R-89-1323 - 8/24/1989WHEREAS, the City of Round Rock ( "City ") entered into a contract
with W. L. Wood Excavation ( "Wood ") for certain improvements to East
Main Street and Circle Drive, and
WHEREAS, Wood provided performance and payment bonds from
National Surety Corporation ( "Surety ") for the project, and
WHEREAS, Wood failed to complete the contract and the City
directed Surety to complete the contract, and
WHEREAS, Surety arranged for J. C. Evans Construction Company to
complete the contract work, and upon completion there exists a
contract balance of $54,829.67, and
WHEREAS, an Agreement has been proposed whereby the City retains
$15,000.00 as liquidated damages and the balance of $39,829.67 is
paid to Surety, and
WHEREAS, the Council wishes to approve said Agreement, Now
Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS,
That the Mayor is hereby authorized to execute on behalf of the
City an Aareement with National Surety Corporation, a copy of said
Agreement being attached hereto and incorporated herein for all
purposes.
RESOLVED this 24th day of August, 1989.
ATTEST:
ANNE LAND, City Secretary
C- RS08249H
RESOLUTION NO. /33 R.
MIKE ROBINSON, Mayor
City of Round Rock, Texas
A G R E E M E N T
This agreement has entered into this day of August 1989,
between the National Surety Corporation and (Surety) and The City of
Round Rock Texas (City).
R E C I T A L S
1. Surety executed and delivered to The City its performance and
payment bonds no. 524 3502 dated September 2, 1987 in the
penal amount sum of $391,975.25, covering certain agreements
between W.L. Wood Excavation (Wood) and The City, dated
September 10, 1987, identified as project 103 - 1517 -38,
Main Street - Circle Drive.
2. W.L. Wood Excavation failed to complete the contract and The City
terminated its right to proceed under the contract effective June
5, 1988. At that time The City directed the Surety to complete
the work of the contract.
3. In fulfillment of his obligations under said bond, Surety
arranged for a completion proposal by J.C. Evans (Evans)
Construction Company to complete the contract work of Wood.
A contract to complete the work was entered into on
June 13, 1988, between The City and Evans for an amount of
$112,445.10, and included the obligations of the Surety
under a maintenance bond dated September 2, 1987. At that time
sufficient funds remained in the contract balance to complete the
work under the Evans contract.
4. Evans satisfactorily completed the contract work and there
remained upon completion a contract balance of $54,829.67. A
dispute arose between The City and the Surety over the question of
liquidated damages. The Surety questioned the right of The City
to impose liquidated damages, and The City feels it has the right
to impose such damages.
Now therefore, the parties wish and intend to resolve all
outstanding claims, obligations, and liabilities and agree as
follows:
1. The City acknowledges the completion and acceptance of contract
no. 103 - 1517 -38 and that there remains in contract balance,
the sum of $54,829.67.
2. Each party retains its position on the disputed question of
liquidated damages, but to resolve its differences, each agrees
to compromise on its original demands.
3. The Surety will pay and The City will accept in satisfaction of
its claim for liquidated damages, the sum of $15,000.00 and
further agrees to pay, within 15 days of execution of this
agreement, to the Surety, the remaining contract balance of
$39,829.67.
4. This agreement resolves between parties, all causes of action,
damages, claims and demands whatsoever, in law and in equity,
which each party ever had, now has, or which it may aquire
against the other, and that all rights and obligations of either
party arising out of, through, or under the bonds or contract are
herein extinguished.
5. The City herein assigns and sets over to the Surety, its
successors and assigns, for its and their own use and benefit
forever, all claims, demands and causes of actions whatsoever, at
law or in equity, which The City now has against Wood.
Dated in Round Rock, Texas this a 4 day of August 1989
City of Roun�ck�
By:
Title
R.ownd. lei:)/Ck) i-t4aOJ
City Counsel Resolution Attached
Dated in Rolling Meadows, Illinois this j.- day of August 1989,
National Surety Corporation by
WJS /45- 48 /scl
Title
DATE: August 21, 1989
SUBJECT: Council Agenda, August 24, 1989
ITEM: 12H. Consider a resolution authorizing the Mayor to enter into an
agreement with Fireman's Fund Insurance regarding final
disbursement on the East Main Street Project.
STAFF RESOURCE PERSON: Jim Nuse
STAFF RECOMMENDATION:
This Agreement will finalize the East Main Street Project. There is
$54,829.67 left in the project account. The Agreement provides that the
City will retain $15,000.00 as liquidated damages. The balance of $39,829.67
will be released to the bond company. Staff recommends approval.
