STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: April 10, 2024
COUNCIL DISTRICT(S): N/A
DEPARTMENT: City Attorney's Office
EXECUTIVE: Tammy L. Palomino
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SUBJECT
Title
Authorize (1) settlement of the claim asserted by the City of Dallas against surety Atlantic Specialty Insurance Company, a wholly owned subsidiary of Intact Insurance Group USA Holdings, Inc., a wholly owned subsidiary of Intact Financial Corporation, for Sisters Asphalt, Inc. d/b/a SAI Construction's failure to complete construction under Dallas Water Utilities Contract No. 20-473/474 (DWU-2021-00016990) in an amount not to exceed $4,333,680.00; (2) cancellation of Dallas Water Utilities Contract No. 20-473/474 (DWU-2021-00016990) with Sisters Asphalt, Inc. d/b/a SAI Construction; and (3) the receipt and deposit of funds in an amount not to exceed $2,221,321.60 in Water Construction Fund and $2,112,358.40 in Wastewater Construction Fund - Estimated Revenue: Water Construction Fund ($2,221,321.60) and Wastewater Construction Fund ($2,112,358.40)
Body
BACKGROUND
On September 9, 2021, the Dallas City Council awarded Dallas Water Utilities Contract No. 20-473/474 (DWU-2021-00016990) to Sisters Asphalt, Inc. d/b/a SAI Construction by Resolution No. 21-1478. Sisters Asphalt, Inc. d/b/a SAI Construction failed to complete construction under the contract.
In response, the City of Dallas asserted a claim against surety Atlantic Specialty Insurance Company, a wholly owned subsidiary of Intact Insurance Group USA Holdings, Inc., a wholly owned subsidiary of Intact Financial Corporation (the "surety"), for Sisters Asphalt, Inc. d/b/a SAI Construction's failure to complete construction under the contract, seeking compensation for price escalation to complete the remaining work under a separate contract. The City and the surety have reached a proposed settlement in the amount of $4,333,680.00, subject to C...
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