HomeMy WebLinkAboutResolution - 2012-R0491 - Memo Of Undestanding - JD Abrams LP - 12/17/2012Resolution No. 2012--RO491
December 17, 2012
Item No. 5.13
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock is hereby authorized and directed to
execute for and on behalf of the City of Lubbock, a Memorandum of Understanding
'i Between the City of Lubbock and J.D. Abrams, L.P., and related documents. Said
Memorandum is attached hereto and incorporated in this resolution as if fully set forth
herein and shall be included in the minutes of the City Council.
Passed by the City Council on December 17, 2012
G N C. SON, MAYOR
V
ATTEST:
'jR A -A -
Reber a Garza, City Secretary
APPROVED AS TO CONTENT:
#JameLoomis, Executive Director of Aviation
APPROV AS TO FORM:
Chad Weaver, Assistant City Attorney
vwxcdocs/RES.MOU-Abrams, J.D.
November 29, 2012
Resolution No. 2012-RO491
MEMORANDUM OF UNDERSTANDING BETWEEN
THE CITY OF LUBBOCK, TEXAS AND J. D. ABRAMS, L.P.
WHEREAS, the City of Lubbock ("City") entered into a contract on October 13, 2011
("Contract") with J. D. Abrams, L.P. ("Abrams") for Lubbock Preston Smith International
Airport Runway 08/26 and Taxiway Improvements — Phase III (Bid No. 11 -10031 -MA)
("Project"); and
WHEREAS, the Contract sets forth, in Paragraph 17 of the General Instructions to
Bidders, that Abrams shall furnish a written general guarantee (the "One -Year All Inclusive
Warranty") which shall provide that Abrams shall remedy any defects in the work, and pay for
any and all damages of any nature whatsoever resulting in such defects, when such defects
appear within ONE year from the date of final acceptance of the work as a result of defective
materials or workmanship, at no cost to the City; and
WHEREAS, the City engaged in the Project for the benefit of the traveling public
pursuant to Federal Aviation Administration Grant Assurances which, among other things,
require that the Project have a useful life of twenty (20) years; and
WHEREAS, Abrams acknowledges that issues of concrete contamination have occurred
in regard to the Project, specifically foreign material contamination of the coarse and fine
aggregate stockpiles in the P-501 concrete (the "Concrete Contamination"); and
WHEREAS, the City finds it is in the best interest of the public, and in conformance with
the FAA Grant Assurances, to enter into this Memorandum of Understanding ("MOU") with
Abrams in which Abrams agrees to provide to the City a long term commitment to address the
Concrete Contamination on the Project by providing a Maintenance Bond in the penal sum of
Ten Million and no/100 dollars ($10,000,000.00) and to agree to the terms set forth herein;
NOW THEREFORE, in consideration of the mutual covenants contained herein City and
Abrams, its successors and assigns, by this Memorandum of Understanding do hereby make the
following representations and covenants and agree to the following:
1. Pursuant to Section 2 of this MOU, Abrams shall provide to the City a series of
Maintenance Bonds (collectively, the "Bonds", and each referred to as a "Bond")
substantially in the form of Exhibit A attached hereto, naming the City as the
obligee, in the penal sum of Ten Million and No/100 Dollars ($10,000,000.00) to
provide assurance to the City that all Remedial Work, as defined herein, shall be
faithfully performed in a good and workmanlike manner by Abrams as approved
and accepted by the City.
2. The existing Performance Bond (the "Performance Bond") delivered to the City
pursuant to the Contract covers Abrams' one (1) year warranty obligation,
including, but not limited to, all obligations for Remedial Work, as herein defined
for one (1) year (the "All Inclusive Warranty Period") for the time period
beginning on the date of final completion in accordance with Paragraph 44 of the
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General Conditions of Contract and ending one (1) year thereafter. Unless earlier
terminated by the City pursuant to Section 13, Abrams shall assure its obligations
under this MOU with a total of three (3) consecutive five (5) year Bonds and one
(1) four (4) year Bond. The first three (3) Bonds shall each be valid for a term of
five (5) years. The first five (5) year Bond shall be delivered to the City on or
before ninety (90) days prior to the expiration of the All Inclusive Warranty
Period. No later than sixty (60) days before the expiry of (i) the first five (5) year
Bond and (ii) each subsequent Bond, Abrams shall provide another Bond in
compliance with this Section 2 until the total bonded maintenance period reaches
nineteen (19) years (the "Term') of this MOU. Each Bond must be furnished and
executed by a surety company authorized to do business in the State of Texas.
