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Home My WebLink About1991-06-10 91-246 ORDERCouncil Action �y.�+�/ Date Harbin. � Item/Subject: Authorizing City Manager to Execute a Take-War Agreement with the Hanover Insurance Co. - Arctic Brook Sewer. Separation Project Responsible Department: Engineering Commentary: The Hanover Insurance Company has tentatively hired Rughes Bros., Inc. to complete the remaining work on the Arctic Brook Sewer Separation project In Bangor Gardens. As part of their Agre mem to take over the project, it will be ary that the City Manage[ cute a Tate -Over Agreement, which basically will state that the City willexecute -obligate all m neyat$11 malning under the original Contract to the Surety, to be paid to the Surety upon successful completlm of': the remaining work. �(� IXyeR 'r heed Managers Comments: �.ep .n.--..fh�o�td�,n� �Wr�K XO.t'rE+o1 l (1wasM� rrn"r ! /iC ff. uINT CirY A4m8ee Associated Information:Q Budget Approval: F".0c, �;rr Legal Approval: City solk;a' Introduced For ]�.Pasage Page _ of 0 First Reading 0 Referral 9/• s4L qs®gneam�da BR"�e1 CITY OF BANGOR (TITLE.) MrDCTf _Autn f ing City Manager to Execute a Take-oae,:_Agreement with the Hanover Insurance Company -_ Arctic Brook Sewer Separation Project By tM City Coarct of the City ofBanyom ORDERED, THAT . WHEREAS, the City of Bangor entered into a Contract with Trombley Construction. Inc. dated September 20, 1990 for the construction of the Arctic Brook Sever Separation Project; and WHEREAS. the City Engineer subsequently terminated said Contract by letter dated May 13. 1991 due to the Contractor's Inability to complete the nark remaining under the Contract; and WHBREAS, the Hanover Insurance Company. the Surety for the Contract Performance Bond and Payment Bond has expressed a willingness to pm a Contractor to complete the remaining work subject to the execution a Take-0ver Agreement with the City of Bangor. NOW, THEREFORE, Be It ORDERED. THAT the City Manager be and hereby is authorized to execute a Take -Over Agreement with the Hanover Insurance Company, said Agreement to be in a farm satisfactory W the Acting City Solicitor. In City Council June 10, 1991 Suspension of the Rules Passed Order Passed 4U 6U 91246 ORDER Title, Authorizing City Manager to Execute a Take -0 er ...................................... Agreeveeli with the Hanover Laurence Co. Artic @ook Sewer Separation Project ......... ............................ Aaeignad to ...................................... Councilman This Agreement entered into as of the day of June, 1991, by and between CITY OF BANGOR, (hereinafter referred to as OWNER) and THE HANOVER INSURANCE COMPANY, (hereinafter referred to as SURETY). WITNESSETH: WHEREAS, OWNER entered into a Contract dated September 20, 1990 with Trembley Construction, Inc., (hereinafter referred to as CONTRACTOR), to furnish all labor, material, equipment and perform all work for: ARCTIC BROOK SEWER SEPARATION and STREET SEPARATION PROJECT Phase I, Bangor, Maine in accordance with the provisions of said contract, including plans, specifications and addendums thereto, all of which documents are hereby, by reference, incorporated herein and made a part hereof, and are collectively referred to herein as the Contract, and WHEREAS, CONTRACTOR as Principal, joined SURETY in executing and delivering to OWNER as Obligee, the required Performance Bond and the required Payment Bond, and WHEREAS, CONTRACTOR advised SURETY it was financially unable to complete its contractual obligations, and called upon SURETY to arrange for completion of all remaining work, and WHEREAS, OWNER has terminated CONTRACTOR'S rights, called upon SURETY under the terms and provisions of the Contract and Band, to take over and complete all required work that remains to be performed, and WHEREAS, the original Contract price, as adjusted by approved change orders to date is $ 326.215.65 and there remains a balance thereof still held and unpaid by OWNER in the amount of $ 79,766.50 , and WHEREAS, contingent upon and on condition that this Agreement be executed, SURETY is willing to procure a COMPLETION CONTRACTOR to perform all remaining and uncompleted work necessary to accomplish full completion in accordance with the requirements of the Contract, and WHEREAS, it is consistent with the interest of OWNER and SURETY for SURETY to discharge its obligations under the Performance Bond in the manner herein specified. NOW THEREFORE, it is mutually agreed A. SURETY will immediately consummate the necessary arrangements with the COMPLETION CONTRACTOR, instruct it to proceed with and expedite completion of all remaining work required by the Contract and in accordance therewith. B. OWNER re -obligates all money held by it, and applicable to the Contract, as finally adjusted, to and for the purpose of this Agreement, and will pay to SURETY the remaining balance of the Contract price, as finally adjusted, in accordance with the terms of the Contract, including retainage that would have been payable and owing to CONTRACTOR, TROMBLEY CONSTRUCTION, INC., had it not defaulted, such payment thereof by OWNER to SURETY to be made in accordance with the payment provisions of the Contract as to time, amounts and methods of payment, upon presentment to OWNER by SURETY of the usual monthly requisition for progress payments, plus a requisition for final payment, including withheld retainage, without reduction or diminution, except in accordance with the terms of the Contract. C. Payments to SURETY are to be mailed to: ATTN: Patricia H. McCullough The Hanover insurance Company 100 North Parkway Worcester, NA 01605-1396 D. INSOFAR as OWNER has any right, title or interest therein, it agrees that SURETY and/or the COMPLETION CONTRACTOR will have the right to a without charge, any equipment, materials or appurtenances furnished and supplied to or by CONTRACTOR which may be stored on or about the premises an which the construction is being performed, or which may have been fabricated for the project, whether or not presently stared on or about such premises. E. SURETY will, with all reasonable unable dispatch, investigate and dischargeits liability under the Payment Bond as to all demands made upon it by subcontractors and furnishers to CONTRACTOR of labor and material in connection with the Contract. OWNER will provide SURETY with documentation and evidence, subject to SuRETY'S approval regarding any and all payments that OWNER made under demands made by sab-contracotrs and furnishers to CONTRACTOR of labor and materials in connection with the Contract. F. OWNER agrees it has not expended any sum, nor incurred any cost for which it will seek reimbursement from SURETY, with the exception of loam and seeding work performed at Numbers 165 and 169 Thornton Road, Bangor, Maine, and attendant esplanade work thereto. OWNER agrees to provide SURETY written notice Of any cost, Charge or expense it might incur and for which it will seek reimbursement from SURETY, after the execution of this Agreement. G. SURETY, by execution of this Agreement, does not waive no penal limit of the Bonds issued by it, and any payment made by SURETY to complete the project out of its own funds on account of its performance. Bond, and any .payment madetounpaid suppliers and materialmen on account of its. Performance Bond or Payment Bond„ shall reduce the penal sum of the respective Bonds in the same amount. IN WITNESS WHEREOF, this Agreement has been executed as of the date herein given above. CITY OF BANGOR, MAINE HANOVER INSURANCE COMPANY TITLE: WITNESS