HomeMy WebLinkAboutWTR2702210(11) W-2210 Highlands 565 . 75 Mg. Tank Interior Painting-Litigation 1+
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CITY OF RENTON
PLANNINGIBUILDING/PUBLIC WORKS
MEMORANDUM
DATE: January 19.1998
TO: Gregg Zimmerman L
FROM: Tom Malphres(X-4411)�
SUBJECT: RELEASE,ASSIGNMENT AND SUBROGATION
ISSUE:
We received the above-n.enhoncd release along with a payment of$5,09g.62 from Gulf Insurance
Group. Gulf Insurance Group is the Surety representing the contractor that failed to complete the
the
Highlands $65 Zone Reservoir Interior Recoating Project. The City AB hhc h1as s nir lv shoo d
release as to legal form(sae attached memo). If we choose to accept the payment,
sign the release.
BACKGROUND SUMMARY:
As per the terms of o.r Settlement Agreement with Gulf Insurortce Gnwp, we qrt entitled to all
funds remaining in the Mmd penal sum after all claims have been poid. To date,all claims have been
paid with the exception of a claim for unspecified damages from ,he Painters Union Local, The
Painters Union Local has failed on numerous occasiwls to respond to Gulfs request for
documentation substantiating their claim. Because the Painters Union Iscal has Imo responded.Gulf
Insurance Group has decided to pay us the funds remaining in the bond Penal sum. Howevet,the
payment is conditioned. By signing the release we agree to return the$5,098.61 to Gulf Insurance
Group if the Painters Union Local submits a valid tim"•h chin. State law allows seven years in
which to submit the claim.
CONCLUSION:
We shoe accept the payment knowing that we ma) have to return the payment uunetinue io the
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next seven years. The Mayor should sign the release.
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CITY OF RENTON
PLANNING/BUILDING/PUBLIC WORKS
MEMORANDUM
DATE: January 15. 1997
TO: Mayor Tanner
FROM: Gregg Zimmerman
STAFF CONTACT J.D.Wilwn(X-6195)
SULVECT: EMERCENCY DECLARATION-HIGHLANns REsER%,oIR
Please request Council to designate the situation with the Highlands elevated storage tank being
out of service to De an emergency. Enclosed arc the agenda bill,issue paper,and resolution.
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CITY OF PENTON COUNCIT &UNDA UII I �ry
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sudnn 'D.u. PlanningiBuilding.•Public Works F<r A,< ar
D<p.DmnBnm.. Utility Systems January 27, 1997
sun cwm,<,..._. Ron Olsen, Lys Hornsby As<m.sum,
J.D.Wilson Dcei") cna¢n...._..__.. X
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Resolution to declare an emergency widr regard to the Highlands cm,<yo < ..
565 Zone Reservoir Dwnle............. ', <': ..
Rowlrr............ X
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Issue Paper smar St..—....
— Resolution rnR,murmn ,...
RWOmmcNN A<mn- t,
Council Concur wy ii-P,_.,__,._ X `
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Fw,l anrya. —�
Eap<rtliwr<Rqulrta... Estimate:$130,000.00 rnaa<wAmrmm<m......
A 9w,"W.......... $250,000.00(421/55263- Jc,me.Ge.. r._..._.
Emergency Response Projects) -
.. . . ...:...
Su.,a Acoon:
The Highlands 565 zone water storage tank is out of service. The contractor Iecoating the interior of the
tank declared bankruptcy and failed to complete the joh. The City and the surety compat.y have nor reached
a settlement. Without the tank in service,the pressure in the water system in the 565 zone fluctuates greatly
and the zone is without fire protection storage. The City needs to contract, on an emergency basis, to pet
the work completed and the tank back into service,
STAFT RIXOM,MENDAItoN:
The Planning/BuildinglPublic Works Department recommends the City Council declare an emergency and
autho^ze the Mayor and City Clerk to contract,on an emergency basis,for the completion of the Highlands
565 Zone Reservoir Interior Recoating Project.
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CITY OF RENTON ;:
PLANNING/BUILDING/PUBLIC WORKS 7
MEMORANDUM -", -
DATE: January 14, 1997 I
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TO: Kathy Keolker-Wheeler, President
City Council Members
VIA: Mayor Jesse Tanner
FROM: Gregg Zimmerman,Administrator C
Planning/Building/Public Works Department
STAFF CONTACT: J.D. Wilson(X-6195)
SUBJECT: EMERGENCY DECLARATION-HIGHLANDS 565 ZONE RESERVOIR
ISSUE:
The Highlands 565 zone water storage tank is out of service. The contractor meating the interior of
l the tank declared bankruptcy and faded to complete the job. The City and the surety company have
J -+ not reached a settlement. Without the tank in service the pressure in the water system in the 565 mire
fluctuates greatly and the zone is without fire protection storage. The City needs to contract, on an
emergency basis,to get the work completed and the tank back into service.
RECOMMENDATION:
The Planning/Building/Public Works Department recommends the Citv Council declare an emergency
anal authorize the Mayor and City Clerk to contract,on an emergency basis,for the completion of the
Highlands 565 Zone Reservoir Interior Recoating Project.
BACKGROUND SUMMARY:
In May 1996 the City contracted with Production Finishes, Inc.to recoat the interior of the Highlands
565 zone tank. The performance bond for the work was issued by Gulf Insurance Company ',y�"
('SURETY") a penal suer of$143.006.00. Production Finishes filed for bankruptcy and failed to r?
complete the work. In October 1996 the City called upon SURETY to cause completion of the work.
The City is one of several entities who have placed claims against the bond. The City staff has been
pursuing a settlement agreement with SURETY. As per the draft settlement agreement the City
would get the difference between the contract amount for completion of the work and the amount of
the original contract budget not paid out to the original contractor. Also, if the total amount of claims ' ,
aid is less than the f
p penal sum then the City lays claim to the remainder to cover its costs associated
with the project shutdown (e.g.. the h1St of electriciry to operate the dehumidifier that has been in
operation since the contractor walked off the job). The plan is for the City to contract with a
contractor recommended by SURETY.
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January 14, 1997
Page 2
SURETY has solicited proposals from contractors to complete the work and has reque t d the City to
use Eagle Harbor Construction to complete performiance of the work so as to mitigae damages in
regard to its performance bond.
While the Highlands 565 tank is out of service the pressure in the drinking water distribution system
Fluctuates between being too high and too low. This Intimation puts stress on the system and has
been the source of customer complaints about low pressure. Without the Highlands elevated tank in
service the pressure mne is without fire protection water storage.
Based upon bids received by SURETY for the work, the estimated contract amount will be
$130,000.00. There are 562,950 remaining undisbursed from the original contract. Until such time
as a settlement is reached with SURETY the Water Utility will ^se $67,050 (estimated) from pn.
Emergency Response Projects (421/55265) to make up the difference between the contract amoum
and the undisbursed amount. The balance in 421/55265 is 5250.000.
CONCLUSION:
The Highlands 565 zone tank needs to be placed back on line as soon as possible. Contracting to
complete the work needs to be done on an emergency basis.
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C[TY OF REN'TON VVV
PLANNINGBUILDING/PUBLIC WORKS
MEMORANDUM
DATE: February 12,1997
TO: Marilyn Petersen
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j FROM: Ron Olsen
STAFF CONTACT: Tom Malphms(X-4413)
SUBJECT: Settlement Agreement from Surety for Highlands Elevated -
Reservoir Recasting Project
We have negotiated a Settlement Agreement with the Surety for the Highlands Elevated Reservoir
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Reopening project. The City Attorney has approved the Agreement for legal form. The Surety has
signed the agreement and provided us with one original and one copy.
Please have the Mayor sign the original
and the�Gpy of MAphrus for delivery A gnramry to Gulf Insurance OreMnil e May'ILe
signature. please return the copy n
original is for our files.
If you have any questions,please contact Tom Malphrus. ,
Thank You.
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raolflo Amorloan Commorolal Company
7400 SECOND AVENUE SOUTH P.O.BOX 3742 • SEATTLE,WA3NINCTON 98124
TEL:(146)76241660 TOLL FREE: 1.800-67MS79 FAX:(206)7634232
CONTRACTORS MACHINERY • AIR TOOLS d COMPRESSORS • SALES A RENTALS
November 13, 1996
C
City of Renton
200 Kill So.
Renton, NA
Attn: Public Works
Dear Ns./Mr.
Pacific American Commercial Co. rented a Coppus air fan to Production
Finishing Inc., which was used on your "Recoating Highlands 565 Reservoir"
project.
Pacific American Commercial Co. was able to recover the fan but there
remains the outstanding rent.
Invoice 0283991 $292.14 r
Invoice 9384938 $292.14
Invoice 0285143 6 32.46
Owing from shove job $616.74 -:
Thank you for your attention to this matter. "
Sincerely,
PACIFIC AKERICAN CpOUDICIAL CO.
ontroller
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CALIFORNIA PRELIMINARY 20-DAY NOTICE !'
USE PROOF OF SERVICE AFFIDAVIT OF CALIFORNIA PRELIMINARY eO-DAY NOTICE ON BACK OF GOLDENROD FILE COPY
(PUBLIC AND PRIVATE WORK)
IN ACCORDANCE WITH SECTION 3097 AND 3098.CALIFORNIA CIVIL CODE
YOU ARE HEREBY NOTIFIED THAT...
Kleen Blast
2400 Old CroN Canyon Rd
CONSTRUCTION LENDER or San Ramon, CA 94583
Reputed Construction Lender, it any
,..e.a we..Seem.eM.rm
he. hKM1NMe a wm fwrRMl Imae. SerNpF. Mia111MR OF
mwerlala of the fo"ovnrlp learlero Il u4nion:
Sand
�ewe.fa...e MYM wrve�e.m.Rw�YR.eeeew.Ve.
for"INYMAB.SFYCIW or 01NSr week Of MLprON,Mefl bCebd
Rlighlands 565 Zone Reaevior
N.E. 12th StreetCNot roe AveNN.E_
O Renton, NA 98055
OWNER or PUBLIC AGENCY ueeweaexwMe..Iw r.w.wR ls..�.RUI.d
W or Reputed Owner ton public Work)
(on private Work) The name of the person or 4rm who comlaeted tor the Purchase
INof such Iabw.Sbwces,aoulorrwnt or mW.I.I.:
r City of Renton,WA 7 Herb Hartsoe Productf^n Finishigg
E 200 Hill Ave South —..
Renton, WA 98055 NOTNI TO PROPERTY OWNER
R Attn: Dept. Planning Buiing. Public h1we.r."t Pod In full fw She)alto",'Walt..."Ldpneerlf.w
Works Ye t. material.NXI ed w fY be fix-'~.meoheelc'•I.S.lean,
F P to See I... throuah coon f oeolosu,.proc••tirq•.of W car Pert
L-Tom Halphrus (206) 277— 4413 of You,Prope"N bwm so m,,A*V td may be")SCSI egaoa the
Wo y ev.n though You"ve pod your coneamw In 1uhl You
S Construction loan no. (if known) may wish to thereof you lef agelnst this con•eeteeme by I I
,apnea our confr•cm,to lum.h . •Ig,e.1 rWn. by In.
p.r.on of arm'Ymq you fhl...ft.befw.m.Eing Payment to
_---_--------------__-------FOLD HERE------------------------------ rw, conveofw w RI Sa.AY other method o, MHo that i.
.ptho,.A uM•r tM 1 SAY ataeKm.
The"anon C rnm yrn,p ern naa.a ueonae ovrswm fo a eox•cxo
ORIGINAL CONTRACTOR or h.gu�ongaw.en,.ncmwrmpoMnwm•Im.y.a«rxu�mo.n.m,.n
AlSt Ater Ide.cwea 11 GvA CeM Ut 111.uC fund s Mmptne u
OReputed Contractor, if any mllowf umb n m.poeuolel
P Production Finishing
Y 1645 5. 3108h Street, Suite A
Federal Nay, WA 98003 —
ew.w
Attn: Herb Hart 20E 839-7950
R.sw
SUBCONTRACTOR 1i0e"'1^
with whom claimant has contracted N G
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S E S Welding
PO BOX 1505
Rent, NA 98035 An e.xmate of the Iola) A.C.of the labor,urvru•.".,Omen,
.1 mafar�al4 form.hed o,to M lwnehed 1.
Attn: Thomas Stucker �2 _ 3 100,038.0o
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yr.1nptlY rPM1�llpp ipy.nnynxP R,. �851pve�4w e]SI
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S S WELDING, INC. 4EOMMERC RL6
IN OUSTR AL
II MEu fEoncrtio�
CUSTDM METAL FABRICATION GEN. CONTR # S-S-VVE-L-•-•-2O1KA IIIHIII
COMPLETE SHOP FACILITIES Telephone: (206)872-3833
RADIO DISPATCHED POMTABLES FAX: (206)395-0254
SINCE 197<
STEEL-STAINLESS-ALUM•FCAW
•GMAWGSAWSMAWMACHINERY ■■
B TOOLING FAB•NON-DESTRUCTIVE
TESTING.DESIGN BUILD SERVICES-
FREE ESTIMATES
O.:TUBER 3, 1996
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CITY OF RENTON
PLANNING/BUILDING/PUBLIC WORKS DEPARTMENT
200 MILL AVENUE SOUTH. FOURTH FLOOR
RENTON, WA. 9BO55
ATTN: CITY CLERK
REF: CITY OF RENTON
HIGHLANDS 565 ZONE RESERVOIR
INTERIOR COATING PROJECT
PROJECT WTR 27-2210
RE: PRODUCTION FINISHING, INC.
TOM MALPHRUS HAS ASKED THAT COPIES OF A_L DOCUMENTS RELATED TO OUR
CLAIM AGAINST PRODUCTION FINISHING, INC. IN RELATION TO THE ABOVE `
t REFERENCED PROJECT BE FORWARDED TO THE CITY OF RENTON.
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ATTACHED ARE COPIES OF THE DOCUMENTS AS SUBMITTED TO MIDWEST
INDEMNITY. I DID NOT INCLUDE A COPY OF THE LETTER TO TOM MALPHRUS
DATED AUGUST S. 1996 AS I ASSUME YOU HAVE THIS IN YOUR .'ILES.
IF WE CAN BE OF FURTHER ASSISTANCE, PLEASE GIVE ME A CALL. WE WOULD ,
?,
ALSO APPRECIATE YOUR HELP IN RETURN, IF POSSIBLE, IN RESOLVING THIS
ISSUE.
/SINCERELY. L
BONNIE S. STUCKE .. -.--.-
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CLAIMS DEPARTMENT u
ENCL.
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Mailing Adelms.: Plant Addresm
P O BOX 1505 KENT CENTRE CORPORATE PARK
Kent.WA 98035-1505 22131 68t11 Ave.S. f -
�� Kent WA Y8032 tY{
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SS WELDING, INC. -:nMMBaO. .
McNo sie
CUSTOM METAL FABRICATION GEN. CONTR M S-S-WE-L-•-•-201KA
:OMPIETE SHOP FACILITIES Telephone:(206)872.3033
RADIO DISPATCHED PORTABLES
STIEL.STAINLESS•ALUM.•FCAW FAX:(206)395-0254
•GMAW W W GTA $MAMACNINEAY SINCE 1974
4 TOOLING FAB•NON-DESTRUCTIVE
TESTING-DESIGN BUILD SERVICES-
FREE ESTIMATES
SEPTEMBER 30, 1996
MIDWEST INDEMNITY
5550 WEST TOUHY AVE.
SUITE 400
SKOKIE. ;LLINOIS 60077
ATTN: ANNA - CLAIMS DEPT.
RE: PRODUCTION FIE„SHING, INC.
BOND NO. GE5782415 (GULF INSURANCE - KANSAS CITY, MO. 1
L 6 I CONTRACTORS REGISTRATION NO. PRODUFI044D0
DEAR ANN:
NOTICE IS HEREBY GIVEN THAT S A. S WELDING, INC. . A WASHINGTON
CORPORATION - L 4 I CONTRACTORS REGISTRATION NO. SSWEL••201KA, IS
FILING A CLAIM AGAINST PRODUCTION FINISHING, INC. BOND NO. GE5702415
FOR "TWENTY FIVE THOUSAND SEVEN HUNDRED NINETY TWO DOLLARS AND 79/100•
(625.792.79). BREAK DOWN IS AS FOLLOWS:
BASE CONTRACT . . . . . . . . . . . . . . .. . ... . . . .. . . . . . . . . t 23,625.00
AUTHORIZED ADD DNS BY RON STIPEN
00
INTEREST ON BASE CONTRACT . . ' 1,7362..31
INTEREST ON ADD ONS ... . . . . . . ... . . 25.46
5 25.46 IB
TOTAL CLAIM N 25,792.79
REPEATED ATTEMPTS HAVE BEEN MADE TO COLLECT THESE FUNDS BUT TO NO
AVAIL. ON JULY 22, 1996 RON STIPEK DROPPED OFF TWO (2) CHECKS (COPIES
ATTACHED) AND ASKED THAT WE HOLD THESE CHECKS UNTIL JULY -'1, 1996. ON
JULY 29 MOLLY (SEC/REC) PHONED ADVISING US THAT THERE STILL WEREN'T
FUNDS AVAILABLE TO COVER THESE CHECKS. WE MADE REPEATED CALLS ID
PRODUCTION FINISHING THRU THE 14TH OF AUGUST TO CHECK ON AVAILABILITY
OF FUNDS. ON THE 14TH OF AUGUST MOLLY ADVISED TOM STUCKE THAT FUNDS
STILL WERE NOT AVAILABLE AND THAT IF WE PERSISTED IN AN AGGRESSIVE
MANNER TO GET PAID, SHE WOULD PUT US AT THE BOTTOM OF THE LIST IN
TERMS OF PAYMENT1111t MOLLY HAD ALSO ADVISED TOM THAT RATHER THAN THE
1F59,000.00 THEY WERE EXPECTING TO GET FROM THE CITY OF RENTON, THEY
HAD ONLY RECEIVED AN 30,000.00 AND THAT WAS NEEDED TO COVER THEIR
PAYROLL. TOM CONTACTED THE CITY OF RENTON AND WAS TOLD THAT THEY HAD
Mailing Address- -
P.O. BOX IbUS Plant Acidness
Kant.WA 990354505 KEN E CENTRE CORPORATE PARK
22131 E91n An.S
KeM.WA 911W
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MIDWEST INDEMNITY SEPTEMBER 30, 1966
RE: PRODUCTION FINISHING PAGE 2 OF 2
IN FACT FAID PRODUCTION FINISHING 6 59,066.387177 DURING THIS TWO
WEEK SPAN OF TIME, WE CONTACTED KEY BANK (BANK THE CHECKS WERE DRAWN
ON) AND WERE ADVISL-O ALSO THAT THERE WERE NOT FUNDS TO COVER THE
CHECKS.
ON SEPT. 25, TUM STUCKE SPOKE WITH TOM MALPHRUS WITH THE CITY OF
RENTON. WE WERE INFORMED THAT PRODUCTION FINISHING, INC. HAD NOT
COMPLETED THE PROJECT AND THAT THE CITY OF RENTON WOULD ALSO BE
CONTACTING THE BONDING COMPANY.
