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HomeMy WebLinkAbout2019-03-8564ORDINANCE 2019-3-8564 AN ORDINANCE APPROVING AN ADDENDUM TO THE AGREEMENT FOR DEMOLITION SERVICES WITH DANNY COPE AND SONS EXCAVATING, LLC FOR EMERGENCY DEMOLITION SERVICES OF THE KRESGE BUILDING LOCATED AT 316,318 & 320 BROADWAY; AUTHORIZING THE MAYOR TO EXECUTE THE ADDENDUM AND DECLARING AN EMERGENCY TO EXIST WHEREAS, the City Manager entered into an Agreement for Demolition Services on February 21, 2019 relating to demolition of the Kresge Building, on behalf of the City of Paducah with Danny Cope and Sons Excavating, LLC after determining that an emergency existed; and WHEREAS, the Board of Commissioners ratified the Agreement for Demolition Services with Danny Cope and Sons Excavating, LLC, for the emergency demolition of the Kresge Building and the City Manager's written determination of an emergency on February 26, 2019; and WHEREAS, the Original Agreement with Danny Cope and Sons Excavating, LLC stated that the City would make payment to Danny Cope and Sons Excavating, LLC in one lump sum following completion of the demolition work on the Kresge Building; and WHEREAS, Danny Cope and Sons Excavating, LLC has informed the City of Paducah that, due to the costs associated with the demolition, including payments due to vendors, periodic payments, rather than one lump sum payment, are necessary for the continuation of the demolition process; and WHEREAS, the City of Paducah has agreed to amend the Demolition Agreement to reflect a process whereby the City Manager is authorized to pay Danny Cope and Sons Excavating, LLC periodic payments throughout the demolition process so long as the total amount paid does not exceed the amount approved by the City Commission in the original Demolition Agreement and approved change orders. NOW THEREFORE, BE IT ORDAINED BY BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY: SECTION 1. Authorizations & Recitals. The City hereby authorizes and approves an Addendum to the Agreement for Demolition Services, in substantially the same form attached hereto as Exhibit A, with Danny Cope & Sons Excavating, LLC, and authorizes the Finance Director to make periodic payments to Danny Cope & Sons Excavating, LLC, pursuant to said Addendum, for the emergency demolition of the building located at 316, 318 & 320 Broadway, known as the Kresge Building, so long as the total partial payments do not exceed the amount previously approved by the City Commission, with approved change orders. Further, the Mayor is hereby authorized to execute the Addendum to the Agreement for Demolition Services. This expenditure shall be charged to Project Account # MR0073. SECTION 2. Emergency Declared. Pursuant to KRS 83A.060, the City Commission suspends the requirement of a second reading of this ordinance. As grounds therefor, the City Commission does hereby declare an emergency to exist due to the need for immediate action to prevent public harm and property damage that could result from the instability of the building. SECTION 3. Effective Date. This ordinance shall become effective immediately upon its adoption by affirmative vote of 2/3 or more of the legislative body. Brandi Harless, Mayor ATTEST: Lmdsay Parish, City Jerk Introduced & Adopted by the Board of Commissioners March 26, 2019 Recorded by Lindsay Parish, Paducah City Clerk, March 26, 2019 Published by The Paducah Sun, March 28, 2019 ORD\Emergency — Kresge Addendum to the Agreement for Demolition Services Ordinance Prepared by Stacey Blankenship, KKHB 226603 EXHIBIT A ADDENDUM TO THE AGREEMENT FOR DEMOLITION SERVICES This ADDENDUM TO THE AGREEMENT FOR DEMOLITION SERVICES (hereafter "Addendum") is hereby effective this _ day of March, 2019 by and between DANNY COPE & SONS EXCAVATING LLC (hereinafter referred to as "Contractor"), and the CITY OF PADUCAH, KENTUCKY (hereinafter referred to as "City") (collectively referred to as "Parties") who hereby agree as follows: WHEREAS, the Parties entered into an Agreement for Demolition Services (hereafter the "Demolition Agreement") effective February 21, 2019 for the demolition of the building located at 318 Broadway in Paducah, Kentucky commonly referred to as the Kresge Building (hereafter the "Demolition Project"); and WHEREAS, the Demolition Agreement provided for a lump sum payment to be paid by the City to the Contractor upon completion of the Demolition Project; and WHEREAS, the Parties desire to amend the Demolition Agreement to permit periodic payments to Contractor as set forth under the terms of this Addendum. NOW THEREFORE, for and in consideration of the foregoing, the undertakings of the Parties set forth herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, the Parties agree to amend the Demolition Agreement as follows: 3.5.1 Payment of the Contract Sum. At periodic intervals, the Contractor may submit an Application for Payment to the City requesting partial payment of the Contract Sum. The Application for Payment shall not be more than a reasonable estimate of the percentage of completion of the Demolition Project as of the date of the Application. The City shall review the Application for Payment and may consult with its structural engineer or other consultants. In the event the City disputes the amount requested in the Application for Payment, the Parties shall immediately confer in a good faith effort to resolve such dispute. In the event the Parties cannot mutually resolve the dispute, the City shall pay the amount for which it does not dispute. 3.5.2 Partial/Final Lien Waivers. As a condition of payment for any amounts requested in the Application for Payment, Contractor must include the following along with the Application for Payment: A. A partial conditional lien waiver from the Contractor in the form approved by the City for the total payment requested in the Application for Payment; B. A partial or final conditional lien waiver in the form approved by the City from all subcontractors or vendors on whose account the Contractor is seeking payment in the Application for Payment for the total amount of such payment requested; C. A partial unconditional lien waiver in the form approved by the City from the Contractor for the sum of all previously paid progress payments; D. A notarized statement from the Contractor certifying that: (1) the Application for Payment is correct; (2) the Contractor is not aware of any filed or threatened mechanics' or other liens; and (3) all due and payable bills with respect to the Work which has been paid in full or will be paid in full from the proceeds of the Application for Payment; E. The Contractor shall supply any other information substantiating Contractor's right to Payment as the City or its structural engineering consultant may request; F. The Contractor may include in an Application for Payment a request for payment on account of changes in the Work which have been properly authorized by a Change Order or Change Directive; and G. Contractor shall not request any sums on account of any subcontractor, vendor, materialmen or laborer for which it does not intend to pay from the proceeds requested in any Application for Payment. 3.5.2 Final Payment. The Contractor's right to payment for the final Application for Payment shall be conditioned upon City's final approval and acceptance of the Work. In addition, Contractor shall deliver final lien waivers from all subcontractors and materialmen on such forms as may be required by the City as well as a final lien waiver and release from the Contractor on such forms as the City may require. 3.5.3 Non Waiver. Unless specifically amended by the terms of this Addendum, all terms and conditions of the Demolition Agreement shall remain in effect and shall be fully binding upon the Parties. IN WITNESS WHEREOF, the parties have, through their authorized representatives, executed this Addendum to the Agreement for Demolition Services as of the date first written above. DANNY COPE & SONS EXCAVATING LLC By Printed Name Date (Title) CITY OF PADUCAH, KENTUCKY (Title) Printed Name