HomeMy WebLinkAboutC.C. 18 TRAFFIC SIG'S 01-06-92AGENLA-/_/ _ � � i06S92T CALENDAR N0. 18
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DATE: DECEMBER 23, 1991
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: PUBLIC WORKS/ENGINEERING DIVISION
APPROVAL OF TAKEOVER AGREEMENTS FOR PROJECT NOS. 800032,
SUBJECT: 800038, 800039, 800040, 800041 AND 800043 MODIFICATION OF
VARIOUS TRAFFIC SIGNALS
RECOMMENDATIONS:
In order to expedite the completion of Project Nos. 800032, 800038,
80003910 800040, 800041 and 800043, it is recommended that the City
Council, at their meeting of January 6, 1991, approve the attached
Takeover Agreements w.ith Safeco Insurance Company and authorize the
Mayor to execute same.
BACKGROUND: .
On March 18, 1991, the City Council awarded a contract to
Intersection Maintenance Service Company (IMS) for Capital
Improvement Project Nos. 800032, 800038, 800039, 800040 and 800041
(handled as one project) for the modification of various traffic
signals. On June 16, 1991, the City Council awarded a contract to
the same company, IMS, for Capital Improvement Project No. 800043,
also a traffic signal modification project. Recently, IMS notified
the City that it would be unable to perform on the remainder of
these- contracts. The City Attorney thereupon made a demand on the
surety company, Safeco Insurance Company, to perform the remaining
work. In early December Safeco responded that it would take over
for IMS.
DISCUSSION:
As the surety for IMS, Safeco has arranged for completion of both
projects. Although Safeco, has retained Steiny & Company for the
work, the surety will remain bound to the City to the same extent
as the contractor (IMS) was bound, under the terms and conditions
of the original contracts. Both projects are near completion and
will require a minimal amountof field work. Upon City Council
approval of the Takeover Agreements, staff will arrange a meeting
with Steiny & Co., to discuss the necessary work to be completed, as
well as -a schedule for completion of both projects.
- I � �/-
A,0 Ro11,4
bert S. Led ndec r Kati Pitcher
Director of Public Works/ Administrative Assistant II
City Engineer
RL:KP:ccg:takeover
Attachments
TAKEOVER AGREEMENT
THIS AGREEMENT by and between SAFECO INSURANCE COMPANY
OF AMERICA, a Washington corporation (herein "SAFECO") and
the CITY OF TUSTIN, a municipal corporation (herein "CITY")
is effective December , 1991.
R E C I T A L S
On , 1991, CITY and INTERSECTION
MAINTENANCE SERVICES, a corporation (herein "CONTRACTOR")
entered into a written contract for the construction of
Project No. 800043 (herein "CONTRACT").
On , 1991, CONTRACTOR, as principal,
and SAFECO, as Surety, executed and delivered to CITY
written performance and payment bonds bearing Bond
No. 5680845.
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. 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. Notwithstanding the foregoing, CITY shall comply
with the requirements of California Civil Code 3181 through
3214 regarding Stop Notices for publice works.
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
-2-
orders, including payment therefor, or other documents
reasonably necessary or required to obtain final acceptance
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. 5680845 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 TUSTIN
By
SAFECO INSURANCE COMPANY OF
AMERICA
By
-3-
(1403D]
TAKEOVER AGREEMENT
THIS AGREEMENT by and between SAFECO INSURANCE COMPANY
OF AMERICA, a Washington corporation (herein "SAFECO") and
the CITY OF TUSTIN, a municipal corporation (herein "CITY")
is effective December , 1991.
R E C I T A L S
On , 1991, CITY and INTERSECTION
MAINTENANCE SERVICES, a corporation (herein "CONTRACTOR")
entered into a written contract for the construction of
Project No. 800032, 38, 39, 40 & 41 (herein "CONTRACT").
On
and SAFECO,
as Surety,
written performance and
No. 5680823.
1991, CONTRACTOR, as principal,
executed and delivered to CITY
payment bonds bearing Bond
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. 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. Notwithstanding the foregoing, CITY shall comply
with the requirements of California Civil Code 3181 through
3214 regarding Stop Notices for publice works.
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
-2-
r
orders, including payment therefor, or other documents
reasonably necessary or required to obtain final acceptance
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. 5680823 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.
WE
CITY OF TUSTIN
By
SAFECO INSURANCE COMPANY OF
AMERICA
By
[1469D]