I AM ENCLOSING COPIES OF THE FOLLOWING DATA FOR YOUR RECORDS:
1) INVOICES AGAINST BASF CONTRACT
INVOICES FOR AUTHORIZLD ADD ONS
INVOICE FOR INTEREST AGAINST BASE CONTRACT
INVOICE FOR INTEREST AGAINST ADD ON BILLINGS
2) CHECK; ISSUED AGAINST INVOICE 16165 - NSF
3) SUB-CONTRACTOR'S AGREEMENT
4) LETTER MAILED TO SURETY INSJRANCE SERVICES 8/8/96
5) LETTER SENT TO CITY OF RENTON 8/8/96
I UNDERSTAND THAT WE V:LL RECEIVE ACKNOWLEDGEMENT FROM YOU REGAPDING
THESE DOCUMENTS. IF ANY ADDITIONAL DATA OR INFORMATION IS REQUIRED,
PLEALE GIVE ME A CALL. WE WOULD ALSO APPRECIATE SOME INDICATION AS TO
HOW SOON WE WILL BE RECEIVING PAYMENT ON THESE INVOICES - THE OLDEST
IS NEARING THE 120 DAY MARK. I THANK YOU IN ADVANCE FOR 3UR PROMPT
ATTENTION TO THIS MATTER.
SINCERELY,
-
THOMAS R. STUCNE
PROJECT MANAGER
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Production 1=inishing inc.
Marne 6 rnousrrw P,wnrny Co,,"'o, JOe'raNy Conrrecrw D M B F Cen�6ra Carrranw
Sub-Contractor's Agreement
This Agreement is made on April 24.1996,to and bemeen Sit S Welding,Inc.,22111 68th Aw S.,Kent,'A A
98032("Sub")and Production Finishing,Inc.a Washington$um w r WA 98003 C'Prime"),under the folio rpomuoR located at 164s South 310th Street Federal Way, +h
follows g prosisiom. The Sub agrees to contract seniors as a Sub-Contmaor to the Prime as '.
1 The Sub shall r< r.
pc orm all the xork(e g ail the sal work u shown in the details plan)and senIm required to proside
and furnish all of the labor appliances,Zienals,machines,tails,equipmem and tmnspomumt winces necessary to perform
all the(a)fabrication,installation and shop painting of a ladder hmdmg al the catwalk;(b)fabrlatio ,instillation,and shop 1
painting of a handrail around the access manhole,nasigation lights,and sent on the tank roof;and(c)installation of a safety
climb dmioe on the enenor ladder between the catwalk and the r
in eonned"m with the Ci taN.access latch on the tank soon;in a wonmanike manner. '1 Recoatin pm ty of Renton Project(identified u No.WIR 21.2210)Highlands 565 Zone Rexrsroir Inknor
B Jert C'Projat").
L I All the foregoing shall be timely performed,furnished and completed in stun conformity with the plans and
.rations and in full compliance with all applicable coda,Ordinances-'n)other gosxmmental authority hasingjunschmon theremct. R is er a regulations of the Cisy of Renton and
materials.appliances,machines.soots.egwpmel;and seniors shall h fur'shed and stipulated Ih.I all of Said labor.
the 01)'s Public Works Director as being to such Anddift w t)with theplan,shed to the Satisfaction and the apprmal of
12 The Sub shall submit sselder performance qualification records fol'ia0oor all el
All welding shall oc performed by Washington Association of Buildln)Officialsf MIS I d xdeldc�s or so any raiding
3 The Sub shall use 7 seme Cumpan)pain products,unless otherwise agreed with Prime
1.4 The Sub shall notifi Prime at least 7 days prior to sun of shop mi cleaning. i
2. the Prime shall Prosidr Sub for the performance of Project:
22 Field touch-up and finish painting
UIIINes,i.e.rater and power
2.3 Toilet facilities
3. The Sub will perform said project,at the lump sum Prix of$21,625 00,completing the installation on or before
June 21, 1996.
ch aschic 10 inclement
shallFeld delays cane n All such delays muss h(Ran or High Wind),war,an of Clod,or the City of Rento
shall not be cause s ( ..
3 2 Any ofdelays by the Sub rill incur the lath. documemod In writing to Prime)
4. The Prime will pac Sub:
a.l The menq d
achedulc ue within 15 days of Prime roceising money from project Structural carbon noel
pmmenl
5. This Agreement is elfecthe as of the date wtinen abmc and completion of the job more full)deacnbed Ibos c
Sub-Contractor; )
Prima Ion:
Name. 7TItk1As R. SIIICBE
Ronald) Sopek.CFO
Title: VICE—PRESIDENT
S 8 S k'ELDING, INC.
P.O.Bps 23F70 • t615 S 3101h Suite A • Federal waY.Wa 93003-2367 � 8390 Fax(
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S S WELDING, INC. 'YOMMERCIAL•
IN L.VSIRIAL
Mpp F•E.ic•tiOn
CUSTOM AKDAI FAERWATION GEN.CONTR M S-S-WE-L-•-•-201KA
COMPLETE SHOP FACILITIES Telephone: (206)872-3833
MIEN MSPATCAEU PORTABLES ! r
FAX:(206)395.0254 .I
STEEL-STAINLESS•ALUM.•FCAW SINCE 197E
4MWGTAWWA AWMWNNENi i
W IMOUMO FN•NN6WUSTRUCTIYE l
TESTeM•OEM NMNLDSERNSFS-
g FREE ESTIMATES
I.
iAUGUST 8. 1996
CITY OF RENTON
PLANNING/BUILDING/PUBLIC WORKS DEPARTMENT
200 MILL AVENUE SOUTH
RENTON, WA. 98055
ATTN: TOM MALPHRUS
PROJECT MANAGER
REF: CITY OF RENTON
HIGHLANDS 565 ZONE RESERVOIR
INTERIOR COATING PROJECT
PROJECT WTR 27-2210
RE% PRODUCTION FINISHING, INC.
DEAR MR. MALPHRUS:
1
I AM WRITING IN REGARDS TO THE DISCUSSION YOU HAD WITH BONNIE, OUR
ACCOUNTANT, THIS AFTERNOON REGARDING NON PAYMENT BY PRODUCTION
FINISHING, INC. ON THE ABOVE REFERENCED PROJECT. ANOTHER ATTEMPT WAS
MADE THIS AFTERNOON WITH PRODUCTION FINISHING TO ESTABLISH A
SATISFACTORY ARRANGEMENT FOR RECEIVING PAYMENT ON THIS PROJECT - STILL
TO NO AVAIL. WHILE I ASSUME THAT PROUCTION FINISHING IS PRIVY TO THE
SAME PAYMENT INFORMATION YOU SHARED WITH US. THEY CONTINUE TO BE
EVASIVE AS TO WHEN FUNDS WILL BE AVAILABLE TO COVER THE CHECKS THEY'VE
ALREADY ISSUED US.
YOU HAVE ADVISED US THAT YOU ARE UNABLE TO ISSUE A JOINT PARTY CHECK.
WE HENCEFORTH ARE ASKING THAT FUNDS EQUAL TO OUR BASE CONTRAT AMOUNT
AND THE APPROVED CHANGE ORDERS (S 24, 985.00) BE WITHHELD FROM FINAL
PAYMENT TO PRODUCTION FINISHING• INC. UNTIL SUCH TIME PRODUCTION
FINISHING 15 WI-.LING TO ARRANGE A SATISFACTORY PAYMENT PLAN.
INIMNe Address: MNM Aetlrew:
P.O.BOX 1505 KENT CENTRE CORPORn,TE PARK
KeM,WA 99035-1505 22131 MMI Ave.S.
KIM,WA OOM
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CITY OF RENTON AUGUST B. 1996 + .
ATTNi TOM MALPHRUS PAGE 1 OF 2
AS YUU ARE AWAKE TOM, S 6 S WELDING WAS ONE OF THE FIRST SUB-
' CONTRACTORS TU WORK ON THIS PROJECT AND HAVE BEEN COMPLETE SINCE THE
END OF JUNE WITH THE BASE CONTRACT. YOU ADVISED US TODAY THAT FULL
PAYMENT FOR THE FIRST PROGRESS BILLING WAS MADE WITH THE CITY OF +i
RENTUNS' FIRST PROGRESS BILLING. WE HAVE RECEIVED NONE OF THIS MONEY.
THIS 1S NOT THE TYPE OF ACTION WE LIKE TO TAKE, BUT WITH LACK OF
RESPONSE FROM PRODUCTION FINISHING, OUR OPTIONS ARE LIMITED. OVER THE 4
PAST 22 YEARS WE'VE COMPLETED A NUMBER OF PROJECTS FOR THE CITY OF rt '
RENTON AND HAVE ENJOYED OUR RELATIONSHIP WITH YOU - FINDING YOU TO BE
REASONABLE AND FAIR. IN THAT SPIRIT WE ASK FOR YOUR SUPPORT IN THIS -
FATTER.
� f
RESPECTFULLY SUBMITTED, j
DANIEL L.� STUCKE
PRESIDENT
CCY PRODUCTION FINISHING, INC.
RON STIPEK, CFO
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KErv! � OIRI.W
CERTIFIED
S 1b S N'£LDING, INC Z 205 706 4]4213
_
v o eo•aw
x[H,w•aems
Rehm n Receipt RN(ACSfCd
CITY OF REM
PLANNING/BUILDING/PUBLIC WORKS DEPARTMENT
200 MILL AVENUE SOUTH
RENTON, WA. 98055
ATTN: TOM MALPHRUS ,,....::•
PROJECT MANAGER TURN RF IPT
REQUESTED
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C'po%j-9G- o��
Kleen Environmental rw
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Technologies, Inc.
RECEIVED
OCT 17
October 10, 1996
CITY OF RENTON
Cityty Council
C/O City Clerk
200 Mill Avenue South
Renton, Washington 98055
To whom it may concern:
This is to inform th ;ity of Renton that our firm: Kleen Environmental 4
'r
Technologies has 6 aga;nst the performance and payment bond of:
Contractor: Production Finishing, Ina
Project: Highlands 565 Zone Reservoir E
- Interior Re-Coating Project
Contract No.: WTR-27.2210
Should you have any questions regarding the above filing, please call Robert
Olson (206) 285-8010.
Sincerely yours,/
Robert L. Olson
RLO/ds
C'e
dv#
1600 Dext)Rve.North•Ste.E•Seattle,U1R 98109•(206)285-8010•Fm(406)285-9646 4
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NOTICE TO OWNER AND CONTRACTOR
DEMAND FOP PAYMENT AND BOND INFORMATION j
{Prerequisite for Filing Bond Claim) F
TO: City of Renton
cC: Production Finishing, General Contra:;tor
i
Hereinafter"Owner", whose address is:
200 Mill Avenue S.
Renton, NIA 98055
Please Take Notice that the undersigned has furnished equipment generally described
as: Construction Equipment
for the project commonly known as: Highlands 565 Zone Reservoir
looted at: Monroe Ave. & N.E. 12 St., Renton, WA 98057 (King Co.) i r,
pursuant to a written agreement for services dated 7118196 through 9/10/96. 1
i
You are Notified that a default in payment has occurred pursuant to the written
agreement for services.
Demand is Made for immediate payment of the sum $7,216.52, which sum represents 'y'k
the amount in default pursuant to the written agreement for services. i
THIS NOTICE IS BEING SERVED UPON YOU AS PREREQUISITE TO RECORDING `I
A BOND CLAIM. YOU ARE HEREBY GIVEN NOTICE OF OUR DEMAND FOR BOND I
INFORMATION. YOU HAVE TEN (10) DAYS TO CURE YOUR DEFAULT. IIII
Dated: October 16, 1996 Hertz Equipment Rental Corporation
My Commission 6pires _ Kelly . Shock
Collection Analyst` '
J i
NQTIQP OF_CLAIM_QF LIEN
TO: MR TOM MALPHRUB Bent by Regular and certified
CITY OF RENTON Mail No. P 270 461 217
200 MILL AVE B NTH FLR
RENTON WA 98055-2189 -
NOTICE I8 HEREBY GIVEN that the undersigned, [11 Employee
Painters' Trust, [21 Western Washington Painters Defined
Contribution Pension Trust, [11 Western Washington APprenticeah ip
and Training Trust, [a] Western Washington Painters Labor ,
anagement Cooperation Trust Fund, [5] International Brotherhood
-
. Painters and Allied Trades Union, and [61 Painters District
Council No. 5, have provided employee benefits tO employees who
performed services on the project described as follows:
Highland 565 Zone Reservoir Interior Recoatiag Project
Contributions are unknown as this time. However it is for all
employees who performed painting, drywall and related services
such employecs to include but not be limited to:
N ems Scanal Securaty I a Adtlreu
A
Brown, Harold A.
340-10-6050
1612 NIB u lly Dr SE Olympia WA 90513 (360)413-9265
Bazar, Javon E.
i
Fickee, David W.
516-39-1372
Po Box 1387, Ol m iA WA 98513
Hallmark, Gary (Mwl
538-74-3882
Hart. Rory
521-51-1038
6602 5 Tacoma We $10, Tacoma WA 98409
ILloyd, Gene
H.,neor, Brad
539-60-9211
8258 NW wildcat Lake Rd, Bremerton WA 9R312
st. James, Dave
535-78-6897
17$2 5 15th, Tacoma WA 98108
PRODF1Nl--A:\L1ENS\ALTURA5.960 Page 1
��� .. r .. �/rKYMWY#IRa�16•TYu � "I
1
F
Naae, social 62,ur,ty I L Addreaa
Brown, Harold A.
3
e0-e0-6050
06e2 Hin ua LIZ Dr. SE, 0l m la WA 98513 360 113-9265
Stavez, Ronald J.
Tenney, Aaron J.
4830 Seth St ME, Mar avills WA 95270
Valkanaar
024-44-3684
E.
Plus 12% from amounts found to be due as of June 15, 1996,
July 15, 1996, August 15, 1996 and September 16, 1996, plus
reasonable attorney fees of not less than $1,500.00, against the
retained percentage and the bond taken from:
z" PRODUCTION FINISHING INC Seat by Regular and Certified
C/O HERBERT L MARTSO Mail No. P 270 e61 218
2102 RIDGE LANE HE
TACOMA WA 98e02
tx as Principal, and
GULF INSURANCE COMPANY Bent by Regular and Certified
MR MARK LEE CONST CONSULTANT Mail No. P 270 efl 219
CONSTRUCTION CONSULTING 6
DISBURSEMENT SERVICES
5550 W TOUHY AVE
SKULKIE IL 60077
Bond No. GES702415
as surety on the above-described project.
DATED: October 25, 1996.
Name of Claimant: (A) EMPLOYEE PAINTERS' TRUST, [B]
WESTERN WASHINGTON PAINTERS DEFINED CONTRIBUTION
PENSION TRUST, [C] WESTERN WASHINGTON APPRENTICESHIP
AND TRAINING TRUST, [e) WESTERN WASHINGTON PAINTERS
LABOR MANAGEMENT COOPERATION TRUST FUND, [5]
INTERNATIONAL BROTHERHOOD OF PAINTERS AND ALLIED TRADES
UNION, AND [6) PAINTERS DISTRICT COUNCIL NO. 5
By
JOM2[ RA'2UzT, Attor ey roll claimant
810 Hoge Building
705 second Avenue
Seattle, WA 9410e-1711
(206)62e-1080
PROD►INI--A,\LIENS\ALTUAA3.96O Peg* 2
I
Nov - 19%
is
HERTZ CORPORATION ^
;:',\
3817 NORTHWEST EXPRESSWAY F.
ORLAHOMA CITY, OR 73112
(405) 280-6321 Fax: (405) 290-2201
CLAIM AGAINST PAYMENT BOND AND CLAIM AGAINST FUNDS HELD IN TRUST
OWNER OR PUBLIC AGENCY GENERAL OR PRIME CONTRACTOR
CITY OF RENTON
` ATTN: TOM MALPHRUS
ey 200 MILL AVENUE S.
RENTON, WA 98055
BOND OR LIEN CLAIMANT LENDER, SURETY OR BOND COMPANY
HERTZ CORPORATION GULF INSURANCE CO. OF KANSAS CITY
3817 NORTHWEST EXPRESSWAY P O BOX 446
OKLAHOMA CITY, OK 73112 DALLAS, TX 75221
REF: Acct. or Bond #:GE5762415
y
TO ALL BONDING COMPANIES AND SURETIES OF THIS PROJECT:
Notice is hereby given that we are the claimant furnishing labor, -
services, eqquuipment or materials of the type described on the enclosed
lien claim for the work of improvement known as the HIGHLANDS 565 ZONE
RESERVOIR project, located at MONROE AVE. & N.E. 12 STREET, RENTON, WA
68057, for which you are one of the known lenders, bonding companies
or sureties.
The specific contract information is for Our Job/Invoice #335706 TO
333492.
Such labor, services, equipment or materials were contracted for by
PRODUCTION FINISHING, 1645 S 310TH ST, SUITE A, FEDERAL WAY, WA 98003, y
who is one of the contractors or the G •ral Contractor of this job.
There is due to HERTZ CORPORATION the s...., of $7,216.52 which has not
been paid. This is to notify you that in the event payment is not made
in full to our company suit will be brought against the sureties of q
this project for recovery of said sum.
Please hcknowledge receipt of our claim and advise us how soon it will
be paid in full. If you have any questions, please feel free to call
me as soon as possible.
Sincerely '
VOILA d
H MMLY-X SHOCK, COLLECTION INALYST
HERTZ CORPORATION
(405) 280-6321 Fax: (405) 290-2201
I d Y
At ,
A,.
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P
F�'
C�
HERTZ EQUIPMENT RENTAL
3817 N.M. EXPRESSWAY
OXLAHOMA CITY, OE 73112
(405) 280-6321 Faxe (405) 290-2201
CLAIM AGAINST PAYMENT OR LIEN BOND1 AND CLAIM AGAINST FUNDS HELD IN TRUST
OWNER OR PUBLIC AGENCY GENERAL OR PRnM CONTRACTOR
CITY OF RENTON
ATTN: TOM MALPHRUS PRODUCTION FINISHING, INC.
200 MILL AVENUE SOUTH 1645 S 310 ST, SUITE A
RENTON WA 98055 FEDERAL WAY WA 98003
BOND OR LIEN CLAIMANT LENDER, SURETY OR BOND COMPANY
MIDWEST INDEMNITY ^
HERTZ EQUIPMENT RENTAL C/O VICEROY, INC.
3817 N.W. EXPRESSWAY 5550 W TOUHY AVE.
OKLAHOMA CITY, OK 73112 SKOKIE IL 60077
REF: Acct. or Bond #:GE5782415
TO ALL BONDING COMPANIES, SURETIES, PRINCIPAL CONTRACTORS AND OWNERS
OF THIS PROJECT:
Notice is hereby given that we are the claimant furnishing labor,
services, equipment or materials of the type described on the enclosed
lien claim for the work of improvement known as the HIGHLANDS 565
RESERVOIR project, located at MONROE AVE. 6 N.E. 12 STREET, RENTON WA
68057, for which you are one of the known lenders, bonding companies
or sureties.
The specific contract information is for Our Job/Invoice #335706 TO
180427.
Such labor, services, equipment or materials were contracted for by
PRODUCTION FINISHING, 1645 S 310 ST, SUITE A, FEDERAL WAY, WA 98003,
who is one of the contractors or the General Contractor of this job.
j There is due to HERTZ EQUIPMENT RENTAL the sum of $8,007.41 which has
i not been paid. This is to notify you that in the event payment is not
made in full to our company suit will be brought against the sureties
of this project for recovery of said sum. 1
The time of the commencement of performance of labor or the furnishing
of materials was 07/18/96. The time of the cessation of performance of
i labor or the furnishing of materials was 09/18/96. The date the debt
became due in / /
Please acknowledge receipt of our claim and advise us how soon it will
' be paid in full. If you have any questions, please feel free to call
me as soon as possible.
Dated: 11/06/96
By: Q40S) 280-
( �.�I.. .a
UIPMENT RE D
r"sw,
(405) 6321 Fax: (405) 290-2201
p,.
