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Home My WebLink About2.e. Ratify Default on 2007 Street Improvements Project, Project #410�tROSEMO EXECUTIVE SUMMARY CITY COUNCIL City Council Meeting: July 20, 2010 AGENDA ITEM: Ratify Default on 2007 Street AGENDA SECTION: Improvements Project, City Project #410 Consent PREPARED BY: Andrew J. Brotzler, PE, Director f ublic AGENDA NO. Works /City Engineer ' ATTACHMENTS: Project Punch List, Notice of Interif Letter to Declare Default to United Fire & Casualty and Sammon Parker APPROVED BY: Construction, Letter from United Fire Group RECOMMENDED ACTION: Motion to ratify default and termination of contract to Sammon Parker Construction and United Fire and Casualty Company on the 2007 Street Improvements Project, City Project #410. BACKGROUND: The two year warranty period for the 2007 Street Improvements Project is scheduled to expire August 4, 2010. The contractor, Sammon Parker Construction, has failed to complete the project punch list (see attached) itemizing the required warranty work. The estimated cost to complete the work is $11,720. On June 28, 2010, the City sent a letter by certified mail for the Notice of Intent to Declare Default to Sammon Parker Construction and the Surety Company (United Fire and Casualty Company). The letter notified the two companies that Sammon Parker Construction was in default of the contract for not completing the work as required by the two year warranty period. A meeting was scheduled with the contractor for July 2, 2010; however the contractor did not attend or contact the City to reschedule. The City attorney is currently drafting a letter declaring that Sammon Parker Construction is in default of the contract and that the City is terminating their contract. The letter is scheduled to be mailed out July 19, 2010 to Sammon Parker Construction and the Surety Company. The City attorney is also drafting a letter to the Surety Company to demand that they promptly make arrangements to perform the warranty work as itemized on the project punch list and notify the City of their plan. An additional notice of default would be required for the Surety Company if they do not respond with a plan to complete the work. SUMMARY: Upon recommendation from the City attorney's office, Staff is recommending that Council ratify default and termination of contract. G: \ENGPROJ \410 \20100720 CC Ratify Default.doc 2007 Street Improvement Project - Warranty Punchlist WSB Project #: 1556 -89 Rosemount Project #: 410 Date:6 /21/10 Please Contact Joe Koscielak at 612 - 360 -1287 prior to beginning work. Item # Description Location Date Accepted 1 Remove and Replace Cracked Curb and Gutter (10') SW Corner 145th Street /Biscayne Way 2 ISaw and Seal Curb and Gutter NW Corner 145th Street /Biscayne Way 3 Saw and Seal Curb and Gutter 14575 Biscayne Way 4 Saw and Seal Curb and Gutter Between 14605 Biscayne Way and 14615 Biscayne Way 5 Remove and Replace Curb and Gutter (3') 14655 Biscayne Way (no mark) 6 Remove and Replace Curb and Gutter (3') 14665 Biscayne Way (no mark) 7 Remove and Replace Curb and Gutter (9') 14685 Biscayne Way 8 Saw and Seal Curb and Gutter 14590 Biscayne Way 9 Remove and Replace Cracked Driveway Panel 14640 Biscayne Way 10 Remove and Replace Cracked Pedestrian Ramp (2 Panels) Next to Lower 147th and Cambrian Intersect Sign 11 Remove and Replace Cracked Pedestrian Ramp Sidewalk (1 Panel) Next to Lower 147th and Cambrian Intersect Sign 12 Remove and Replace Driveway Wing 14790 Cambrian Avenue 13 Replace Dead Spruce Tree Patch of Planted Trees Across from Rudy's Red Eye Grill 14 Replace or overlay settled areas of bituminous path Between Cambrian Avenue and Camero Ln 15 Saw and Seal Curb