TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 14, 2008
COMMITTEE ON JUDICIARY
Mr. Richard Lanyon, General Superintendent
Title
Request for Approval of Tender Agreement with North American Specialty Insurance Company and Acceptance of the Replacement Completion Contractor, Pipe View LLC., in an Amount Not to Exceed $328,829.68, Contract No 07-653-12
Body
Dear Sir:
The subject contract for Sewer Cleaning at Various Locations was awarded to Municipal Sewer Services, LLC., (“Municipal Sewer”) in an amount not to exceed $638,735.00 on November 26, 2007. The contract was scheduled to terminate on December 31, 2008. On April 17, 2008 the District’s Board of Commissioners authorized that the contract be forfeited due to receipt of a notice from the contractor that the company would cease operations March 31, 2008. By letter dated April 28, 2008, the District made a formal demand upon the bonding company, North American Specialty Insurance Company, (“NAS”) to fulfill its surety obligations and provide a replacement contractor to complete the remaining contract work.
Pursuant thereto, the bonding company has now submitted a Tender Agreement for completion of the contract by Pipe View, LLC., (“Pipe View”). The Maintenance & Operations Department has made a determination that Pipe View is an acceptable replacement completion contractor. Under this agreement, Pipe View agrees to complete the contract for $328,829.68, the amount remaining on the contract and to abide by the terms and conditions of the original contract which are incorporated therein. It will also provide the District with a new contractor’s bond in the amount remaining on the original contract with a surety acceptable to the Purchasing Agent.
The District has paid $260,599.92 to Municipal Sewer under the Contract, and is holding the sum of $49,355.40 for work previously performed by Municipal Sewer, subject to a properly executed Receipt and Release being tendered to the District.
As a result of settlement negotiations, the District, NAS and Pipe View have now come to terms and reached an accord subject to final approval by the Board of Commissioners. Accordingly, the Attorney does hereby recommend the subject Tender Agreement and acceptance of Pipe View as the replacement completion contractor for approval by the Board of Commissioners this date, upon the terms and conditions specified therein and further, the Attorney requests authorization to take all actions necessary to effectuate same.
Requested, Frederick M. Feldman, Attorney, FMF:HSW:JMB:jmb
Respectfully Submitted, Terrence J. O’Brien, Chairman Committee on Judiciary
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for August 14, 2008