Y. a!
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S r S WELDING, INC. Ap MIAL
toMM LL.
omm I
ANM Mnk•t
CUS70M METAL FABRICATION GEN. CONTR N S-S-WE-G:•-•-201KA
COMPLETE SHOP FACILITIES Telephone: (206)872-3833
RADIO DISPATCHED PORTABLES FAX: (206)395-D254
SIEFI•STAIN LSS•AWM-FLAW Ad=1974
•GMAWGTAWSMAWMACHINERY
B TOOLING FAD.NON-DESTRUCTIVE "I
TESTING-DESIGN BUILD SERVICES-
FREE ESTIMATES
NUVEMHEk 1, 1'l96
CITY OF RENTON
PLANNING/BUILDING/PUBLIC WORKS DEPARTMENT
200 MILL AVENUE SOUTH. FOURTH FLOOR
RENTON. MA. 98055
ATTN: TOM MALPHRUS / CITY CLERK
REF: CITY OF RENTON
HIGHLANDS 565 ZONE RESERVOIR L .
INTERIOR COATING PROJECT
PROJECT WTR 27-2210
RE: PRODUCTION FINISHING. INC.
ATTACHED ARE COPIES OF OUR MOST RECENT CORRESPONDENCE WITH THE BONDING
COMPANY ON THE ABOVE REFERENCED PROJECT. PLEASE KEEP US APPRISED AS
TO THE STATUS OF THIS PROJECT.
ME WOULD ALSO APPRF.:IATE YOUR FORWARDING US A COPY OF THE BONDING
DOCUMENTS FOR OUR REVIEW. THANK YOU.
S�I�NNC�7ERREELLYY.
i BONNIE S. STUCKE
CREDIT DEPARTMENT
ENCL.
Mailing Addmu: GUN
PC) SOX 5 !
Ke Km�KbI1� 1Z F*JW
M.WA 9003& SOS $1113 SOAw&
1Ga M.ill^" 11
Y
S G, S WELDING, INC. OMMBN IAL.
CUSTOM METAL FABRICATION GEN. CONTR b SS-VVE-L-•-•-201KA
COMPLET.SHOP FACILITIES Telephone: (206)872-3833
RADIO DISPATCHED PORTABLES FAX: (206)395.0254
STElt•STAINLESS•ALUM -FLAW BINGE 1974
•GMAWGIAW.SMAWMACHINIRY
I A TOOLING FAI•NON DESTRUCTIVE
1 TESTING-DESIGN BUILD SERVICES-
FREE ESTIMATES
NOVEMBER 1. 199E
I
MIDWEST INDEMNITY
VICEROY MANAGEMENT, INC.
5556 WEST TOUHY AVE.
SUITE 400
SKOKIE. ILLINOIS 60077
6 A:'TN: ALAN I. BOYER V
1 CLAIMS ATTORNEY
PR Ni I PAL% PRODUCTION FINISHING, INC.
OBLIGEE: CITY OF RENTON. WASHINGTON
PROJECT% HIGHLANDS 565 ZONE RESERVOIR, RENTON, WASHINGTON
CARRIER( GULF INSURANCE COMPANY
EFF. DATE% 04/23/96 ROC% 9/10/96
? �• BOND NOT SE5782415
L 4 I CONTRACTORS REGISTRATION NO. PRODUFIO44DQ
L +. FILE NOT 4375.2
1 F�.
aM DEAR MR. BOYERT
nLM�n '
ENCLOSED YOU MILL FIND COPIES OF TWO (2) ADDITIONAL INVOIC'.S AGAINST
THE ABOVE REFERENCED PROJECT - INTEREST BILLINGS AGAINST BOTH THE BASE
CONTRACT AND THE AUTHORIZED ADD DNS. THESE BILLINGS WILL INCREASE OUR
r ,I CLAIM AGAINST THE BOND TO B 26.174.75.
OUR FIRST BILLING AGAINST THIS PROJECT WAS ISSUED ALMOST 5 MONTHS AGO.
THE CITY OF RENTON APPROVED THIS BILLING AS WELL AS SUBSEQUENT
BILLINGS AND HENCEFORTH ISSUED PAYMENTS TO PRODUCTION FINISHING FOR
WORK PERFORMED BY S L S WELDING, INC. AS YOU ARE AWARE, WE STILL HAVE
NOT RECEIVED ANY MONIES AGAINST THE PROJECT.
i
Mailing Address: Plant Address:
P O. BOX 1505 KENT CENTRE CORPORATE PARK
Kent.WA 98035 t505 22131 EEHN Ave 5
KWI.WA W032 �
L
a ,
� Yl
I
MIDWEST INDEMNITY NUVEMBGR 1, 1'3BF, I'
VICEROY MANAGEMENT. IN., PAGE 2 OF 2
AT'fN: ALAN I. BOYER
CLAIMS ATTORNEY
ME ARE COMMITTED, AS I'M SURE YOU ARE, AT KEEPING COSTS FROM
ESCALATING ANY MORE THAN IS NECESSARY. THE INVOLVEMENT OF ANY FURTHER
OUTSIDE PARTIES TO RESOLVE THIS IS UNDESIRABLE, FOR EVERY DAY THAT
PAYMENT 15 NOT RECEIVF.0 OUR COSTS INCREASE. WHILE WE APPRECIATE YOUR
CORRESPONDENCE ACKNOW.EUGING RECEIPT OF OUR CLAIM, MORE 1S NEEDED. I
NEED A LETTER OF COMMITTMENT WITHIN TWO WEEKS OUTLINING A RESOLUTION
TO THIS DEBT. SHOU[.^ YOU LIKE TO DISCUSS THIS WITH ME, I CAN BE
REACHED AT 206-872- I LOOK FORWARD TO HEARING FROM YOU. + ~
RESPECTFULLY SUBM1T,Eo,
BONNIE S. STUCKE
CREDIT DEPARTMENT
CC: CITY OF RENTON
FLANNING/BUILDING/PUBLIC WORKS DEPARTMENT
1
I
I
I
�BLMVEE) OCT 16 W;
11�ceraf,MnNageisrenl, J�rc. _
0ft0 wEtT IOUYY p/EYUE
L[OKI[.ILUNMt Em>r
TFLEPMONEIrYt)trr [,3
TEIECONE11111M1 Er 11955
{1[[[P I,GY M IV VY ICQ.
To".' 16 1512 ,.
Twgv µMn 677 IM
October 10, 1996
l
Thomas R. Stucke, Proj. Mgr.
S4S Welding, Inc.
j P.O. Box 1505
I Kent, WA 98035-1505
Principal Production Finishing, Inc.
' Obligee City of Renton, Washington
Project Highlands 565 Zone Reservoir, Renton, Washington
Carrier Gulf Insurance Company
Eff. Date : 04/23/96 ROC : 09/10/96
I1 Bond No. CE5782415
\ t File No. 4375.2
ill Dear Mr. Stucke:
As your company has previously been advised, this office manages
the surety bond claims for Gulf Insurance Company, the surety which
j issued the referenced bond. On behalf of Gulf Insurance Company,
we acknowledge receipt of your correspondence on 10/03/96 and the
' documentation which you sent in support of your company's claim
which we understand now to be in the amount of $25,792.79.
We are in the process of reviewing these materials, and as part
of our investigation are forwarding them to the bond's principal
for its review and comment. While our investigation is ongoing,
and while we await a response from the principal, please feel <'
free to contact the undersigned if you have any questions
regarding the disposition of the claim.
Kindly contact this office if the principal has paid or pays any
additional amounts to your company subsequent to your initial
correspondence with us. Also, please advise us of any changes in
your company's address or telephone number.
Please note that our activities in connection with your company's
claim are for i:vestigatory purposes only and should not be
6
a
fi nu Y
r �
Thomas R. Stucke
S&S Welding
October 10, 1996
Page two
Re; Production Finishing/4375.2
construed by you or your company as a promise to pay its claim in
whole or in part or an admission of liability under the bond.
They tre undertaken with a full reservation of surety's rights
and defenses under the terms of its bond, the contract and the
law. This reservation of rights shall remain in full force and
effeI. yer
me expressly revoked by surety in writing.
Ve yours,
wr
� s
Claims A torney „x
F r- �
AIB:fm
cc: Mark Lee - CCDS - w/encl.
4ib\f9aPr024.aek
}�Hry
i 7.T
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THE CITY OF 14EN10N
DEPARTMENT OF
PLANNING/BUILDING/PUBLIC WORKS
FOURTH FLOOR
200 MILL AVENUE SOUTH
RENTON. WASHINGTON 8805,2189
FAX: 235 2541
T.
To:
Company: Glothe;r IiCnGl
Phone:
Fax: 622 -`I' IB(Q t
From:
'ronn I'Y\c.\`Inrt�S 1
Company: G;}y o f Ran-too I
Phone: -27-7 yy13
Fax: 23S - 2gy I
Date: 9/9�9 G
Pages including this
cover page:
Comments: R C-C
SVUM �gI l V�4 <
nd wr•.-�'�n no"faS c._fC M:nt f ivy PntcenY E �,'' t
ha1,c_ any
�M
J'
1=finishing, Inc.
��� Avr ..Jryt ,.r.r I'1'INf (erbfitb
.fJ'
µacne 6lnJuni.e/binpnq(unp.e,nr
8123196
City of Renton,Progress Billing Invoice#%04-2
Billing Period 7/27196-8127196 Completed
To Dam Billing
Structural Carton Steel 4 25% 4.25%
Material 7 30% 7,30%
Fabrication 9 50% 9.50%
Installation
Interior Painting 590.E 5.90% ^ '`��r�
Mobilization 1.20% o"'
1.20% a,r
Cathodic Protection Removal 3 80% 3.80%
Rigging Interior 1 40% 1.20% b� 3.aDfo
Pipe Plug %00% 10%
Material 24.60% 21 30%
Sand Blasting 16 40%
Paint Interior 1,00% As P`r
�.c
Replace Cathodic Protection 120% •c� ^sp••
Disinfection 2.37% -s..r
De-Mobilization r,(.1-
rlet eor•C�.�•'
Additional Coating 7.58%
Painting 3.70% 3.70%
Material
S, 100.00% 68.15% ��
I $143,906.00 $98,071.94 .�
Contract Total
a«.
Change Orders:
Test for Hazard Sludge I
Safty clamp $ 21 ;64.ypy>
Total Due -„ •�
PFI
Engineer - .
gpae-1.XLS • Fa.(?O6)639.7679
164"5 310tl,S... n I e le,al Way.Wa W�3"7�" • ( )g39-7950
v O 13ox 23670
— �J F
i � 1
CITY OF RENTON
Planning/Building/Public Works Department
leue'hnaar.Maya Greae Zimmer
man P.E.Admieis rator
i
September 6,1996
Surety Insurance Services of the Northwest.Inc.
155 NE 100th- STE 303
Seattle,WA 98125
SUBZCT: BOND 0 GE 5792415
Please see the enclosed copies of the letters we sent to Herb Hartso and Richard Head. As of this
time,we do not know which of these two is the legal administrator of Production Finishing.Inc. .,
We are unable to contact Gulf Insurance Company. Please forward copies of these leviers to
them. Thank you. f
If you have any questions,please call me at(206)277-4413.
Sincerely,
�PM 1
four Malphrus
water Utility
N:nOCa:%-5a1:'rHM:ps
CC: nary warm
Lyr H.-d'Y
;R
f
a syL
{�"7M
f
7
,RR
200 Mill Avenue South-I mton,Washinron 98055
re
ns
'?j
r �d I �•al
I a.
S
Gulf Insurance Company
STATUS INQUIItY
CONTRACTOR 9101196
ProdacNun Finishing,I..
JOB DESCRIPTION
INTERIOR RECOATING PROJECT EXTERIOR COATING PATCHES HIGHLANDS
SO ZONE RESERVOIR
BOND HOLDER
i
CITY of aENroN BOND X GE 5782415 [N
1ao MRl AVE.S. EFFECTIVE DATE 4/231%
BOND AMOUNT $ t43,906.00 j
RENTGN WA wns a4ra CONTRACT AMOUNT S 143,906.00
CONTRACT#
j We Read R stRblR report N the pmgraft of the job described. Your
( 000100tim Rod P =0 return of this brief Inquiry Mould be appreciated.
1F THE CONTRACT HAS NOT BEEN COMPLETED: QZIF
PERCENTAGE OF COMPLETION 5 9. 2O %
I _
TOTAL AMOUNT PAD TO DATE $ R 6�552,78 It is understood that this information is
fumished u a MAtter of courtesy and
ICURRENT CONTRACT S r will be held confidential by Surety. It I
PHOLUDNO CHANGE OH061S AMOUNT T 8 !s also understood that the Providing 1
putt does not gturwry the accuracy
IF THE CONTRACT HAS BEEN COMPLETED: of this inferm.tion whether such
information is furnished by the owner
DATE OF COMPLETION / / or any agent of the owner.
DATE OF FINAL PAYMENT
TOTAL CONTRACT AMOUNT $ p9 pq
(INCLUDING CHANGE ORDERSI
'. COhIl11ElVT5 GonYrt,c-ler i in bfcrc.h o f cons-/p + G {p!,
has ICA }t, en"'.r T- 4.h s y J41 '11 Surc +'
1._t�lb�fc'�sl Go nlQlc}ion w:tl�:n Ylo 0r'o:nu.l -1 c� ; I fi' A •}1sMg,
NAME Tom
Please sign,date and return this inquiry in 1PLEASE dRPlrl
the enclosed envelope to: SIGNATURE 9o•v.� 9lta.���.�
Midwest Indemnity Corporation 1'
5550 West Touhy Avenue-Suite 400 TITLE Via__ 7 Sla.�' 1 ht tL
Skokie,111incis 60077-3200 DATE =�4 42L -
PHONE(847)982-9800 FAX(847)982-9816 PHONE: (19C. 1?? -YY!t
4870 70 041190 o00 FAX# U—" OW z3c- LSYI V
a
I
a.
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SURE7Y INSURANCE SERVICES OF TIC NOKnFWFSf,ING
Date: .Ptember i, 1996 Bond eGti 5782e 15
Date Issued: April 23, 1996
Principal, Production Finishing, Inc.
Bond Amount: $ 14:,906.00
City of Renton Contract Ar.ount:$ 143,906.00
Project Description:
200 Mill Avenue South Highlands 565 Zone Reservoir ,y8,
Renton NA 98055
As agent for the sure_y on the above project, we need a periodic statue report on the
progress of the job. Your completion of this brief inquiry rill be appreciated and
should prove helpful to both of us.
These inquiries will be sent periodically until the project is satisfactorily conpleted. A z
self-addressedu.
. .. . . ............ope .=..........Thank .o..Y._......_...__._:._...__...........:......
IIF CONTRACT HAS NOT BEEN CDMPLETRD:I { it is ,.err%toed that the infore.tim I
{ contai,ed herein is furnished as a I
{ courtxy for the coefidentiM we of
Percentage of Completion: the Surety .re i%aarely en uprxaian I
{ of opinion. it is .iso peed that in {
Probable CoMletion Dale: !4e'r k.AeuA I fumishiN this infonetisn, ro smvrmit, I
or xrranty of accur.cy or eorractrw•s
Total Amount Paid to Date:$_�7,wty s;2 78 I is ease •nd no r•epan'iot t i ty is ...seas I
{ •. . .It of r.li.rc.by the surety, {
Is the work Progressing Satisfactorily_ No _._ { whether smh inforeatian is fta'nishad by
{ the Greer or by an architxt of "Ifeer {
Current Contract Asou,. :$_-L!95-i RJ %/8 I •• th..q.nt of the seer. I
(Includi..g Change Orders)
Payments Aesignadt:__TO:
IF COHTRACI' HAS DREW CUUWWI TRD:i 1
Date of Ccaplatim
Original CrnCACC Asawnt:5__
Final Contract Amount:$
Has Final Payment Been made? if so, Date:
Cemmmnea .......... ...`wa.Afa.E sAla.;t C aaa.'..Ism..m. �t �-� V.. ve tl... •.t ,_.86
I Sir..% J'.\:. � ..:0 �ar.ea..iT�a•'�l�arT:.n N.:n Tt.—
By: T u M• IDlnh.� Title:_ 3ia>im:
Date:_g1/c 9�r Phone: (306) 2i77
Hl i d, SURETY INSUR,AM SRRVM OF THE HORTIIM65T,Hit.
,a 98136
N.E ion'"
303.6mWe
(M6) 27.6614•Fm(M6)3174358
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✓� SURETY INSURANCE SERVICES OF THE NORTHWEST,INC.
Bond #GE 5782415
August 10, 199ti Date Issued: April 23, '196
Principal: +�
Production Finishing, Inc.
Bond Amount: $ 143,906.00
Contract Amount: $ 143,906.00
City of Renton Project Description:
Highlands 565 Zone Reservoir
200 Mill Avenue South i
Renton WA 98055
As agent for the surety on the above protect, we need a periodic status
report on the progress of the job. Your completion of this brief inquiry
will be appreciated and should prove helpful to both of us.
_ ,. These inquiries will be sent periodically until the project is satisfactorily
completed. A self-addressed envelope is provided. Thank-You.
I! CORTRACT HAS NOT BHHR COMPLETED: It is understood that the
information contained herein
is furnished as , matter of t,
Percentage of completion: S D_ courtesey for the
9 confidential use of the
"
Probable Completion Date; S t surety and is Merely an
expression t /�Jy6 expression of opinion. It
i• also agreed that in
Total Amount Paid to Date:b S 9 nC.� 3$ furnishing this information,
no guaranty or warranty of
accuracy or correctness is J 'Is the Work Progressing Satisfactorily? ye., made and no responsibility
is assumed as a result of
Current Contract Amount:_/•/S 'YOCT $ reliance by the surety,
T� whether such information is
ImmMlny cks we.en furnished by the owner or by
Payments Assigned?:_To: an architect or engineer as
the agent of the owner.
I
IF COR'rRACT RAS HERE CDIO?LETHD:
Data of Completion:
Original Contract Amount, j
s; Final Contract Amount:S I
Has Final Payment Bee% Made? if so, Date: �
I i
I !
Co®ents: Ga-1n;nJ
vk �
aI By:_ TOM Ma,D V\P i< Titles C c:a�;i'�'
t Date:_ ! r/ ' S'6 —Phone:
x SURM INUMA.YCc SMMCES OF i:m NORIIIs'65T,INC.
l(a. 155 Y E.100&.Sam 303,Sask.1A W121
'x 12061$274624•Fu(206)52'.4150
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�r�� SURETY INSURANCE SERVICES U!171E IVul:inwc�:,iYC.
Bond RGE 5782415
ti
C�.�1(I Date Issued: April 23, 1996
25, 1996 �C�C��2r � Principal:
Principarn: Finishing, Inc.
Bond Amount: $ 143,906.00
contract Amount: $ 143,go6.00
City of Renton Project Description:
Highlands 565 Zone Reservoir
200 Mill Avenue South WA 8055
Renton
As agent for the auretp on t e above project, we need a periodic statue
report on the progress of the job. Your completion of ibis brief inquiry
will be appreciated and should prove helpful to both of us.
These inquiries will be sent periodically until the project is satisfactorily
completed. A self-addressed envelope is provided. Thank-You.
laccur&cy
understood that the
IF cONTRRCT HAS NOT BEEN COMPLETEDt ation contained herein
nished as a mutter of
essy for the
Percentage of Completion: `�O, /s i ential uu of the
and Ss merely an
sion of opinion. St
Probable Completion Date: $ - �� - 9G so agreed thae inhing this information,Total Amount Paid to Date:S /Gr ,,�1 5 0 ranty or warranty ofcy or correctness is
Is the Work Progressing Satisfactorily? `/4sa ends and no responsibilityis assumed as a result of
S 14:T 4�9 _ 9 reliance by the surety,
Current Contract Amount: furhenherish such information
I:smwtw ^ab�e�: furnished by the by
or by
an architect or engineer as � r,
Payments Assigned?: To: the agent of the owner.
