HomeMy WebLinkAboutRESOLUTIONS-2005-075-R-05• 75-R-05 11 /7/2005
A RESOLUTION
Authorizing the City Manager to Enter into a Tender Agreement with
Fidelity and Deposit Company of Maryland to Perform Work to
Construct Bid Item B - Low Lift Pump Unit of the City of Evanston
Water Treatment Facility and to Enter into a Contract for such Project
with R. Machata Construction, Inc.
WHEREAS, on or about May 4, 2004, Advance Mechanical Contractors, Inc.
("AMC') entered into an agreement ("Original Agreement") with the City of Evanston ("City")
to perform all work as set forth in the construction documents, plans, and specifications and
change orders to construct and perform the construction of Bid Item B - Low Lift Pump Unit
at the City of Evanston Water Treatment Facility (the "Project") for the price of four hundred
• seventy-five thousand dollars ($475,000.00), a copy of the Original Agreement is attached
hereto and incorporated herein by reference as Exhibit A; and
WHEREAS, on or about May 4, 2004, Fidelity and Deposit Company of
Maryland (the "Surety") issued a separate Performance Bond and Labor and Material
Payment Bond ("Payment Bond"),each bearing number 08673962, in the penal sum of four
hundred seventy-five thousand dollars ($475,000.00), with the City as oblige, AMC as the
principal, and Fidelity and Deposit Company of Maryland as the Surety. Copies of the
Performance Bond and Payment Bond are attached hereto and incorporated herein by
reference as Exhibit B and Exhibit C, respectively; and
WHEREAS, AMC commenced performance of the Original Agreement; and
is
WHEREAS, on or after January 17, 2005, AMC abandoned work on
the Project; and
75-R-05
WHEREAS, by letter dated April 27, 2005, the City declared AMC in default of •
the Original Agreement "as a result of [AMC's] 'persistent failure to perform in accordance
with the contract documents, including but not limited to, failure to adhere to the progress
schedule pursuant to paragraph 2.07 as adjusted from time to time pursuant to paragraph
6.04' ... ". A copy of said letter is attached hereto as Exhibit D; and
WHEREAS, subsequent to the date of the letter of termination (Exhibit D), the
City made demand upon the Surety to take action under the Performance Bond; and
WHEREAS, the City represents and warrants to the Surety that the unpaid
balance of the Original Agreement is four hundred seventy-five thousand dollars
($475,000.00) (the "Balance of the Contract Price") and that the City has, as of the date of
this Agreement, made no payments to AMC and has not otherwise charged any amount
against the Balance of the Contract Price except as required by 770 ILCS 60/23; and •
WHEREAS, the City has agreed to pay the Balance of the Contract Price to the
Surety or its designee; and
WHEREAS, R. Machata Construction, Inc., ("RMC" or the "Completion
Contractor"), a contractor acceptable to the City, has submitted a written proposal dated
August 4, 2005 to complete the Original Agreement for the sum of four hundred seventy-
eight thousand four hundred seventy-eight dollars ($478,478.00), which is RMC's cost to
complete the Original Agreement. A copy of RMC's written proposal and an executed
contract is attached hereto as Exhibit E; and
WHEREAS, the Surety may, at its option, enter into ratification agreements
with certain labor and/or material suppliers to AMC, whereby such labor and material •
suppliers agree to continue to perform subcontract work or supply materials on the Project,
CPA
75-R-05
• and the Surety contemplates that it shall assign any such ratification agreements
to RMC; and
WHEREAS, the Surety has elected to tender RMC to the City to perform the
Original Agreement, subject to the conditions and limitations contained in this Agreement,
and without waiving its rights and equities against AMC arising out of the Original Agreement,
and reserving all rights, defenses, and equities which are available to the Surety under
applicable law and existing agreements including, without limitation, that a certain General
Agreement of Indemnity executed by AMC and others in favor of the Surety; and
WHEREAS, the acceptance of this Tender Agreement is the best interests of
the citizens of the City of Evanston; and
WHEREAS, the RMC proposal -and executed contract (Exhibit E) to complete
• the project is in the best interest of the City; and
WHEREAS, the City has agreed to accept the tender of RMC as the
Completion Contractor in accordance with the terms and conditions of this Agreement;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF EVANSTON, COOK COUNTY, ILLINOIS:
SECTION 1: That the City Manager is hereby authorized and directed to sign,
and the City Clerk hereby authorized and directed to attest on behalf of the City of Evanston
a contract between RMC and the City of Evanston (Exhibit 2) for the completion
of the project.
SECTION 2: That the City Manager is hereby authorized and directed to sign,
• and the City Clerk hereby authorized and directed to attest on behalf of the City of Evanston
a Tender Agreement between the City and Fidelity and Deposit Company of Maryland. Such
-3-
75-R-05
Tender Agreement shall be in substantial conformity with the Tender Agreement marked as •
Exhibit 1 attached hereto and incorporated herein by reference.
SECTION 3: That the City Manager is hereby authorized and directed to
negotiate any additional terms and conditions of the Tender Agreement as may be
determined to be in the best interests of the City.
SECTION 4: That this Resolution shall be in full force and effect from and
after its passage and approval in the manner provided by law.
Attest:
Mary P. r ity Clerk
Adopted: CLQU4'VdLU-12—,2005
�I drraine H. Morton, ayor
•
-4-