R-03-12-18-8G2 - 12/18/2003RESOLUTION NO. R -03-12-18-8G2
WHEREAS, the City of Round Rock has duly advertised for bids for
the Deerfoot Drive 8 -inch Water Line Improvements Project, and
WHEREAS, Fillip Construction Company, Inc. has submitted the
lowest responsible bid, and
WHEREAS, the City Council wishes to accept the bid of Fillip
Construction Company, Inc., Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS,
That the Mayor is hereby authorized and directed to execute on
behalf of the City a contract with Fillip Construction Company, Inc.
for the Deerfoot Drive 8 -inch Water Line Improvements Project.
The City Council hereby finds and declares that written notice of
the date, hour, place and subject of the meeting at which this
Resolution was adopted was posted and that such meeting was open to the
public as required by law at all times during which this Resolution and
the subject matter hereof were discussed, considered and formally acted
upon, all as required by the Open Meetings Act, Chapter 551, Texas
Government Code, as amended.
RESOLVED this 18th day of December, 2003.
UWL WELL, Mayor
Ci of Round Rock, Texas
ATX:t' )C' J%) r
/�/j —
CHRISTINE R. MARTINEZ, City Se retary
P.PFDesktop\::ODMA/WORLDOX/O:/WDOX/RESOLUTI/R31219G2.WPD/sc
CitgInreering
696 Round Rock West Drfv% SuRe 101
Round Rock, Texas 78681
November 25, 2003
The Honorable Nyle Maxwell, Mayor
City of Round Rock, Texas
221 East Main Street
Round Rock, TX 78664
Re: Deerfoot Drive 8" Water Line Relocation
Dear Mayor Maxwell:
On November 18, 2003 at 2:00 p.m., bids were received in the City Council chambers for the
construction of the referenced project.
Ten qualified bidders submitted the required documents, which are summarized in the attached
bid tabulation.
Of the ten, Fillip Construction Co., Inc. of Hutto, Texas provided the low bid in the amount of
Forty Seven Thousand Nine Hundred Thirty Six Dollars and Twenty Five Cents ($47,936.25).
Therefore, it is our recommendation that the City award the project to Fillip Construction Co.,
Inc.
Sincerely,
B. Coulter, P.E.
Phone: (512) 248-1800 Fax: (512) 248-9903
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Deerfoot 8 Inch Waterline yRWNDROCK.TEXAS
S
DATE: December 12, 2003
SUBJECT: City Council Meeting - December 18, 2003
ITEM: 8.G.2. Consider a resolution authorizing the Mayor to execute a
contract with Fillip Construction Company, Inc. for the
Deerfoot Drive 8 -inch Water Line Improvements.
Resource: Tom Word, Chief of Public Works Operations
Tom Clark, Director of Utilities
History: The existing water line along the west right-of-way of Deerfoot Drive
hasn't aged well and is hard to access, due to the steep terrain and
abundant landscaping in the area of the water line. By installing an 8 -
inch water line along the East Side of Deerfoot Drive we will improve
future accessibility, water system capacity and reliability in the Dove
Creek neighborhood.
On November 18, 2003 we received ten bids for this work. The bids
ranged from $47,936.25 to $87,061.50. We had an estimated
construction budget of $50,000.00.
Funding:
Cost: $47,936.25
Source of funds: Capital Project Funds (Self -Financed Utility)
Outside Resources: Fillip Construction Company, Inc.
Coulter Engineering
Impact/Benefit: To improve flow and reliability of our water system in the
Dove Creek area by the summer of 2004.
Public Comment: N/A
Sponsor: N/A
Fillip Construction Co., Inc.
P O Box 656
Hutto, Texas 78634
IRREVOCABLE DIRECTIVE OF DRAW PROCEEDS
Re: Project Name: Deerfoot Drive Relocation of 8 Inch Water Line
Contract #:
Location: Round Rock, Texas
Bond #: 126125
Surety: Evergreen National Indemnity Company
This letter represents the General Contractor's and Owner's written consent and directive to use Contractors
Funds Management's funds administration system. Except by order of a Court of competent jurisdiction, this
agreement is irrevocable and can only be changed by written directive of the Contractor, with the expressed
and written consent of the Surety.