I! CONTRACT BAB BEEN COILL�LETED:
Date of Completion: —
Original Contract Amounttl Final Contract Amount.S
Has Final Payment Been Nade? if so, Datet
Comments-
By: �oM M \O hr u� Title:
Data: phone:
.. SURETY U MNCE SCRS7C95 M TU 4UMMS5.DIC.
155 Y.C.ION.See 505.Sark,e19612S
(206)527.6624•he(206)527-4555
-
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SURM INSURANCE SERVICES OF THE NOR111R'ESI;INC.
Bond #GE 5782415
Date Issued: April 23, 1996
June 25, 1996 Principal:
Production Finishing, Inc.
Bond Amount: $ 143,906.00
Contract Amount: $ 143,906.00
City of Renton Project Description:
200 Mill Avenue South Highlands 565 Zone Reservoir
Renton WA 98055
As agent for the surety on the above project, we need a periodic status
report on the progress of the job. Your completion of this brief inquiry
will he appreciated and should prove helpful to both of us.
These iiquiries will be sent periodically until the project is satisfactorily
comply ed. A self-addressed envelope is provided. Thank-You.
sees—
i
ZF CONTRACT HAS NOT BEEN COMPLETED: it is understood that the
information contained herein
is furnished as a matter of
he
Percentage of Completion: II.SS confidential u eo of the
surety and is merely an
i Probable Completion Date: expression of opinion. it
—�� is ale. agreed that in
Total Amount Paid to Date:$ IG.6 62.Q o furnishing this information,
no guaranty or warranty of
j accuracy or correctness is
Is the Work Progressing Satisfactorily? Ye_S made and no responsibility
1 is assumed as a result of
Current Contract Amount:S /c/ 3, 9'O(o on reliance by the surety,
; whether such information is
:x.elmty ca�em..ex furnished by the owner or by
an architect or engineer at
Payments Assigned?:_y" _ To: �ro�„ 3;en F;n'e-1-.n., the agent of the owner.
ZF CONTRACT RAS BEEN COMPLETED=
n
Date of Completion: _
' Original Contract Amount:$ Final Contract Amount:$
Has Final Payment Been Made?_if so, Date:
i Comments:
By: rn Title:
S �.—_
I Hate:_ Phone: (2c<1 2"J - c
{ / !l�
1 SURM INSURANCE SERVICES OF THE NORTNR'E1T,INC.
I
ISS N.E.laph.Style W I,Sank.WA 98125 '
�:' QfIL)51'h629�Fn(2W1 t2'd35R
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Gulf Insurance Company
STATUS INQUIRY
CONTRACTOR 6/231%
Produete,n FioitbinR.Inc.
JOB DESCRIPTION
INTERIOR RECOATING PROJECT EXTERIOR COATING PATCHES HIGHLANDS
-%5 ZONE RESERVOIR
BOND HOLDER
f ny OF RENTON BOND 0 GE 376MIS
EFFECTIVE DATE 4WI96
200 MILL AVE S.
BOND AMOUNT $ 143,t10�.00
RENTON WA 48e55 0009 CONTRACT AMOUNT i 14),906.09
CONTRACT#
We need a status report on the progress of the job described. Your
completion and prompt return of this brief inquiry would be appreciated.
IF THE CONTRACT HAS NOT BEEN COMPLETED:
PERCENTAGE OF COMPLETION %
TOTAL AMOUNT PAID TO DATE f I co BOG 2 •80 It is ad that this information is
1 ffurnishedshed hM a ass•matter of couNesy and
$ S , 9�G.00 w ill be hold confidential by Surety. It
CURRENT CONTRACT AMOUNT —� is also understood that the providing
(INCLUDING Ct NGE ORDERS)
. party does not guaranty the accuracy
IF THE CONTRACT HAS BEEN COMPLETED: in or Lion,is fur s hewer then
_ inforrNlion is furnished by the owner
1 1 or any agent of the owner.
DATE OF C^MPLETION
DATE OF FINAL PAYMENT IICI!'IIIIV! V'II!!II�VIV�III�NII'�I�NI!III�I!IJIII
TOTAL CONTRACT AMOUNT $
- (INCLUDING GNANGE ORDERS)
COMMENTS
NAME Thnmat Mhr�s
Please sign, date and return this inquiry in Iw..EASE PPRINT/)/ n
the enclosed envelope to: SIGNATURE
Midwest Indemnity Corporation -
5550 West Touhy Avenue-Suite 400 TITLE. En.:n me-e:0 A 5
Skokie, Illinois 60077-3200 DATE
PHONE(847)982-9800 FAX(847)982-9916 PHONE: (A06 13
4810 30 041190 000 FAX# f TnL) 2 t C— 1C 41
fr III ,
i
THE CITY OF RENTON
DEPARTMENT OF
PLANNING/BUILDING/PUBLIC WORKS
FOURTH FLOOR -
200 MILL AVENUE SOUTH
RENTON,WASHINGTON 99055-2189
FAX. 235-2%
To: Peter Karney
Company: Viceroy Management, Inc.
Phone:
Fax: (847) 677-1855
From: Thomas H. Malphrus
Company: City of Renton
Phone: (206) 277-4413
Fax: (206) 235 2541
Date: 09/26/96
Pages including this
cover page: 3
Comments:
SUBJECT:Fax trammittal from vw to me on 9/26196 tree coP,Y) -
do tat understand this fax. Please clarify.
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09,26'96 14 34 VOIT 67T 1935 1ICEROi ®002�001
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Viceroy Mamayewift, Jae.
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VIA TE EFAX Y206/235-2541
;_FIRST CLASS MAIL
September 26, 1996
..1 M
Mr. Tom Malph: s
City of Renton, Washington
200 Mill Avenue South
Renton, WA 98055
I
Principal Production Finishing, Inc.
Obligee City of Renton, Washington
Project Highlands 565 Zone Reservoir, Renton, Washington
Carrier Gulf Insurance Company
Eff. Date 04/23/96 ROC : 09/10/96
Bond No. z GES782415
File No. 4315.2
Dear Mr. Malphrus:
Thi • letter is a follow-up to Mark Lee's letter to you of September
25, 1996. As you may be aware, my office, Viceroy Management, '
Inc. , represents and manages surety claims for Gulf Insurance
Company, the carrier which issued the above-referenced bond. Our
purpose in writing today is basically twofold; first to request
that you and your client provide the material and documentation Mr.
!.as requested in his letter to you and to Mark Miller, the City's
project engineer. This information is vital and our receipt of it
necessary before our investigation can proceed. The second purpose
is to demand that the City of Alturas make no payments of contract 1
funds to Production Finishing or any other party without Gulf's
prier written express consent. Further, Gulf expects that the City
will take all necessary steps to mitigate its losses and prevent
the accrual of additional exposure.
Please note that both our activities and Mr. Lee's activities are
done for investigatory purposes only. They should not be construed ,
by you or the City as an admission of liability under the bond or t
r
1
.09W29199 14.33 Q937 677 1335 VICEROY ®003,003
Mr. Tom Malphrus wj :
September 26, 1996 -
7.
Page two
Re: Producti.n Finishing/4375.2 ;.'
a promise to honor any claim under the bond. They are done with a
full reservation of Gulf Insurance Company's rights and defenses.
Please contact me with any questions.
Sine,
PeRarney
`Claims �i\ttorney
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VIA TELEFA.X U206/235-2541
B FIRST CLASS MAIL
September 26, 1996 ,
1 Mr. Tom Malphrus
11 City of Renton, Washington
200 Mill Avenue South
Renton, WA 98055
Principal Production Finishing, Inc.
Obligee City of Renton, Washington
Project Highlands 565 Zone Reservoir, Renton, Washington
Carrier Gulf Insurance Company
Eff. Date 04/23/Ao ROC 09/10/96
Bond No. GES70241S
w
File No. 4375.2 '
Dear Mr. Malphrus:
This letter is a follow-up to Mark Lee's letter to you �f September
25, 1996. As you may be aware, my office, Viceroy Management,
Inc. , represents and manages surety claims for Gulf Insurance
Company, the carrier which issued the above-referenced bond. Our
purpose in writing today is basically twofold; first to request
that you and your client provide the material and documentation Mr.
Lee requested in his letter to you and to Mark Miller, the City's i
project engineer. This information is vital and our receipt of it
I necessary before our investigation can proceed. The second purpose
is to demand that the City of Alturas make no payments of contract
funds Co Production Finishing or any other party without Gulf's
prior written express consent. Further, Gulf expects that the City ,
will take all necessary steps to mitigate its losses and prevent
w the accrual of additional exposure.
Please note that both our activities and Mr. Lee's activities are
done for investigatory purposes only. They should not be construed
by you or the City as an admission of liability under the bond or
ay «
i
, R
YY �a
i nre t
k
y.. ' PIN fi
Mr. Tom Malphrus
September 26, 1996
Page two
Re: Production Finishing/4375.2 'r
a promise to honor any claim under the bond. They are done with a
full reservation of Gulf Insurance Company's rights and defenses.
Please contact me with any questions. - .
Sinob 0.1v" r
��„
P tar IC Karney
Claima /Attorney
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fh CITY OF RENTON
.0 Planning/Building/Public Works Department
lesx anner.Manor Gregg Zimanerman PY,Administrator
September 10, 1996
Richard Head
y„+ C lotheir&Head
1325-4th Ave. Ste. 1100
Seattle,WA 98101
SUBJECT: SANDBLASTING THE INTERIOR OF THE HIGHLANDS RESERVOIR
Following is an abbreviated list of events relating to the deep corrosion discovered on the
Highlands Elevated Reservoir walls and the City's position regarding the removal of this
corrosion.
August 15, 1996 Production Finishing, Inc. blasting crew notifies the CnY of their discovery
of deep corrosion on the reservoir walls.
The City of Renton performs an initial inspection of the corroded areas.
August 16, 1996 The City tells Production Finishing,Inc.,personnel to continue blasting. The
City instructs Production Finishing.Inc.,personnel to develop a blast profile
on the corrosion and to blast the other areas of the reservoir to while metal.
August 22. 1996 The City sends Production Finishing, Inc.,a letter directing them to inquest
Madison Chemical Industries, Inc.,to send a technical representative to the
reservoir to inspect the corrosion. The City's request is based on a provision
in the contract documents requiring the contractor to provide for a paint
manufacturer's representative to visit the job site at intervals during surface
preparation and painting as may be required for product application quality
assurance.
August 23, 1996 On numerous occasions The City tells Production Finishing, Inc., personnel
to present. that they arc to blast all interior surfaces of the reservoir to white metal,as
per the contract documents, or provide for a technical representative from
Madison Chemical Industries,Inc.,to inspect the corrosion and provide the
City with written assurance that their product will adhere to the corrosion.
The City of Renton's position regarding sandblasting of the interior surfaces of the resery9ir
remains:
Production Finishing.Inc.,is to hint the interior surfaces of the reservoir to white metal, .a
as per the contract documents,or provide for a technical representative fran Madison
Chemical Industries.Inc.,to inspect the corrosion and provide the City with written
assurance that their product will adhere to the corrosion.
Sincerely,
Tom Malphrus
Water Utility
u oocaswsm-.TM is a tyr.warrcn.t.Ysln ).ram Pawone
200 Mill Avenue South-Renton,Washington 98055 ,
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AM
I F REN N
CITY O TO
Planning/Ruilding/Public Works DepaMient
taco Tamer.Mayor Grm ZJi�RE.Adukkb lx
j
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� October 3,1996
r v
rr I]( CERTIFIED MAIL Z 444 790 941
r Gulf Insurance Company
5550 W Tuohy
Skokie,IL 60077
SUBJECT: TRANSFER OF PERFORMANCE OF WORK;HIGHLANDS ELEVATED
RESERVOIR INTERIOR RECOATDNG CONTRACT
r
On September 16, 19%,we notified you that Production Finishing Inc.had failed t.�show up and
work on the Highlands Elevated Reservoir on numerous occasions. We gave Production
Finishing,Inc.fifteen calendar days in which to remedy this breach of contract. Fifteen calendar
days have passed and Production Finishing Inc.is still in breach of contract.
This is your notice that the City of Renton is transferring the performance of the work from
Production Finishing, Itte. to Gulf Insurance Company. This action is made against Gulf
Insurance Company Bond Y GE 5792415. j {
If you have any questions regarding this action,please contact me at(206)277-4413.
Sincerely.
_ I
Tom Malphrus I Ps Form 3800 March tWd
Water Utility
{ CC: L.ry W.rea C ay Anon,. I - ' r,
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200 Mill Avenue South-Renton,Washingron 98055
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I e3 -r CITY OF RENTON
'V Planning/Building/Public Works Department
3esse'hnnv.May. Gregg Zimmerman P.E.,Administrator
October 15, I1%
Mark Lee
Construction Consulting&Disbursement Services
5550 West Touhy AVE
Skokie, IL 60077
SUBJECT: RELEASE OF COATING TO MADISON
CHEMICAL INDUSTRIES,INC.
Dear Mr.Lee:
iY
i mcerved a copy of your letter to Mr.Kevin Brazier of Madison Chemical Industries,Inc.,asking
Madison Chemical Industries to remove their coating from the Highlands Reservoir job site. 1
understand that you made this request because the coating has a shelf life that is soon to expire.
We agree to release the coating to Madison Chemical Industries. We are releasing the coating
with the understanding that you know we have paid for the coating. over two progress payments,
we paid Production Finishing, Inc., $14,390.60 for the coating. This amount includes 8.2%
Washington State sales tax.
d
If you have any questions regarding this matter,please contact me at(206)2774413.
Sincerely,, ,� /.
A,n
Tom Malphrus — "
Water Utility r
ILDEWS9 413.111M:ps
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yt. 200 Mill Avenue South-Renton,Washington 98055
' 19h... _._......................,_..... ,�. ��,...... x..
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Construction
Consulting &
Disbursement
Services, Inc.
555001wrIb.4,4w u.
"y Skokm. Illinois 6"77
re(epft w(7da)6--2112
aa'+wlenlett
F£/NIDIJ&J6 2
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Wow W*OIl11en aY Coft
Two 0aW7- 2
TONOOf Put an•V
VIA TELEFAY # (905) 879-1449 a PIRST CLASS
October 11, 1996
Mr. Kevin Brazier
` Madison Chemical Industries, Inc.
it 490 McGeachie Dr.
Milton, Ontar:.o, CANADA L9T3Y5
Principal Production Finishing, Inc. t
Obligee City of Renton, Washington i
Project Highlands 565 Zone Reservoir, Renton, Washington I
Carrier Gulf Insurance Company lilt
Eff. Date 04/23/96 ROC : 09/10/96 ;
Bond No. GE5782415
File No. 4375.2 I.
I CCDS NO. : 353.2
RE: Return of Madison Chemical products Return Good
Authorization 0304
Dear Mr. Brazier: `I`�i
As you have previously been advised, Construction Consulting and ..
Disbursement Services ("CCDS") is the construction consultant for
-
Gulf Insurance Company, the insurance carrier ("surety") that
issued surety bonds on behalf of contractor, Production Finishing,
Inc. of Federal Way, Washington.
We write to request that your company go to the Highland Reservoir i p
project in Renton, Washington and remove the Madison Chemical
Coating pi-,ducts stored there. It is our understanding that
Madison Chemical will be able to use these products elsewhere and
thus, will not look to Gulf Insurance for payment of this material.
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Mr. Kev. Brazier
October :1, 1996 -"
Page Two
RE: Production F.n_=-"=ng/4375-2
YA
our impetus in requesting the removal of the coating material is
that it has a relac ively short shelf-life and we have concerns that
�I the product would go "sza-a' while the city of Renton, Production
Finishing and Gulf Insurance work out all the issues related to
this contract. ,n
I By copy of this letter to the City of Renton's Mr. Tom Malphrus, we
request the City of Renton's cooperation and assistance in allowing
Madi9on Chemical to remcvm the coating material from the icb site.
If any of you have any questions, please contact me. Otherwise we
will expect W dison to remove the product by Novemuer 4, 1996.
Very truly
ttrruly yours,
Mark Lee
i RML\meh � .;
cc: Peter E. Karney
Tom Malphrus (City of Renton)
(via fax #206-235-2541 & First Class)
Jack Irwin (Pacific Pride surety Consultant)
(via fax 8206-338-0178 & First Class)
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Construction
Consulting E
Disbursement
Services, Inc.
5770 atx r6uby Aoenue
Sbobic 111inoil 60077
rNepbone(70Y)677.2112
�(T )677-/811
FE1N1D*3&J6000W
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TWplwr 047bI1,Y112
VIA TELEPAE #(206) 235-2547 hYegiw Wn err-14p4
_ Q FIRST *��AA
October 8, 1996
Mr. Tom Malphrus
Water Utility
i City of Renton
200 Mill Avenue South
Renton, WA 98055
Principal Production Finishing, Inc.
Obligee City of Renton, Washington
Project Highlands 565 Zone Reservoir, Renton, Washington
Carrier z Gulf Insurance Company !'-
Eff. Date 04/23/96 ROC : 09/10/96
Bond No. GE5782415
File No. 4375.2
CCDS No. 353.2 �-
Dear Mr. Malphrus:
On October e, 1996, we received from you documents we requested in
our September 25, 1996 letter. In review of the documents, we not.:
that we do not have the standard specifications or the Standard
plane. Please provide these as soon as possible.
The surety continues to reserve all of its rights and defenses.
very truly yours,
Mark Lee �—
RML\meh
cc: Peter Karney (Viceroy)
Tml\mguym23.lrr
.h'
1
fy CITY OF RENTON
RPlanning/Building/Public Works Department
Jeue'hnoa Maya Gregg Zimmerman P.L.Administrator
r
October 17,19%
Mark Lee ..
CCDS
5550 West Touhy AVE
1 Skokie,IL 60071
SUBJECT: CORRESPONDENCE&STANDARD SPECIFICATIONS FOR THE
HIGHLANDS RESERVOIR PROJECT
Dear Mr.Lee:
Enclosed is a copy of the Standard Specifications and the project engineer's inspection notes and
correspondence for the Highlands Elevated Reservoir Interior Recoating Project. This should
complete the transmittal of all material that you requested in your letter to us dated September 25.
19%.
If you have any questions regarding this material,please call me at(206)277-4413. If
Siincerelyqh4at "
�,...
Tom Malphrus
Water Utility
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200 Mill Avenue South-Renton,Washington 98055
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t'} CITY OF RENTON
ZE Planning/Building/Public Works Department
lean Tsnnrr,Muyor Greg Zimmerman P.L.Administrator
January 22, 1997
Jack Jackson rr
Eagle Harbor Construction&Rental Company
P.O.Box 10061
Bainbridge Island,WA 98110
SUBJECT: BONDING FOR THE HIGHLANDS RESERVOIR PROJECT ?
Please provide the City of Renton with a construction bond for the Highlands Elevated Reservoir
project by 4:00 P.M„January 28, 1997. Failure to do so will result in the City selecting another
contractor to complete the project.
If you have any questions,please contact me at(206)277.4413.
� 6
Sincerely,
Tom Malphros
Water Utility
H:DM 97-057:1HM:q
Cc Ron 01"n
Lys H y
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200 Mill Avenue South-Renton,Washington 98055
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S330 YFSJ rouby AKnns
SA-ki- Ilfinou 60077
nlrPft�(847)677.2112
A (847)6171837
VIA TELEFAX M 206-235,2541 & FI UCLASS MAIL
i
January 14, 1997
Mr. J.D. Wilson
The City of Renton
Department of Planning/Buildine/Wh!ic Works
4th Floor
200 Mil! Avenue South
Rcnton, WA 98055.2189
Principal Production Finishing, Inc.
