Ordinance No. 4,68570409 -4
ORDINANCE NO. 4685
AN ORDINANCE AUTHORIZING FINAL PAYMENT TO FAIRMONT
INSURANCE COMPANY, SURETY FOR McCALL AND SONS
CONSTRUCTION COMPANY, FOR CONSTRUCTION OF FIRE STATION
NO. 4; APPROVING AN AGREEMENT BETWEEN FAIRMONT INSURANCE
COMPANY AND THE CITY OF BAYTOWN CONCERNING VARIOUS
® CLAIMS; AND PROVIDING FOR THE EFFECTIVE DATE HEREOF.
WHEREAS, the City of Baytown contracted with McCall and Sons
Construction Company for the construction of Fire Station 4;
and
WHEREAS, all of the said work, as provided in the plans and
specifications heretofore prepared by the Consulting Architect
and as approved and adopted by City Council have been
substantially completed in accordance with the terms and
conditions of the aforesaid contract; and
WHEREAS, the Consulting Architect in the manner provided by
the terms of said contract and the plans and specifications
thereof, has substantially approved and accepted the work and
improvements, but has indicated that certain specific items be
completed prior to final payment on said contract; and
WHEREAS, the contractor is unable to complete the necessary
® work, and therefore Fairmont Insurance Company as surety has
agreed to a reduction of the final payment by the City of Baytown
to compensate the City for the listed items of uncompleted work
and other disputed claims; and
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WHEREAS, the City of Baytown and Fairmont Insurance Company
desire to enter into an agreement specifying the manner in which
the unpaid balance on the contract will be divided between said
parties; and
WHEREAS, pursuant to this agreement there remains due and
owing to Fairmont Insurance Company the amount of FIFTY -EIGHT
THOUSAND SEVEN HUNDRED TEN AND N01100 ($58,710.00) DOLLARS; NOW
THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: That the City Council of the City of Baytown,
Texas, hereby authorizes the City Manager and City Clerk to
execute and attest to an agreement with Fairmont Insurance
Company for the settlement of unfinished work claims concerning
Fire Station No. 4, a copy of said agreement being attached
hereto as "Exhibit A" and made a part of this ordinance for all
intents and purposes.
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Section 2: That subject to the provisions of the attached
agreement with Fairmont Insurance Company, the City Council
hereby accepts and approves the construction of Fire Station No.
4, and finds and determines that all of the improvements have
been completed as provided in the plans and specifications
therefore, except as may be specifically provided in the attached
agreement with Fairmont Insurance Company.
Section 3: That the final payment to Fairmont Insurance
Company, surety for McCall and Sons Construction Company, in the
amount of FIFTY -EIGHT THOUSAND SEVEN HUNDRED TEN AND N01100
($58,710.00) DOLLARS is hereby authorized.
Section 4: This ordinance shall take effect immediately
from and after its passage by the City Council of the City of
Baytown.
INTRODUCED, READ and PASSED by the affirmative vote of the
City Council of the City of Baytown, this the 9th day of April,
1987.
WUM—TT 0. HUTTO, Mayor
0 ATTEST:
EILEEN P. HA L, City Clerk
NDALL B. STRONG, C' Attorney
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® LETTER AGREEMENT
® Re: Fairmont Insurance Company
Principal: McCall & Sons Construction Company
Obligee: City of Baytown
Bond No.: 6774
Project: Fire Station No. 4,
Baytown, Texas
The purpose of this letter is to outline the agreement
reached between Fairmont Insurance Company and the City of
Baytown, Texas, in connection with the above referenced project
and bond. Fairmont Insurance Company (hereinafter "Fairmont ")
and the City of Baytown, Texas, (hereinafter "Baytown ") hereby
agree as follows:
1. The current balance in the referenced contract is
$69,210.00.
2. Baytown shall backcharge the contract balance for
$3,000.00 for defective tile work and $7,500.00 for
liquidated damages and /or additional architectural fees
incurred by Baytown. Fairmont consents to said
backcharges.
3. The funds remaining after the backcharges are assessed,
$58,710.00, shall paid to Fairmont contemporaneously
with the execution of this letter agreement.
4. Fairmont's Payment Bond No. 6774 shall remain in full
force and effect according to the terms contained
therein.
5. Baytown releases Fairmont from any and all rights,
claims, demands and /or causes of action which Baytown
had, has or may have against Fairmont and its above
referenced performance bond save and except claims, if
any, which Baytown may be entitled to assert against
McCall & Sons Construction, Inc., Fairmont and
Fairmont's Performance Bond No. 6774 for warranty
claims.
6. This letter agreement contains the entire agreement
® between the parties and supersedes any and all prior
agreements, arrangements or understandings between the
parties.
EXHIBIT A
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7. It is understood and agreed that this letter agreement
shall be governed by, construed and enforced in
accordance with, and subject to, the laws of the State
of Texas.
® AGREED TO AND ACCEPTED:
CITY OF BAYTOWN COMPANY
FRITZ LANHAM, City Manager
ATTEST:
EILEEN P. HALL, City Clerk
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FAIRMONT INSURANCE COMPANY
By:
HIBiT A
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