HomeMy WebLinkAboutRES 2000-051 RESOLUTION NO. 2000-51
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS AUTHORIZING THE CITY MANAGER
TO TERMINATE THE ELECTRICAL CONTRACT WITH PREWITT
ELECTRICAL CONTRACTORS, INC.; ACCEPTING THE BONDING
COMPANY TENDER OF $56,275 AS PAYMENT IN FULL;
APPROVING PAYMENT TO PREWITT SUBCONTRACTORS
IN THE AMOUNT OF $43,448; WAIVING COMPETITIVE
BID NOTICE REQUIREMENTS; AUTHORIZATION TO
ENTER INTO A CONTRACT WITH DENNIS ELECTRIC OR
OTHER RESPONSIBLE CONTRACTOR; DIRECTING THE
PURSUIT OF PREWITT ELECTRICAL CONTRACTORS,
INC., OR ANY OTHER PARTY FOR DAMAGES
INCURRED; AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the Palace Theatre Project (the "Project") commenced construction
on approximately the 7th day of February, 2000; and
WHEREAS, the City of Grapevine (the "City") through the Grapevine Heritage
Foundation, (both hereinafter referred to as "City") let and entered into all of the
contracts, including a Contract with Daedalus Development Corporation ("C.M.") as
Construction Manager; and
WHEREAS, the C.M. recommended entering into a Contract (the "Contract") for
the providing of electrical service with Prewitt Electrical Contractors, Inc., ("Prewitt") in
the principal amount of $378,827 on or about February 14, 2000, as the lowest
responsible bidder after the City advertised for and received competitive bids; and
WHEREAS, Prewitt provided statutory Performance and Payment Bonds in the
amount of 100% of the Contract price; and
WHEREAS, the principal amount of the Contract was increased in the amount of
$18,270 by Change Order No. 1 on or about March 9, 2000; and
WHEREAS, Prewitt has been paid the total sum of$103,915; and
WHEREAS, Prewitt walked off and abandoned the Project Site on or about the
11th day of July, 2000 and has filed for protection under the Federal Bankruptcy Laws;
and
WHEREAS, the City and its representatives have been in contact with the surety,
Amwest Surety Insurance Company ("Amwest") and its representative, Horizon
Business Enterprises, Inc.; and
WHEREAS, the City and its representatives and Amwest and its representatives
have met on numerous occasions and discussed the various alternatives available to
complete the electrical work under the Contract let to Prewitt; and
WHEREAS, after considering all of the alternatives available, the City and its
representatives recommend that the Contract with Prewitt be terminated; that the Surety
Company's offer of $56,275 pursuant to the Performance Bond, Bond No. 115000938
and the payment to all materialmen and subcontractors who have filed against the
Payment Bond, Bond No. 115000938, approximately $43,448, be accepted; and
WHEREAS, it is critical that a Contract be approved to complete the electrical
work, and it is necessary due to possible damage to the Project that an electrical
contractor be retained immediately to preserve the Palace Theatre; and
WHEREAS, it is recommended that the City waive all notice and competitive
bidding requirements and enter into a contract with Dennis Electric ("Dennis") in an
amount not to exceed $381,826, or with another reliable contractor in the not to exceed
amount; and
WHEREAS, the City is to pursue all lawful claims for damages against Prewitt
and any other party.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That all matters stated in the preamble are found to be true and
correct and are incorporated into the body of this resolution as if copied in their entirety.
Section 2. That the City shall:
(a) Terminate the Prewitt Contract.
(b) Formally notify the Surety and accept the Surety's offer of $56,275 as
payment in full on the Performance Bond, with the acknowledgement of
the Surety to pay pursuant to the Payment Bond all timely filed claims for
labor and material in the approximate amount of$43,448.
(c) Enter into a Contract with Dennis in an amount not to exceed $381,826 to
complete the electrical work on the Palace Project, provided Dennis
provide Performance and Payment Security in the amount of 100% of the
principal amount of the Contract and agree to provide maintenance
security, with all security being satisfactory to the City Manager and City
Attorney, or to enter into a Contract with a responsible electrical contractor
in an amount not to exceed $381,826 and the requisite security.
RES. NO. 2000-51 2
(d) That the City is directed to pursue Prewitt or any other party responsible
for any damages City suffers as a result of the termination of the Prewitt
agreement.
Section 3. That this resolution shall take effect from and after its passage.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 17th day of October, 2000.
APPROVED:
William D. Tate
Mayor
ATTEST:
r
rAtt A
Lind Huff
City Secretary
APPROVED AS TO FORM:
John F. Boyle, Jr.
City Attorney
RES. NO. 2000-51 3
MINUTES AND CERTIFICATION PERTAINING TO
PASSAGE OF A RESOLUTION
STATE OF TEXAS §
COUNTY OF TARRANT §
CITY OF ARLINGTON §
On the 17th day of October,2000,the City Council of the City of Grapevine,Texas,convened
at 7:30 p.m.,in a regular meeting at the regular meeting place thereof,the meeting being open to the
public and notice of said meeting, giving the date,place and subject thereof, having been posted as
prescribed by Chapter 551,Texas Government Code,as amended; and the roll was called of the duly
constituted officers and members of the City Council,which officers and members are as follows:
William D. Tate, Mayor C. Shane Wilbanks )
Ted R. Ware,Mayor Pro Tern Sharron Spencer ) Members of
Clydene Johnson ) the Council
Darlene Freed )
Roy Stewart )
and all of said persons were present except —O -- ,thus constituting a quorum.
Whereupon,among other business,a written resolution bearing the following caption was introduced:
A RESOLUTION RELATING TO THE GIVING OF NOTICE OF
INTENTION TO ISSUE CITY OF GRAPEVINE, TEXAS
COMBINATION TAX AND REVENUE CERTIFICATES OF
OBLIGATION, SERIES 2000A AND PROVIDING AN
EFFECTIVE DATE
The Resolution,a full,true and correct copy of which is attached hereto,was read and reviewed
by the City Council.
Thereupon,it was duly moved and seconded that the Resolution be finally passed and adopted.
The Presiding Officer put the motion to a vote of the members of the City Council, and the
Resolution was finally passed and adopted by the following vote:
AYES:
NAYS:
ABSTENTIONS: 0
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10/17/00:10:26AM
MINUTES APPROVED AND CERTIFIED TO BE TRUE AND CORRECT, and to
correctly reflect the duly constituted officers and members of the City Council of said City, and the
attached and following copy of said Resolution is hereby certified to be a true and correct copy of an
official copy thereof on file among the official records of the City,all on this the 17th day of October,
2000.
City Se rfry
City of Grapevine,Texas
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Signature Page for Minutes and Certification for Intent Resolution