Obligee City of Renton. Washington
Project Highlands 565 Zone Reservoir, Rem in, Washington
Carrier Gulf Insurance Company
Elf. Date 04123/96 ROC 09/10/96
Bond No. GE5782415
File No. 4375.2
CCDS No. 353.2
Dear Mr Wilson!
in response to your lanuary 9. 1997 memo,please be advised that Gulf Insurance, as surety,has
solicited proposals for completion of the work remaining on the Highlands 565 Zone Reservoir
recoating project. The most advantageous proposal is Eagle Harbor Construction & Rental
Company whose price for the work totals E124,592.30. Gulf Insurance hereby requests that die
City of Rennon. Washington mitigate damages by utilizing Eagle Harbor Construction for
completing performazrce of the project.
`tom -
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01,11,97 10:46 Q617 677 1663 VICEROY ®603
Mr. J.A. Wilson
January 14, 1997
Pest Two
RE: production Finishingr4375.2
Jf you have any aucstioas. plan contact mt.
Surety continues to reauve all of its rights and defenses.
Very truly yours.
Mark Lee
RMLttneh
1 cc: Peter Kerney (viceroy)
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Planning[Building/Public Works Department
Jesse Tarcr.Mayor Gry Zimmerman P.L.Administrator
LETTER AND ENCLOSURE PICKED UP BY EAGLE HARBOR ON JANUARY 14,1997
January 14,1"7
f Jack A.Jackson -
Eagle Harbor Construction&Rental Company
P.O.Box 10061
Bainbridge Island,WA 98110
SUBJECT: HIGHLANDS US ZONE RESERVOM INTERIOR RECOATIKG PROJECT
Dear Mr.Jackson:
Gulf Insurance Company,via its agent.Construction Consulting&Disbursement Services,Inc.(CCDS),
has requested the City to mitigate damages with regard to their performance bond by utilizing your
company to complete performance of the subject project. Their recommendation is based upon the
R r $124,592.30 proposal you submitted to CCDS. Enclosed is a bid package for the subject project. Please
complete the following and return the entire bid package to me:
Certification of EEO Report
C rmh ined Affidavit&Certificate Form
Bid Bond Form plus a certified check,cashier's check,cash,or bid bond
Proposal
Schedule of Prices
Subcontractors List
Experience Statement
If your bid is found to be acceptable.I will send you the additional documents to be completed by you in
order to prepare the contract document. Contract award is subjec'to the approval of the City Council.
If you have any questions,please call me at(206)277-6195
Sincerely,
Wilson,P.E.t
` star Utility Engineer
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VIA OVERNIGHT MAIL- PM
January 9, 1997
Mr. J.D. Wilson
The City of Renton 'v'
Department of Planning/Building/Public Works
Floor
220 ill Road South
- : Renton, WA 98055-2189
Principal Production Finishing, Inc.
Obligee City of Renton, Washington
Project Highlands 565 Zone Reservoir, Renton, Washington
Carrier Gulf Insurance Company
Eff. Date 04/23/96 RUC : 09/10/96
Bond No. GE5782415
File No. 4375.2
CCDS No. 353.2
Dear Mr. Wilson:
Per your January 3, 1997 request, enclostd are copies of proposals for completion of the
Highlands 565 Zone Reservoir interior recoating project. The proposals are from:
1. 'agle Harbor Construction
2. C.D.S. Painting Q Coating
3. Thomas Steetuneyer Company, Inc.
4. Coating's Unlimited
5. Long Painting
6, DS Purcell Painting, Inc,
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Mr. J.D. Wilson
January 9, 1997
Page Two
Re: Production Pinishingl4375.2
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Note that the proposals include alternate pricing for providing the epoxy coating in lieu of the
polyurethane coating.
We have not advised Eagle Harbor that they have provided the lowest responsive bid, but have
told them they are in the running for award of the completion contract. Meanwhile, we have
asked Eagle Harbor if it would withdraw its claim for non-payment($3,246.00 stemming from
rental of equipment) if it was awarded the contract and they are considering it.
Please do tint share these proposals with others.
If you have any questions, please contact me.
Surety continues to reserve all of its rights and defenses. -
Very truly yours,
Mark Lee
RML\ak
Enclosure: Proposals
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CC: Peter Kerney (Viceroy)
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CITY OF RENTON
Planning/Building/Public Works Department
Jesse Tam,ec Mayor Gregg Zimmerman P.E.,Administrator
. Faxed IY12197
t January 22, 1997
Mark Lee
Construction Consulting and Disbursement Services
5550 W Touhy AVE
Skokie,11 60077
SUBJECT: HIGHLANDS ELEVATED RESERVOIR;BONDING OF
EAGLE HARBOR CONSTRUCTION COMPANY
In your fax/letter dated January 14, 1997, you requested that the City of Renton utilize Eagle
Harbor Construction and Rental Company for completion of the Highlands 565 Zone Reservoir
h, .> reccating project.
{.
Eagle Harbor Construction and Rental Company has informed us that they might not be able �
obtain a construction bond for this project within a reasonable amount of time. As of January 21,
1997.the City of Renton has informed Eagle Harbor Construction and Rental Company that they
have until January 28,1997 to provide us with a construction bond.
Please provide us with the name of another contractor that we may utilize in lieu of Eagle Harbor
Construction and Rental Company. Please provide us with this information by 4:00 P.M.,
January 28, 1997.
In the interim,the City of Renton will be soliciting additional bids to be used if Gulf Insurance
Company is not able to recommend an adequate contractor to replace Eagle Harbor Construction
and Rental Company,in the event that;bey arc not capable of becoming bonded.
Sincerely,
1 Tom Melphrus
Water Utility
u:tJocs:vauw:nut:sa :a
CC: aoa area
Ly.Hom ,
200 Mill Avenue South-Renton,Washington 98055
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5550 Wall nwby Atvnur I
Sbobic Illinois 60077
W*hons IN 7)677.2112 i
ynz(ttl)6n I815
FUNJD-3&3 60 0 002
' VIA TELEFAX A 206-235-2541 & FIRST CLASS MAIL
January 14. 1997
u� vl�l
Mr. J.D. Wilson E�Flce�l,.
The City of Renton K Vept
I Department of Planning/Building/Public Works
4th Floor
200 Mill Avemx South
Renton. WA 98055-2189
Principal Production Finishing, Inc. `
Obligee City of Renton, Washington
Project Highlands 565 Zone Reservoir, Renton, Washington
Carrier Gulf Insurance Company
Eff. Date 04/23/96 ROC : 09/10/96
Bond No. GE5782415
File No. 4375.2
CCDS No. 353.2
Dear Mr. Wilson:
In response to your January 9 1997 memo,please be advised that Gulf tnsurancc, as surety, has
t. solicited proposals for completion of the work remaining on the Highlands 565 Zone Reservoir
recoating project. The most advantageous proposal is Eagle Harbor Construction & Rental
Company whose price for the work totals$124,592.30. Gulf Insurance hereby requests that the
City of Renton, Washington mitigate damages by utilizing Eagle Harbor Construction for
completing performance of the project.
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Mr. J.D. Wilson
January 14, 1997
Page Two
RE: Production Finishing/4375.2
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If you have any questions, Please contact me.
Surety continues to reserve all of its rights and defenses.
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Very truly yours,
Mark Lee
RML\meh
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cc: Peter Karney (Viceroy)
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THE CITY OF RENTON
DEPARTMENT OF
PLANNINGBUILDING/PUBLIC WORKS
FOURTH FLOOR
200 MILL AVENUE SOUTH
RENTON.W ASHINGTON 99055-2189
r FAX: 205-2541
To: Mark Lee
Company: Construction Consulting and
Disbursement Services
Phone: 847-677-2112 "
Fax: 847-677-1855
From: J.D. Wilson
Company: Water Utility
Phone: 206-277-6195
Fax: 206-277-2541
Date: 01/09/97
Pages including this
cover page: 2
Comments:
Mr Lee:
' The City Attorney has reviewed the revised draft of the settlement agreement (less Exhibit A.
Release Agreement)you provided Ron Olsen via fax on December 24. 19%. i �...
The last sentence of paragraph 11, -Owner agrees to hold Surety completely harmless from
any lawsuit or action against the Surety from anv patty related to the Surety s Bond.-. is hW
acceptable to the City.
i
Please provide the City with a signed statement that Gulf Insurance Company (or its agents)
has solicited proposals for completion of the work rema.,ting on the Highlands 565 Zone
Reservoir Recoanng project (performance bond #GE5782415) and received proposals from
several contractors, the mos: advantageous being the proposal of Eagle Harbor Construction
and Rental Company of ""'!'????', Washington: and that Gulf htsuran. Company
cc: L)s Homsb)'
Ron Olsen
Gregg Zimmerman
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recommends using Eagle Harbor Construction Company for completing performance of the
project. Please state in the letter the amount bid by Eagle Harbor Construction and Rental
Company far completion of the work. [" - The yellow pages listing for Eagle Hart �r
Concoction and Rental shows a Seattle. WA address and phone number. Is Bainbridge
Island.WA its incorporation address?]
The Water Utility will be presenting a resolution for adoption by the City Council declaring
the situation with the Highlands 565 Zone Reservoir an emergency. This will allow the
Mayor to sign a contract for completion of the work without competitive bid,"ug and if
necessary without execution of the settlement agreement with Gulf insurance Company. The
Water Utility intends to sign a contract with a contractor to complete the work at the
Highlands reservoir soon after the emergency resolution is passed.
What is the status of Exhibit A, Release Agreement" bid info'
Please call me at your earliest convenience.
J.D. Wilson
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cc: Lysklornsby
Ron Otwn
Gregg Zimmerman
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THE CRY OF RENrON
DEPARTMENT OF
PLANNING/BUILDING/PUBLIC WORKS
FOURTH FLOOR
200 MILL AVENUE SOUTH
RENTON.WASHINGTON 98055-2199 :y
FAX: 235-2541
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To: Mark Lee
Company: Construction Consulting and
Disbursement Services
Phone: 847-677-2112
Fax: 847-677-1855
r 1: J.D. Wilson. P.E.
C• iv: Water Utility
1 Phone: 206-277-6195
Fax: 206-235-2541
Date: 01/03/97
Pages including this
cover page: 1
Comments:
Mr Lee
Ty ,
This fax is a follow-up to our telephone conversations on Thursday.January 2, 1997, I
Request you provide the Water Utility with the bid information Icontrzctor names. addresses, phone .i
numbers. points of contact, bid amounts) for completing the Highlands Reservoir Interior Reccating
project. Please also indicate which responsible, responsive bidder submitted the low bid. With this III
information the City will be aisle to proceed with awarding the coin;act in parallel with finalizing the i. .
settlement agreement between the City and Gulf Insurance Company. III
I
Request a copy of Exhibit A. Release Agreement,of the draft Settlement Agreemem.
Regarding '+g ng your question about the status of the dehumidifies According to City's Water Maintenance
Shop staff the dehumidifier was without power for approximately 12 hours begitming about midnight on
Fr;day.December 27, 19%. No other power outages are known by me to have occurred.
cc: L)s Homsb)
Ron Ulan
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THE CITY OF RENTON
DEPARTMENT OF _
PLANNING/BUILDING/PUBLIC WORKS
FOURTH i IAOR
200 MILL AVENUE SOUTH
RENTON,WASHINGTON 98055-2 189
FAX: 235-541
I
To: Mark Lee
Company- Construction Consulting and
Disbursement Services
Phone: 847-677-2112
Fax: 847-677-1855
From: J.D. Wilson. P.E. \ L Gh
Company: Water Utility PZCN N 09
Phone: 206-277-6195 b ps
Fax: 206-235-2541 \*Y9 `ufiFt
Date: 01/08/97 91J -Nut 6TFtsG, pl- ���
Pages including this M p`�• Iktq- 6
cover page- 2 V0\c,6 �t lot, `
Comments:
Mr l.ee: \a4a 1��5 F
This fax is a Pollow-up to our telephone conversations on Thursday,January:. 1997 and Monday,January
6, 1997.
y ,
�„ y Request you provide Eli, Water Utility with the bid information (contractor names, addresses. phone
numbers. points of contact, bid amounts) for completing the Highlands Reservoir Imerior Reco With this
project. Please also indicate which responsible, responsive bidder submitted the low bid. With [his
information the City will be able to proceed with awarding the contract in parallel with finalizing the
settlement agreement between the City and Gulf Insurance Company. [As of 3:00 P.M., Wednesday,
jutuary 8. 1996 we have not received this Information].
i Request a copy of Exhibit A,Release Agreement,of the draft settlement Agreement. (As of 3:00 P.M..
Wednesday.January 8. 1996 we have not receiveddthisr Exhibit),
Lys Hornsby
'rr „ RonOlsen
yy��3,1y Gregg Zimmerman
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The Water Utility is experiencing various problems with providing adequate service to the customers in 4i
the area served by this storage facility: unacceptable pressure variations, over pressures causing burst
pipes and leaks,valve failures,low pressures resulting in customer complaints. The situation with the tank
being out of service is bordering on being unacceptable with regard to public health and fire safety. It is
imperative that we get the recoating project completed and the tank back into service as soon as possible.
We need the bid information so that we can proceed with contract award. We need Exhibit A so that the r;,p
City Attorney can review the settlement agreement and provide comments.
Any thing you can do to expedite this process will be greatly appreciated.
FYI: The owner and foreman of Eagle Harbor visited the site yesterday and inspected the tank. 71tere is some new rust (mirror) at the holes where the cathodic system .ranging brackets were re, .oved for the
sandblastinn of the tank. Water is weeping through the holes from the exterior of the tank, t
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Ron Olsen
Gregg Zimmemian
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Mark Lee
CCDS
5550 West Touhy AVE
Skokie,IL 60077
SUBJECT: CHECK RELEASED TO RICHARD HEAD,RECEIVER FOR
PRODUCTION FINISHING,INC.
Enclosed is a copy,front and back,of the check that we released to Richard(lead as receiver for
Production Finishing.Inc,
This check represents the last of three progress payments that we made to Production Finishing,
Inc. This check was the only check that we released to Richard Head.
If you have any additional questions regarding this payment. please contact me at (425)
277-4413.
Sincerely,
Tom Malphrus
Water Utility
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' Planning/Building/Public Works Department
Jesse Termer.Mayor Grey,Zimmerman P.E.,Administrator
ebmary 17, 1997
Mark Lee y,
Construction Consulting R Disbursement Services,Inc.
5550 West Touhy AVE
Skokie,IL 60077 r
SUBJECT: SIGNED SETTLEMENT AGREEMENT i
Enclosed is your copy of the Settlement Agmemem for the Highlands 565 Zone Reservoir
Interior Recoating project. The Agreement has been signed by the Mayor of the City of Renton.
If you have my questions,Please call me at(206)277-4413.
Sincerely,
+ am �wrti
Tom Malphm
Water Utility
HDO S:97.t6JIMp
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CC. Lys tlmnsby
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200 Mill Avenue South-Renton,Washington 98055
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Construct i c\;
Consulting &
Disbursement
Services, Inc.
5550 Witt Touby Am..
Skokie, Illinois 60077
relepb (MID 677-2II2
Far(MID 677.1855
FFIY ID-303600002
March 3, 1997 r
Mr. Tom Malpluus
City of Renton, Washington
Department Planning/Building/Public Works
4th Floor- 200 Mill Avenue So.
Renton, WA 98055-2189
Principal Prodt:ction Finishing, Inc.
Obligee City of Renton, Washington
Project Highlands 565 Zone Reservoir, Renton, Washington
Carrier Gulf Insurance Company
Eff. Date 04/23/96 ROC : 09/10/96
Bond No. GE5782415
File No. : 4375.2
CCDS No 353.2
Dear Mr. Malphrus:
r'
We write to transmit the second portion of the payment in accordance wi0t the February 6, 1997
Settlement Agreement. Enclosed is Gulf Insurance Compapy's check#707432 dated February
12, 1997 in the amount of$26,995.61 Phis payment nZatisties Gulf's obligation except to
11 the extent of the claims contingency nmtained in the Agreement.
iIf you have any questions, please contact me.
s
Very truly yours,
Mark Lee
RML .m
Enclosure: check #707432
cc: Peter Karney - Viceroy, Inc.
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000594870
,PARKER, SMITH & FEEK INC.
1700 FIRST INTERSTATE CENTER
ISEATTLE WA 98104
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re C/O VICEROY MANAGEMENT
5550 W TOUHY AVE.
LSKOKIE IL 60077 J /7
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000594870 ��3 � � 2
„,,,PARKER, SMITH 8 FEEK INC.
1700 FIRST INTERSTATE CENTER
LATTLE WA 98104
F
r CITY OF RENTON, WASHINGTON
To C/O VICEROY MANAGEMENT
5550 W TOUHY AVE.
LSKOKIE IL 60077
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CITY OF RENTw
CITY TREASURER
kEG/RCRT : 62-12653 C:13-13-1997
CASHIER ID : N 13:21 w AM-11-1997
UN MISCELLANEOUSRE" W.
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Ri DR553A/5/66
/21.51/.16.5%.31.65.155331
6111 MISCELLANEOUS REV 634.641.67
WO 155338/5/61
421.511.16.596.36.65.1553A
---------- ------
TOTAL DIE 465,637.29
RECEIVED FROM:
GULF IRS./PROD. FINISHING CO.
CHECK /26,995.62
CHECK 636.641.67 ' wn
' IOTAL TENDERED _fo5.637.29CHANGE PUE am
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q lfflnatr 60077 60077
Tdhf- r(817)6774112
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FEW IDr O-3600002 •+
VIA OVERNIGHT MAIL - A.;.f.-PELIVERY
February 10, 1997 e
Mr. Tom Malphrus
Water Utility, City of Renton -
200 Mill Avenue South
Renton, WA 98055
Principal Production Finishing, Inc. ^
Obligee City of Renton, :Jashington
Project Highlands 565 Zone Reservoir, Renton, Washingtonc �.
Carrier Gulf Insurance Company
Eff. Date 04/23/96 ROC : 09/10196
Bond No. GF5782415
File No. 4375.2
CCDS No. 353.2
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RE: Settlement agreements
Dear Mr. Malphrus:
We write to transmit to you one original signed Settlement Agreement, and one copy ut the
signed Settlement Agrees. mt. This agreement has been signed by Gulf Insurance's Mr. Bryan
Kelly. Please have the proper person at the City of Renton sign b41h the original and the copy . '1
where noted, and return to us the agreement that has Mr. Kelly's copied signature and the City
of Renton Qriamal signature.
We also enclose a partial payment from Gulf Insurance in the amount of$38,641.67.
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Mr. Tom Malphrus
February 10, 1997
Page Two
1 RE: Production Finishing/4375.2
The other portion of Gulf's payment in the amount of$26,995.62 has been requested and will
be forwarded to you as soon as it arrives in our office.
Please tak.notice that we are requesting Monier's Moisture Control remove the dehumidifier r
unit by Friday, February 15, 1997. Please govern yourself accordingly.
If you an, tions, please contact me. We appreciate your patience and cooperation.
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RML\meh e /
Enclosures: ORIGINAL and copy of Settlement Agreement 'r
Gulf ck#703752 - $38,641.67 E.
cc: Peter Karney (Viceroy)
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CITY OF RENTON
planrift BuildinglPublic Wodm Department
Oregg Zimmerman P.S,MW IMtor
.RT.M.Y.
CERTIFIED MAIL: Is 419 828 217
September4,1997
Mark Lee
Construction Consulting&Disbursement Services,Inc.
5550 West Touhy AVE i
Skokie,IL 60077
SUWECT: CLAIMS AGAINST BOND RGE5782415
On August 4, 1997,the Renton City Council accepted the Highlands 565 Zone Reservoir Interior
Raoating Project and authorized the release of final payment and mlainage 10 Long Painting ,I
Company,the'ontrs'I"hired to complete the project.
