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HomeMy WebLinkAbout2010-05-24 10-192 ORDERCOUNCIL ACTION Item No. 10 -19 Date: May 24, 2010 Item/Subject: Order, Authorizing Execution Takeover Agreements with Hanover Insurance Company — Vaughn Thibodeau and Sons, Inc. Contracts Responsible Department: Legal Commentary: The City of Bangor has three construction contracts with Vaughn Thibodeau and Sons, Inc. As part of the contracts the City required Vaughn Thibodeau and Sons, Inc. to provide performance bonds and payment bonds through a Surety for each contract. The bonds were provided through Hanover Insurance Company. Vaughn Thibodeau and Sons, Inc. has notified the Surety that it is financially unable to perform or complete the projects and Hanover Insurance Company has contacted the City and is undertaking the completion of the construction projects in accordance with the terms of the bonds. This Order will authorize the execution of three Takeover Agreements with Hanover Insurance Company to provide that they will undertake to have the contracts completed. The Agreements will provide that Hanover Insurance Company will subcontract the performance of the contracts with subcontractors who will be bound by the terms of the contract and the balance of funds due Vaughn Thibodeau and Sons will be paid to Hanover Insurance Company. All three contracts are near completion. They include the stormwater management system improvements to the drainage canal near Godfrey Boulevard, the Phase 5 reconstruction of the terminal apron and the Phase II reconstruction of the cargo apron. Representatives of Vaughn Thibodeau and Sons, Inc. and Hanover Insurance Company have been in contact with the City and the construction projects are proceeding on schedule. Ma er's Comments: PP") Ir/ - Associate Information: Budget Approval: Legal Approval: Introduced for Passage First Reading Referral Head Interim City Manager Page _ of _ FinaWe Director Solicitor 10 192 Assigned to Councilor — Nealley May 24, 2010 CITY OF BANGOR (TIRE.) ORDER, Authorizing Execution Takeover Agreements with Hanover Insurance Company - Vaughn Thibodeau and Sons, Inc. Contracts WHEREAS, the City of Bangor has three construction contracts with Vaughn Thibodeau and Sons,Inc.; and WHEREAS, as part of the contracts the City required Vaughn Thibodeau and Sons, Inc. to provide performance bonds and payment bonds through a Surety for each contract; and WHEREAS, said bonds were provided through Hanover Insurance Company; and WHEREAS, Vaughn Thlbodeau and Sons, Inc. has notified the Surety that it is financially unable to perform or complete the projects; and WHEREAS, the Surety is undertaking the completion of the construction projects in accordance with the terms of the bonds. By the City Council of the City of Bangor. ORDERED, THAT Robert W. Farrar, Interim City Manager, is hereby authorized, on behalf of the City of Bangor, to execute Takeover Agreements with Hanover Insurance Company that will provide that Hanover Insurance Company will arrange to complete the Vaughn Thibodeau and Sons, Inc. contracts with the City of Bangor. Said Agreements will provide that Hanover Insurance Company will subcontract the performance of the contracts with subcontractors who will be bound by the terms of the contract and the balance of funds due Vaughn Thibodeau and Sons will be paid to Hanover Insurance Company. Said Agreements shall be in a final form as approved by the City Solicitor or Assistant City Solicitor. IN CITY COUNCIL May 249 2010 Passed WA (TITLEExecution of TilrPnvPr Agreements with Hanover Insurance CQ=Any - Vaugbn Thibodeau and Sons, Inc. Contracts Assigned to Councilor. r I`