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HomeMy WebLinkAbout1979-06-27 (special called)rn Called Meeting Euless City Council June 27, 1979 The called meeting of the Euless City Council was called to order at 7:35 p.m., in the Council Chambers of Euless City Hall, by Mayor Harold Samuels. Other members present were Mayor Fro Tem Willie Mae McCormick, Councilmen Raymond Ozebek, Robert Pippin, and Glenn Walker. (Absent was Councilman Charles Hunt.) Also present were City Manager W. M. Sustaire, and City Secretary Della Houy. Mayor Samuels stated the purpose of this called emergency meeting of the Euless City Council on June 27, 1979, at 7:35 p.m. is to consider a matter that could cost the citizens of Euless some thousands of dollars if action is not taken within a short period of time, and that constitutes a reason for us having an emergency meeting tonight. Mayor Samuels stated the first order of business is to authorize the City Manager to authorize a change order up to the amount of $5,000 or 5 %of the orginal bid, whichever is less, to AAC, Inc., providing that they return to the City of Euless a signed contract, including a Performance Bond, no later than 5:00 p.m., Monday, July 2, 1979. He stated the Council authorized the contract to this contractor and as of last night we were not aware that they are under litigation with the City of Fort Worth and some private concerns and they te 11 us they are not able to provide a Performance Bond and also they would requirec.an additional five (5 %) percent onto their contract in order to be able to perform. He stated that without a Performance Bond there is still some question as to whether we can leave the contract with them, according to state law. He stated if we comply with the request of the contractor and they don't return the signed contract they will forfeit their five percent (5 %) bid bond. Mr. Sustaire stated the reason for the 5:00 p.m. Monday deadline is because this is deadline date they can return the contract they were awarded at the May 22nd meeting. He stated the contractor has indicated to Mr. Satterwhite that unless they receive the a d d i t i o n a l f i v e percent increase they w i l l not be able to obtain- a Perfor- mance Bond. He stated that Mr. Satterwhite has some reservations that the contractor w i l l be able to perform the work even if the Council does grant the requested five percent increase. Mr. Sustaire reviewed the letter from AAC, Inc., that was submitted along with the bid, that i f the contract was not awarded by June 1 they would require a five percent increase, but the contract was awarded on May 22, 1979, subject to presentation of a finan- cial statement. He stated Mr. Flowers received the financial statement on Tuesday, June 26, 1979, and Mr. Satterwhite received the request for the five percent increase Tuesday afternoon but he was unable to reach Mr. Flowers prior to the Council meeting. He stated the Council needs to take l In (Page Two, Called Meeting, Euless City Council, June 27, 1979) some type of action prior to expiration of the forty -five (45) days from the time bids were received because a f t e r t h a t time a l l bids w i l l be thrown out. He stated if action isn't taken tonight the City would loose the opportunity to accept the next lowest bidder, should AAC, Inc. not be able to perform. He stated the forty -five day deadline is July 5, 1979. received. AAC. Inc. Texas Bitulithic Co. Uvalde Construction Co. Metro Asphalt Mr. Sustaire reviewed the bids that were $114,939.69 141 ,792.20 145,165.30 181 ,506.00 Mr. Sustaire stated that each of these companies d i d i n c l u d e a f i v e percent b i d bond, and t h i s bond w i l l be for- feited by AAC, Inc. if their contract is not fullfilled by Monday, July 2, 1979. He stated this is an option the Council has, to authorize a change order and give MC, Inc. the five percent increase they are requesting and this would increase their contract to approximately $120,000, which would give them every benefit of the doubt to perform and do the job. He stated the risk we have by not taking action is having to rebid this street, and we would be well over into September before the contract could be let, and if we have a hard winter we could have additional damage to the street. Mr. Walker inquired if the City Manager wasn't talking at the pre - council meeting on Tuesday night about buying some equipment and doing the overlay job in- house? Mr. Sustaire stated he was talking about selling some bonds and purchasing some equipment in order to be able to rebuild our streets, but we are not ready to sell the bonds or purchase the equipment at this time and in his opinion the money can be used best if we go with one of the contractors as it would take approximately five or six months before we could begin this and if we delay the work, the street could receive more damage i f we have another hard winter. Mr. Pippin inquired what litigation MC, Inc. is involved in? Mr. Sustaire stated it involves the general contractor at the Fort Worth sewer plant that sublet to the grading contract, and paving contract and when the work was completed it would not pass inspection and Fort Worth withheld payment and this has gone into litigation. He stated this is the way he understands it. He stated AAC, Inc. did the overlay on Las Vegas Trail and the wrack was performed satisfactorily. Mr. Sustaire stated the City Attorney advised him that the maximum the Council could authorize the City Manager to expend is $5,000, and we may also be letting ourselves in for a lawsuit if they do not perform. (Page Three, Called Meeting, Euless City Council, June 27, 1979) Mr. Walker inquired i f we authorize the additional money and they don't begin construction within a certain number of days, are both the Performance Bond and Bid Bond forfeited? Mr. Sustaire stated that once the Per- formance Bond is filed, the Bid Bond is void and sent back to the contractor. Mrs. McCormick inquired what would happen if the Council d id n't do anything, will AAC, Inc. still have forty- five days? Mr. Sustaire stated AAC, Inc.'s time l i m i t to accept our contract is up July 2, 1979. He stated the contract stated that the contractor has ten days after receipt of the contract to sign and return it with the Performance Bond and the ten days will expire on July 2, 1979. Mr. Walker inquired if the City could stipulate a certain number of days to begin construction after the Performance Bond is received. Mr. Sustaire stated we can not specify any date to begin construction but the contractor has submitted a completion time. Mr. Walker stated the Council could autho- rize the change order, AAC, Inc. could accept the contract and wait and not do any work and it would be too late to get the next lowest bidder. Mr. Pippin stated it is his opinion that we authorize the $5,000 but authorize the City Manager to contact Texas Bitulithic Company if AAC, Inc. does not return the signed contract by Monday, J u l y 2, 1979. Mr. Sustaire stated the Council has two alternatives to take, you can authorize the change order for $5,000 or you can leave the contract as is, and the City Attorney stated if the Council does not approve the request he still has until Monday, July 2, 1979 to turn the signed contract and if AAC, Inc. defaults, award the contract to the next lowest bidder. Mrs. McCormick moved to authorize the City Manager to award the South Main Street paving contract to the next lowest bidder, Texas Bitulithic Company, subject to AAC, Inc. 's failure to execute contracts as prescribed by the City. Mr. Pippin seconded the motion and the vote is as follows: Ayes: Mrs. McCormick, Messrs. Pippin, Walker, and Ozebek Nays: None (Page Four, Called Meeting, Euless City Council, June 27, 1979) Mayor Samuels declared the motion carried. There being no further discussion, the meeting adjourned at 8:19 p.m. APPROVED: /s/ Harold D. Samuels Mayor ATTEST: /s/ Della Houv City Secretary