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`