As per the terms of our agreement dated February 6, 1997,we are now eligible to claim against
the undishursed portion of the $143,906 bond penal sum. We are submitting a claim for
S31,879.97. our maim is for additional energy costs to operate our water supply s',vstem with the
565 Zone Reservoir out of service and additional administrative and consultant costs associated
with the failure of production Finishing,hx.,to complete the project as per their contract with the t -
City of Renton. our claim is as follows:
Additional energy costs at S 120.00 per day for 201 days;
524,120.00
Additional administrative vests:
$4,277.76
53,482.21
Additional consultant costs: .4, .
Total S
The energy costs CO4er the period from August 6.1996,the original contract co pletion date,to
February 24,1997,the nWice to proceed date given to long Paining Company
plesm pay our claim of$31.979.97 or the undisbursed Portion of the bond penal sum, whichever
is less.
If you have any questions regarding our claim,please contact me at(425)277-441 t.
I $In 4RIy, PS roan 3800,AIN 1995
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Water Utility
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UMTEO STATES PMTK SERVICE I II II Fire QFu May
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USPS
PaII1a1 N0.0,10
*Print your name,addraas,and ZIP Cods In this wx•
Tom Malphrus
CITY OF RENTON
?00 MILL AVE S '
RENTON NA 98055
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CITY OF RENTON
Planning/Building/Public Works Department
Gregg Ztmmes u P.E.,Administrator
]else Teener.alu�or k s" e7.
January 27.1999
Mark Lee
Construction Consulting R Disbursement Services Inc
5550 West Touhy Ave. ,•�+
Skokie,IL 60077
SUBJECT: RELEASE,ASSIGNMENT AND SUCROGATION
Enclosed. please find one signed original of the above rafe.enced document We will proceed I ..
l� with processing Gulf Insurance Company's draft#746191. y,IR
I
If you have any questions,please contact me at;42.e,177.4413.
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Sincerely,
Tom Tom Malphrus
Water Utility
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.January 2, 1998
Mr. Tom Malphrus
Water Utility Department
City of Renton, Washington
200 Mill Avenue South
Renton, Washington 98055 _
Principal Production Finishing, Inc.
Obligee City of Renton, Washington
Project Highlands 565 Zone Reservoir, Renton, Washington
Carrier Gulf Insurance Company
Eff. Date 04/23/96 ROC : 09/10/96
Bond No. GES792415
If File No. 4375.2
Dear Mr. Malphrus:
We enclose Gulf Insurance Company's draft #746191 which is in the amount of$5,098.62.
Gulf tenders this draft to the City of Renton, together with the enclosed Release, Assignment
and Limited Hold Harmless Agreement in fulfillment of Gulf Insurance Company's obligations
to the City. We write in furtherance of you telephone conversation of December 30, 1997 with
Peter Karney of this office. l
As Mr. Kamey advised you, previous payments made to the City and to various suppliers and
subcontractors of Production Finishing total $138,807.40. leaving a penal sum of$5,098.62.
The remaining amount is subject to the claim of the local painters union and its various welfare
funds and trusts. 'This claim was received by surety in October, 1996. However, the Union
failed to respond to any of our requests for hack-up documentation to support its claim. Given
this long lapse of time it appears this unliquidated claim was abandoned. However, because of
the notices the Union gave earlier, we believe that under the terms of}'our state's public works
act that their claim may still he viable for several additional years. So that this matter can me ve
to closure, Gulf issued its check to the City and asks that the City,to the extent of this payment,
hold surety harmless if the Union claim arises in the future. Language to this effect is
incorporated in the release document which accompanies this letter. We also enclose a computer '
printo`:i of the payments made by Gulf under this bond.
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January 2, 1998
Page Two
Re: Production Finishingi4375.2 -
y Should ypu or the City's legal counsel have any questions regarding the accompanying
a �pr this arrangement, please feel free to contact either Mr. Karney or me.
a Very Wl ours,
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Enclosures: Draft#746191
Release
Indemnity Losr. Report
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aci E ASSIGNMENT AND SUBROGATION 4
- KNOW ALL MEN, that in consideration of the sum of Five Thousand
Ninety Eight and 62/100 DOLLARS ($5,098.62) , in hand paid to the
City of Renton, Washington by Gulf Insurance Company, hereinafter
called Gulf, receipt whereof is hereby acknowledged, City hereby
sells, assigns, transfers and sets over unto Gulf, its successors,
and assigns, all of the right, title, and interest, including
remedies of the City, ir. and to any claim for labor, materials
and/or performance under 3ond GE5782415 including any right to file
j a Proof of Claim in the name of Gulf, reflecting the amount of this
debt in proceedings in Federal Bankruptcy Court.
In further consideration of said payment, the City does hereby
release and forever discharge Gulf from any and all liability,
claim and demand under its Bond GE5782415, wherein the City is the
named obligee.
That this instrument is made for the purpose of inducing Gulf to
pay to the City the sum of Five Thousand Ninety Eight and 62/100
DOLLARS ($5,098.62) , and is made with full knowledge that Gulf will
rely upon the truth of the statements herein contained and made.
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As a further consideration to Gulf for making this payment, the
City agrees that in the event Gulf receives a valid timely claim
from the Painters Union Local or any of its associated welfare or
pension funds, that it will return this payment to Gulf.
IN WITNESS WHEREOF, the undersigned have hereunto set his or their
hand(s) and seal(s) this _ day of 199_. j
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CITY OF RENTON, WASHINGTON I
By:
(Corporate Seal) Its:
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STATE OF )
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BEFORE ME, the undersigned authority, personally appeared to
me well known to be the person who signed the foregoing Release,
Assignment & Subrogation Form and acknowledged under oath that the
information contained therein is true and correct and that he has
full power and authority to bind said Company.
SWORN TO AND SUBSCRIBED BEFORE ME THIS _ DAY OF , 199 •�'
Notary Public, State of
My commission expires:
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VICEROY, INC.
INDEMNITY LOSS RRPORT
As Of 01/05/98 Page: 4
Carrier: Gulf Insurance Company Dates 41/05/96
Production Finishing, Inc.
Project: Righlands 565 Zone Reservoir, Renton, WA
Bond 095792415 4375.2 Claim Data Claim
Type Check * Received Amount
-_______-- ________________________________________ ""--- ___________________________________________
CLAIMS
City of Renton, Washington PYC 707432 02/17/97 $26,995.62
City of Renton, Washington PYC 703752 01/21/97 $38,641.f7
City of Renton, Washington PYC 746191 12/12/97 $5,098.62
Don Small Oil Company C/o The Examiners PYC 712589 03/71/97 $984.06
Eagle Harbor Construction i Rental Co. , PYC 703743 01/�1/97 $3,246.00
Hertz Equipment Rental Kleen Blast Abrasives PYC 703747 01/21/97 $8,007.41
PYC 703751 01/21/97 $5,898.34
Kleen Environmental Technologies, Inc. PYC 703744 01/21/97
29
Munter's Moisture Control Services $4,129.00
PYC 156403 O1/22/97 10,365.11
Muntere Moisture Control Services PYC 156403 11/22/96 $10,365.11
Noxthwest Wire Rope S Equipment, Inc. PYC 703748 01/21/97 $1,420.42
Norton Corrosion Limited PYC 703745 01/21/97 $1,518.00
Pacific American Commercial Company PYC 703749 01/21/97 $616.74
S&S Welding, Inc. PYC 703741 01/21/97 $25,792.79
Spider Staging Corporation PYC 703746 01/21/97 $3,948.36
The Blast Connection, Inc. PYC 703742 01/21/97 $6,158.57
---------------
SUB TOTAL $143.906.00
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GULF INSURAN :1 GROUID
P.O.BOX 1771 • DALLAS.TEXAS 7W21 e'
746191 DRAA ND. 746191
RODUCTION FINISHING, INC. 567 11 E5782415 2/10/97' pol 9/10/96
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SETTLEMENT
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TY OF RENTON, WASHINGTON
0 VICEROY, INC.
50 W. TOU..Y AVENUE $ ****5,058.62
IL 60077
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C00594870 SEND TO VICEROY, INC.
, JARKER, SMITH 8 FEEK INC. -
1700 FIRST INTERSTATE CENTER
f CATTLE WA 98104
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5550 W. TOUHY AVENUE
LSKOKIE IL 60077 J
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VIA TELRFAX •(206) 233- TOMPa'9a714TMMS
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' September 25, 1996
Mr. Tom Malphrus
Pity of Renton
200 Mill Avenue South
Renton, WA 9Ao55
Principal Production Finishing, Inc.
Obligee City of Renton, Washington
Project Highlands 565 Zone Reservoir, Renton, Washington
'"4- •', Carrier Gulf Insurance Company
+=` Eff. Date 04/23/96 ROC : 09/10/96
Bond No. GE5782415
File No. 4375.2 -
CCDS No. 353.2
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Dear Mr. Malphrus: ..
Please be advised that this office is assisting claims agent,
Viceroy Management, in managing surety bond claims for Gulf
Insurance Company, the surety which issued the referenced bond.
Recently, the surety has been notified that the City of Renton has
terminated for default the captioned contract and a demand has been
.� or shortly will be made that the surety fulfill its obligations
under its performance bond.
To aid us in our investigation of this matter, we request the
following documents be forwarded to this office as soon as
possible:
1. Copiea of payment applications (invoices) from Production
Finishing to the City;
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Mr. Tom Malphrus
September 25, 1996
Page Two
RE: Production Finishing/4375.2
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2. A detailed accounting of contract funds;
3. Copy of the plans, specifications, general conditions,
supplementary conditions, change orders, pending or
proposed change orders, addenda, and any other documents
that are part of the contract;
4. Copies of all product submittal data submitted by
Production Finishing;
^' 5. Copies of all inspection reports and a list of defective
work, if any;
6. Field directives and supplementary instructions;
7. All correspondence between the City and Production
Finishing;
B. A copy of the tabulation of original bide; ,
9. A list of known suppliers and subcontractors;
10. An itemization of all backcharges, if any, with
supporting documentation;
11. A detailed scope of work for completion of the
contract; and
12 . Copies of all certificates of insurance.
In order to facilitate the transfer of these important documents,
we authorize you to utilize our Federal Express number so the
documents can be overnight delivered. The Federal Express number
is #100945207. This authorization to use this Federal Express
number is for this request for these documents only, and can only
be used by you once.
Please forward the requested documents as soon as possible.
This letter is written for investigatory purposes only. It should
not be construed by you or the City of Renton as an admission of
liability or a promise to pay the City of Renton's claim in whole
or in part. Our activities are undertaken with a full reservation
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Page Three
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of Gulf Insurance Company,s rights and defenses under the terms s � .I
of
its bond, the contract and the Aw: This _ I
expiessly revoked in
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writing by the surety or its agents.
Very truly yours, .,
Mark Lee
cc: Peter KarLey Wiceroy)
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j Mark Lee
Construction Consulting&Disbursement Services,Inc.
5550 W Touhy AVE
- Skokie,Illinois 60077
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SUBJECT: DOCUMENTS REQUESTED
Enclosed are all the documents that you requested with the exception of.a detailed scope of work
for completion of the contract and inspection notes from our engineedinspector. I will mail these
documents to you as soon as possible. +
1( ou have an Y Y questions,Please call meal(206)277-4413.
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Sim:erely,
Tom Malphrus
Water Utility C
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CITY OF RENTON
.n PlanniaeJBuen Ziminernc Works Department
lesx'hnner.Mayor Gregg Zimmerman P.E.,Administrator
October 3, 1996
CERTIFIED MAIL Z 444 790 942
Richard Head
Clothier&Bead
1325-4lh AVE-STF 1100 -
Seattle,WA 98101
SUBJECT: TRANSFER OF PERFORMANCE OF WORK;HIGHLANDS ELEVATED
RESERVOIR INTERIOR RECOATING CONTRACT
Dear Mr.Head
On September 16, IW6,we notified you that Production Finishing Inc.had failed to show up and
work on the Highlands Elevated Reservoir on numerous occasions. We gave Production
Finishing,Inc.tificen calendar days in which to remedy this breach of contract. Fifteen calendar
days have passed and Production Finishing Inc.is still in breach of contract.
{ This is your notice that the City of Renton is transferring the performance of the work front
1 Production Finishing, Inc. to Gulf Insurance Company. This action is made against Gulf
! Insurance Company Bond M GE 5782415. ''^p
If you have any questions regarding this action,please contact me at t206)277-4413.
Sincerely,
97m ` ^a-
Tom Malphrus
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Pnm vour name. address and ZIP Code here
Tows Malphms
CITY OF RENTON
200 Mill AVE S
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hue Taller,Maw Gregg Zlawrmaa P.E. Adminlatnlor ¢
September 6, 1996
Herb Hartso CERTIFIED MAIL gZ 444 790 935
,r,. ,..:. PFI,Inc.
- P O Box 23670
1645 S 310th-STE A
Federal Way WA 98003-2367
SUBJECT; HIGHLANDS%5 ZONE RESERVOIR
RECOATING PROJECT CONTRACT
Dear Mr.Hattso:
As per the above-referenced contract documents, the project is to be completed within 60
working days of the Notice to Proceed date. The Notice to Proceed date was established as May
13, 19%, The Protect is yet to be completed. Production Finishing, Inc. is in violation of the
contract.
In addition, Production Finishing, Inc. has not been seen working on the project since
August 30, 1996. Equipment needed to complete the project has been removed from the project
site. 1
Production Finishing,Inc.must return to work on the project immediately. Failure to do so may
result in termination of the contract.
. - Sincerely,
/er'i'1 %wyaarNyvK�
Tom Malphrus 1
Water Utility 1
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September 6, 1996
s - Richard Head CERTIFIED MAIL NZ4M790 936
Clotheir&Head
132S-4th AVE-STE1100
Seattle,WA 98101
SUBJECT: HIGHLANDS 565 ZONE RESERVOIR
RECOATING PROJECT CONTRACT
Dear Mr.Head:
As per the above-referenced contract documents, the project is to be completed within 60
working days of the Notice to Proceed date. The Notice to Proceed date was established as May
13, 1996. The project is yet to be completed. Production Finishing,Inc. is in violation of the
contract.
1 In addition, Production Finishing, Inc. has not been seen working on the pmjmt since
August 30, 1996. Equipment needed to complete the project has been removed from the project
site.
Production Finishing,Inc.must return to work on the project immediately. Failure to do so may
result in termination of the contract.
Sincerely,
1 leqo"�'
Tom Malphrus _
Water Utility
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Print your name, address and ZIP Code here
• Tom Malphrus
City of Renton
200 Mill Avenue South
Renton MA 98055
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Planning/Building/Public Works Department
lwe'hroer,Mayor
GmU Zimmerman P.E.,Administnlor 3
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September 16,19%
CERTIFIED MAIL Z 444 790 938
Surety Insurance Services of the Northwest.Inc.
155 NE I00th-STE 303 i
Seattle,WA 98125 1
SUBJECT: HIGHLANDS%S ZONE RESERVOIR
RECOATING PROJECT CONTRACT
On September 6, 199f tified you that we had not seen Production Finishing.Inc.,at work
un the project for at b •r days. We requested that Production Finishing,Inc.retum to work
a on the project immediately.
On September 9, 19%,we observed that Production Finishing, Inc. had returned to work on the
project.
On September 13, 19%,we observed that Production Finishing,Inc.personnel did not show up to work on the project. In addition, cquirment necessary to complete the project had been
removed from the prglect site. It appears that sometime after September 9, 1996, Production
Fin.shing,Inc.had once again pulled off the project.
The physical completion date of the contract is August 6, 1996.
Production Finishing,Inc.is in breach of the contract,
Production Finishing,Inc.has fifteen calendar days in which to remedy the breach of contract. If
Production Finishing, Inc.does not remedy the breach of contract within fifteen calendar days,
the City will transfer the performance of the work from Production Finishing, Inc. to Gulf
Insurance Company. �'a
Sincerely.
�qyt •/n�j�Q,_ PS FOM 3600,r,4mh im
Tom Malphrus—T'^'— �
Water Utility
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Print your name, address and ZIP Code hen
A Tom Malphrus e
City of Renton
200 Mill AVE S
Renton NA 98055
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CITY OF RENTON
y PlanningjBuilding/Public Works Department
]rneTanrcr.Mayor Gegg ZloweAaa P.E.,Administrator
September 16. 1996
CERTIFIED MAIL Z 444 790 939
1 Gulf Insurance Company
5550 West faulty
Skokie,IL 60077
SUBJECT: HIGHLANDS%5 ZONE RESERVOIR
RECOATING PROJECT CONTRACT
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On September 6, 1996.we notified you that we had not seen Pit-Auction Finishing,Inc.,at wort:
on the project for at least five days. We requested that Production Finishing,Inc.return to work
on the project immediately. ;
- I On September 9. 19%,we observed that Production Finishing. Ina had returned to work on the
Project.
On September U, 1996,we observed that Production Finishing, Inc personnel did not show up
to work on the project. In addition, equipment necessary to complete the project had been
removed from the project site. It appears that sometime alter September 9. 1996, Production G
Finishing.Inc.had once again pulled off the project. p
The physical completion date of the contract is August 6,1996.
Production Finishing,Inc.is in breach of the contract.
Production Finishing.Inc.has fifteen calendar days in which to remedy the breach of contract. If
Production Finishing, Inc.does not remedy the breach of commet within fifteen calendar days.
the City will transfer the performance of the work from production Finishing. Inc. to Gulf
Insurance Company.
Sincerely,
PS Form 3000 Wrca 1N7
Tom Mdphrus
Water UtilityTi, a y
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200 Mill Avenue South-Renton,Washing lure 98055
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' UNITED STATES POSTAL SERVICE I II II
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PE TO A FDR PNV�TE
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Print your name, address and ZIP Code here
Tom Malphrus
CITY OF RENTON
200 Mill Avenue South
Renton WA 98055
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P$Form Dec ' 991 eus.uro'.D33yp3em
DOMESTIC RETURN RECEIPT
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PlanninSIBuilding(Public Works Department
hsx.frarur May« Gran Zimmerman P.E.,Administrator
October 3. 19%
CERTIFIED MAIL Z 444 790 943
Surety Insurance Services of the NW,Im.
155 NE 100th-STE 303
Searle,WA 99125
SUBJECT: TRANSFER t F PERFORMANCE OF WORKt HIGHLANDS ELEVATED
RESERVOIR INTERIOR RECOATING CONTRACT _
On September 16. 19%.we notified you that Pnduction Finishing Ire.had failed to show up and
work on the Highlands Elevated Reservoir on numerous occasions. We gave Production +'
Finishing,Inc.fifteen calendar days in which to remedy this breach of contract. Fifle.n calendar
days have passed and Production Finishing Inc.is still in breach of contract.
This is your notice that the City of Renton is transferring the performance of the work from
Production Finishing. Inc. to Gulf Insurance Company. This action is made against Gulf
- lnsunur Company Bond M GE 5782415.
If lou have any questions regarding this action,please contact me at(206)277-4413. +
Sincerely.
•//V LQ_ I PS Form 9800,W2a tap '
Tom Malphtus
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Wiser Utility I �
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❑NITED STATES POSTAL S
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Print Voa naryµ, address and ZIP CWe here
Tool Malphrus
CITY OF RENTON
200 M111 AVE S
Renton NA 98055
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Planning/Building/Public Works Department
Jane Tamar Maya Gregg Zimmerman P.L.AdslaYhtty
September 16, 19%
Richard Head CERTIFIED MAIL Z 444 7" 937
Clothier&Heady°
1325-4th AVE-STE 1100
Seattle,WA 98101
SUBJECT: HIGHLANDS 565 ZONE RESERVOIR
RECOATING PROJECT CONTRACT
On September 6. 19%.we notified you that we had not seen Production Finishing. Inc at work o
on the project for at least five days. We requested that Prduction Finishing, Inc.return to work
on the project immediately. ...
