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RESOLUTION NO. 26-89
A RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF
LOS ALTOS HILLS RESCINDING AWARD OF CONTRACT FOR
CONSTRUCTION OF MISCELLANEOUS STORM DRAINS, AND
APPROVING SETTLEMENT AND AUTHORIZING EXECUTION OF
"RELEASE AND EXONERATIONIOF PERFORMANCE BOND" AND
EXONERATING AND DISCHARGING FAITHFUL PERFORMANCE BOND
RESOLVED, by the City Council of the Town of Los Altos Hills, County of
Santa Clara, State of California, that
WHEREAS, on June 15, 1988,the City Council adopted Resolution No.
60-88 awarding to Lawrence Thomas, an individual doing business, under
the name and style of L. Thomas Construction, a Contract for Construction of
Miscellaneous Storm Drains (herein called the "Public Works Project"), at the
price named in his bid, to wit:
Fifty-One. Thousand Eight Hundred Seventy-Five Dollars ($51,875);
and
WHEREAS, although the Contractor named above commenced work
and received progress payments, the City Council of the Town of Los Altos
Hills has been advised the Contractor later abandoned and failed to complete
performance of his Contract; and
WHEREAS, the Contractor provided to the Town Faithful Performance
Bond No. 1149598 in which AMWEST SURETY INSURANCE COMPANY, a
California Corporation, (herein called "AMWEST") was named as Surety; and
WHEREAS, AMWEST has agreed to pay the sum of Nine Thousand Nine
Hundred Twenty-One Dollars ($9,921) to the Town in settlement of its claims
arising out of the failure of the Contractor to complete performance of the
Public Works Project; and
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WHEREAS, it appears to the City Council that it should approve the
proposed Settlement,
NOW, THEREFORE, IT IS HEREBY ORDERED AND DETERMINED as follows:
1. The award of a Contract for the performance of the Public Works
Project hereby is rescinded and terminated, by reason of the failure of the
Contractor to complete performance of the Public Works Project.
2. The proposed Settlement of the Town's claim against AMWEST
hereby is approved, and upon payment of the sum of Nine Thousand Nine
Hundred Twenty-One Dollars ($9,921) to the Town, the Acting City Manager
be and he is hereby authorized and directed to execute on behalf of the
Town that certain "RELEASE AND EXONERATION OF PERFORMANCE BOND" and
to cause it to be delivered to AMWEST, and "Faithful Performance Bond No.
1149598" shall be fully discharged and exonerated.
REGULARLY passed and adopted this 15th day of February, 1989.
BY
ATTEST:
CITY CLERK
020989
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