Notwithstanding anything to the contrary in this MOU, the Contract, or the Bond,
Abrams' inability to deliver any subsequent Bond shall not be cause for a claim
on any prior Bond. Abrams failure to provide a subsequent bond shall be a breach
of this MOU.
3. Abrams shall, during the Term, perform any and all reasonably necessary repairs,
replacement or maintenance (collectively, the "Remedial Work") to the
runway/taxiway improvements resulting solely from the Concrete Contamination
at Abrams' sole and exclusive costs, including but not limited to, popouts, surface
spalling, cracking or foreign object debris (FOD) generation. Abrams
acknowledges the risk associated with FOD on a runway/taxiway and Abrams
shall meet the requirements of the most current version of the FAA Advisory
Circular 150/5210-24. Remedial Work shall be performed using the approved
repair technique ("Approved Repair Technique") described on Exhibit B attached
hereto. During the Term of this MOU, Abrams shall not be responsible for
repairs or maintenance required as a result of ordinary wear and tear and other
causes not solely resulting from the Concrete Contamination including, but not
limited to, the excluded concrete pavement distresses ("Excluded Concrete
Pavement Distresses") listed on Exhibit C attached hereto.
4. Abrams shall exercise its best efforts to perform any Remedial Work at night to
minimize disruptions to the traveling public and pursuant to applicable Federal
Aviation Administration rules or regulations unless weather conditions or
emergency repairs due to Concrete Contamination are, in the opinion of the City,
required to be completed during daytime hours. Any Remedial Work to be
completed pursuant to this MOU shall be coordinated with City airport
operations, and will be completed promptly.
5. At its sole and exclusive cost, Abrams shall retain Dynatest or such other
qualified expert as may hereafter be agreed to by the City and Abrams (Dynatest
and any subsequent expert approved by both the City and Abrams are herein
referred to as the "Expert") to (i) perform visual inspections of the
runway/taxiway improvements and notify Abrams and the City of required
Remedial Work; and (ii) verify and report, in writing, on the performance and
integrity of the condition of the runway/taxiway pavement or concrete. A
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representative of the City shall, at the City's option, accompany the Expert on all
inspections. At a minimum, the Expert shall perform the inspections as follows,
and shall provide the City and Abrams with advance written notice of the date and
time of each inspection:
a) Year one (1): every three (3) months;
b) Years two (2) — five (5): every six (6) months;
C) Years six (6) — twenty (20): every twelve (12) months.
Abrams acknowledges that the condition of the runway/taxiway pavement may
require more frequent inspections, and additional inspections shall be provided
upon City's written request to Abrams with a copy to the Expert.
The City shall not unreasonably withhold, delay, or condition its approval of any
(i) completed Remedial Work or (ii) substitute for the Expert. A copy of all
expert reports written by the Expert pursuant to this MOU shall be provided to the
City no later than ten (10) business days after its completion.
Abrams acknowledges that pursuant to FAA requirements, including but not
limited to, FAA regulation Part 139 and the City's Airport Certification Manual,
the City is required to conduct inspections twice daily of the runway/taxiway.
Abrams shall perform all Remedial Work as required by this MOU regardless of
whether it is the City or the Expert that discovers the need for Remedial Work and
notifies Abrams. The City shall notify Abrams of the need for Remedial Work
immediately upon its discovery of same or upon receipt of a report from the
Expert. If the City does not elect to self -repair as herein permitted, the City shall
promptly issue a work order to Abrams each time the City receives notice from
the Expert of the need for any Remedial Work or any time the City discovers the
need for Remedial Work under this MOU. Notwithstanding anything to the
contrary contained herein during the term of this MOU, Abrams shall leave the
materials (the "Remediation Materials") specified on Exhibit D on-site at the
airport, at a location designated by the City. The City may, but shall not be
obligated to, use the Remediation Materials to complete any required Remedial
Work.
6. If in the process of any repair, replacement or maintenance conducted by Abrams
it is necessary to disturb or remove any paint on the taxiway, Abrams shall, prior
to applying new paint, remove all the old paint from the surface to avoid
overpainting on the painted surface. Abrams shall properly apply paint and glass
beads to yield uniform nighttime reflectivity.