and Gutter 14825 Camero Lane 16 Remove and Replaced Cracked Driveway Panel 14805 Camero Lane 17 Remove and Replace Cracked Driveway Win House Across from 14720 CambrianAvenue 18 Saw and Seal Curb and Gutter House Across from 14720 Cambrian Avenue 19 Remove and Replace Driveway Panels 14820 Camero Lane 20 Saw and Seal Curb and Gutter 14755 Cambrian Avenue 21 Saw and Seal Curb and Gutter 14755 Cambrian Avenue 22 Saw and Seal Curb and Gutter 14755 Cambrian Avenue near Stop Sign 23 Remove and Replace DWY Panel 14800 Camero Lane 4ROSEMOUNT PUBLIC WORKS DEPARTMENT June 28, 2010 VIA CERTIFIED MAIL United Fire & Casualty Company PO Box 73909 Cedar Rapids, IA 52407 -3909 Sammon Parker Construction, Inc. 16810 Bagley Avenue Faribault, MN 55021 Re: Bond No. 54- 166460 2007 Street Improvement Project City Project No. 410 NOTICE OF INTENT TO DECLARE DEFAULT Dear Sir or Madam: Please take notice that the City intends to declare Sammon Parker Construction, Inc. ( "Contractor's in default of the Contract for the above - referenced project if satisfactory plans are not made to complete the warranty work as itemized on the attached punch list. The Contractor, under the terms of the Contract, warranted its work, equipment, and materials for a period of two years from the date of final payment. As Surety, United Fire & Casualty Company issued the above - referenced bond, thereby binding itself to the City for the Contractor's performance of the warranty work. The warranty work must be completed as itemized on the attached punch list. We are holding a meeting at the office of the City Engineer, in Rosemount City Hall, on July 2, 2010 at 9:00 a.m. to review the Contractor's arrangements to perform the warranty work. Promptly advise the City Engineer at 651 - 322 -2025 if you are not available and propose alternate dates for the meeting. The meeting must be held within fifteen (15) days of your receipt of this letter. If you do not intend to perform the work, promptly advise. If the Contractor does not present satisfactory arrangements to perform the warranty work, the City will declare the Contractor in default and terminate its right to complete the work. Thank you for your prompt attention to this matter. Sincerely, Andrew J. Brotzler, PE City Engineer Enclosure cc: Dean Sammon: dsammon @myclearwave.net Charlie L. LeFevere, Esq. G: \ENGPROJ \410 \06282010 Notice of intent to declare default - 370906v1.docx SPIRIT OF PRIDE AND PROGRESS 2875 145th Street West • Rosemount, MN 55068 -4997 •651- 423 -4411 • TDD/TTY 651- 423 -6219 - Fax 651 - 322 -2694 www.ci.rosemount.mmus Un UNITED FIRE GROUP Surety Department July 1, 2010 City of Rosemount 2875 - 145th Street West Rosemount, MN. 55068 -4997 ATTENTION: Andrew J. Brotzler, PE RE: PRINCIPAL: Sammon Parker Construction, Inc. BOND NO.: 54- 166460 Dear Mr. Brotzler: We are in receipt of your letter dated June 28, 2010. United Fire & Casualty Company United Life Insurance Company Addison Insurance Company Lafayette Insurance Company United Fire & Indemnity Company United Fire Lloyds Texas General Indemnity Company United Fire & Casualty Company, as Surety, is presently conducting an investigation into your claim. Neither this letter, or any investigation undertaken by Surety, should be construed to be a waiver of any of our rights under the bond. We will be back in contact with you upon completion of the investigation. Sincerely, UNITED FIRE & CASUALTY COMPANY Steven C. Watters Senior Surety Claims Representative SCW:mld cc: Sammon Parker Construction, Inc. (Mr. Dean Sammon) Klein Agnecy, Inc. 20 -3414 HOME OFFICE: 118 Second Ave. SE, PO Box 73909, Cedar Rapids, IA 52407 -3909 Phone: 319 - 399 -5700 FAX: 319 - 286 -2520 www.unitedfiregroup.com