HomeMy WebLinkAbout1991-07-22 91-290 ORDERDate y7-22-91V' Item No. 91-290
Item/Subject Amending Council Order No. 91-273 -- Acceptance of
Gift from Stephen King
Responsible Department Legal
Commentary:
The purpose of this Order is to eliminate the performance bond
requirement for Stephen King's selected contractor. As
discussed in the Memo previously circulated by the Asst. City
Solicitor, this would eliminate a $15,000.00 expense for
the contractor on this project. An alternative which would
protect the City and continue to assure final completion of
the project, would be for the City and perhaps Mr. King to
share in the cost of the bond.
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Introduced For
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El First Reading
Referral
Page _of_
91-290
Ae®gnedtu Caaacdae Saxl, July 22, 1991
CITY OF BANGOR
(TITLE.) (jDTTBT___Amending Council Order No. 91 273 Acceptance
of Gift from Stephen King
ByW GYv CMWAU afW City ofBasow:
OEDEEEDe
TUT .council Order No. 91-273, adapted July 8, 1991,
is hereby amended by deletion of Article III(g) from the
Agreement previously filed with the City Clerk and referred
to therein.
STATEMENT OF FACT: Article III(g) of the Agreement on
file imposes a performance bond requirement on Stephen
King's selected contractor.
In City Council July 22.1991
Tabled
In City Coumil August 12,1991
Indefinitely - postponed
YtyC et
91-290
ORDER
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/ Councilman
July 12, 1991
T0:
Bangor
City Council
SROM:
Erik M.
Stumpfel, Beet.
City Solicitor
RE:
Stephen
King Gift - Hayford
Park
Stephen King's attorney, Joe Walsh, called this afternoon
to report a glitch in project plane for the Hayford Park baseball
diamond.
Mr. Ring's contractor apparently has not previously been
banded for a project of this size, with the result that quotes
received for performance bond premiumare in the $15,000.00
range. The contractor is reluctant to pay this expense.
The draft agreement approved by the Council an Monday night
contains a provision requiring the contractorto post a performance
bond in favor of Mr. King and the City. We have not asked Mr. King
to post any sort of personal bond.
The Council must decide whether to approve an amendment to
the agreement eliminating the performance bond requirement. Hormel
contracting practice in a construction project of this sive would
require posting of a performance bond. However, the Council may
wish to consider waiving a bond in this situation, where private
donated funds are being used to construct the baseball dismand. It
may also be inappropriate to ask Mr. King to post a personal bond,
as that might place the City in the position of suing its
benefactor for defects in the contractor's performance.
I will have an item ready for the Council's consideration
n July 22nd. In theinterim, Mr. Walsh indicates that he will
advise Mr. King to go forward with his contracting process, subject
to City Council ratification of the agreement change.
to
pcz City Manager
L
E. S.