CITY OF MOSES LAKE CITY OF MOSES LAKE STAFF REPORT

To: John Williams, City Manager

From: Gilbert Alvarado, Community Dev. Dir./Deputy City Manager

Date: April 25, 2017

Proceeding Type: Motion

Subject: Pacific Northwest Mechanical- 6171 S. Frontage Road - Performance Savings Bond Extension Request

Legislative History: • First Presentation: April 25, 2017 • Second presentation: • Action: Motion

Staff Report Summary

Attached is a copy of the performance savings bond for Pacific Northwest Mechanical. The bond expired on April 14, 2017. A notice of expiration was sent to Business Owner, Lee Gerber on April 11, 2017. Mr. Gerber responded by explaining; due to scheduling backlog, the asphalt company could not confirm completion date for his project. Therefore, the extension was requested.

Background

The City accepted a performance savings bond in the sum of $20,918 from Pacific Northwest Mechanical on April 15, 2015, for asphalt and parking lot striping. The bond came due on April 14, 2017.

Fiscal and Policy Implications

None

Options

Page 1 of2 Option I Results

• Approve a six month extension of the 1· Additional time allotted would allow the Performance Savings Bond for Pacific I owner to complete the required work Northwest Mechanical. I

• Take no action. Measures would have to be taken to call in the performance savings bond.

Staff Recommendation

City Staff recommends approval of the extension for a six month period in order to complete the required work.

Attachments

A. Performance Saving Bond and Bid Sheet from Central Washington Asphalt, Inc.

B. Maps (2)

c. Expiration Letter

Legal Review

The following documents are attached and subject to legal review:

Type of Document Title of Document Date Reviewed by Legal Counsel

•

Page 2 of 2 PERFORMANCE BOND/SAVINGS ACCOUNT

Statement of Suretvship

1.1 Principal: Principal on this bond is Lee and C. Sue Gerber, Trustees, Blue Sky Revocable Trust.

1.2 Surety: The principal is also the surety.

1.3 Penal Sum: Principals are, by execution of this bond, to be jointly and severally held and firmly bound to the City of Moses Lake, Washington in the penal sum of twenty thousand nine hundred eighteen dollars ($20,918).

1.4 Payment: Principals jointly and severally bind themselves, their successors, heirs, administrators, personal representatives, or receivers, as the case may be, to pay to the City of Moses Lake, Washington, upon demand of the City of Moses Lake, Washington, communicated to either or both of them, the penal sum stated.

2. Conditions of Bond Obligation

2.1 Bond Requirement: The obligation of principals to pay the penal sum to the City of Moses Lake, Washington on the city's demand is entered into to allow the principals to proceed to complete certain obligations imposed upon the principals in connection with the development of 6171 S. Frontage Road E. within the City of Moses Lake, Washington.

2.2 Condition of Demand: The City of Moses Lake, Washington shall make demand upon the principals or either of them only upon a determination, in the sole discretion of the City of Moses Lake, that the principals have failed to perform the obligation imposed by the city.

2.3 Statutes and Ordinances: This obligation is undertaken and entered into by principals being mindful that the statutes of the State of Washington and the ordinances of the City of Moses Lake, Washington which are incorporated by reference as if set forth fully herein, are the law governing this obligation.

2.4 Plat Obligation: Principals are required to perform the following obligations in connection with the development of the above referenced project:

Work listed on the bid supplied by Central Washington Asphalt dated October 29, 2014, which includes hard surface area for 10 required 9' x 1O' parking spaces, drive aisle, and striping.

3. Obligation of Principals

3.1 Principal: Principals agree to perform or cause to be performed all things necessary to satisfy the obligations listed in 2.4 in compliance with City of Moses Lake ordinances and/or community standards and administered by the City of Moses Lake, Washington within twenty-four (24) months from the date of the execution of this bond. Upon completion and acceptance of work satisfying the listed obligations or principals, or a portion thereof, the Moses Lake City Engineer may approve, in his sole discretion, a reduction in bond requirements or release of the bond.

3.2 Subsequent to Acceptance of Work: Principals agree that after the Moses Lake City Engineer accepts the work satisfying all obligations imposed upon the principals, as stated under 2.4 or as altered as provided by law, and after the expiration of all lien periods, and if there are no liens pending, then the penal sum of this bond shall be deemed to insure against defects appearing or developing in the material or workmanship provided or performed in satisfaction of the obligation of principal under this bond within a period of twelve (12) months after the acceptance by the City Engineer. Furthermore, notwithstanding the reduction of this bond, the principals agree to hold the City of Moses Lake harmless from all defects appearing or developing in the material or workmanship provided or performed under this agreement within a period of twenty-four (24) months after acceptance by the City Engineer. The obligation of the principals for defects stated above shall be at 10% of the penal sum of this bond notwithstanding any reduction in the bond amount authorized by the Moses Lake City Engineer pursuant to 3.1.

4. Alternative to Bond: As provided by law, the principals have deposited into a savings account with any bank or savings and loan association or credit union authorized to do business in the State of Washington in a branch located in Grant County, Washington the sum of twenty thousand nine hundred eighteen dollars ($20,918). The City of Moses Lake has been named as the only authorized drawer of that savings account with the principals appearing as successor-drawers. The City of Moses Lake is authorized by the principals to use all or so much of that savings account as is necessary to carry out the conditions of paragraph 3.1 if the conditions of paragraph 2.2 are met. The City of Moses Lake shall execute a release or releases of interest in the saving account once the principals have performed as provided for in this bond as determined solely by the city, or if the principals provide substitute security to the City of Moses Lake which is acceptable to the city and approved by the City Attorney.

5. General Provisions

5.1 Extension: If principals apply to the Moses Lake City Council for and receive from them a one-time extension of the twelve ( 12) month time limit for completion of the performance this bond insures, both principals acknowledge they understand principals must provide new security covering the costs calculated pursuant to ordinance and for the duration specified by the Moses Lake City Council by additional deposits to this account or by providing additional security acceptable to the City Attorney.

5.2 Washington Law: It is hereby expressly agreed by principals that if any legal action is brought under the terms and conditions of this bond, that the decisions of the courts of the State of Washington shall be binding.

5.3 Attorney Fees: In the event of legal action to enforce rights under th is bond, the prevailing party shall be entitled to receive its reasonable attorney fees.

6.

a h rine . Kenison, Ci ttorney ACCEPTANCE V \) of Washington Trust Bank ?:Z /f ~l S ,Jt:iso~ hereby accepts the foregoing assignment of savings account# aJcnllz 3 7.2£ in the amount of P'60 91.f to accomplish the purposes of paragraph 4 above and agrees to terms above stated in favor of the City of Moses Lake, Washington.

Dated: 'f-ft-f-1? Washington Trust Bank By ~~ Officer '

Address CENTRAJL, WASmNGTOl\Y ASPHALT9 me. PO BOX939 MOSES LAKE, W~HINGTON ~

HIGHWAY DMSION PHONE (509) 765-5157 'Wash. Cont . Uo. No. CENTRVl'A101 PG FAX (509} 765-8052 Oregon Cont. Lie. No. 0142Q !dlho Co:tll. LU. No. 10986·.AAA· I·~ 3

To: Lee Gerber C.Ontact: Lee Gerber Address: 2288 Elgin Phone: 509·765·9606 Moses Lake, WA 98837 Fax: 765·0399 Project Name: Pacific Northwest Mechanical Bid Number. 2014·121RJ Project Location: Pheasent Rd (South Frontage Road) Across From Golf Course, Moses Bid Date: 10/29/2014 Lake, WA We are pleased to quote the following project: fitem # Item Description Estimated Quantity Unit Unit Price Total Price' Mobilization 1.00 LS $1,378.22 $1,378.22 2 Furnish And Install 4" Of Base Course 6,318.00 SF $0.58 $3,664.44 3 Furnish And Install 2" Of HMA 1/2" Commercial Mix 6,318.00 SF $1.32 $8,339.76 4 Striping Parking Lot 1.00 LS $S62.32 $562.32

Total Bid Price: $13,944.74

Notes: • Central Washington Asphalt Inc. Is hereby authorized to furnish all materials and labor required to complete the work mentioned above and according to the terms thereof. Interest On Any Unpaid Balance Over 30 Days From Biiiing Date Wiil Be Charged At l.5% Per Month. Central Washington Asphalt Inc. reserves the right to hold owner responsible/obligated ror any damages Central Washington Asphalt Inc. may incur through collections of monies owned by owner(s) and not constricted or limited to the following: reasonable attorney's fees, court costs,Interest, and all other legal expenses when pursuing payment by property owner. Quote is Good for 15 Days From Above Date or 10 Days after Execution of Bid, Whichever is Shorter.This Quote Includes Our Standard Fann Of Insurance Only. • Quote Exdudes: Preparation of Grade, Surveying, Testing, Pavement Markings, Saw Cutting , Prime Coat, Soll Sterilant, Utility Adjustments, Patching Of Utilities, Traffic Control, Permits, Fees, Bond (Add 1%), Sales Tax. • NOTE:This Quote Sheet Must Be Attached To And Become Part Of Any Subcontract Agreement • COLD WEATIIER DISCLAIMER: Central Washington Asphalt, Inc. is not responsible for diminished quality due to Cold Weather Paving . • Note 1: Mobilization Is based upon one move in any additional Mobilizations will be $1500.00 per Each.

ACCEPTED: CONFIRMED: The above prices, specifications and conditions are satisfactory and Central Washington Asphalt, Inc. are hereby accepted.

Buyer:------~ Authorized Signature: Signature: ------­ ------~ Date of Acceptance: Estimator: Ron Jones ------~ (509) 765·5757

10/29/2014 10:24:33 AM Page l of l ------

410 0 '410 Feet

LEGEND

AGENDA SITE 1----- .._- ___ J CITY LIMITS 1-·-... - · .-.1 UGA BOUNDARY I I MOSES LAKE

Pacific Northwest Mechanical Bond Extension

Cl ,,. •I HOSES LAKE

CITY OF MOSES LAKE COMMUNITY DEVELOPMENT PLANNING DIVISION 2)0 115 :r.ID Feet wiiic::Jwiilc:iimm- Date: 411712017 CMS JUN 5 2014 , ...... \ .~ . . . . . • l { !.·: ...... -- - Gl2.3 ,.---12 EMPLOYEE PA~ &TALL.&

...... ' ... ..

FOR A&Pl-4AL T PAVEMENT PATC~ AREAS USE 3/C11l>

EX I I O IC.E ,,...--tt---2f!)' WIOE BY~· LONGs I CON&mLJCTION ACCE&& I ORIYE. 12" TI-I< - 4" OR ~I LD6r 6UIL '12. >< LAFO!GE~ R.00<. ~I I >.< ""'·cti· CAP AND NON -----tf":j~ TFa.JST BLOCK

NEW BLDG '12.4 x 120' x 1001 EXIT

COM SWALE 2 EXIT April 11, 2017

Lee and Sue Gerber Blue Sky Revocable Trust 2288 NE Elgin Rd Moses Lake, WA 98837

RE: Pacific Northwest Mechanical - 6171 S. Frontage Road - Bond Expiration

Dear Mr. and Mrs. Gerber,

The performance bond/savings account in the amount $20,918 for asphalt and striping at your property located at 6171 S. Frontage Road expires on April 14, 2017.

The bonded work which is listed on the bid supplied by Central Washington Asphalt dated October 19, 2014, includes hard surface area for 10 required 9'x 1 O' parking spaces, drive aisle, and striping. Please notify me of the status of these improvements. A copy of the bond and bid are enclosed for your review.

Cordially,

Daniel Leavitt Associate Planner Community Development Department Ph: 509-764-3749

DL:lw

Attachments (4)