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HomeMy WebLinkAboutAGENDA REPORT 1992 0108 CC SPC ITEM 08I 1 1 PQPpK Cy` az• Fo �`o9 MOORPARKITEM ,ortill 1111107' 1 �y"11 '� 799 Moorpark Avenue Moorpark, California 93021 (805) 529-6864 9 a rEO MEMORANDUM TO: The Honorable City Council FROM: Kenneth C. Gilbert, Director of Public Works ? OORPARK, CALIFORNIA aiy Council Meering DATE: December 30, 1991 (City Council: 1-8-92) c)f 199 SUBJECT: Consider Approval of a Takeover Agreement AcTION: Related to the Construction of a Traffic Signal at the Intersection of Peach Hill Road and --"e / /l r/ Spring Road By tC4.-t— OVERVIEW The Contractor for the subject project (Intersection Maintenance Services) has defaulted on the contract. The Surety Company which issued the Performance Bond for the project is SAFCO Insurance Companies. This requests approval of an Agreement between the City and SAFCO related to their efforts to complete the project. DISCUSSION A. Background Last June, the City awarded a contract for the subject project to Intersection Maintenance Services (IMS) . As provided for in the specifications, the Notice to Proceed with Procurement of the traffic signal controller and other equipment was delayed to allow for the construction of the street improvements required by the Presbyterian Church project at the southeast corner of the intersection. In order to preclude the need to excavate these newly constructed improvements, the street improvement plans for the church project included the placement of much of the traffic signal conduits. The City was advised that IMS was retained by the Contractor constructing these street improvements, to undertake the construction of the traffic signal substructures required by the street improvement plans. Again, in order to preclude re-excavation, IMS was permitted to undertake construction of some of the traffic signal project improvements in conjunction with the above described efforts. PAUL W LAWRASON JR. BERNARDO M. PEREZ SCOTT MONTGOMERY ROY E. TALLEY JR. JOHN E. WOZNIAK Mayor Mayor Pro Tern Councilmember Councilmember Councilmember Printed On Recycled Paper Traffic Signal Takeover Agreement January 8, 1992 Page 2 B. Default In early December, the City was notified (Exhibit 1) by SAFCO that IMS was financially unable to complete the project and that SAFCO, through its contractor, Steiny & Company, would be taking over the project. In a subsequent letter (Exhibit 2) from SAFCO's Attorney, the City was asked to execute the attached Takeover Agreement (Exhibit 3) related to these efforts. C. Project Status Project construction is approximately twenty per cent complete. There have been no Progress Payments made on this project. RECOMMENDATIONS Approve an attached Takeover Agreement, subject to final language approval by the City Manager and City Attorney, and authorize the Mayor to execute same. C;rpt\sp_ph3 c' , DEC 11 '91 12:03 P.2 SAFECO tXwi SI" l C of 21 SAFECO INSURANCE COMPANIES TELEPHONE (818) 892.8660 SURETY DEPARTMENT PACIFIC SOUTHWEST REGIONAL OFFICE 16320 ROSCOE BOULEVARD VAN NUYS, CA 91406 Writer's Direct Line (818) 895-3663 December 10, 1991 VIA FAX 805-529-5416 Mr. Dirk Lovett, Assistant City Engineer City of Moorpark 111 (A) Poindexter Avenue Moorpark, CA 93021 Dear Mr. Lovett: Principal : I.M.S. , Inc. Bond : 5680842 S.M.S. Job No. : 1048 Enclosed is our principal's letter of December 4, 1991 acknowledging their default with respect to their contract to complete the above-referenced work. Accordingly, SAFECO is in the process of arranging for completion of the remaining work on this job. It is our intention to enter into a takeover agreement with you and retain a completing contractor to finish the project. We are in the process of arranging for Steiny & Company, Inc. as our completing contractor, We would appreciate your forwarding to Mr. David Chadbourne, of Steiny & Company, any information he would need to facilitate and expedite the taking over of this work. His telephone number is 714-441-0255. If you should have any questions or comments, please don't hesitate to contact me. Sincerely yours, Hani. Rizkalla Surety Claims HR/11/IMS/2/TU Enc. SAFECO INSURANCE COMPANY OF AMERICA SAFECO IJFE INSURANCE COMPANY GENERAL INSUNANSU COMPANY OF AMERICA FIRST NATIONAL INSURANCE COMPANY OF AMERICA PACO NATIONAL INSURANCE COMPANY WECO NATIQNAL U.E NSURANCE COMPANY •FCO INSURANCE COMPANY OF IUJNOIS DEC 11 '91 1E:©4 P.3 r': ► • P,10 • Err AT t a) Intersection Maintenance Service 244 East Avenue K-4 Lancaster, California 93535 December 4 , 1991 Safeco Insurance Company 16320 Roscoe Boulevard Van Nuys, California 91409 City of Moorpark PLNC / S P lZtAIG Res aoladeadear Traffic Signal SMS Job No. 1048 Safeco Bond No. 5680842 Gentlemen: This is to acknowledge that the undersigned is financially unable to complete the construction contract referred to above or to pay for the required labor and materials 11000ooAry for the pro5ocutluii vC thG work covered by the referenced contract. By reason of the undersigned' s admitted default regarding this contract, we request our surety, Safeco Insurance Company of America, to take appropriate action to arrange for completion of this project in accordance with the Safeco bond referred to above. The undersigned waives notice of default under said contract. Intersection Maintenance Service A . #BY: ;,,ti . � • ;.,,•.' ;,, •.