On September 9. 19%,we observed that Production Finishing,Inc.had returned to work on the
project
On September 13. 1996,we observed that Production Finishing.Inc.persouncl did not .how up
to work on the project. In addition, equipment necessary to complete the project had been
removed from the project site. It appears that sometime after September 9, 1996. Production
Finishing,Inc.had once again pulled off the project.
The physical completion date of the contract is August 6, 1996.
Production Finishing,Inc.is in breach of the contract.
Production Finishing,Inc.has fifteen calendar days in which to remedy the breach of contrac6 If
Production Finishing. Inc.does not remedy the breach of contract within fifteen calendar days,
the City will transfer the performance of the work from Production Finishing, Inc. to Gulf
Insurance Company.
,
Sincerely,
Pa Foam 9g00,aYwh tata
Tom M Unity s i
Water Utility I N
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City of Renton
200 Mill AVE S
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CITY OF RENTON - P/B/PW - MAINTENANCE SERVICES DIVISION
W 0 R K R E P O R T
(Continued)
Master Rea 0: 8886
SR/WO NO. : W003026 COMPLETED? Y MGNT UNIT: WTR DATE: 05/25/94 v-
S
L A B O R
Employee No Name Hours TYpe "+
1342 TROY MACKAY 8.90 R
1342 TROY MACKAY 2.00 R
1487 RON MCPHEE 3.00 R
5219 DOUGLAS ALLEN 8.90 R
9927 JOHN WALLACE 8.00 R
9027 JOHN WALLACE 2.90 R
9420 C. GREG DURBIN 3.00 R
1372 808 SAGARA 2.50 R
4670 GREGG SEEGMILLER 8.eO R
4570 GREGG SEEGMILLER 2.00 R
I1 E Q U I P M E N T I M A T E R I A L
° No. Class Hours I Class Quantity Toil Cost Unit Measure
D661 4 10.091 A3 ASPHALT-COLD 1,59 $62.76 TON
0066 S 10.001 FC22 FCR813.14-x10 1.00 1160.74 EACH
' D043 9 2.001 R2 ROCK-5/8"CRSH 45.00 $362.76 TON
S146 15 19.091
0049 18 3.901
i D066 18 8.001 � .
E077 32 10.001
S121 33 10,001
LABOR HRS: 46.S0 LABOR: $II52 EQUIP: $279 MATERIAL: $576 TOTAL: $.2408
CITY OF RENTON - P/8/PW - MAINTENANCE SERVICES DIVISION
W 0 R K A E P 0 R T
Master Mac 0: 19529
SR/WO NO. : WO63617 COMPLETED? Y MGMT UNIT: WTR DATE: 66/22/94
PROGRAM: 04 ACTIVITY: 50690 AC MAIN REPAIR/WTR
LOCATION: 18 QUAD 18
ACCOMP: 24.00 WORK UNIT: LBR HOUR EXPEND: ACCT:
L A 8 0 R
Employee No Name Hours Type
2298 GARY SMITH 5.00 R
5019 DOUGLAS ALLEN 3.00 R
1372 808 SAGARA 8.00 R
1372 808 SAGARA 0.50 R
4576 GREGG SEEGMILLER 8.06 R
4576 GREGG SEEGMILLER 0.60 R
E Q U I P M E N T I M A T E R I A L
No. Class Hours I Class Quantity Totl Cost Unit Measure
D061 4 8.561 A3 ASPHALT-COLO 2.00 $70.34 TON
D073 6 8.501 BER4 CP/BLKENORG 4 2.40 $14.06 EACH
S146 15 8.501 OIS01 NJ SLEEVES 4 1.00 $36.11 EACH
0060 18 3.001 DITJ04 DI TJ PIPE 4 7.00 $32.96 FT
D060 l8 5.001 GV05 GTVLV-4"MJxFL 1 .00 S1S1.90 EACH
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AFFIDAVIT OF PUBLICATION
Kristin Thor son being first duly sworn on path sales that helshe is the Legal Clerk of
the
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SOUTH COUNTY JOURNAL
600 S Washington Avenue,Kent,Washington 98032
a daily newspaper published seven(7)times a week. Said newspaper is a legal
newspaper of general publication and is now and has been for more than six months
prior to the dale of publication,referred to,printed and published in the English language
continually as a daily newspaper in Kent,King County,Washington. The South County
Journal has been approved as a legal newspaper by order of the Superior Court of the MY OF �
State of Washington for King County. MaMNl10N ,y
The notice in the exact form attached,was published in the South County er Will d twelk we W all ar
Journal(and not in supplemental form)which was regularly distributed to the subscribers ���Wall dmWM M y M
during the below stated period. The annexed notice,aCont, ,m r stark pr ya t
Vrb EW W!rYrRt MOOlalia PRMn.
Declaration of Emergency me won m t»ffalalN raffw aaa 0lde►
run COrwele of rsmYYa-fM Ylllllo w-
aspublishedon: 1/31197 0w h,wholw—te —W�im1%
app4ceuon d e new p ft 0n
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The full amount of the fee changed for said foregoing publication is the sum me,nigh. dares 00 M .7110 of E22.46 con or the work n annewN all w
Legal Number VN2510 st3s000
vuowhea.,fM Scum ceab Aw"
Jareerr,31,taw.35+0 j
I '''Clpll 50 Countyolena Jl
Subscribed and swom before me on Oft flay of _,
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'r t EK fill p,y- Notary Public of the State of Washington��5S10h�FE."K� residing in Renton
King County,Washington
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CITY OF RENTON
"a Office of the City Attorney
Jean raaoer,Mawr t.aMreuoe J.Wa
MEMORANDUM D �/ ���17Ij1'
JAN 1:1998 (((===JJJ
To: Tom Malphrus CITY OF RENTON
From: Lawrence J.W Engineering Dept.
erren,City Attorney
Date: January 16, 1998
Subject: Release, Assignment and Subrogation; Final Payment of Settlement with
Gulf Insurance Company(Highlands Elevated Reservoir Interior Recoating
Project)
I have reviewed the above-referenced document and the same is ap,roved as to legal form. The
Mayor should sign the Release unless he has delegated the authority to Gregg.
Lawrence J.Warren
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cc: Jay Covington ar-
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Post Office Box 626- 18 S. 20 Street - Renton,Washington 98057-(425)255-8678
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CITY OF RENTON
PLANNING/BUILDING/PUBLIC WORKS
MEMORANDUM
DATE: January 14. 1998
TO'. Larry Warren
FROM: Tom Malphrus
SUBJECT: Final Payment of Settlement with Gulf Insurance Company
(Highlands Elevated Reservoir Interior Recoming Project)
Attached is a copy of a cover letter,RELEASE,ASSIGNMENT AND SUBROLATION and check
1 from Viceroy,Inc. As per the terms of our settlement agreement with Gulf Insurance Cowl-we
are entitled to all funds remaining of the bond penal sum after all claims have been paid. At till,
time, all claims have been paid with the exception of a claim from the Painters union Local 1Lr
i unspecified damages. The Local has not responded to Gulfs numerous requests for back-up -"
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documentation to support its claim.
The check that Gulf Insurance Company sent us represents the funds remaining of the bond penal
sum. They want us to sign the RELEASE, ASSIGNMENT AND SUBROGATION which will
require us to return the funds if the Painters Union Local does indeed submit a timely and valid claim
against the bond penal sum.
Please review the cover letter and the RELEASE,ASSIGNt::SNT AND SUBROGATION. Should r
we sign the RELEASE? If so,who in the City should sign?
If you have any questions,please contact me at 2774413.
Thank You
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CITY OF RENTON
dt y Office of the City Attorney
Jesse Tanner,Moym tAwrenee J. ..'arren
MEMORANDUM
To: J. D.Wilson
From: tAwrence J.Warren,City Attorney
Date: January 10, 1997
Subject: Resolution Declaring an Emergency(Highlands 565 Zone Reservoir Interior
Recoatmg Project)
I am enclosing a copy of the abovereferenced Resolution. The original of this Resolution has been
forwarded to the City Clerk.
(�LvAwm Jim.
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Encl.
cc: Jay Covington
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CITY OF RENTON
PLANNING/BUILDING/PUBLIC WORKS
MEMORANDUM
DATE: January 24, 1997
TO: Larry Warren
FROM: Tom Malphrus(x-4413)�M
SUBJECT: SETTLEMENT AGREEMENT WITH SURETY FOR THE
HIGHLANDS ELEVATED RESERVOIR PROJECT.
Enclosed is the latest DRAFT SETTLEMENT AGREEMENT from the Surety of the Highlands
Elevated Reservoir project.
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J Please review this agreement for legal form.
1 Thank You.
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CITY OF RENTON
PLANNING/BUILDING/PUBLIC WORKS
MEMORANDUM
DATE: January 3,1997
TO: Laity Wa'ren
FROM: 1.D.Wilson(277-61955)
SUBJECT: DRAFT CONTRACT A MENT FOR HIGHLANDS 565 RESERVOIR
INTERIOR RECOATING(OUR MEETING ON JANUARY 2e 1997)
Eaaloaed for your review,and comments is a draft of the contract between the City and the contractor
to be recommended by Gulf Insurance Company. I have not listed the contractor's name as I am
waiting for Gulf to fax us the bid information.
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CONTRACT AGREEMENT
HIGHLANDS 565 ZONE RESERVOIR INTERIOR RECOATING
THIS AGREEMENT, made and entered into this day of . 19
by and between THE CITY OF RENTON,Washington,a municipal corporation of the Stale of
Washington, hereinafter referred to a rY" and
hereinafter referred to as"CONTRACTOR."
WHEREAS,the CITY"lied for and received sealed bids for project WTR-27-2210,Highlands
565 Zone Reservoir Interior Reeoating Project("Project')in April 19% and
WHEREAS, Production Finishing. Inc. submitted the lowest responsive and responsible bid.
and
WHEREAS,the CITY and Production Finishing, Inc.entered into a written contract(CAG-96-
038)dated May 9, 1996 for the ProjeM and .
WHEREAS,Gulf Insurance Company on or about April 23, 1996 issued a$143.906.00 Surety
Bond(NGE5782415)in favor of the CITY,and
WHEREAS,Production Finishing,Inc. filed for bankruptcy and f9iled to complete the project,
and
WHEREAS, by its October 3, 1996 letter, the CITY called upon Gulf Insurance Company to
cause completion of the work on the Pro)ect in accordance with contract CAG-96-038 which �,...
was bonded by Gulf Insurance Company,and
WHEREAS,Gulf Insurance Company solicited proposals for completion of the work unwiring '
and in due course received proposals from several contractors,the most advantageous being the qt
proposal of ,and
WHEREAS, it is more efficient for the City to contract directly with
_ and be compensated by Gulf Insurance Company via a F:;arate
settlement agreement y..
NOW,THEREFORE.WITNESSET14:
1) The Contractor shall within the time stipulated,(to-wit: within 60 working days from date .y
of commencement hereof as required by the Contract, of which this agreement is a
component pan)perform all the work and services required to be performed,and provide
and furnish all of the labor, materials- appliances,machines,tools,equipment,utility and
transportation services necessary to perform the Contract, and shall complete the
construction and installation work in a workmanlike manner,in connection with the Cny's
Project(identified as No. WTR-27-2210)for improvement:
Hiplittands 565 Zone Reservoir Interior Recoatinn l?oiect
AU All the foregoing shall be timely performed, furnished, constructed, installed and
S� I completed in strict conformity with the plans and specifications, including any and all
addenda issued by the City and all other documents hereinafter enumerated. end in full
compliance with all applicable codes, ordinances and regulations of the Cit} f Renton
and any other governmental authority having jursdiction thereover. It is further agreed
and stipulated that all of said labor,materials,appliances,machines,tools,equipment and
CITY OF RENTON
PLANNING/BUILDING/PUBLIC WORKS
MEMORANDUM
VIA FAX AND MAIL
DATE: January I5,1997
TO: Larry Warren ((,,
FROM: J.D.W ilson t277.6195 ,�v
SUBJECT: HIGIILANDSRESERVO BIDDER'S REQUEST FOR USE OF
IRREVOCABLE LETTER OF CREDIT IN LIEU OF PERFORMANCE BOND
Gulf Insurance Company, the surety company that issued the original performance uond for the
Highlands reservoir interior recaal project,has requested the City to use Eagle Harbor Construction and
Equipment Rental Company to complete performance of the project. Eagle Harbor has asked if they may
use an irrevocable letter of credit from a bank instead of a performance bond for the project.
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Is using an irrevocable letter of credit permissible on a project like this? advisable? Which better protects
the City's interests,a performance bond or a letter of credit?
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CITY OF RENTON
PLANNINGBUILDINGIPUBLIC WORKS
MEMORANDUM
DATE: November 19, 19%
TO: Lam Warren
FROM: Tom Malphms(277.4413)
SUBJECT: Highlands Reservoir Recanting Coetraet;Surety Proposal
The City has received a draft settlement agreement from the Surety for the Highlands Elesated
Reservoir contract t^ tched). It appears that the Surety wants to relieve itself from its liability,
pri•x even to com• the project.by giving us$38,641.67 and a contract with Eagle Harbor
Qa. Construction Con,,
I have several concerns with this agreement:
• Should we not keep the Surety in a position where they am responsible to complete the project?
• We have told the Surety that we want to switch coatings from the originally specified 100% o
solids polyurethane to an epoxy coating. When the Surety bid the project they asked for bids for
both coating systems. I understand that the low bid for the 100°/ solids polyurethane was
around$125.000. Switching to the epoxy coating will save she Surety approximately$23.400. '}
Are we entitled to some,if not all.of this savings?
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• It costs us an additional $120 per day in electricity costs to operate our system with the
Highlands Reservoir out of service. The original contract rolled for the contractor to complete
the project by August 6, 1996. Are we entitled to receive liquidated damages, beginning4:
August 6, 19%.in the amount of S 120 per dav? To date,this amounts to S 12.600.
• What is our responsibility in regards to the funds that we new hold in retainage? The Surety
claims that we have$62,952.72 remaining in undisbursed funds, including the amount held in
retainage. (We actually have$61.562.72 in undisbursed funds t Will item p8 in this agreement
release us from any claim against the amount that we now hold in retainage" Can we use the
retained funds to complete our contract,as the Surety proposes?
^, Please review the Surety's proposal and ad%ise me on how I should respond.
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CITY OF RENTON
PLANNING/BUILDING/PUBLIC WORKS
MEMORANDUM
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DATE: September 26,19%
TO: Larry Warren
FROM: Tom Malphrus(x-4413) �A1 '>
SUBJECT: Request for laformatioa From Mark Lee
I received this letter from Mark Lee of Construction Consulting&Disbursement Services,Inc.
Mark has been in touch with me on a few different occasions Apparently Mark has been hired by
Gulf Insurance,bond holder for our Highlands Reservoir Contract.via Viceroy Management to work
on our pending bond claim.
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On October 1, 1996,1 will send Gulf Insurance notice that PH has failed to remedy its breach of
contract and the performance of work has been transferred from PFI to Gulf Insurance. This will be
our official notice to Gulf Insurance that they are obligated to comp)-te the project. I -
lIn the interim,should I supply Mike with the information that he has requested? Is any of this '
m1brmation not to be shared with the bonding company?
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�} CITY OF RENTON
Office of the City Attorney
Jesse Tanner,Maym Lawreore J•Warr <
MEMORANDUM
To: Tom Malphrus
From: Lawrence J.Warren.City Attorney
Date: September 30, 1996
Subject: wghlands Reservoir-Request from Marl Lee of Construction Consulting&
ITsbursement Services, Inc.
The requested material may be released.
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P(M Office Box 626- I00 S.2nd Street-Renton,Washington 98057-(206)255-8678
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t7R CITY OF RENTON
� Office Of the City Attorney
1.sse Tanncr.Mey« Lawrence J.wares
MEMORANDUM Li
To: Rick Moreno
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From: Lawrence J.Warren,City Attorney L . ;._E. U..,'t.
Date: September 9, 1996
Subject: Frank Stipek d/b/a Frank Stipek Investments v. Production Finishing,Inc.
1 am enclosing a copy of an Order Appointing Receiver and to Show Cause in the above-entitled
action. You are amhoriud to deal with Rick Head,
Lawrence 1.WmTen
LJW:as.
cc: Jay Covington
AS:125.42.
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Prot Office Box 626- 100 S.2nd Sttect-Renion,Washington 91i657-(206)255-8678 I '
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SENT 9Y 0.0THILIt S tLAD. P.5. 9- 5-36 13:04
CERTIFIED
COPY
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2 FILED PETER 0. iAPMS
3 oz,SEP -3 AN 10 13
4 IN THE SUPERIOR COURT
1N AND FOR THE 0�GASHINOTON
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1•I2ANK STIPEK d/b/a )
7 FRANK STTPEK.INVESTMENTS )
Plaintiff, )
9 v ORDER APPOINTING RE
10 PRODUCTION FINISHING, INC.,
12 — )
13
14 THIS MATI-R tame for baring before the Court on September 5, 1996. upon n rion
15 of plaimiff Frank Stipek d/b/a Frank Stipek Investments, for an Order appointing Richer,.Head -
16 receiver for the n•arragement of contracts and collection and disbursement of revenues received
17 by Production Finishing,Inc. Upon review of the files and records,and following the argument
18 0;counsel, the Court enters the following findings of fact and conclusions of law, aW grants
19 plaintiffs motic
20 1. MNDINC_ S OF FACT
21 The Court hereby finds the following facts established by the record.
22 1.1 Defendant PRODUCTION FINISHING,INC. (-PFI-)is anc d all material times
23 was a Washington corpo adOn, with its registered agmt and principal place of business in King '
24 County, Washington. The sole shareholder, director and officer of PFI is Herb Hamoe. i FI
25 is a painting contractor whose primary source of revenue is payment upon painting contracts,
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26 primarily with governmcotal entities.
EXPO)
ORDER APPOINTING RECEIVER wvss.mau,.uus a
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SFM BY:CLO RIIFR & MEiD. P.S. 9- 5-9t 1504 - 9255}7}.: 3
1 1.2 Plaintiff FRANK STIPEK d/b/a FRANK STIPEK INVESTMENTS("FSI")is an
2 individual resident in K.ag County,Washington. PFI owes'SI approximately 5230,000 in sums
3 advanced wrier a Loan and Security Agreement and two promissory notes. Payment of these
4 iebts is secured by a perfected security interest which includes FSI's rights to payment under
5 its contracts.
6 1.3 PFI has contracts in progress of a value in excess of approximately $280,000.
7 and is in negotiation for an additional contract estimated to be worth$440,000.
8 L4 Haresoe has been paying himself compeivation out of PFI funds in excess of PFI's
9 ability to make such payments, so that there are insufficient funds for PFI employees to cash
10 their paychecks and PFI's ability to pay its debt in the ordinary course of business and fund
I I activities necessary to complete contracts is being materially injured.
12 1.5 PFI's annual report was due to the Secretary of State of Washington on or before
13 June 30, 1996, but has not yet been filed. If the report is not filed and fees paid PFI will be
14 administratively dissolved on or about September 20. 19%.
IS 1.10 Hartsoe was reported by City of Almras personnel to have appeared in the City -
t.,,l ^ 16 offices on August 29. 1996, demanding that the checks due to PFI be disbursed at once directly
17 to him, and when the City declined to do so Hartsoe became abusive and cursed and threatened
18 City officials. PFI has been informally notified :.hat if this is repeated its contract will be '-<-
19 terminated. Hartsoe failed to appear for meeting with Frank Stipek on August 29. 1996,and
20 has failed to respond to repeated telepticne calls.
