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, Radamacher Brothers Excavating Co. Inc., and pay the additional costs for the Completion Contractor to construct the Blue Lawn Storm Drainage Improvement Project (No. 131603).

In May 2020, the Blue Lawn Storm Drainage Improvement Project (No. 131603) was bid, and the lowest bidder was awarded the contract.  In February 2021, the Original Contractor notified the City that they were unable to perform all necessary construction for the Blue Lawn Storm Drainage Improvement Project and 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. 

The Surety has proposed the tender agreement to set forth Radamacher Brothers Excavating Co. Inc. as the Completion Contractor. Radamacher Brothers Excavating Co. Inc. was a bidder in the original May 2020 bid.   Under this agreement, the Surety finds the Completion Contractor and is financially responsible for any costs above the original construction contract costs.  This will require the Surety to make payment for the additional costs of the Completion Contractor, a total of $53,345.83 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 $299,801.  Funding for the Blue Lawn Storm Drainage Improvement Project is included in the 2017-18 adopted budget, page 286, account number 7013 5406. 

Revenue from the Surety under the terms of the agreement are $53,345.83.  Revenue will be deposited in account number 7013 5406 in the Stormwater Sales Tax fund.