•,rJ. • RECEWED 1 't4%'1 2. DEC 1 6 1991 BOOTH, MITCHEL & STRANGE GEORGE C MITCHEL WALTER B.HILL JR BATES BOOTH 1903-1967 OWEN W.STRANGE DENNIS M SUPANICH ATTORNEYS NORMAN R. WILLIAN 1917-1968 WILLIAM F RUMMLER ROBERT H.BRIGGS MICHAEL T LOWE EILEEN ROBINSON DAVID 5 AIKENHEAD DAVID R KIPPER 30TH FLOOR • EQUITABLE PLAZA OF COUNSEL MICHAEL D KELLOGG MARLA LAMEDMAN KELLEY _ ANDREW GIBES KEVIN K CALLAHAN 3435 WILSHIRE BOULEVARD PAUL R HOWELL JOSEPHA BURROW ROBERT F KEEHN DAVID L. HUGHES SETH W WHITAKER LOS ANGELES, CALIFORNIA 90010-2050 TELEPHONE 1213) 738-0100 ORANGE COUNTY OFFICE ELIZABETH C BONN STEVEN N MITCHEL SHAWNEES BROWNE ROBERT C NIESLEr 3080 BRISTOL STREET, SUITE 550 DANIEL M CROWLEY MICHAEL L PARKER FAX 1213) 380-3308 G.STUART EWY DAVID J PIKULIN P 0 BOX 5046 DAVID R FLYER JORDAN 0 PISTOL CRAIG C GUENTHER DANIEL F REARDON COSTA MESA, CALIFORNIA 92828.5046 CHRISTINE C HADDAD KAREN L SCHWARTZ TELEPHONE (714) 641-0217 WILLIAM M.ISE JAMES G.STANLEY December 13 , 1991 FAX (714) 957-0411 IN REPLY REFER TO VIA FEDERAL EXPRESS CITY OF MOORPARK 111 (A) Poindexter Avenue Moorpark, California 93021 Attention: Mr. Dirk Lovett Assistant City Engineer Re: IMS, Inc. Safeco Bond • 5680842 11� Project PQesdt 411Sff,1 Traffic Signal Our File No. • 17402 Gentlemen: We are attorneys for Safeco Insurance Company of America ("Safeco" ) with regard to the above matter. Mr. Hani Rizkalla has requested that we forward the proposed Takeover Agreement in connection with the above project directly to you for your review. Accordingly, I am enclosing herewith the original and copies of a proposed Takeover Agreement for this project. If this agreement meets with your approval, kindly have the same executed by the City and return two signed copies of it to me . I will have Safeco execute the same and return a fully executed copy. I will be pleased to discuss any of the foregoing with you at your convenience. Very truly yours, GEO'GE C. MITCHEL GCM:pbr Enclosures cc: Mr. Hani Rizkalla r)(4)1A-1 3 lor" 3 TAKEOVER AGREEMENT THIS AGREEMENT by and between SAFECO INSURANCE COMPANY OF AMERICA, a Washington corporation (herein "SAFECO") and the CITY OF MOORPARK, a municipal corporation (herein "CITY") is effective December _, 1991. RECITALS On , 1991, CITY and INTERSECTION MAINTENANCE SERVICES, a corporation (herein "CONTRACTOR") entered into a written contract for the construction of Poindexter Traffic Signal (herein "CONTRACT") . On , 1991, CONTRACTOR, as principal, and SAFECO, as Surety, executed and delivered to CITY written performance and payment bonds bearing Bond No. 5680830 . On December 4, 1991, CONTRACTOR acknowledged, in writing, that it is financially unable to complete the work covered by the CONTRACT and requested that SAFECO arrange for completion of the work covered by the CONTRACT. NOW, THEREFORE, the parties agree as follows : 1 f Erc 3 (z$ 3 1. SAFECO shall take over and arrange for completion of the work covered by the CONTRACT. SAFECO shall be bound to the CITY to the same extent as the CONTRACTOR is bound to the CITY under the terms and conditions of the CONTRACT and SAFECO shall be entitled to all of the rights and remedies of the CONTRACTOR under the CONTRACT. 2. CITY acknowledges that SAFECO has a prior equitable right to receive all contract proceeds upon completion of the work covered by the contract. Accordingly, notwithstanding any levy on contract proceeds by the Internal Revenue Service or otherwise, CITY shall pay to SAFECO all amounts to be paid by CITY to CONTRACTOR under the CONTRACT at the times, in the amounts, and under the procedures according to the terms and conditions of the CONTRACT. 3 . SAFECO intends to relet the completion of the work covered by the CONTRACT to STEINY AND COMPANY, INC. , a licensed contractor (herein "STEINY") . CITY consents to STEINY completing said work. STEINY shall be SAFECO' s representative with regard to completion of the work covered by the CONTRACT. STEINY shall prepare and submit to the CITY on behalf of SAFECO all documents necessary or required regarding scheduling, drawings, plans, materials, testing, processing of pay estimates, change orders or extra work orders, including payment therefor, or other documents reasonably necessary or required to obtain final acceptance -2- , , P EX 3 ( 3 o$ 3) of the work called for by said CONTRACT and payment therefor as provided by the CONTRACT. 4 . SAFECO hereby acknowledges and affirms that its Performance and Payment Bonds No. 5680842 wherein CITY is obligee remain in full force and effect. Anything in this agreement to the contrary notwithstanding, SAFECO' s liability under this agreement and under said bonds shall be limited in the aggregate to the respective penal sums set forth in said bonds . 5. All payments made by SAFECO to STEINY on account of the work covered by the contract shall be deemed to be payment on SAFECO' s performance bond. 6 . This agreement shall be binding on CITY and SAFECO, their successors and assigns . CITY OF MOORPARK By SAFECO INSURANCE COMPANY OF AMERICA By [1416D] -3-