Fillip Construction Co., Inc. hereby requests that all payments be made out to and forwarded by mail, as
follows:
Contractors Funds Management
and Fillip Construction Co., Inc.
1405 East Riverside Drive
Austin, TX 78741
Upon execution of this document by the owner below, please forward the original signed document to
Contractors Funds Management as per the forwarding instructions above.
Thank you,
Radel Fillip
Fillip Construction Co., Inc.
Owner' Afire e t knowledgment
By. C� /� Date: � Z `(
City o R nd Rock
(please print) �
Name of Signer: 0 h etvers Title: "tip r2��r
Bus. Address: 2-2t (_
City, State & Zip. -
Phone: 5r2 - 2Z_ 116 S 3S
Fax: 5tZ - 2tt3 '10q
On this tQ1? day of J homed before me personally appeared elAO y DEmE�PS ,
/=/NfiNCE D/2 CTo�Q as a duly a representative of the owner of this project and he/she
acknowl d ed to me that he/she voluntarily executed the same as a free and voluntary act.
Notary: �. Commission Expiration: o -��-ds
s+ill
EIP%= cHRISTINE R. MARTINEZ
My COMMISSION EXPIRES
August 28, 2005
2-o3-42 -/8- A9
C
V4
Contractors Funds Management, Inc.
Funds Management Agreement
Date of agreement: 1-2-4
Between Fillip Construction Co., Inc. (hereinafter "Principal") and Contractors Funds
Management, Inc., (hereinafter "Funds Manager").
1.0.0 Principal and City of Round Rock (Obligee) entered into a contract (the "Contract") on
01-04 for construction work described as Deerfoot Drive Relocation of 8 Inch Water
Line ("Project").
1.1.0 The contract price is $47,936.25.
2.0.0 The Project must be constructed in accordance with the contract documents including
any and all plans, specifications and other documents incorporated into or required by the
contract.
2.1.0 As required by the Contract, Fillip Construction Co., Inc. as Principal has, or
will, execute payment and. performance bonds ("Surety Bonds ") provided by
Evergreen National Indemnity Company ("Surety").
2.1.1 If Principal has not paid for the bond premium provided by said Surety prior to
execution of the Funds Management Agreement, Funds Manager shall issue
payment of bond to Surety from the first contract proceeds.
3.0.0 Principal represents, warrants, and certifies that it is a properly licensed contractor and
has obtained and possesses all licenses and permits necessary for or required in
connection with all aspects of the Project work.
4.0.0 Principal desires that Funds Manager receive and disburse all funds paid by Obligee to
Principal for or on account of Project under the Contract, including all progress
payments, retainage, bonuses, change orders, claims equitable or other adjustments or
any other sums payable in connection with the Project ("Contract Funds").
4.1.0 Principal hereby specifically requests that Funds Manager provide the services
contemplated in this Funds Management Agreement ("Agreement") and
acknowledges that Principal will receive benefit therefrom and that Funds
Manager, by virtue of its performance of the Funds Management Agreement, shall
in no way be construed to interfere with Principal's business, any agreement,
Amendments to this contract will not be accepted unless agreed upon by a representative of Page I of I I
Contractors Funds Management, Inc prior to contract being signed
written or oral, Principal may enter into in connection with the Contract, the
Project shall in no way be construed to interfere with Principal's business, any
agreement, written or oral, Principal may enter into in connection with the
Contract, the Project or Principal's performance of the work contemplated by the
Contract documents, that Funds Manager is not acting in any way to exercise
dominion and/or control of Principal and Principal's operations.
4.2.0 Principal acknowledges and agrees that it is receiving valuable consideration,
sufficient in every respect, to render this Agreement fully enforceable and fully
effectuate its terms and conditions, which consideration, may include, but is not
limited to, the Principal obtaining Surety Bonds and or the Principal's fulfillment
of any conditions precedent to its performance under the Contract.