- 21 1.5 Richard Head is experienced in the management of businesses and the collection
22 and disbursement of company revenues, and is qualified to sere as a receiver in this action.
23
24
25
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ORDER APPOINTING RECEIVER wens.rancex,tun r xow.an
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SENT IfY110TH1ER & WAD. P.S. 9- 5-96 15:05 : - 9CS3:174 = a
1 0. CONCLUSIONOF LAW
2 Based on the foregoing findings of fact, the Court makes the following conclusions of
3 law-
4 2.1 Due to PFI's defaults and failures to perform, PSI is entitle, appointment of
5 a receiver.
6 2.2 Under RCW 7.60.020(3), a receiver is appropriate where a fund or profits are
7 in danger of being lost, removed or materially injured. Tbefe is a danger that Hattsoe will
8 convert or otherwise disburse the funds and profits due undn PFI's contracts to his sole benefit,
9 and that they wi:l therefore be lost if a receiver is not appointed.
10 2.3 Under RCW 7.60.020(5j, a receiver is appropriate when a corporation is in the
11 process of dissolution or is in imminent danger of insolvency. PM is in the process of
12 dissolution and is in imminent danger of insolvency.
13 2.4 The appointment of a receiver is discretionary with the Court,to be exercised in
14 the interests of justice. In order to ensure that PFI's contracts arc managed in an orderly fashion
15 and that the revenues are not converted to the sole benefit of Hartsoe and PSI is deprived of its
16 contractual remedies, this Court concludes tnat the interests of justice require appointment of a
17 receiver.
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18
19 rf IS HEREBY ORDERED, ADJUDGED AND DECREED that Richard Head is
20 appoi 'mporary receiver with power to manage and PFI's contracts and to collect a])
21 contract payment due and make disbursements for PFI, such appointment being subject to
22 Richard Head taking the prescribed oath as a receiver and furnishing bond in the sum of SSW.
23 approved by the Court, conditioned upon his faithful discharge of his duties as receiver.
24 IT IS FURTHER ORDERED that all interested corporate officers, especially Herb
25 Hartsoe, appear before this Court at 2,eo on 19%, to show
26
ORDER APPOINTING RECEIVER wctssl mach.eu.n a HOW,uo
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1 cuss why Richard Head should not be appoinrcd permanem receiver until ford=notice Of this
2 Court.
3 I mE IN OPEN COURT this f ,mac it 1996.
6 Presetaed by. 3Dort Commissioner
7 WESS. $&
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ORDER APPOINMG RECEIVER wata� aua w
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CITY OF RENTON
Office of the City Attorney
lure 7lnnrr,Meta Lawrence L Warren _
MEMORAN00M
To: J.D.Wilson
From: Lawrence J.Warren,City Attorney.
Date: January 10, 1997 y
iSubject: Resolution Declaring an Emergency tHigblacds 565 Zone Reservoir Interior
1 Recoating Project)
I am enclosing a copy of the above-referenced Resolution. 1Le '3riginal of this Resolution has been
forwarded to the City Clerk.
Al I
Lawrence J.Marreni
Ltw:as.
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cc: Jay Covington
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P.O. SOX 21025
SEATTLE, iiA 951113t
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THIS IS TO ADVISZ THAT TIG 'REIIER INPURANCZ CJMPANY POLICY
NUM+ER KTC•2c47'•95 ISSUEC TO:
PRODUCT/Ga FINTSNIV; I:C.
1565 S. 31OT4 STREFT +A
FEDERAL WAY, WA
FOR 4HICH NOTICE OF CAMCELLATIO' EFFECTIVE ON -,A/12/96 MAS
ISSUED IS HZR�FY REINSTATED OP CONTINUED IN SFFFCT WITHOUT
LAPSE OF COV<RACe.
COJVTEPSIGNFDe ; 6101/96 AEN�ETN I. T0�}Y, IBC.
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PO BOX 1608
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CITY OF KENTON
PLANNING/BUILDING/PUBLIC
WORKS DEPT.
200 MILL A..:. S. - -
RENTON, WA 98055
ATTN: TOM MALPHRAS
CITY OF ALTURAS
200 W. NORTH ST.
ALTURAS, CA 96101
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NOTICE OF CANCELLATION OR NON RENEWAL
OF LOCALIINTERMEDIATE
POLICY KIND F ICY
IaBVFD TNIgIMill AOENLY OR OFFICE AT CANtELL!,ION OR TERMINAION WILL TAKE EFFECT AT. W1[Of NOTICE
KT02847495 REATTLE.WA 10Ai11 Iwl«-sl.Nor,fo
08/04/96 12:01 M 07/23/96
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NAME AND
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AODHEss 1645 S 31 OTH STREET eA i 999 3RD AVENUE OF INSURED
FEDERAL WAY,WA 98003 f'f
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Direct ingwries to: -
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ADDRESS PLANNING/BUILDING/PUBLIC
OF LIEN- WORKS DEPT. a PARKER, SMITH& FEEK
HOLDER 200 MILL AVE. S. 999 3RD AVENUE
RENTON, WA 98055
ATTN: TOP MALPHRAS SEATTLE, WA 98104
APS-96 IEd 9/831 1 FINIInI DFR C(1PV
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NOTICE OF CANCELLATION OR NON RENFWAL
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POLICY NO. ISSUED TNXOGGN AGEXCY OX OFHCE AF. CAMDELLATMJN pA iFKMINATON WIIA TAKE EFFECT AL MlF OF NOTICE
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N19URANCE , TIG PREMIER INS CO.
COMPANY
S10249
NAME AND PRODUCTION FINISHING,INC M PARKER, SMITH&PEEK
ADDRESS 1645 S 310TH STREET MA 999 3RD AVENUE
OF INSURED . FEDERAL WAY,WA 98003
SEATTLE,WA 98104
I NON PAYMENT
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COMPANYE TIG PREMIER INS CO.
Direct Inquiries to:
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_ NAME AND CITY OF RENTON
ADDRESS PLANNING/BLDG PUBLIC WORKS DEPT. #PARKER, SMITH& FEEK
OF LIEN 200 HILL AVE. S. 999 3RD AVENUE
HOLDER RENTON, WA 98055
ATTN: TOM MALPHRAS SEATTLE, WA 98104
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APS 96(Ed 9183) t
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CAG-97-021 F
SETTLEMENT AGREEMENT -
This Agreement is made and entered into as of Janaa-6'=, 1997 by and between the
City of Renton. Washington ("Owner") and Gulf Insurance Company ("Surety").
WHEREAS, the Owner entered into a written contract dated May 9, 1996 ("Contract")
with Production Finishing, Inc ("Contractor") for work described as Highlands 565 Zone
9 I Reservoir Interior Recoatings ("Project"). and
} x t WHEREAS. Surety on or about April 23. 1996 issued $143,906.00 Sure[) Bond
#GE5782415 ("Bond")in favor of the Owner and the bond carries a single aggregate penal sum
of$143,906.00, and
WHEREAS, by its October 3, 1996 letter, the Owner called upon Surety ;o cause
completion of the work on the Project in accordance with the contract bonded by Surety, and
" WHEREAS, on October 10. 1996, Surety solicited proposals for completion of the work _
remaining and in due course received proposals from several contractors, the most advantageous
4.
" \- being the $128,704.00 ro p posal of D.S. Purcell Painting, Inc. of Renton. Washington
("Bidder"), and
WHEREAS, the sum of$63,066.70 remains undisbursed under the terms of the contract
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between Contractor and Owner, and
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WHEREAS, the Owner and Surety wish to arrange for payment to Contractor's unpaid
suppliers, materialmen, vendors, and subcontractors ("payment claimants"),
WHEREAS, Surety has received and will receive claims against the Bond from unpaid
suppliers, materialmen, vendors, and subcontractors ("payment claimants") to the Contractor.
A
NOW, THEREFORE, in consideration of the mutual promises set forth herein, the
- Owner and Surety do hereby covenant and agree to the following.
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1. The above-listed recitals are incorporated hereto and made an integral part of this
Agreement.
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2.
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Subject to the terms below, Surety agrees to pay to the order of the Owner and
Owner agrees to accept$65.637.30 in settlement of claim of the Owner under the Bond,
representing the difference between the contract balance remaining under the contract and
the amount proposed by Bidder.
3. The Owner may enter into a contract with Bidder for the work remaining on tht
project and in due course to obtain the required statutory surety bonds from the Bidder.
The Owner recognizes and agrees that Contractor's unpaid suppliers,
materialmen. vendors, and subcontractors have made and will make clams to the Bond.
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5. The Owner agrees that for each dollar Surety pays to the payment claimants and
to Owner, Suety receives a dollar-for-dollar reduction in its $143,906.00 Bond penal
SUM
6. The Owner agrees that Surety's liability is limite 1 to the$143.906.00 Bond penal
sum and should Surety pay to the Owner and the payment:laimants, an aggregate sum
of$143,906.00, then Surety's liability shall be completely exhausted and extinguished.
7. The Owner agrees that there is currently $68,0. .03 in :,ond claims from the
payment claimants and additionally there is a claim t the Painters' Uniwu and Trust
Funds, et.al. for an unknown amount.
8. Surety acknowledges that Contractor may not have paid sales tax to the State of
Washington("State") in accordance with the Contract requirements and Owner may be
liable to the State for such tax.
9. In exchange for Surety's $65,637.30 payment to the Owner, the Owner agrees:
a) to recognize Surety's liability under the Bond is reduced by the
$65,637.3u paymem;
b) consent to Surety's payment(s)to payment claimants as listed on Exhibit A
(attached) and recognize and agree to a dollar-for-dollar reduction of Surety's
liability for each for such payments.
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c) To allow Surety to make payment to future payment claimants that are not
listed in Exhibit A. `• ' f-.�
10. The Surety and Owner agree that atter Surety issues payments as outlined above
and Surety has not paid all of its 5143,906.00 Bond penal sum.Surety,after its exposure
to all payment claimants has irrevocably abated shall pay to the Owner the difference
between the$143,906.00 Bond penal sum and the aggmgate amount Surety has paid to
Ithe Owner and the payment claimants, if any.
1, 11. The surety shall pay to the Owner funds remaining, if any, as set forth in
9
paragraph 10 above, thirty (30) days after Owner issues final payment to the Bidder,
after Owner has properly documented to Surety its costs and right to the remaining Bond
proceeds, if any, and all known payment claimants have been paid by Surety.
12. The )wner recognizes and agrees that Surety may have paid out the$143,906,00
Bond proceeds on or before the time set .forth in paragraph 10. J the Surety has paid
out the 143,906.00 Bond penal sum on or before the time set fortis in paragraph 10, the - u
Owner shall not receive any further payment from Surety and Surety's liability to the
Owner shall be completely satisfied.
13. The patties and their signatories hereto warrant that each has the power and
autaority, to execute this Agreement. The patties hereto have voluntarily executed this
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Agreement based upon their independent investigation. The provisions of the Agreement
1 shall be applied and interpreted in a manner consistent with each other so as to carry out
t the purposes and intent of the parties, but if for any reason any provision is
unenforceable or invalid, such provision shall be deemed severed from this Agreement
and the remaining provisions shall be carried out with the same force and effect as if the
1 severed portion had not been a part of this Agreement.
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IN WITNESS�jiE OF, this Agreement has been executed, in duplicate originals, on
4 + / /
w V. this day of 1991
I Its:
AttaC I C7ty Ckrh 7j=-
Tanner
Its: mayor
lif a
STATE OF )
COUNTY OF y )
1 ' ,`�tyN
� This itinstrumentp'rs acknowledged before the on the�_, da Y W- 7,`
I by,_ .,�f Surety. _ j l�
Notary blic tin}/and tor the State
Printed Name:r
OAwD JMrfA
1 `k ory ajw'.Stall et Naw Yaaa
It,24496s634
Curb-eo-n Ki-=C-,my MY commissfo expires
eamm.ar -- n . -, •.: t99/ 11 'i2�� 1
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STATE OF
COUNTY OF
This mstcument was acknowledged before me on the
day of 1997,
by -Oblige,. �
NoPub.1c m and for the State
of W040^
Pry�ppted Name
� 17ce�
My co fis3sion\ q ex Tres:
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23—Jan-97
D(HIBIT A
PAYMENT CLAIMANTS CLAIM AMOUNT _
EAGLE HARBOR CONSTRUCTION&RENTAL $3,246.00
HERTZ EQUIPMENT RENTAL $8,007.41
KLEEN ENVIROMENTAL TECHNOLOGIES $1,085.29
KLEEN BLAST ABRASIVES $5.898.34
i MUNTERS MOISTURE CONTROL SERVICES $10,365.11
j NORTWEST WIRE ROPE&EQUIPMENT $1,420.42
NORTON CORROSION LIMITED $1.518.00
PACIFIC AMERICAN COMMERCIAL $616.74
PAINTERS TRUST&UNION UNKNOWN
S&S WELDING $25.792.79 �
SPIDER STAGING $3,948.36
THE BLAST CONNECTION $6,158.57
$68.057.03
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CITY OF RENTON
Office of the City Attorney
j lesx Twrtr.Mey« I.awmo J.W�
MEMORANDUM
To: Tom Malphrus
From: Lawrence J. Warren, City Attorney
Date: November 2.., 1996
Subject: Highlands Reservoir Recoating Contract; Surety Proposal
Dear Tom:
You forwarded to me a draft settlement agreement prepared by the '
bonding company providing the City the performance bond for the
Highlands Reservoir recoatini project. You then ask a series of
questions about the propriety of that agreement.
Let's start out by reviewing the bond to the City. The bond
indicates that the bonding company is bound to the City of Renton
in the penal sum of $143, 906. Later in the bond there is a
discussion of the fact that the bonding company holds the City
harmless from any loss or damaged occasioned by the contractor.
The draft settlement agreement Proposes that the City release the
bonding company upon its providing a substitute contractor for
the City of Renton. I do not believe that we should release the
surety until we have a complete performance.
You note that there is a change order by which the City would
save the surety approximately $23,400 and then ask whether or not
that should be subtracted from the contract amount. The answer
is, it should be subtracted as long as the sum of the bonding
company's entire indebtedness to the City, materialmen, and
laborers does not exceed the penal sum of the contract.
Similarly, the $120 per day penalty should be charged as long as
it does not go beyond the total penal sum of the contract. The
City could agree :o accept the amount of electricity rather than
the liquidated damages amount, if that would be a fairer estimate
of the City's damage.
Finally, you ask what to do about the monies held in retainage.
Those monies would be paid to the surety, subject, however, to my
prior discussions that the surety's expenditure must equal
$143,906 after charges of liquidated damages and change orders.
Having stated all of that, I believe that paragraphs 2, 3, 5, and
perhaps 6, are unacceptable to the City. The draft settlement
Post Office Box 626- 100 S.2nd Street-Renton.Washington 98057-(206)255-8678
J
Tom Malphrus
Page 2
November 22, 1996
agreement should not release the surety until the City has
received its performance. Before I could agree to no change in -
the contract price because of ti.e change order or the payment
from the surety to the City, I would need to see a full
accounting.
I am not sure that paragraph 6 presents a real problem to the
City unless the contractor has assets, and the bonding company
does not satisfy all of the City's debts. If the contractor is
without assets, or nearly so, or the surety provides tt:I-- City
full performance and the City has no losses, then we should not
object to paragraph 6.
Very t ly yours,
wrence J. warren
LJW:ch
cc: Ron Olson
Lys Hornsby
Gregg Zimmerman
Jay Covington
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CITY OF RENTON I
Office of the City Attorney
PM
k<xe Tanner.Maror VrllaYa Jf•�Wr�
MEMORANDUM �,- °��'
I JAN 171� 97
To: I.U.Wilson CITY _r ,,•7diJN
From: Lawrence 1.Warren.City Attomev !lt'at
Date: January 16, 1997
Subject: Highlands Reservoir-Use of Letter of Credit in Lieu of performance Bond
I received your memo of January 15, 1997. In that memo you ask the question whether or not an
irrevocable letter of credit may be substitu A for a performance bond. Please be advised that the
performance bond requirement is established by Title 39.09 RCW. In reviewing that chapter the
ord authorization that 1 can find for substitution of a letter of credit for a performance bond is in
the construction of marine vessels. Therefore,it would appear that we do not have the authority to
accept the letter of credit in lieu of the performance bond.
Lawrence 1.Warren
UW:as.
cc. Jav Covington
All 129 39.
Post Office Box 626- 100 S.2nd Street-Renton,Washington 98057.t2061235-8678
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CITY OF RENTON
,.
OR
Office of the City Attorney
lawreece J.Warrea
larre 77nan.a/a
MEMORANDUM 'j •' ' '
I/I N ... J
To: Tom Malphms L°� ..`_.'
,. Ftom: Lawn oce J.Warren,City Anomey
Date; January 29, 1997
Subject: Settlement Agar-•cut with Surety for the Highlands Elevated Reservoir
project
I have reviewed the above-referecced document and the same is approved as to legal form
a�
Lwrmce 1.Warren
UW:as.
ec: Jay Covington
A8:129.55.
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Post Office Box 626- 100 S.2nd Street-Renton Washington 98057-(206)255.8678
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CITY OF RENTON, WASHINGTON
RESOLUTION NO. 124?
A RESOLUTION OF THz CITY OF RXHTON, WASHINGTON, DECLARING
AN EMERGENCY.
L'i•
NEEREAS, the City of Renton called for and received Seale? , V.",
bids for Project WTR-27-2210, the Highlands 565 Zone Reservoir ;i ,•
Interior Recoating Project, in April 1996; and
WHEREAS, Production Finishing, Inc. submitted the lowest `
o responsible bid, which the City accepted; and f
NEZR=AS, the City and Production Finishing, Inc. entered into
a written contact (CAG-96-038) dated May 9, 1996, for the project;
and .,..
NEERE118, Gulf Insurance Company ("Surety") on or about April
23, 1996, issued a $143,906.00 Surety Bond (#GE5782415) in favor of
the City; and
NEERRAS, Production Finishing, Inc. filed for bankruptcy and
failed to complete the project; and .,
NKEREAS, by its October 3, 1996 letter, the City called upon ,
Surety to cause completion of the work on the project in accordance
with contract CAG-96-038 which was bonded by Surety; and t+
NNKRRAS, to date the City and Surety have not reached a
',to
settlement agreement and it is not known when or if such an
agreement will be reached; and
NEEREAS, without the Highlands reservoir connected to the �•��+�
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drinking water distribution system the pressure in the system is
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fluctuating from being too high to being too low, causing damage to
the system and resulting in customer complaints; and ,Ar
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RESOLUTION NO. 3242
WHEREAS, without the Highlands reservoir connected to the
ii water system the Highlands 565 pressure zun^ is without fire
J t)rotection water storage; and
I NNERZKS, immediate n,iasures need to be taken to complete the '
work and return the reservoir to service; and
NEEREAS, it would be detrimental to the City's best interest
to delay work until the oublic bidding process could be fulfilled;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON,
d
WASHINGTON, DO RESOLVE AS FOLLOWS:
-.. SECTION i. The above recitals are found to be true and
correct in all respects.
SECTION Its The City Council hereby declares an emergency,
suspends the statutory bidding process and authorizes the
administration to contract, on an emergency basis, for the
completion of the Highlands 565 Zone Reservoir Interior Recoating
Project.
PASSED BY THE CITY COUNCIL this 27th day of January, 1997.
MarilynbVk.getersen, City Clerk
APPROVED BY THE MAYOR this 27th day of January, 1997.
Je a Tanner, Mayor
Approv as to form:
6iMr..a�w.y ILrH.Qw� t
Lawrence J. Warren, City Attorney C '
RES.563:1/10/97.
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