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HomeMy WebLinkAbout1981-07-24 - Special City Council131 SPECIAL SESSION - FRIDAY JULY 24, 1981 - 10:00 A.M. CHAMBER OF THE CITY COUNCIL CITY HALL, STEPHENVILLE, TEXAS The City Council of the City of Stephenville, Texas, met in Special Session Friday, July 24, 1981 at 10:00 a.m. with Mayor Joe F. Cummings present and presiding. City Administrator Kurt Ackermann advised that a situation had developed in the Golf Country Estates subdivision that he felt needed immediate Council attention. Mr. Ackermann explained the situation right now is that the City is retaining approximately $33,000 of Sunbelt Savings & Loan's money for oversize pipe in the Golf Country Estates subdivision because there has been a misunderstanding with regard to water meter boxes and stub -outs. Mr. Ackermann advised there are two sides to this particular issue between the City and Mr. Joe Fambro, the contractor installing the utility lines in this subdivision. The utility specifications call for the con- tractor to install the meter boxes in a development. That is his re- sponsibility. R. Y. Gann, Director of Public Works, felt that the City did not want the contractor to install the meter boxes because they get torn up before the houses are built. Mr. Gann asked the contractors to turn the meter boxes into the city for the City to install as the customer wants water service in the various developments. The City thought they had an agreement to the effect that the meter boxes and stub -outs would be furnished by the Contractor, given to the City and,in exchange,the City would install said meter boxes and stub -outs when the customer requested water service. Mr. Ackermann further explained that Mr. Joe Fambro, the contractor, and Mr. James Young, the engineer, feel that the agreement was that the contractor would turn in the meter boxes for the city to install, but no mention was made of the stub -outs. Said stub -outs are not mentioned in the specs Mr. Ackermann said everybody agrees it is better for the city to install the meter boxes as the customer requests water service than have them set at the time of installation of the lines. The point of conflict is where are we on the stub -outs. Mr. Ackermann further advised that the City is holding Sunbelt Savings & Loan's money in escrow until the issue is resolved. He said that Mr. Lee Solley, representing Sunbelt Savings & Loan, in a previous meeting had offered to leave $2500 in escrow to cover the cost of the stub -outs which would resolve that part. The City would retain said $2500 and release the remainder of Sunbelt's money, but the Council needs to authorize the release of said funds. Councilman Swindle commented that in the original meeting a month or so ago it was his understanding that Mr. Gann thought the specs specified that the contractor would furnish the stub -outs. If it is not in the specs for the contractor to furnish the stub -outs, he did not see how the city could require the contractor to furnish them. However the City wants the work done it should be so stated in the specifications.and the specifications should be revised accordingly. Mr. James Young, engineer on this project, addressed the Council stating the stub -outs are not mentioned in the specs. It has been his understanding from away back that the meter boxes are to be furnished by the contractor and installed by the city. When Mr. Gann called him about Mr. Fambro not furnishing the stub -outs it was all new to him. When he contacted Mr. Fambro he was told the stub -outs were not in the specs. As it was not in the specs, he did not know if Mr. Fambro was to furnish the stub -outs or not. At that time he came down to talk with Mr. Gann. Mr. Young further stated that this issue came up in the River North Phase I development and Mr. Fambro furnished the stub -outs. It came up in River North Phase II and Mr. Fambro did not furnish the stub -outs. Now it has Dome up again in this development. It was by verbal agreement that Mr. Fambro furnished the stub -outs in River North Phase I. You can't get along on verbal agreements now like you could several years ago. Mr. R. Y. Gann, Director of Public Works, advised that, according to the specs, the contractor should go the aqua -stop cutoff and set the meter.and that is all. He said he was approached to do this exchange.. He thought it was a fair exchange and it was just a shot called in the field. What he thought, in good faith, he was doing was swapping the stub -out for relieving the contractor of setting the meter boxes. Mr. Gann said that in Seth Moore's and David Montgomery's develop- ments that the contractors had furnished