A. Commercial General Liability Insurance, with a limit of $1,000,000 for each ‘occurrence and $2,000,000 in the general aggregate insurance provisions. Certificates must specify: City of Chattanooga, its agents, representatives, officers, directors, 9 ficial and employees must be named an Additional Insured under the following policies: 8) Commercial General Liability b) Auto Liability ©) Worker's Compensation Insurance and Employer's Liability Insurance 4) Professional Liability Insurance Contractors insurance must be primary insurance as respects performance ‘contract, except Professional Liability Insurance, if applicable, waives authority to accept any information in confidence. Records Retention and Audit. The term “Contractor” is used interchangeably to scribe signatories to contracts, grants, and agreements with the City and applies to reflect the relationship with the City Engineer, Contractor, Licensee, Supplier, Vendor, 10 Contractor, Grant Recipient, ete). in ay mame whanoeve 1 the Prt ay desig ine efficiency and effectiveness ofthe contract or agreement), or to identify conflicts of interest. ‘The Contractor shall at all times during the term of the contractor agreement, and for & period of seven (7) years after the end of the contract, keep and maintain a explicitly included in any subcontracts or aia acai eer an subcontractors or suppliers of goods or services to the extent that those subcontracts or agreements relate to n fulfillment of the Contractor's obligations to the City. its conducted under the authority of this section and. not addressed elsewhere will be bome by the City, unles® the audit identifies significant findings that would bes Contractor will reimburse the City for the total costs of an audit that identifies significant findings what would benefit the City . £ This Section shall not be construed to limit, revoke, or abridge any other rights, for Municipal law, whether those rights, powers, or obligations are express or implied. «+ Termination for Convenience. City reserves the right to terminate this order or any part suppliors or subcontractors to cease any further work. Contractor will be paid reasonable termination charge consisting of a percentage of the onder price reflecting the peretis of the work perfmed tee thence of teminavon, Bema deck fails to comply with any of the terms and conditions of deliveries, deliveries of products which aze defective or which do not conform to this order, and failure to provide City, upon request, with adequate assurances of future performance are all causes allowing City to cancel this order for cause. In the event of cancellation for cause, City is not liable to Contractor for any amount, and Contractor is liable to City for any and all damages sustained by reason of the default which gave rise to the cancellation. If it should be determined that City has improperly cancelled this ‘contract fora default, the cancellation is considered a termination for convenience. Dis lution. Claims, disputes, or other matters in question between the partes 10 ‘this Agreement arising out of or relating to this Agreement, o breach thereof, shall be subject to mediation in Chattanooga, Tennessee, in accordance with the following provisions: ‘The mediation shall be conducted by a mediator mutually acceptable to both partes b. The parties agree to share equally inthe expense of the mediation. 2 © Such mediation may include the Contractor or any other person or entity who may Contractor agrees to notify City when unanticipated hazardous materials or suspected 3 Iuzaroes eras ae easter. Cy peso ake any dscns rogue by tw 101 E. 11th Street Chattanooga, TN 37402 Contractor: P&D Construction 3205 Kellys Ferry Road ‘Chattanooga, TN 37419 [Nothing contained in this Article shall be construed to restrict the transmission of routine communications between representatives of Contractor and City + Mae A wae yi Cy Contras of any bah of hs Ags shal ‘a provision which is of the essence of this Agreement be determined void, 29. Interna This Aeon! rats ib eit and negated apecnet betwen City and Contractor. All prior and contemporancous commusications, representations, Se a eee AC Up AE a “4 aa, ol this Agreement, as set forth in the Purchase Order, are hereby incorporated into and shall become a part of this Agreement Successors and Assigned. City and Contractor each binds itself and its directors, officers, partners, successors, executors, administrator, assign, representatives to the other party of this Agreement and to the directors, officers, partners, succestors, executors, administrators, assigns, and legal representatives of such other partyin respect to all provisions ofthis Agreement. Assignment. Neither City nor Contractor shall assign any rights or duties under this Agreement without the prior written consent of the other party. Unless otherwise stated in the City a partner, joint venturer, or associate of Contractor, nor shall relationship between the parties is and shall a all times remain contractual as provided by the terms and conditions ofthis Agreement. ‘Non-Disclosure. Contractor agrees not to disclose or to permit disclosure of any origin. Contractor further agrees to comply with all fe ‘westment and accommodations for individuals with disabilities. wrkforee, Contractor certifies that it will provide a drug-free workplace and agrees fo comply with the applicable requirements of the Drug-Free Workplace Act OFFICE OF INTERNAL AUDIT Stan Sewell, City Auditor MEMORANDUM To: From: Date: September 18, 2018 Re: Demolition Contract = P&D Cons (on August 31, 2018, the Office of internal Audit (OIA) received a vendor complaint from P&D Construction (PED) alleging their company had been awarded 2 primary provider contract by the Ci demolition services, but the secondary (back-up) cont n projets prior and able to perform the same work?. Consequently, Tower Construction performed m City's demolition work in FY2018, at higher co advised Ms. Casteel that providing the workto Tower wasallowable unde s.Castee acknowledged she was aware ofthe contract terms requiring the work tobe offered to PAD. ur review also determined that after PRO Construct 3001 Lindsay Steet» Chattanooga, Tennessee 37402 (423) 643-6200 + FAX: (823) 685-6205 + E-MIAL: ssewell@chattanoogs gov ‘The attempt to “renew” the backup contractor as the primary and only provider (dropping PD) ‘along with the failure to provide any work under the remaining contact with PED, has the appearance of ‘etalation against PAD for questioning the improper awards by ity staf. The “renewal” would aso likely violate the City’s competitive RFP process since Tower Construction was nat the winning proposer Inthe procurement process ‘We reviewed our findings withthe Deputy Administrator of ECD, Richard Beeland. Soon ater the meeting, Mr. Becland advised OIA the resolution set to go before City Council today was going to be Amended to include renewal of PRO’ contract, We received confirmation taday the Resolution to be placed before city Council today i being amended. ‘Although not within the scope of our primary review, we also noted the Chy has contracted for

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