7. Abrams shall not commence any Remedial Work pursuant to a work order issued
under this MOU until it has obtained all insurance as required as set forth in
Exhibit E attached hereto from an underwriter authorized to do business in the
State of Texas and satisfactory to the City. Proof of coverage shall be furnished
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to the City and written notice of cancellation or any material change will be
provided thirty (30) days in advance of cancellation or change. All policies shall
contain an agreement on the part of the insurer waiving the right to subrogation
against the City. Abrams shall procure and carry at its sole cost and expense,
through the life of any work order issued under this MOU, insurance protection as
specified in Exhibit E. Coverage in excess of that specified herein also shall be
acceptable. Such insurance shall be carried with an insurance company
authorized to transact business in the State of Texas and shall cover all operations
in connection with the work order, whether performed by Abrams or a
subcontractor, or separate policies shall be provided covering the operation of
each subcontractor.
8. This MOU is to be construed under Texas law without regard to conflict of law
rules that would direct application of the laws of any other jurisdiction. The
obligations of the parties created by this MOU are to be performed, at least in
part, in Lubbock County, Texas. Venue for any action brought pursuant to this
MOU, or activity contemplated hereby, shall exclusively be in Lubbock County,
Texas.
9. Upon full execution of this MOU by the City and Abrams, (i) the City shall pay
Abrams the total sum of $1,906,114.09 being the cumulative amount due to
Abrams for its July, August, September, October, and November 2012 Draws
under the Contract; and (ii) the Contract shall be deemed to have reached final
completion in accordance with Paragraph 44 of the General Conditions of the
Agreement upon execution of this MOU, so that the One -Year All Inclusive
Warranty Period commences on that date. The City will provide Abrams with a
form of such warranty which Abrams shall approve and execute
contemporaneously with the execution of this MOU. All retainage held by the
City under the Contract shall be paid promptly when due pursuant to the Contract.
10. Any notice pursuant to this MOU shall be given in writing by (a) personal
delivery; (b) expedited delivery service with proof of delivery; (c) United States
Mail, postage prepaid, registered or certified mail, return receipt requested; or
(d) facsimile or electronic mail (provided that such facsimile or electronic mail is
confirmed by expedited delivery service or by mail in the manner previously
described), sent to the intended addressee at the address set forth below, or to such
other address or to the attention of such other person as the addressee shall have
designated by written notice sent in accordance herewith, and shall be deemed to
have been given either at the time of personal delivery, or, in the case of
expedited delivery service or mail, as of the date of first attempted delivery at the
address and in the manner provided herein, or, in the case of facsimile or
electronic mail, at the time sent. Unless changed in accordance herewith, the
address for notices given pursuant to this Agreement shall be as follows:
El
4744370.13
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Com: City of Lubbock, Texas
5401 N. MLK Blvd.
Lubbock, Texas 79403
Attn: Director of Aviation
Fax: 806-775-3133
Email: jloomis@mylubbock.us
Abrams: J.D. Abrams, L.P.
111 Congress Avenue, Suite 2400
Austin, Texas 78701
Attn: Kelly Gallagher
Fax: 512/322-4018
Email: kgallagher@jdabrams.com
D�ynatest: Dynatest Consulting Inc.
100 East 14th Street, Suite 3104
Chicago, Illinois 60605
Attn: Kurt Keifer PhD., P.E.
Phone: (877-286-09919
Email: kkeifer@dynatest.com
11. Notwithstanding anything to the contrary contained herein, neither party shall be
deemed to be in default under this MOU until and unless such party (i) has
received written notice (the "Default Notice") of the alleged default from the
other party and (ii) failed to cure such alleged default prior to the expiration of
twenty (20) days following receipt of the Default Notice.
12. In the event Abrams defaults in the performance of the One -Year All Inclusive
Warranty, the City reserves the right to exercise all remedies available pursuant to
the terms of the Contract. In the event either Abrams or the City defaults with
respect to their obligations under this MOU, the non -defaulting party may
exercise any remedy available to it by law, contract, equity, or otherwise,
including without limitation, the right to seek all forms of relief in a court of
competent jurisdiction. With respect to this MOU, neither party shall be subject
to any arbitration process prior to exercising such party's unrestricted right to seek
judicial remedy. The remedies set forth herein with respect to this MOU are
cumulative and not exclusive, and may be exercised concurrently.
