HomeMy WebLinkAboutMO #2701MUNICIPAL ORDER NO. 2701
A MUNICIPAL ORDER AUTHORIZING THE MAYOR TO SIGN A RELEASE AND
AGREEMENT FOR $1,413,192.14 WITH WESTERN SURETY COMPANY FOR THE
COSTS ASSOCIATED WITH THE DEFAULT OF HUFFMAN CONSTRUCTION,
LLC ON THE PUMP STATION #2 REHABILITATION PROJECT
WHEREAS, the City of Paducah entered into a Contract with Huffman
Construction, LLC, dated May 3, 2018, for the Flood Pump Station # 2 Rehabilitation Project as
approved by Ordinance 2018-04-8623; and
WHEREAS, Western Surety Company issued a payment and performance bond
on behalf of Huffman Construction, LLC in the amount of $4,947,000.00 plus Change Orders
insuring the completion of the Pump Station #2 Rehabilitation Project; and
WHEREAS, the City terminated the Contract with Huffman Construction, LLC
on May 26, 2020, as approved by Ordinance 2020-05-8636 due to Huffman Construction, LLC's
failure to pay vendors and make progress on the project; and
WHEREAS, the City of Paducah was notified by Western Surety of its approval
for the City to acquire another contractor and the City and its Engineering contractor to complete
the project in an effective and efficient manner; and
WHEREAS, on August 25, 2020, the Board of Commissioners approved
Ordinance 2020-08-8652 authorizing a contract with Pace Contracting, LLC, for $4,500,000.00;
and
WHEREAS, the Huffman Construction, LLC default resulted in a contract
increase of $1,268,248.59; and
WHEREAS, while changing contractors, the City incurred additional engineering
costs of $138,442.82 from HDR Engineering and legal fees of $6,500.71 with KKHB; and
WHEREAS, the City has requested payment of $1,413,192.14 from Western Surety
for additional costs incurred by the city due to Huffman Construction, LLC's default.
KENTUCKY:
NOW, THEREFORE, BE IT ORDERED BY THE CITY OF PADUCAH,
SECTION 1. That the Board of Commissioners hereby authorizes the Mayor to
execute a Release and Agreement with Western Surety Company in the amount of $1,413,192.14
for the costs associated with the default of Huffman Construction, LLC on the Pump Station #2
Rehabilitation Project. Further, the Finance Director his hereby authorized to accept payment of
$1,413,192.14 from Western Surety into the Pump Station #2 Rehab project account no.
FW0014.
SECTION 2. That this Order shall be jp%fuj force and effect from and after the
date of its adoption.
Bray,
ATTEST:
Lindsay Parish, CCky Clerk
Adopted by the Board of Commissioners, February 14, 2023
Recorded by Lindsay Parish, City Clerk, February 14, 2023
mo/Agree Western Surety Company — pump station 42 Rehab Project