the stub -outs and the city had set the meter boxes. He had talked to them about this issue and they had said the city had made this agreement and that was the way they wanted it handled.and he thought it was a good trade for everybody concerned. He said Mr. Moore and Mr. Montgomery had indicated they did not want to go back and set the meter boxes. Councilman Clayton asked Mr. Gann, if that was.the best way to handle the meter boxes and stub -outs, shouldn't the specs be revised to specifically state just who furnishes the meter boxes and stub -outs and who sets the meter boxes? Mr. Gann replied that, evidently, there was some confustion and maybe the specs did need some revision but, in his opinion, they were just fine as they are. After some discussion, Mr. Gann advised that Sunbelt Savings & Loan should have their money refunded now and the entire Golf Country Estates subdivision should be accepted this month.because there has been a punch list inspection and he has gone over the whole thing with Sunbelt Savings and Loan, the engineer.and the contractor. Councilman Swindle commented that if someone from Dallas or;Fort Worth had contracted to do this project, how would they know of the verbal agreement regarding the setting of the meter boxes and stub -outs? Mr. Joe Fambro, contractor, addressed the Council explaining that, as far as he knew, River North Phase I was the first time any stub -outs had ever been furnished to the city and the first time the meter boxes had ever been turned in to the city. In Phase I he did not have the stub -outs bid in, but when they were called for he got them and turned them in. In River North Phase II, he bid them in, had them made up, but they were never called for. In Golf Country Estates (Phase III) he checked the specs, the stub -outs were not in the specs and he did not bid them in and did not think he had to turn them in to the city. In answer to the Mayor's question, Mr. Fambro said he thought he was to turn in the meter boxes to the city. He said it was very impractical for everybody concerned for the meter boxes to be before the house was built. He has not ever set a meter box in Stephenville. He did turn in 137 stub -outs in the River North Phase I development. He bid this job in with the thought that all he had to turn in to the city was the meter boxes.. It seems that each development is handled differently. After much discussion, it was the consensus of the Council that the utility specifications should be revised and any deviation from the revised specs should be in a written agreement in the future. Mayor Cummings stated that as this issue might involve possible litigation he was calling the Council into executive session for dis- cussion.as provided in Article 6252-17, Vernon's Texas Civil Statutes, Section 2 (e). Mayor Cummings recalled the Council into open session and called the meeting to order, 133 Councilman Irwin moved, seconded by Councilman Brede, that Sunbelt Savings & Loan's money be released immediately with $2500 put in escrow as suggested by Mr. Solley. Motion carried unanimously. Mayor Cummings directed the City Administrator to take a copy of the utility specifications to the City Attorney for a legal opinion of the specifications regarding the issue discussed in this meeting. Mayor Cummings also directed Mr. Ackermann and Mr. Gann prepare an addition to the specifications to approved by the Council stating that "the meter boxes and the stub -outs will be furnished by the contractor and the city will set them"', if that is the_desireable way. The Mayor commented that if it is Mr. Chandler's opinion that the meter boxes should be set by the contractor, Mr. Fambro will have to set them, if not the city will. Mr. Lee Solley came before the Council with the question of what is going to happen to the $2500 being put into escrow? He said Mr. Gann had said the money was not being held because of _this issue, but he had asked for the money 3 weeks ago and did not get ^ therefore, he must have been holding it for some reason. Mayor Cummings and Councilman Irwin advised that the $2500 was in escrow against the successful completion of the project. There being no other business to come before the Council, the meeting was adjourned at 11:10 a.m. MEMBERS PRESENT: G. A.: Swindle W. M. Irwin William G. Brede Charles Riggins E. W. Ferguson David Clayton OTHERS ATTENDING: City Administrator Kurt Ackermann City Secretary Joyce Pemberton Director of Public Works R. Y. Gann Mr. Lee Solley Mr. Joe Fambro Mr. James Young Mr. Jerry Singleton Members of the press ATTEST: Q, If J / - 1-� � i y Secretary MEMBERS ABSENT: Raymond Anderson Larry Hammett W—MOP(6r MJ—oe IF�=._C�Ag'sM_