13. Notwithstanding anything to the contrary contained herein, the City, in the City's
sole discretion, may terminate this MOU at any time by written notice to Abrams,
in which event the then existing Bond may be terminated and all further rights and
obligations of the City and Abrams under this MOU shall be deemed terminated.
14. This MOU constitutes the entire agreement of the parties with respect to the
Remedial Work required due to the Concrete Contamination during the Term and
may not be amended or modified without the written consent of each party.
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[Signatures Appear on Following Page]
4744370.13
11804.93329
EXECUTED to be effective as of the ( / day of 2012.
CITY OF LUBBOCK
GLE ROBERT ON, MAYOR
J.D. ABRAMS, L.P.
ON F. ABRAMS. PRESIDENT & CEO
ATTEST:
—p of 0 0 J- -.0 -0 4 -
Rebec a Garza, City Secretary
AS TO CONTENT:
r 14le— ,z
Loomis, Executive Director of Aviation
APPROVED AS TO FORM:
Chad Weaver, Assistant City Attorney
MOU-J.D. Abrams, LP
October 31, 2012
7
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EXHIBIT A
Bond No. 929466670 & 022043416
MAINTENANCE BOND
Know all men by these presents that we, J.D. Abrams, L.P., a Texas limited partnership,
as Principal, and Western Surety Company andLibertMutual Insurance Company, a
CoMoration and Stock Insurance Company organized under the laws of the State of South
Dakota and Massachusetts and duly authorized to transact business in the State of Texas, as
Surety, are held and firmly bound unto the City of Lubbock, Texas, as Obligee in the sum of Ten
Million Dollars ($10,000,000) for the payment whereof well and truly to be made, the Principal
and Surety bind themselves, their heirs, executors, administrators, successors and assigns, jointly
and severally, firmly by these presents.
WHEREAS the Principal and Obligee have entered into an agreement, "Memorandum of
Understanding between the City of Lubbock, Texas and J.D. Abrams, L.P." dated
(the "MOU") relating to the Lubbock Preston Smith International Airport Runway 08126 and
Taxiway, said MOU being by reference made a part hereof;
WHEREAS, the Surety's obligation under the terms of this bond is limited to the faithful
performance of the Remedial Work as set forth in the MOU;
NOW THEREFORE, the condition of the foregoing obligation is such that if the
Principal shall well and truly perform all the undertakings, covenants, terms, conditions and
agreement of the MOU within the time provided therein then this obligation shall be null and
void; otherwise it shall remain in full force and effect.
PROVIDED, HOWEVER, that this bond is subject to the following conditions and provisions:
1. This bond is for the term beginning one (1) year after the date of execution of the MOU
and ending five (5) years thereafter.
A-1
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Maintenance Band
(Page 2 of 2)
2. In the event of default by the Principal in performance of the MOU during the term of
this bond the Surety shall be liable only for the loss to the Obligee for actual excess
costs of performance of the MOU up to the expiration of the term of this bond and in no
event shall the liability of the Surety exceed the penal sum stated in this bond.
3. No claim, action, suit or proceeding, except as hereinafter set forth, shall be instituted
or maintained against the Surety under this instrument unless same be brought or
instituted and process served upon the Surety within one year after the expiration of the
term of this bond.
4. Neither non -renewal by the Surety, nor failure, nor inability of the Principal to file a
maintenance bond for subsequent terms under said MOU shall constitute loss to the
Obligee recoverable under this bond.
5. The bond may be extended for additional terms at the option of the Surety, by
continuation certificate executed by the Surety and the Principal but regardless of the
number of extensions for additional terms and the number of premiums which shall be
payable or paid, the liability of the Surety hereunder shall not be cumulative from year
to year nor period to period.
6. No right of action shall accrue on this bond to or for the use of any person or
corporation other than the Obligee named herein or the heirs, executors, administrators
or successors of the Obligee.
Signed and sealed this 1'` day of January, 2013..