5.0.0 Funds Management Account
5.1.0 Principal agrees and acknowledges that Funds Manager will provide a commercial
checking account through an insured financial styled in the form "Contractors
Funds Management, Inc." For the purpose of the Agreement, the Financial
Institution shall be:
JP Morgan Chase Bank
700 Lavaca St.
Austin, TX 78701
5.1.1 Principal agrees to irrevocably direct the Obligee to forward all payments
due under the Contract directly to Funds Manager for deposit into the
Funds Management Account. The form of such direction to Obligee shall
be an Irrevocable Directive of Draw Proceeds attached hereto as "
Attachment A" or similar form acceptable to Funds Manager.
Contract Funds checks, drafts, or other transfers from Obligee to Principal
are to be made payable to:
Contractors Funds Management, Inc.
and Fillip Construction Co., Inc.
And forwarded to :
Contractors Funds Management, Inc.
1405 East Riverside Drive
Austin, TX 78741
5.1.2 The Funds Manager is authorized to endorse Principal's payments for
deposit into Funds Management Account. Additionally, Funds Manager
will be the sole authorized signatory on the Funds Management Account.
5.1.3 Principal shall not execute any assignment, pledge, accounts receivable
sale agreement or otherwise convey any security interest in or to the
Contract Funds, accounts receivable, and/or the Funds Management
Account Deposits.
5.1.4 Other than items provided by Funds Manager to Principal, Principal shall
not negotiate any item against or transfer out of the Funds Management
Account.
Amendments to ibis contract will not be accepted unless agreed upon by a representative of Page 2 of 11
Contractors Funds Management, Inc prior to contract being signed
5.1.5 The Principal agrees that the Funds Manager shall not be liable for any
loss of the Contract Funds occasioned by, arising out of or in any way
connected to the selection of the financial institution in which Contract
Funds are to be deposited and distributed. Further, Principal agrees that
Funds Manager shall pay no interest on the Contract Funds and assumes
no responsibility for the earning of any income thereon. Additionally,
Principal agrees that Funds Manager assumes no responsibility in the
event of any failure of financial institution to honor any item drawn on the
Funds Management Account or to re -credit the funded Management
Account with any funds drawn improperly on said Account (whether by
forged endorsement or the failure of said financial institution to exercise
commercially reasonable practices in connection with debiting any amount
against the Contract Funds). Principal hereby acknowledges that Funds
Manager shall assume no responsibility, nor is Funds Manager liable or
obligated towards the Principal, in connection with said financial
institution's actions, or in actions, regarding the Funds Management
Account. However, Funds Manager shall assist the Principal, Lender
and/or Surety in legal pursuits of said financial institution, at the sole
expense of the Principal, if necessary to protect Contract funds.
6.0.0 Disbursement of Funds
6.1.0 Principal authorizes and instructs Funds Manager to hold all Contract Funds.
Principal shall provide Funds Manager an itemized statement ("Project Cost
Breakdown"), in form and content acceptable to Funds Manager, naming all
subcontractors, suppliers, equipment rented providers, or others employed by
Principal as independent contractors, in connection with the Project and/or
Contract, providing the contract price of each such party, a statement of Principal's
anticipated profit and any other information reasonably required by Funds
Manager in connection with this Agreement. Further, Principal instructs Funds
Manager to withhold any billings in excess of costs (including overhead and profit)
in the Funds Management Account and to apply such excess to cost in excess
billings at future draw periods. Principal authorizes Funds Manager to disburse
Contract Funds as follows:
6.1.1 Upon the presentation of fu l ly and properly executed Payment Request
and transmittal ("Payment Requests") by Principal requesting payment to
and made payable to the subcontractors and suppliers who are entitled to
payment for labor, materials and/or equipment furnished to, reasonably
consumed in connection with, or incorporated into Project, pursuant to the
Contract.
6.1.1a Payment Requests shall list the total amount due each such
subcontractor or supplier.
