2007-237ORDINANCE NO. 2007-~
AN ORDINANCE AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO CANCEL
THE BALANCE OF THE NON-PERFORMED PORTION OF PURCHASE ORDER NO. 123460
TO JAMAIL CONSTRUCTION COMPANY AND PAY OVER THE FUNDS HELD AS
RETAINAGE BY THE CITY OF DENTON TO JAMAIL CONSTRUCTION COMPANY, AND
TO DENY THE PROPOSED CHANGE ORDER NO. 2 SUBMITTED BY JAMAIL
CONSTRUCTION COMPANY FOR THE DESIGN-BUILD OF THE LANDFILL SCALE
HOUSE; AUTHORIZING THE PURCHASING DEPARTMENT AND THE SOLID WASTE
DEPARTMENT TO RE-BID THE CONSTRUCTION PHASE OF THE LANDFILL SCALE
HOUSE PROJECT; AND PROVIDING AN EFFECTIVE DATE (CANCELLATION OF THE
BALANCE OF PURCHASE ORDER NO. 123460 TO THE NON-PERFORMED PORTION OF
THE PURCHASE ORDER TO JAMAIL CONSTRUCTION COMPANY REGARDING THE
LANDFILL SCALE HOUSE PROJECT, AND PAYMENT OF THE REMAINING RETAINAGE
AMOUNT HELD BY THE CITY OF DENTON OVER TO JAMAIL CONSTRUCTION
COMPANY).
WHEREAS, on July 19, 2005 the design-build purchase order for the landfill scale house
(Purchase Order No. 123460) was submitted and approved by the City Council, in the amount of $
296,438, by Ordinance No. 2005-187; and
WHEREAS, on June 20, 2006 project Change Order No. 1 to said bid was submitted to the
City Council and was approved by the City Council, in the amount of $38,870, by Ordinance No.
2006-166; the total of such purchase order together with change order, then totaled $335,308; and
WHEREAS, on June 18, 2007 the vendor, Jamail Construction Company submitted to Staff
its requested Change Order No. 2 to the aforesaid purchase order and requested that the city approve
yet another change order (Change Order No. 2) in the amount of $81,062, which would bring the
total amount authorized by such purchase order and two change orders to $416,370; and after
analyzing all relevant facts and circumstances, and considering such Change OrderNo. 2, Staff is of
the opinion that once the retainage amount held by the City is paid to Jamail Construction Company,
the remaining unspent balance of Purchase Order 123460, should be in all things cancelled and that
the matter of the construction phase of the project be sent out forge-bid; and
WHEREAS, Staff, having recommended that the balance of the remaining non-performed
portion of the purchase order be cancelled and that the matter ofconstruction for the project should
be re-bid; and the Public Utilities Board having favorably considered and unanimously approved the
recommendation of Staff at its meeting of September 24, 2007; and the recommendation of the City
Manager concumng with Staff and the Public Utilities Board; the City Council is ofthe opinion that
the best interests of the citizens of Denton, Texas is served by cancelling the balance of the
remaining non-performed portion of the purchase order and by re-bidding the construction phase of
the project; NOW, THEREFOR,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. That Purchase Order No. 123460 is hereby cancelled and the funds held by the
City as retainage under said purchase order shall be surrendered to Jamail Construction Company.
SECTION 2. Change Order No. 2, proposed on the project by Jamail Construction
Company is hereby denied in its entirety; and the City Manager, or his duly authorized
representative, isauthorized tocommunicate that fact, in writing, to Jamail Construction Company.
SECTION 3. The construction phase ofthedesign-build project ofthe Landfill Scale House
project shall be re-bid.
SECTION 4. This ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this thept "=` day of , 2007.
C .{C.t/K
PERK R. McNEILL, MAYOR
ATTEST:
JENNIFER WALTER'S, CITY SECRETARY
' ' J
By. WW
APPR VED TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
By: