RES 2010-25TOWN OF TROPHY CLUB, TEXAS
RESOLUTION NO. 2010-25
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF
TROPHY CLUB, TEXAS APPROVING THE PROPOSED TERMS OF A
SETTLEMENT BETWEEN THE TOWN AND TRAVELERS COMPANIES,
INC. RELATIVE TO A CLAIM ON A MAINTENANCE BOND FOR THE
CONTRACT FOR PAVING, GRADING AND UTILITY IMPROVEMENTS
FOR THE HIGHLANDS OF TROPHY CLUB MASTER IMPROVEMENTS
PHASE 2; AUTHORIZING THE TOWN MANAGER TO FINALIZE
SETTLEMENT DOCUMENTS AND TO EXECUTE ALL NECESSARY
AND RELATED DOCUMENTS TO EFFECT THAT SETTLEMENT IN
ACCORDANCE WITH THE PROPOSED TERMS; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, on or about March, 2008, the Town entered into a contract with
Four D Construction Inc. (hereinafter "Construction Contractor") pursuant to a
competitive bid, for Paving, Draining and Utility Improvements for The Highlands at
Trophy Club Master Improvements Phase 2 (hereinafter "Contract"); and
WHEREAS, the Construction Contractor provided Maintenance Bond
#105074273 with Travelers Companies, Inc. serving as the surety on that bond
(hereinafter "Maintenance Bond"); and
WHEREAS, the Maintenance Bond ensured repair of defects arising within the
two (2) year period from the date of final acceptance by the Town (hereinafter
"Maintenance Period"); and
WHEREAS, during the Maintenance Period, certain defects in the work
performed under the Contract were discovered, the Town perfected its claim under the
Maintenance Bond and began negotiations with Travelers Companies, Inc (hereinafter
"Travelers").; and
WHEREAS, after numerous meetings with representatives from Travelers, Town
staff has negotiated the terms of the settlement of the Maintenance Bond claim; and
WHEREAS, under the terms of the Settlement, Travelers has entered into a
contract with a qualified contractor who will provide all materials and labor necessary to
complete the repairs and to perform the work in accordance with the speCifications in
the Contract (hereinafter "Completing Contractor"); and
WHEREAS, the Town has obtained an agreement wherein the Completing
Contractor will guarantee and warrant the construction work for a one (1) year period
after final acceptance of the repairs; and
WHEREAS, Section 3.08 of the Town Charter sets forth the powers of the Town
Council and provides that the Town Council is vested with the authority to compromise
RESOLUTION 2010-25 1
and settle any and all claims, demands and lawsuits, of every kind and character, in
favor of, or against, the Town; and
WHEREAS, Section 4.05 of the Town Charter sets forth the powers and duties of
the Town Manager as the Chief Administrative Officer of the Town, and specifically
provides that the Town Manager shall have the power to perform such other duties as
may be prescribed by the Council; and
WHEREAS, Council has considered the proposed terms of the settlement of the
Maintenance Bond claim between the Town and Travelers, and finds those terms to be
beneficial to the Town and to serve the best interests of the residents; and
WHEREAS, Council further finds the nature of the defects in the work performed
under the Contract necessitates prompt action so that Completing Contractor can
commence the necessary repairs.
NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE
TOWN OF TROPHY CLUB, TEXAS:
Section 1. That the Town Council does hereby approve the proposed terms of
the settlement between the Town and Travelers Companies, Inc., and authorizes the
Town Manager to finalize settlement documents and to execute all necessary and
related documents to effect that settlement in accordance with the proposed terms.
Section 2. This Resolution shall take effect from and after its date of passage.
PASSED AND APPROVED by the Town Council of the Town of Trophy Club,
Texas, this the 6th day of December, 2010.
ATTEST:
Sbimnon DePrater, Interim Town Secretary
Town of Trophy Club, Texas
[SEAL]
APPROVED AS TO FORM:
w~
Patricia A. Adams, Town Attomey
Town of Trophy Club, Texas
RESOLUTION 2010-25
/nvuc' )cIA
C6nnie White, Mayor
Town of Trophy Club, Texas
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