6.1.1b Each Payment Request shall list the amount to be deducted from
each line item category on the Principal's Project Cost Breakdown
previously submitted to Funds Manager.
Amendments to this contract will not be accepted unless agreed upon by a representative of Page 3 of 11
Contractors Funds Management, Ina prior to contract being signed
6.1.1c Each Payment Request shall be accompanied by original plus one
copy of invoices, delivery receipts, tickets or similar supporting
documentation as may be requested by the Funds Manager. (No
payment will be made without supporting documentation and no
payment will be made from statements).
6.1.1d Each Payment Request shall be accompanied by properly executed
mechanic's and materialmen's lien waivers for previous payments,
if any, such waivers to include the total amount of the contract, or
purchase order, the specific Iabor, materials or equipment for
which payment is requested, and other information that may be
requested by Funds Manager. However, lien waivers shall not be
required for venders or suppliers who provide materials or
equipment totaling an aggregate cost of $1,000 or less. Principal
shall provide a blanket lien waiver for all such amounts.
6.1.2 No payments for labor, materials, equipment or services will be authorized
in excess of the Project Cost Breakdown without prior consent of Funds
Manager.
6.1.3 No payments for labor, materials, equipment or services will be authorized
until labor and/or materials have been incorporated into the project
However, materials properly stored in accordance with the contract may
be considered to be proper submittals for payment at cost.
6.1.4 The Principal's overhead and profit, as defined in Section 6.5.0, will be
reduced to cover all costs in excess of those itemized by Principal, unless
the original Project Cost Breakdown is revised as the result of Change
Orders or other appropriate adjustments in the Project Cost Breakdown,
the appropriateness of which adjustments shall be determined at the sole
discretion of Funds Manager.
6.1.5 Payment Requests shall be submitted one time per month. However, at the
option of the Funds Manager, additional processing may be allowed.
6.1.6 Timing of Payments:
Funds Manager shall process Disbursements within 3-5* working days
from receipt of both properly submitted documentation, and receipt
of contract funds and such funds are determined by the financial
institution to be "good funds."
Note: In circumstances relating to Funds Management's observation of
.standard holidays, processing could extend to a maximum of seven (7)
working days.
6.1.7 All processed draws will be returned to Principal via 2 -day delivery at no
charge, however, at the option of Principal the processed draw may be
Amendments to this contract will not be accepted unless agreed upon by a representative of Page 4 of 11
Contractors Funds Management, Inc prior 10 contract being signed
returned via one -day overnight delivery at Principal's expense.
6.2.0 Subcontractors and suppliers eligible for payment under this Section include:
6.2.1 Subcontractors, including employee leasing companies, performing work
required by the Contract, including any plans, specifications, and/or general
conditions of the Contract;
6.2.2 Suppliers furnishing materials, services, or equipment to be incorporated
into, or necessary to complete the work required by the Contract,
including any plans, specifications, and/or general conditions of the
Contract.
6.2.2a Equipment includes the rental of equipment necessary to complete
the project and/or equipment incorporated into the project.
Note: Equipment does not include capital expenditures, capital
repairs other than normal maintenance and repair due by the
Principal normal wear and tear or the purchase of construction
equipment.
6.2.3 Payments not included in Section 6.0.0 and its subparts are prohibited
without the written consent of Surety and/or the Funds Manager.
6.3.0 Funds Manager shall release funds directly to the Principal in reimbursement of
prepaid materials, equipment rental, subcontracted work, drawings, plans, and
miscellaneous minor expenses used for the subjected project. Release of funds for
those items as specified in Section 6.2.1, 6.2.2 and 6.2.2x, is contingent upon
presentation of respective fully executed Payment Requests for such payments
meeting the requirements of Sections 6.1.1 a through 6.1.1 d.
