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Home My WebLink About2001-102C \WINDOWS\TEMMendenon Assignment doe ORDINANCE NO of 01- 16A AN ORDINANCE APPROVING THE ASSIGNMENT OF A PUBLIC WORKS CONTRACT BETWEEN THE CITY OF DENTON, TEXAS AND HENDERSON CONSTRUCTION, L L P FOR THE CONSTRUCTION OF CERTAIN MUNICIPAL IMPROVEMENTS KNOWN AS THE WESTERN PECAN/COOPER CREEK PROJECT TO KEBO SERVICES, INC, WHICH CONTRACT WAS PREVIOUSLY AWARDED BY THE CITY COUNCIL PURSUANT TO ORDINANCE NO 2000-276, AUTHORIZING THE CITY MANAGER TO EXECUTE THE ASSIGNMENT ON BEHALF OF THE CITY AND AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR, AND PROVIDING AN EFFECTIVE DATE (PROJECT AMOUNT- $683,930) WHEREAS, the City of Denton, Texas and Henderson Construction L L P ("Henderson') have heretofore entered in to a public works contract for the construction of certain municipal improvements for inflow/infiltration corrections known as the Western Pecan/Cooper Creek Project, which contract was previously awarded to Henderson pursuant to Ordinance No 2000-276 (the "Contract"), and WHEREAS, Henderson has requested that the Contract be assigned to Kebo Services, Inc , and WHEREAS, the City Council finds that such assignment is in the public interest, NOW, THEREFOR, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS 'SECTION 1 The assignment of the Contract is hereby approved in substantially the form of the Assignment of Contract and Tn-Party Agreement attached hereto and made a part hereof reference (the "Assignment') The City Manager or his designee is hereby authorized to execute the Assignment on behalf of the City of Denton, Texas SECTION 2 The City Manager is authorized to make the expenditures as set forth in the Contract and Assignment SECTION 3 This ordinance shall become effective immediately upon its passage and approval yy PASSED AND APPROVED this the day of 2001 EULINE BROCK, MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY Page 2 c WINoo sTEM"Clld. In ipntcot a« ASSIGNMENT OF CONTRACT AND TRI-PARTY AGREEMENT WHEREAS, on the `per day of2001, the CITY OF DENTON, TEXAS, whose address Is 901-A Texas Street, Denton, Texas 76201 (hereinafter sometimes called "the City") and Henderson Construction, L I P , whose address Is P O Box 123593, Fort Worth, Texas (hereinafter sometimes called "Henderson") made and entered into a certain contract for the construction of certain municipal improvements known as the Western Pecan/Cooper Creek Project (the "Contract') which Contract was awarded to Henderson in the amount of $683,930 through the competitive bid process pursuant to City Ordinance No 2000-276, dated September 6, 2000, and, WHEREAS, Henderson and Evergreen National Indemnity Company, a surety bond company (the "Surety") have issued performance and payment bonds dated the same date as the Contract, and WHEREAS, Henderson desires to assign the said Contract to Kebo Services, Inc whose address is 2821 Lackland Road, Suite 208, Fort Worth, Texas 76116 (hereinafter samettmes called "Kebo") and Kebo desires to accept assignment of said contract from Henderson, and, WHEREAS, the Surety has signed this agreement evidencing its consent to the assignment, and WHEREAS, the City has agreed to allow such assignment, conditioned upon the terms of this assignment NOW, THEREFORE, IT IS MUTUALLY AGREED the City, Henderson and Kebo as follows Page 1 A \ASSIGNMENT OF CONTRACT Henderson dM I For and in consideration of the covenants and obligations of Kebo as hereinafter set forth, Henderson assigns all benefits murmg to it under the Contract to Kebo, including the right to receive payments for any and all pay items set forth in the Contract together with payment for any change orders or payments for additional work that may subsequently be made by the City 2 For and in consideration of the assignment of all benefits under the Contract by Henderson to Kebo, Kebo agrees to commence and complete all the work described in the Contract, and all extra work connected therewith, under the terms stated in the contract documents, and at its own proper cost and expense to furnish all the materials, supplies, machinery, equipment, tools, superintendent, labor, bonds, insurance, and other accessories and services necessary to complete the said construction, in accordance with the contract documents, which include all maps, plats, blueprints and other drawings and printed and written explanatory matter thereof, and the specifications thereof, as prepared by the engineers employed by the City, together with the contractor's written proposal and the other parts of the contract documents, including the general specifications Kebo agrees to commence work within ten (10) days after the date written notice to do so shall have been given to it, and to substantially complete same within the tune stated in the Contract 3 The City approves this assignment, subject to the teams and conditions hereof, and subject the receipt of new performance and payment bonds from the Surety which add Kebo as an additional principal The City agrees to pay to Kebo Services, Inc, and not to Henderson, in current funds for the performance in accordance with the Contract, subject to additions and deductions, as provided in the contract documents and all Page 2 A \ASSIGNMENT OF CONTRACT -Henderson dw approved modifications thereof, and to make payment on account thereof as provided in the contract docments 4 It is further agreed by all parties that Kebo shall be authorized to execute and submit any and all required documents required by the City in connection with the Contract, including but not lumted to certified payroll reports, partial pay estimates, final pay estimate, change orders and any documents needed for completion of the Contract In connection therewith, in the event any documents require the approval, submission or execution by Henderson, Henderson irrevocably appoints Kebo its true and lawful attorney-m-fact to approve, submit or execute such document or documents on its behalf as its attorney-m-fact 5 It is further agreed that this assignment shall in no way release Henderson from any of its obligations under the Contract, and shall in no way release Henderson from its obligation to perform the work described in the contract documents, and in any event of default by Kebo, the City may seek and obtain any remedies as provided in the contract documents against Henderson or Kebo or Henderson and Kebo, jointly and severally Any notices of default that are provided for in the contract documents shall be delivered to both Henderson and Kebo The approval by the City of this assignment shall not operate to release Henderson or the Surety from any of the Contract and bond obligations, and Henderson shall be and remain fully responsible and liable for the defaults, negligent acts and omissions of Kebo, its agents and employees, as if they were its own 6 This agreement contains the entire agreement of the parties and cannot be amended except by an instrument In writing Signed by all of the parties Page 3 A \ASSIGNMENT OF CONTRACT Henderson doo 7 This agreement is to be performed in Denton County, Texas and venue of any actions under this agreement shall be in Denton County, Texas IN WITNESS WHEREOF, the parties to these presents have executed this agreement to be effective as of the date of the Contract as above written DENTON a ATT;eria T Je t rs, City Secretary APPROV S TO FORM Herbert L Prouty, City Attorney HE*BHenlderson, UC N, L L P By General Partner KE$O SEROCES By //`!�`� a Robert Allison, President Page 4 A XASSIGNMFNT OF CONTRACT Ilendetwn dm The Surety hereby consents to this assignment and agrees that this assignment will not operate to release Surety from any of the Contract and bond obligations 1 he Surety agrees to issue and deliver new performance and payment bonds which add Kebo as an additional principal Attorney in Fact Page 5 A W SSIONMEN9 OF CONTRAC 1 I 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