HomeMy WebLinkAboutResolution No. 87-16 CITY OF THE COLONY, TEXAS
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF THE COLONY, TEXAS MAKING FINDINGS
REGARDING THE CURRENT STATUS OF THE CITY'S
CONTRACT WITH TELAMON CONSTRUCTION SERVICES,
INC. FOR CONSTRUCTION OF THE COLONY AQUATIC
PARK AND WITH RAWLS/WELTY PARTNERS, INC. FOR
ARCHITECTURAL SERVICES IN CONJUNCTION WITH
SUCH CONSTRUCTION; AUTHORIZING AND DIRECTING
THE CITY MANAGER TO EXPEND FUNDS RETAINED
UNDER THE CONTRACT WITH TELAMON AND
RAWLS/WELTY FOR THE REPAIR AND CORRECTION OF
THE COLONY AQUATIC PARK AND TO PAY ANY
REMAINING FUNDS TO THE TELAMON TRUSTEE IN
BANKRUPTCY; REPEALING RESOLUTION NO. 86-19
OF THE CITY OF THE COLONY; PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City of The Colony, Texas (the "City") has
heretofore entered into a contract (the "Contract") with
Telamon Construction Services, Inc. ("Telamon") on December 16,
1985 for the construction of The Colony Aquatic Park (the
"Aquatic Park") and entered into a contract (the "Architect
Contract") with Rawls/Welty Parners, Inc. ("Rawls/Welty") to
provide architectural services for the construction of the
Aquatic Park; and
WHEREAS, after the letting of the Contract, a number of
change orders have been submitted and approved by the City
Council; and
WHEREAS, the Contract and related documents require
Telamon to secure and provide for the benefit of the City and
Telamon's subcontractors a performance bond and a payment bond,
neither of which have been submitted or provided by Telamon; and
WHEREAS, having failed to provide such performance and
payment bonds as required by the Contract, the principals of
Telamon submitted to the City a personal Guaranty Agreement
relative to the Contract, which Guaranty Agreement the City has
relied upon and is relying upon for the performance of all
terms, agreements and obligations of the Contract, including
the payment by Telamon of all subcontractors; and
WHEREAS, the specified completion date called for and
required in the Contract was May 27, 1986; and
WHEREAS, the City's architect concluded that construction
on The Colony Aquatic Park had been substantially completed on
May 31, 1986, after which date the City took possession of the
same; and
WHEREAS, the Contract provides for liquid~ted damages in
the amount of $750.00 per day for each day past the specified
completion date that The Colony Aquatic Park has not been
substantially completed, there being therefore $3,000.00 in
liquidated damages under the Contract; and
WHEREAS, the City has made an ongoing effort to work with
Telamon to complete all the terms, agreements and obligations
set forth in the Contract, but has been unable to obtain final
completion of the same; and
WHEREAS, the City has received numerous claims from
subcontractors in relation to the construction of the Aquatic
Park, as follows:
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Subcontractor Amount of Claim
Allied Fence Co. $4,800 00
Glenn A. O'Banion 2,733 00
Colony Hardware 1,163 19
Homebuilders Ready Mix 3,913 00
Intercity Electric, Inc. 1,783 06
Strawn Rentals 14,080 61
Power Concepts 6,338 00
Overhead Door Co. 6,390 00
R.J. DeWees & Son, Inc. 5,078 00
Tarrant Building Specialties 4,915 77
U.S. Southland Supply Co. 4,233 80
Pioneer Metal Specialties, Inc. 4,453 00
Wayne Kelly & Associates 63,076 55
Total Subcontractor's Claims $122,957.98
and
WHEREAS, there remain a substantial number of items not
yet completed by Telamon as required by the Contract, and items
that have been completed but have become nonfunctional or
unsatisfactory and which are items under warranty, as follows:
A. Items to be completed as required by the Contract
and approximate cost of completion:
1. Depth markers in the wrong location (one-half foot
short); no horizontal depth markers in the tile
coping; no shallow end sign in the tile indicating
"no diving" - $3,000.00;
2. Eyebolt for chains between bollards not installed
pursuant to Contract specifications - $1,000.00;
3. Deck - not properly constructed; pools of water on
deck surface - $20,000.00.
4. Sprinkler control removed for repair and not
returned.
B. Items which have become nonfunctional or
unsatisfactory and which are under warranty:
1. Natatorium Pump:
(a) No automatic water level controller;
(b) Flow meter does not work;
2. Lagoon Pump:
(a) Pump is not level on floor and not bolted
down;
(b) Large PVC pipe not supported;
(c) No automatic water level controller;
(d) Leaks in incoming water valve and in the
backwash filter.
