|City of Independence|
|AGENDA ITEM COVER SHEET|
Council action is requested to authorize the City Manager to enter into a tender agreement with the surety, North American Specialty Insurance Company. This tender agreement will result in hiring the Completion Contractor, Lineaweaver Construction, to complete the construction contract for the Walnut Gardens Phase 2 Stormwater Improvements project (project number 131809) for an amount not to exceed $353,781.78, authorizing future minor change orders for an amount not to exceed $33,859.15 and/or time extensions.
Review has been completed by Law, Municipal Services, and Finance/Administration. Approval of the tender agreement is recommended.
Approval is requested for the City Manager to enter into a tender agreement with the Surety, North American Specialty Insurance Company, to hire the Completion Contractor, Lineaweaver Construction, and pay the additional costs for the Completion Contractor to construct the Walnut Gardens Phase 2 Stormwater Improvements (project number 131809).
In July 2020, the Walnut Gardens Phase 2 Stormwater Improvements project (project number 131809) was bid, and the lowest bidder was awarded the contract in August 2020. In January 2021, the Original Contractor notified the City that they were unable to perform all necessary construction for the Walnut Gardens Phase 2 Stormwater Improvements. In February 2021, the Original Contractor defaulted on the contract, resulting in the Surety, North American Specialty Insurance Company, being responsible for finding another contractor, a Completion Contractor, to complete the construction. At the time of default, there was no work completed at the time by the Original Contractor.
The Surety has proposed the tender agreement to set forth Lineaweaver Construction as the Completion Contractor. Under this agreement, the Surety finds the Completion Contractor and is financially responsible for any costs above the original construction contract costs. Lineaweaver Construction was originally the second lowest bidder in the original July 2020 bids. This will require the Surety to make payment for the additional costs of the Completion Contractor, a total of $15,189.78, and release the Surety and the Original Contractor from all claims and liabilities following the execution of this agreement.
The fiscal impact to the City is $387,640.93. Funding for the Walnut Gardens Phase 2 Stormwater Improvements is included in the 2019 adopted budget, page 146, account number 7013 5406.
The project received a clear water SRF stormwater grant for an amount of $128,694.50. This revenue will be deposited in account number 7013 5406 in the Stormwater Sales Tax fund.
Revenue from the Surety under the terms of the agreement are $15,189.78. Revenue will be deposited in account number 7013 5406 in the Stormwater Sales Tax fund.
|Department: Municipal Services||Contact Person: Lisa Phelps|
|Public Works Department||Approved|
|City Managers Office||Approved|
|City Clerk Department||Approved|
|Council Action: ||Council Action: |