10-133 Resolution No. 10-133
RESOLUTION
RATIFYING THE EXECUTION OF A LETTER AGREEMENT
WITH ARCH INSURANCE COMPANY
(Kimball Hill Homes, Inc. - Waterford Subdivision -Neighborhoods 1, 2 and 3)
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that it
hereby ratifies and approves the execution of a letter agreement with Arch Insurance Company by
Sean R. Stegall,City Manager,regarding payment of certain costs allocated among the three bonds
relating to the Waterford Subdivision Neighborhoods 1,2 and 3, a copy of which is attached hereto
and made a part hereof by reference.
s/Ed Schock
Ed Schock, Mayor
Presented: July 14, 2010
Adopted: July 14, 2010
Omnibus Vote: Yeas: 7 Nays: 0
Attest:
s/Diane Robertson
Diane Robertson, City Clerk
LEO & WEBER, P.C.
ATTORNEYS AT LAW
JOEL R.PAGE,JR. SUITE 3600 MICHIGAN OFFICE
E-Mail:jpageOleoweber.com ONE NORTH LASALLE STREET
FA
CHICAGO, ILLINOIS 60602 BUFFALO,MICHIGAN
Also Admitted in Indiana NEW ,MI 4 1
TELEPHONE:(269)469-2293
TELEPHONE:(312)857-0910 FACSIMILE: (269)469-2316
FACSIMILE: (312)857-1240
June 29, 2010
Lawrence R. Moelmann
Hinshaw& Culbertson LLP FILE No.
222 N. LaSalle Street, Suite 300
Chicago, Illinois 60601-1081
Re: Bond Nos.: SU5022602, SU5020813, SU5019730 ("Bonds")
Surety: Arch Insurance Company("Arch")
Principal: Kimball Hill Homes, Inc. ("Kimball Hill")
Obligee: City of Elgin, Illinois("Elgin")
Project: Waterford Subdivision,Neighborhoods 1, 2, and 3
("Project")
Dear Larry:
This letter confirms our recent telephone conversation about the treatment of
certain work to be performed and/or paid for by Arch preliminary to its making a
decision about its performance obligations and options under the Bonds and applicable
law. In particular, Arch and Elgin agree to the following:
1. Arch will retain a contractor to clean and videotape the Project's sanitary
and storm sewers and will provide a copy of the videotape/DVD and any
written report of this work to Elgin. The cost of this work will be paid by
Arch, allocated among the three Bonds in the proportion that this sewer
work on a given bond is of this sewer work on all three Bonds, and applied
against the penal sum of the bond to which the cost is allocated.
2. Elgin will retain a licensed professional engineer to prepare a punch list
for the Project and will provide a copy of the punch list to Arch. Arch will
have the right to review and make recommendations on any proposals for
the engineer's work before the engineer is retained. During performance
of this work Arch will receive reasonable advance notice of any on-site
activity and the engineer will meet with Arch at Arch's request to discuss
the work. Upon approval by Elgin (without limitation for consistency
with any prior proposals), the cost of this work will be paid promptly by
Arch, allocated among the three Bonds in the proportion that this
engineering work on a given bond is of this engineering work on all three
Bonds, and applied against the penal sum of the bond to which the cost is
allocated. The scope of the engineering work to be paid by Arch
hereunder may be increased only with the advance written consent of
Arch.
Lawrence R. Moelmann
June 29, 2010
Page 2 of 2 LEO & WEBER, PC
Please indicate Elgin's agreement by signature below and return to me so we may
get this work started. Except to the limited extent set forth herein, Arch and Elgin reserve
all their respective rights and defenses.
LEO & WEBER, P.C.
el R. Page, Jr.
Agreed to this C0rc''.e. day of Juxe, 2010.
City of Elgin, Illinois
By: l
Its: City Manag