Note: Reimbursements for prior payments made to subcontractors and suppliers
shall be limited to Five Thousand Dollars ($S, 000) per draw. If Principal
anticipates paying an Invoice valued more than Five Thousand Dollars ($S, 000)
for materials or subcontracted work Principal shall forward funds and an
executed Payment Request to Funds Manager to process the invoice(s). Funds
Manager shall process and forward a check(s) to Principal within two (2) working
days from receipt offunds. invoices) and Payment Request. Principal shall
forward an executed lien release for such processed check(s) prior to submitting
the next draw.
6.4.0 Labor eligible for reimbursement under this section shall include only direct labor
employed at the job site required to complete the Project including reasonable job
site supervision
Note: Any requests made by Principal for Reimbursement for prepaid labor shall
include a certified payroll report or other form ofpayroll report referencing the
specific project an executed payroll statement, evidence of quarterly payments for
federal and state taxes and paid union dues if applicable.
Amendments to this contract will not be accepted unless agreed upon by a representative of Page 5 of 11
Contractors Funds Management, Inc. prior to contract being signed
JRN-23=2004 0S:09P FROM:
TO:4452663
Contract, or tan"Ct Funds, principal shall he liable to a or rc'
Funds Manager for AU of its attoruCy'y fetal pay maburse
fees ay and w6eti they are incurrgl together w�h' he amount of anxpert witne9s
tiettlement, Judgment or, other award when an Y
Manager in connedion with such Claim, S �dered "911inst the Funds
arising out of Funds M iii 5calry included ant Igo foes
regardless of the soup j�ga oonclor.,�e�of ni si onfurnumce f their rc;s�nsihilitics
11.0,0 Nothing in this AORFEM NT is intended to cr�tr a third party benefit or
12.0.0 This AGR EMFNT shell bind and inure to the benefit ntnc�iary_
adrrunistratvis and successors in interest of tlre� t of tl,e heirs, executors,
parties at Agement
1;•Q•0 Thett[urceahility of ally pn,vision of this Agreement shall not affect the validity enforceability of any other pri>vision hereof. y or
14.0.0 'Phis Agreen2cnt shall be intetpVticcl in accordance with And be govcrnecl h the
the St4te of'1'cxa.•1. y laws aF'
1,4,11.0 The statcmunls contained herein are eotidCred to 1,,e contractual in n
recitatieins of tact. This Agreement repMcnt.4 the entire Integrated acing and not etq,
the parties hereto. and tray not he nlodif ud in an �nacment hetr�,n
Parties hereto. y way. t.'xcept in writing executed by all
116 -0 -01 -his Agreement hm berm
atTnrded as o Jointly dratl4�i by the Flrties hereto, each PPortunity to consult with counsel, enters into this A �P� IW boon
and any ambiguity herein shall eat be onnsirucd more str cU breemcnt volunU rily,
against the ether. y against one party than
17.0.0 Each c,1'the persons wha have
to � their 4ignaturc 1icrE w,der spet:ifieall
ttat they have the authoriy rcprt:sents
n' so and
sisignature.signature.re. to bind the parti Us they represent by their
]8,0.01'his Agreement naay be executed in multiple ori final �u'tcr
counterpart shall be of egqual dignity earls, each of which original
The tulnics to this ^green1ent have executed it to hecon�c efl'ex;tive And in full force Frst written above, o ee on the day
FUNDS MAGkK
Contr rcuyr ZNJ
nds Manageni at, Incl.
By:
1'om ilanttx, Contnillor
1405 FAst Rivmide Drive
Austin, TX 79741
512-447-7776, Fax: 512-440-0989
Date; Z fP - Q c,
PRINCIPAL
Fillip Co ruction :a, Inc..
By:
Radel F 111pi residen
P U Boar 656
flutto, TCxas 78634
512-365-3217, Fax_ 512-365-3218
A1nm4",oRtd to thu Vf)N& va will nor hr u".' jrjf Unl
dn (.'ontrneto s Fumis M spun by p /6phe�enoallVC of
do ene"ni, Inc P� ro coRtru4Y bt/ng uRrrcA
'd Rei 76'�Nf�mp .lan.7i_ 1 ��otia
page 11 of if
P:212
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