J. D. Abrams, L.P.
(Princl)
F. Abrams, President & CEO
4744370.13
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Western Surety Company and Liberty mutual
Insurance ComDanv
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Linda K. Edwards, Attorney -in-Fact
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Western Surety Company
POWER OF ATTORNEY APPOINTING INDIVIDUAL ATTORNEY-IN-FACT
Know All Men By These Presents, That WESTERN SURETY COMPANY, a South Dakota corporation, is a duly organized and existing corporation
having its principal office in the City of Sioux Falls, and State of South Dakota, and that it does by virtue of the signature and seal herein affixed hereby
make, constitute and appoint
Linda K .Edwards, Robert C Fricke, Douglas J Wealty, Wesley M Pitts, Cynthia Giesen,
Individually
of Austin, TX, its true and lawful Attomey{s}in-Fact with full power and authority hereby conferred to sign, seat and execute for and on its behalf bonds,
undertakings and other obligatory instruments of similar nature
- In Unlimited Amounts -
and to bind it thereby as fully and to the same extent as if such instruments were signed by a duly authorized officer of the corporation and all the acts of said
Attorney, pursuant to the authority hereby given, are hereby ratified and confirmed.
This Power of Attorney is made and executed pursuant to and by authority of the By -Law printed on the reverse hereof, duly adopted, as indicated, by
the shareholders of the corporation.
In Witness Whereof, WESTERN SURETY COMPANY has caused these presents to be signed by its Senior Vice President and its corporate seal to
be hereto affixed on this 8th day of October, 2010.
WESTERN SURETY COMPANY
xt
Paul 4F.Bruflat, Senior Vice President
State of South Dakota
ss
County of Minnehaha
On this 8th day of October, 2010, before me personally came Paul T. Bruflat, to me known, who, being by me duly sworn, did depose and say: that he
resides in the City of Sioux Falls, State of South Dakota; that he is the Senior Vice President of WESTERN SURETY COMPANY described in and which
executed the above instrument; that he knows the seal of said corporation; that the seal affixed to the said instrument is such corporate seal; that it was so
affixed pursuant to authority given by the Hoard of Directors of said corporation and that he signed his name thereto pursuant to like authority, and
acknowledges same to he the act and deed of said corporation
My commission expires i
s D. KRELL s
November 30, 2012i AE NOTARY PUBLIC FJ4s E i
s(RSOUTH DAKOTAi
�4tititi ti+tiq titi ti4�atititi�e4Sb tititi
CERTIFICATE
A44
D. Krell, No Public
1, L. Nelson, Assistant Secretary of WESTERN SURETY COMPANY do hereby certify that the Power of Attorney hereinabove set forth is still in
force, and further certify that the By -Law of the corporation printed ca the reverse hereof is still in force. In testimony whereof I have hereunto subscribed
my name and affixed the seal of the said corporation this _ _ day of �.
'.%`°xerrev4 WESTERN SURETY COMPANY
..' �.v0gq .. -kCA
L. Nelson, Assistant Secretary
Form F4280-09-06
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TMS POWER OF ATTORNEY IS NOT VALID UNLESS IT IS PRINTED ON RED BACKGROUND, 5024631
This Power of Attorney limits the acts of those named herein, and they have no authority to bind the Company except in the manner and to the
extent herein stated.
LIBERTY MUTUAL INSURANCE COMPANY
BOSTON, MASSACHUSETTS
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS: That Liberty Mutual Insurance Company (the "Company"), a Massachusetts stock insurance company,
pursuant to and by authority of the By-law and Authorization hereinafter set forth, does hereby name, constitute and appoint LINDA K. EDWARDS,
ROBERT C. FRICKE, WILLIAM H. PITTS, JR., DOUGLAS J. WEALTY, CYNTHIA GIESEN, WESLEY M. PITTS, ALL OF THE CITY OF AUSTIN, STATE OF TEXAS.....
.........................................................................................................•.........................................................................................................,.............................................................
.................. ............................................................ ...................................................... ....... ......... .......................................... I ... ....... ._......................................... .......................... ...
, each individually if there be more than one named, its true and lawful attorney-in-fact to make, execute, seal, acknowledge and deliver, for and on its
behalf as surety and as its act and deed, any and all undertakings, bonds, recognizances and other surety obligations in the penal sum not exceeding
TWO HUNDRED TWENTY FIVE MILLION AND 00/100 .............`••.•..••'"..""""`............ DOLLARS ($ 225,000,000.00......•'*..... „"••,` ) each, and the
execution of such undertakings, bonds, recognizances and other surety obligations, in pursuance of these presents, shall be as binding upon the Company
as if they had been duly signed by the president and attested by the secretary of the Company in their own proper persons.
