Englewood rejects $10.8M bid for Old Hampton corridor project
The 6-0 vote over contractor performance concerns leaves the city weighing a smaller redesign and rebid, while staff warned the move could put about $3.4 million in grant funding at risk.
Englewood City Council voted 6-0 Monday to reject Holesco International’s roughly $10.8 million bid to build the Old Hampton Complete Streets project, citing the contractor’s prior performance. The decision leaves the city reconsidering the corridor’s design and funding.
The project would connect the Broadway corridor toward the hospital with wider sidewalks, ADA upgrades, enhanced crosswalks, repaving and other multimodal improvements. Staff and council discussed the bid, funding and possible next steps during Monday’s meeting.
Council members said they still supported improving the corridor but may reduce or redesign the project and rebid it, potentially without the federal requirements attached to the current funding. No revised design or rebid schedule was approved Monday. Staff said a reduced-scope version would need new design review and that a new approval or contract likely would not be ready before the end of the year.
That timeline puts about $3.4 million in unspent HB 1466 funds — described during the meeting as ARPA-related money — at risk. Staff said eligible materials had to be on site or construction had to be underway by Dec. 31, with reimbursement submitted to the state. Work after the deadline would not qualify for reimbursement, and unspent money would have to be returned.
The city would not have to repay about $937,982 already spent if the project stopped, the council was told, based on guidance from the Colorado Department of Transportation. But the city could lose access to the remaining grant funds unless it puts an eligible project in place by the deadline.
The project was solicited twice. The first solicitation received no timely bids; the second produced three, with Holesco as the low bidder. Staff said procurement rules tied to the federalized funding required the city to accept the low bid despite concerns about Holesco’s record.
Those concerns centered on two earlier Englewood projects, according to staff. Holesco’s Dartmouth Bridge work involved significant delays, cost overruns and unresolved closeout issues, staff said. Staff also described a dispute with possible litigation, but the meeting record did not establish that a lawsuit had been filed. On the smaller Oxford pedestrian bridge project, staff said the work went somewhat better but involved utility problems and change-order requests the city considered unjustified.
Staff said the proposed contract included a 22% contingency, about $691,000 for Xcel Energy street lighting, roughly $800,000 for construction management and about $125,000 for temporary construction easements. Council members questioned whether those elements and the corridor work should proceed as one package.
The council also amended and approved the city’s supplemental budget by removing $5,742,117 designated for Complete Streets. The amendment removed the related funding, easement and street-lighting items from that request but did not cancel the broader idea of corridor improvements.
Council deferred a separate discussion of possible funding through the Englewood Downtown Development Authority. The city must decide whether to redesign and rebid the project, pursue a smaller locally funded version or abandon the current grant-funded approach before the year-end deadline.