HomeMy WebLinkAbout1976-11-10 - Special City Council6
SPECIAL SESSION - WEDNESDAY
NOVEMBER 10, 1976 - 10:00 A.M.
CHAMBER OF THE CITY COUNCIL
CITY HALL, CITY OF STEPHENVILLE, TEXAS
The City Council of the City of Stephenville, Texas, met in Special Session,
Wednesday, November 10, 1976, at 10:00 a.m., with Mayor Donald R. Jones present
and - presiding. Councilmembers Jim Chambers, Calvin McGee, Charles Riggins, Raymond
Anderson, Ermer Ferguson, Larry Hammett and Betty Heath were present. Councilman
W.M.Irwin was absent.
Others attending the meeting were City Administrator Marshall Shelton, Director
of Public Works R.Y.Gann, Assistant City Attorney Randy Chandler, Fire Marshall
Kenneth Haley, Attorney Alan Wilson, Keith Jagmin, Hugh Wolfe and City Secretary
Joyce Pemberton.
Mayor Jones presented. Attorney Alan Wilson and Mr. Keith Jagmin, representing
AMERICAN FIDELITY FIRE INSURANCE COMPANY, to discuss with the Council the acceptance
of Fire Station #2 by the City.
Mr. Wilson explained that the items on the Punch List would be finished in a
day or two. At that time, the building would be complete. The City could write a
letter of acceptance, release the contract balance and move into Fire Station #2.
The Council discussed with Mr. Wilson the subcontractors with unperfected claims
and the ones with partially perfected claims. Mr. Wilson stated that the bonding
company had used the McGregor Act to determine a perfected claim. Most of the claims
were not timely that were unperfected.
Mr. Wilson advised the Council that final payment is due 30 days after final
completion of the work and after receipt of written notice of acceptance.
The Council discussed their options, (1) accept the project, with an affidavit
that all perfected claims and bills are paid, (2) reject the building and defend a
lawsuit filed by the bonding company, in which the City would have very little de-
fense against structural damage, (3) accept the building and negotiate the balance
due or, (4) accept the building and pay entire balance due.
The Council was very reluctant to accept the building because of the overall poor
workmanship.
After a lengthy discussion, Councilman McGee moved to accept the fire station
located at the corner of Harbin Dr. and Frey St., after completion of the Punch List,
with the understanding that the building is not in full compliance with the plans and
specs, balance to be paid within 30 days after the acceptance of the building and
an affidavit presented that all legal claims have been paid. The motion was seconded
by Councilman Hammett with the statement that the poor quality of workmanship could
be talked about for 20 years, but it is better to get it behind us. It is a mistake
of which I am sorry to be a part of, but we do need to get the building and start using
it and I am very sorry that some of the subcontractors will not be paid, but legally
there is nothing the City can do to help them. The motion carried by the following
vote:
Ayes:Councilmen Chambers, McGee, Riggins, Hammett and Councilwoman Heath.
Nays: Councilmen Anderson and Ferguson.
Absent: Councilman Irwin.
Mayor Jones appointed City Administrator Shelton and City Inspector Hardy Lockhart
to check out the Punch List to see that everything has been done as per agreement, with
Mr. Shelton to write a letter of acceptance and send the balance due.
Mayor Jones advised the Council that the Finance Committee had met on November 9th
to discuss the method of financing the Well Collector Lines, the Ground Storage Reservoir
and the Transmission Line and Distribution System from the new water well field on
the Glen Rose Highway.
Mayor Jones reminded the Council that a Financial Advisory Agreement with Almon & Co.
had been signed in March, 1976, along with the Certificates of Obligation for the wells.
The amount Almon & Co. was to charge was $26,000.
City Administrator Shelton advised that Mr. Almon had offered to cut his fee to
$13,000. Contact with other bonding attorneys had indicated they would charge fees of
approximately $9,000 to $13,000.
After considerable discussion, it was the consensus of the Mayor and Council for
the Finance Committee to meet with City Attorney Chandler for a legal opinion on the
Financial Advisory Agreement with Almon & Co., then meet with representatives of both
Stephenville Banks to determine if and how much financial help they could give the City.
After these discussion, then meet with Mr. Almon.
Mayor Jones reviewed for the Council that the Garbage Franchise with Mr.
Bill Bledsoe will expire in April, 1978, and Mr. Bledsoe had requested an ex-
tension in order to make financial arrangements for improvements.
Mayor Jones reported that two persons had contacted him requesting they
be allowed to bid on this franchise at its expiration date. They had indicated
they would give a larger percentage to the City.
Councilman Chambers, reporting in the absence of Committee Chairman Irwin,
said that the Committee had met with Mr. Bledsoe and Mr. Shelton and their re-
commendation at the conclusion of the meeting was to grant Mr. Bledsoe's re-
quest for an extension. After the meeting he also had been contacted by another
party with a request to submit a bid for the franchise and he felt it should be
discussed by the Council.
Mr. Shelton stated he thought either the City should take over the garbage
collection or that Mr. Bledsoe should take over the landfill as the City is losing
money on the landfill and the citizens are having to overcome this deficit along
with paying $2.75 for the garbage collection service.
Mayor Jones asked all members of the Council to get a copy of the Franchise
to study and then at a later date, discuss it with Mr. Bledsoe before determining
whether or not to grant an extension or to accept bids.
Councilwoman Heath announced that the Senior Citizens Center had their In-
Service Lunch.Program operating now and they are allowed 25 Meals -On- Wheels and
25 meals to be served in the Center and they need approximately 15 more persons
in this program. The minimum price is sixty -five cents (65G) and the maximum
is one dollar ($1.00). If the Council knows of anyone needing this service to
please contact her.
There being no further business, Mayor Jones adjourned the meeting at 12:30 p.m.
May
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