That this power is made and executed pursuant to and by authority of the following By-law and Authorization:
ARTICLE XIII - Execution of Contracts: Section 5. Surety Bonds and Undertakings.
Any officer of the Company authorized for that purpose in writing by the chairman or the president, and subject to such limitations as the
chairman or the president may prescribe, shall appoint such attorneys -in -fact, as may be necessary to act in behalf of the Company to make,
execute, seal, acknowledge and deliver as surety any and all undertakings, bonds, recognizances and other surety obligations. Such attorneys -
in -fact, subject to the limitations set forth in their respective powers of attorney, shall have full power to bind the Company by their signature and
execution of any such instruments and to attach thereto the seal of the Company. When so executed such instruments shall be as binding as if
signed by the president and attested by the secretary.
By the following instrument the chairman or the president has authorized the officer or other official named therein to appoint attorneys -in -fact:
Pursuant to Article XIII, Section 5 of the By -Laws, David M. Carey, Assistant Secretary of Liberty Mutual Insurance Company, is hereby authorized
to appoint such attorneys -in -fact as may be necessary to act in behalf of the Company to make, execute, seal, acknowledge and deliver as surety
any and all undertakings, bonds, recognizances and other surety obligations.
That the By-law and the Authorization set forth above are true copies thereof and are now in full force and effect.
IN WITNESS WHEREOF, this Power of Attorney has been subscribed by an authorized officer or officiai of the Company and the corporate seal of Liberty
Mutual Insurance Company has been affixed thereto in Plymouth Meeting, Pennsylvania this day of 23rd day of November
2011
LIBERTY MUTUAL INSURANCE COMPANY
By
David M. Carey, Assistant Secretary
COMMONWEALTH OF PENNSYLVANIA ss
COUNTY OF MONTGOMERY
On this 23rd day of November 2011 , before me, a Notary Public, personally came David M. Carev, to me known, and
acknowledged that he is an Assistant Secretary of Liberty Mutual Insurance Company; that he knows the seal of said corporation; and that he executed
the above Power of Attorney and affixed the corporate seal of Liberty Mutual Insurance Company thereto with the authority and at the direction of said
corporation.
IN TESTIMONY WHEREOF, I have hereunto subscribed my name and affixed my notarial seal at Plymouth Meeting, Pennsylvania, on the day and year
first above written.
BY
Teresa Pasteila, Notary Public
CERTIFICATE
I, the undersigned, Assistant Secretary of Liberty Mutual Insurance Company, do hereby certify that the original power of attorney of which the foregoing is
a full, true and correct copy, is in full force and effect on the date of this certificate; and I do further certify that the officer or official who executed the said
power of attorney is an Assistant Secretary specially authorized by the chairman or the president to appoint attorneys -in -fact as provided in Article XIII,
Section 5 of the By-laws of Liberty Mutual Insurance Company.
This certificate and the above power of attorney may be signed by facsimile or mechanically reproduced signatures under and by authority of the following
vote of the board of directors of Liberty Mutual Insurance Company at a meeting duly called and head on the 12th day of March, 1980.
VOTED that the facsimile or mechanically reproduced signature of any assistant secretary of the company, wherever appearing upon a certified
copy of any power of attorney issued by the company in connection with surety bonds, shall be valid and binding upon the company with the
same force and effect as though manually affixed.
IN STIMONY WHEREOF, I have hereunto subscribed my name and affixed the corporate seal of the said company, this 15C day of
Gregory W.'Davenport, Assistant Secretary
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IMPORTANT NOTICE
TO OBTAIN INFORMATION OR MADE A COMPLAINT:
YOU MAY CONTACT THE TEXAS DEPARTMENT OF
INSURANCE TO OBTAIN INFORMATION ON COMPANIES,
COVERAGES RIGHTS OR COMPLAINTS AT:
1-800-252-3439
YOU MAY WRITE THE TEXAS DEPARTMENT OF INSURANCE:
P. O. BOX 149104
AUSTIN, TX 78714-9104
FAX## (512) 475-1771
You may also write to:
Western Surety Company
at:
Attn: Claims Department
P.O. 5077
Sioux Falls, SD 57117
8001331-6053
ATTACH THIS NOTICE TO YOUR BOND. This notice is for information
only and does not become a part or a condition of the attached document and
is given to comply with Section 2253.048, Government Code, and Section
53.202, Property Code, effective September 1, 2001.