Wading Pool:
(a) Self-priming pump installed but not
operational;
(b) Backwash site glass needs to be replaced.
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C. General items:
1. Natatorium steps into pool are broken or cracked
due to faulty installation;
2. Miracote covering in restrooms not applied
properly and concrete is showing through;
3. Poor quality of miracoting on deck at the south
end of the natatorium deck and deck saw cuts
should be caulked;
4. Sleeve for the handicapped lift is not correct
(not deep enough);
5. Undue rusting has occurred in the following:
(a) Diving block bolts;
(b) Restroom doors;
(c) Metal fence around pool area;
and,
WHEREAS, by Resolution No. 86-19 adopted by the City
Council on October 6, 1986, the City gave Telamon until
November 1, 1986 to complete all terms, agreements and
conditions of the Contract and to replace and repair all
nonfunctioning items under warranty, which work was not timely
completed, Telamon thereby having breached the Contract; and
WHEREAS, on December 17, 1986, Telamon filed a bankruptcy
petition pursuant to Chapter 7 of Title 11 of the United States
Code, in the United States District Court for the Northern
District of Texas, Sherman division, Bankruptcy No. S-86-01817,
wherein J.S. Freels, Jr. of Sherman, Texas has been appointed
Trustee; and
WHEREAS, the City recognizes that, by the filing of the
bankruptcy petition, Telamon will not be able to complete the
construction of the Aquatic Park as required by the Contract;
and
WHEREAS, by virtue of Telamon's failure to complete the
construction of the Aquatic Park, the City has retained the sum
of $58,829.99 under the Contract with Telamon and desires to
expend some of the said funds for the purpose of repairing,
correcting and restoring certain portions of the Aquatic Park
to an acceptable condition as contemplated by the Contract and
in order to protect the health, safety and welfare of the
citizens of the City, as follows:
1. Correct and repair all electrical problems;
2. Repair broken and cracked natatorium steps into
pool;
3. Place depth markers in proper location, place
horizontal depth markers in tile coping and install "no diving"
sign in tile in shallow end of pool;
4. Resurface natatorium deck to eliminate improper
drainage~ and
5. Replace control or "brain" to the automatic
sprinkler system;
and,
6. Resurface the children's wading pool.
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WHEREAS, the City estimates that these repairs can be
made at a cost not to exceed $~ ,000.00; and
WHEREAS, the City Council directs that all sums retained
under the Contract and not expended on the repairs and
corrections outlined above be paid over to the Trustee in
bankruptcy, Mr. J.S. Freels, for the purpose of allowing the
Trustee to distribute these funds to the unpaid subcontractors;
and
WHEREAS, the City has also retained the sum of $7,125.80
under the Architect Contract; and
WHEREAS, since the date of substantial completion of the
Aquatic Park as determined by Rawls/Welty, several items of
repair and improper construction, in addition to those items
enumerated above, have been discovered, the cost to repair such
items having been charged against the amount retained under the
Architect Contract, which amount the City now declares shall be
retained under the Architect Contract and used, to the extent
it has not already been so used, to complete such repair items;
and
WHEREAS, the City Council hereby reserves all of its
legal and equitable rights and remedies under the Contract and
Architect Contract, or at common law, and declares that it is
not, by passage of this resolution, waiving any of such rights;
and
WHEREAS, the City Council hereby finds that the passage
of this resolution is in the best interests of the health,
safety and welfare of the citizens of the City.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF THE COLONY, TEXAS:
Section 1. That all of the above premises 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 Manager is hereby directed to:
A. Cause to be completed the repairs and corrections
outlined above at a cost not to exceed $31,000.00, the cost of
said repairs and corrections to be paid from the funds retained
under the Contract with Telamon Construction Services, Inc. for
the construction of The Colony Aquatic Park;
B. Once the said repairs and corrections are
accomplished, to pay to the Trustee in bankruptcy, Mr. J.S.
Freels, Jr., the funds remaining from the funds retained by the
City under the Contract with Telamon; and to
C. Deliver a copy of this resolution to the Trustee,
subcontractors and all other interested parties.
Section 3. That Resolution No. 86-19 of the City of
The Colony is hereby repealed.
Section 4. That this resolution shall take effect
immediately from and after its date of passage.
PASSED AND APPROVED by the City Council of the City of
The Colohy, Texas on this the ~ day of ~~__ ,
1987. ~/
Mayo~ dlty o~The'-C~lony, Texas
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~S TO FORM:
City Attorney, City of The Colony, Texas
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