ECONOMIC IMPACT:
City retains $15,000.00 as liquidated damages.
DATE: August 21, 1989
SUBJECT: Council Agenda, August 24, 1989
ITEM: 12H. Consider a resolution authorizing the Mayor to enter into an
agreement with Fireman's Fund Insurance regarding final
disbursement on the East Main Street Project.
STAFF RESOURCE PERSON: Jim Nuse
STAFF RECOMMENDATION:
This Agreement will finalize the East Main Street Project. There is
$54,829.67 left in the project account. The Agreement provides that the
City will retain $15,000.00 as liquidated damages. The balance of $39,829.67
will be released to the bond company. Staff recommends approval.
ECONOMIC IMPACT:
City retains $15,000.00 as liquidated damages.
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WHEREAS, the City of Round Rock ( "City ") entered into a contract
with W. L. Wood Excavation ( "Wood ") for certain improvements to East
Main Street and Circle Drive, and
WHEREAS, Wood provided performance and payment bonds from
National Surety Corporation ( "Surety ") for the project, and
WHEREAS, Wood failed to complete the contract and the City
directed Surety to complete the contract, and
WHEREAS, Surety arranged for J. C. Evans Construction Company to
complete the contract work, and upon completion there exists a
contract balance of $54,829.67, and
WHEREAS, an Agreement has been proposed whereby the City retains
$15,000.00 as liquidated damages and the balance of $39,829.67 is
paid to Surety, and
WHEREAS, the Council wishes to approve said Agreement, Now
Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS,
That the Mayor is hereby authorized to execute on behalf of the
City an Agreement with National Surety Corporation, a copy of said
Agreement being attached hereto and incorporated herein for all
purposes.
RESOLVED this 24th day of August, 1989.
ATTEST:
JOANNE LAND, City Secretary
C- RS08249H
RESOLUTION NO.
MIKE ROBINSON, Mayor
City of Round Rock, Texas
AGREEMENT
This agreement has entered into this day of August 1989,
between the National Surety Corporation and (Surety) and The City of
Round Rock Texas (City).
RECITALS
1. Surety executed and delivered to The City its performance and
payment bonds no. 524 3502 dated September 2, 1987 in the
penal amount sum of $391,975.25, covering certain agreements
between W.L. Wood Excavation (Wood) and The City, dated
September 10, 1987, identified as project 103 - 1517 -38,
Main Street - Circle Drive.
2. W.L. Wood Excavation failed to complete the contract and The City
terminated its right to proceed under the contract effective June
5, 1988. At that time The City directed the Surety to complete
the work of the contract.
3. In fulfillment of his obligations under said bond, Surety
arranged for a completion proposal by J.C. Evans (Evans)
Construction Company to complete the contract work of Wood.
A contract to complete the work was entered into on
June 13, 1988, between The City and Evans for an amount of
$112,445.10, and included the obligations of the Surety
under a maintenance bond dated September 2, 1987. At that time
sufficient funds remained in the contract balance to complete the
work under the Evans contract.
4. Evans satisfactorily completed the contract work and there
remained upon completion a contract balance of $54,829.67. A
dispute arose between The City and the Surety over the question of
liquidated damages. The Surety questioned the right of The City
to impose liquidated damages, and The City feels it has the right
to impose such damages.
Now therefore, the parties wish and intend to resolve all
outstanding claims, obligations, and liabilities and agree as
follows:
1. The City acknowledges the completion and acceptance of contract
no. 103- 1517 -38 and that there remains in contract balance,
the sum of $54,829.67.
2. Each party retains its position on the disputed question of
liquidated damages, but to resolve its differences, each agrees
to compromise on its original demands.
3. The Surety will pay and The City will accept in satisfaction of
its claim for liquidated damages, the sum of $15,000.00 and
further agrees to pay, within 15 days of execution of this
agreement, to the Surety, the remaining contract balance of
$39,829.67.
4. This agreement resolves between parties, all causes of action,
damages, claims and demands whatsoever, in law and in equity,
which each party ever had, now has, or which it may aquire
against the other, and that all rights and obligations of either
party arising out of, through, or under the bonds or contract are
herein extinguished.
5. The City herein assigns and sets over to the Surety, its
successors and assigns, for its and their own use and benefit
forever, all claims, demands and causes of actions whatsoever, at
law or in equity, which The City now has against Wood.
Dated in Round Rock, Texas this day of August 1989
City of Round Rock, Texas
By:
Title
City Counsel Resolution Attached
Dated in Rolling Meadows, Illinois this pe■ day of August 1989,
National Surety Corporation by
WJS /45- 48 /scl