Important Notice
TO OBTAIN INFORMATION OR TO MAKE A COMPLAINT:
You may write to Liberty Mutual Surety at:
Liberty Mutual Surety
Interchange Corporate Center
450 Plymouth Road, Suite 400
Plymouth Meeting, PA 19462-8284
You may contact the Texas Department of Insurance to obtain information on
companies, coverages, rights or complaints at:
1-800-252-3439
You may write the Texas Department of Insurance:
P. O. Box 149104
Austin, TX 78714-9104
Fax: (512) 475-1771
Web: http://www.tdi.state.tx.us
E-mail: Con sum erProtection(dtdi.state. tx.us
Premium or Claim Disputes
Should you have a dispute concerning a premium, you should contact the agent first. If you
have a dispute concerning a claim, you should contact the company first. If the dispute is not
resolved, you may contact the Texas Department of Insurance.
Attach This Notice To Your Policy:
This notice is for information only and does not become a part or condition of the
attached document.
MMIC -3500 Page 1 of 2 Rev. 7.1.07
EXHIBIT B
APPROVED REPAIR TECHNIQUES
Technique 1
Clean out and fill the affected area with an appropriate repair material per manufacturer's
recommendations and as confirmed by the City:
1. Clean contamination out by chipping/drilling/coring and obtain a vertical edge;
2. Followed up by sandblasting and/or high- pressure water;
3. Remove remaining particles of condemnation and dry out by blowing the area with
compressed air;
4. Fill with an appropriate repair material per manufacturer's recommendations and as
confirmed by the City;
5. Grind smooth;
6. Re -groove runway pavement as necessary;
7. Clean up any leftover debris.
Technique 2
Should Technique I above prove insufficient in that repeated patch failures occur, or the stated
patching technique will not address the problems, Abrams may be required to remove and
replace certain panels as determined by the City and the Expert.
1. Remove panel by saw cutting along each joint;
2. Additional sawcutting at 6 -inches interior to the panel to prevent damage to adjoining
panel;
3. Verification that underlying base is sound;
4. Installation of smooth dowels by drilling and epoxying into adjacent panels at frequency
specified in original contract;
5. Placement of concrete meeting P-501 specification in original contract;
6. Widening and sealing of joints;
7. Grooving of pavement surface on runways.
Technique 3
Other repair techniques as may be necessary to address problems and which comply with AC
150/5210-24 (or the most current version thereof). Other techniques will be as recommended by
Abrams and subject to approval by City.
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EXHIBIT C
EXCLUDED CONCRETE PAVEMENT DISTRESSES
1. Cracking
o Corner breaks (unless determined by the City and Expert to be attributable to
concrete contamination)
o Durability Cracking ("D" Cracking)
o Longitudinal Cracking (unless determined by the City and Expert to be attributable
to concrete contamination)
o Transverse Cracking (unless determined by the City and Expert to be attributable to
concrete contamination)
o Reflective Cracking at Joints
2. Joint Deficiencies
o Joint Seal Damage
■ Transverse Joint Seal Damage
■ Longitudinal Joint Seal Damage
o Spalling of Longitudinal Joints (unless determined by the City. and Expert to be
attributable to concrete contamination)
o Spalling of Transverse Joints (unless determined by the City and Expert to be
attributable to concrete contamination)
3. Surface Defects
o Map Cracking and Scaling
■ Map Cracking
■ Scaling
4. Miscellaneous Distresses
a Blowups
o Faulting of Transverse Joints and Cracks
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EXHIBIT D
REMEDIATION MATERIALS
It is understood by Abrams that the materials listed below are not all-inclusive and may be
modified if failure of existing or new repair areas occurs, or if the materials previously used
prove unacceptable for any other reason as determined by the City:
1. A cementitious-based material manufactured by Dayton Superior named HD 50 or
approved equal.
HD 50 is a fast setting, fiber reinforced, latex -modified, heavy duty, one component
concrete repair material. HD 50 is a cement based compound having similar
characteristics to and is compatible with normal portland cement mixes. HD 50 is
designed for the repair of heavy duty surfaces such as concrete highways, bridge decks,
parking structures, airport runways, freezer rooms, industrial and warehouse floors, and
loading docks.
2. An epoxy material manufactured by W.R. Meadows Seaffight named REZI-WELD
1000 — Multi -Purpose Construction Epoxy, or approved equal.
REZI-WELD 1000 is a medium viscosity, two -component, construction grade structural
epoxy adhesive and can be used to bond hardened concrete to fresh or hardened concrete
and to patch spalls or defects in concrete.
3. Joint Sealing manufactured by Dow Corning named 890 -SL Silicone Joint Sealant or
approved equal.
890 -SL Joint Sealant is a one part self -leveling silicone joint sealant used to seal
concrete to concrete joints.
4. Concrete meeting the requirements of the P-501 specification included in the Contract.
5. Dowel bars meeting the requirements of the P-501 specification included in the Contract.
6. Other materials as necessary to complete repairs in a manner satisfactory to the City and
Expert.
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EXHIBIT E
SECTION A. Prior to the approval of this MOU by the City, Abrams shall furnish a completed
Insurance Certificate to the City, which shall be completed by an agent authorized to bind the named
underwriter(s) to the coverages, limits, and termination provisions shown thereon, and which shall
furnish and contain all required information referenced or indicated thereon.
INSURANCE COVERAGE REQUIRED
SECTION B. The City reserves the right to review the insurance requirements during the effective
period of the MOU and to require adjustment of insurance coverages and their limits when deemed
necessary and prudent by the City based upon changes in statutory law, court decisions, or the claims
history of the industry as well as Abrams.
SECTION C. Subject to Abrams right to maintain reasonable deductibles in such amounts as are
approved by the City, Abrams shall obtain and maintain in full force and effect for the duration of any
work order issued under the MOU, and any extension hereof, at Abrams sole expense, insurance
coverage written by companies approved by the State of Texas and acceptable to the City, in the
following type(s) and amount(s):
TYPE AMOUNT
General Liability
Commercial General Liability $5,000,000
General Aggregate
Automotive Liability
Combined Single Limit $1,000,000
Any Auto
Workers Compensation Statutory Amounts
Employer's Liability _ $1,000,000
The City of Lubbock shall be named additional insured on Auto/General Liability on a primary
and non-contributory basis with a waiver of subrogation in favor of the City on all coverage's. All
copies of the Certificates of Insurance shall reference the WORK ORDER number for which the
insurance is being supplied.
ADDITIONAL POLICY ENDORSEMENTS
The City shall be entitled, upon request, and without expense, to receive copies of the policies and all
endorsements thereto and may make any reasonable request for deletion, revision, or modification of
particular policy terms, conditions, limitations, or exclusions (except where policy provisions are
established by law or regulation binding upon either of the parties hereto or the underwriter of any of
such policies). Upon such request by the City, Abrams shall exercise reasonable efforts to accomplish
such changes in policy coverages, and shall pay the cost thereof.
REQUIRED PROVISIONS
Abrams agrees that with respect to the above required insurance, all insurance contracts and
certificate(s) of insurance will contain and state, in writing, on the certificate or its attachment, the
following required provisions:
a. Name the City of Lubbock and its officers, employees, and elected representatives as additional
insured, (as the interest of each insured may appear) as to all applicable coverage;
b. Provide for 30 days notice to the City for cancellation, nonrenewal, or material change;
c. Provide for notice to the City at the address shown below by registered mail;
d. Abrams agrees to waive subrogation against the City of Lubbock, its officers, employees, and
elected representatives for injuries, including death, property damage, or any other loss to the
extent same may be covered by the proceeds of insurance;
e. Provide that all provisions of this contract concerning liability, duty, and standard of care
together with the indemnification provision, shall be underwritten by contractual liability
coverage sufficient to include such obligations within applicable policies.
f. All copies of the Certificates of Insurance shall reference the project name or proposal number
for which the insurance is being supplied.
NOTICES
Abrams shall notify the City in the event of any change in coverage and shall give such notices not less
than 30 days prior the change, which notice must be accompanied by a replacement CERTIFICATE OF
INSURANCE.
All notices shall be given to the City at the following address:
Marta Alvarez, Director of Purchasing & Contract Management
City of Lubbock
1625 13th Street, Room 204
Lubbock, Texas 79401
SECTION D. Approval, disapproval, or failure to act by the City regarding any insurance
supplied by Abrams shall not relieve Abrams of full responsibility or liability for damages and
accidents as set forth in the MOU documents. Neither shall the bankruptcy, insolvency, or denial
of liability by the insurance company exonerate Abrams from liability.