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127 <br />Regular Meeting October 13, 1997 Page 6 <br />CONSTRUCTION, INC.; AUTHORIZING THE CITY MANAGER TO EXECUTE <br />THE CONTRACT DOCUMENTS ON BEHALF OF THE CITY AND DECLARING <br />AN EFFECTIVE DATE. <br />Ms. Hughson moved for adoption of the Resolution and Mr. Hernandez seconded the motion. <br />Ms. Hughson stated she hoped the specific requirements were followed in the bid. Mr. Guerra <br />asked why the City only received two bids for such a substantial project. Mr. Cobb stated there <br />are a number of projects going on in the region at this time and the local contractors cannot carry <br />the extra work load. Ms. Hughson asked if this could be re-bid. Mr. Gilley stated yes. On roll <br />call the following vote was recorded: <br />AYE: Mihalkanin, Hart, Moore, Guerra, Cox, Hernandez. <br />NAY: Hughson. <br />ABSTAIN: None. <br />Mayor Moore introduced for consideration Item 10.C.(7), removed from the consent agenda, <br />adoption of a Resolution, the caption which was read as follows: <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, <br />TEXAS, APPROVING THE FINAL PAYMENT TO DU-MOR ENTERPRISES, INC., <br />FOR THE COMPLETION OF THE SUNSET ACRES UTILITY SYSTEMS <br />IMPROVEMENT PROJECT; AND DECLARING AN EFFECTIVE DATE. <br />Mr. Hernandez moved for adoption of the Resolution and Mr. Guerra seconded the motion. <br />Mayor Moore stated there was a difference of $347,000.00 from the beginning of this project to <br />the final payment and asked if it was standard practice for companies to bid low and then come <br />back to the Council for Change Orders. Mr. Gilley stated this particular project had one <br />significant change order with the addition of Parker Drive. He explained staff addresses certain <br />problems that could occur prior to awarding bids to the contractors and budgets accordingly. Ms. <br />Hughson asked if Mr. Jenkins considered this to be within the budget. Mr. Jenkins explained <br />this project was on budget and on time. The Council then voted unanimously for adoption of the <br />Resolution. <br />Mayor Moore introduced for consideration Item 10.C.(8), removed from the consent agenda, <br />adoption of a Resolution, the caption which was read as follows: <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, <br />TEXAS, APPROVING THE TERMS AND CONDITIONS OF THE SECOND <br />AMENDMENT TO THE LEASE OF AIRPORT PROPERTY BETWEEN THE CITY <br />AND THE CONFEDERATE AIR FORCE, INC., FOR THE LEASE OF ADDITIONAL <br />AIRPORT PROPERTY; AUTHORIZING THE CITY MANAGER TO EXECUTE THE <br />AMENDMENT ON BEHALF OF THE CITY; AND DECLARING AN EFFECTIVE <br />DATE. <br />Mr. Hart moved for adoption of the Resolution and Mr. Mihalkanin seconded the motion. Mr. <br />Mihalkanin stated his concern in the project proposal summary where it states " ... returned to <br />the City in advanced state of deterioration". Mr. Mihalkanin asked why the other party was not <br />responsible for the condition of the building. Mr. Doughty stated the building was not in good <br />shape in the beginning; however the first two occupants were required to maintain a certain level <br />of maintenance. Those two businesses failed and the City did not have the assets to pursue <br />litigation for the damages incurred to the building. Mr. Doughty explained there had been failed <br />businesses at the airport and the buildings were abused by each of the occupants; however, he <br />reiterated, the buildings were not in good condition in the first place. Nick Icossipentarhos, <br />Airport Commissioner, stated the building in question is not in good condition and the <br />Confederate Air Force is planning to rebuild this building. He stated they have been very good in <br />keeping up the other World War II building and feels they will do an excellent job. Mr. Hart <br />stated he understood the contracts were agreed on an "as is" basis. Mr. Doughty stated that was