HomeMy WebLinkAboutResolution - 257 - Mutual Rescission Of Contract - Bruce-Lake Company - Steel Transmission Poles - 08_23_1979DWR:hw RESOLUTION #257 - 8/23/79
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to execute for and on behalf of the City of Lubbock the Mutual
Rescission of a Contract for steel transmission poles between the City of
Lubbock and Bruce -Lake Company, attached herewith which shall be spread upon
the minutes of the Council and as spread upon the minutes of this Council shall
constitute and be a part of this Resolution as if fully copied herein in detail.
Passed by the City Council this 23rd
ATT$S�:
day of August ,1979.
A W -
OR 'PRO ALAN ENRY
-.;Evelyn_-Gaffga, CIt-y ;Sdcr&ta Treasurer
':APPROVED AS TO. FORM:
O
L
avid W. Reagan, Asst Attorney
Carroll McDonald, Director of Electric
Utilities, Sales & Service
TIED TO RESOLUTION #257 - 8/23/79
MUTUAL RESCISSION OF AGREEMENT
between
THE CITY OF LUBBOCK
and
BRUCE-LAKE COMPANY
THIS AGREEMENT entered into this day of
1979, between the City of Lubbock, a Home Rule Municipal C 2ftoration, herein-
after called "CITY," and Bruce -Lake Company, hereinafter called "BLC."
Whereas, on or about February 14, 1979, by purchase order number G08584, a
contract was made by and between BLC and the CITY whereby steel transmission
poles and anchor bolt clusters would be delivered to the CITY in return for
payment of THREE HUNDRED SEVENTY-EIGHT THOUSAND FOUR HUNDRED TWO AND 00/100
($378,402) DOLLARS by the CITY to BLC.
Whereas, under and by the terms of the contract, delivery of the anchor
bolt clusters was to be made forty (40) days after approval of shop drawings
and delivery of the poles was to be made within one hundred eighty (180) days
after receipt of the purchase order of BLC.
Whereas, through the date hereof, BLC has delivered the anchor bolt clusters
and the CITY has paid SEVENTY-FIVE THOUSAND TWO HUNDRED SEVEN AND 00/100 ($75,207)
DOLLARS in respect thereto.
Whereas, BLC has not manufactured or shipped the poles and the CITY has
made no payment with respect thereto.
Now Therefore, the CITY and BLC do hereby mutually agree as follows:
I.
BLC and the CITY do rescind any and all unpreformed parts of the above
contract and do mutually remiss, release and discharge the other party of and
from any other or further liability, claims or demands of every name or nature
growing out of, concerning or effecting the said contract.
II.
All rights and obligations of the parties in and under said contract are
hereby terminated.
It is the desire of both BLC and the CITY, and they do hereby mutually
agree, that the anchor bolt clusters received by the CITY from BLC and the
payment of SEVENTY-FIVE THOUSAND TWO HUNDRED SEVEN AND 00/100 ($75,207) DOLLARS
received by BLC from the CITY should be retained and kept by the respective
parties.
IN WITNESS WHEREOF, the CITY and BLC have executed this agreement as of
the first date above written.
CITY,6F 4UBBOCK
YOR PRO TEM AL HENRY
ATTEST:
Evelyn Gaffga, -City Secj!`et9y-Treasurer
APPROVED AS TO CONTENT:
Carroll McDonald
Director of Utility Sales h Service
APPROVED AS TO FORM:
David W. Reagan, Assj Attorney
BRUCE-LAKE COMPANY
Robert G. Lee, President
DEBTOR -IN -POSSESSION
ATTEST:
Gerald A. Long, Secretary
CITY OF LUBBOCK
MEMO
TO: Jim Blagg, Assistant City Manager
FROM: David W. Reagan, Assistant City Attorney
SUBJECT: Purchase of steel transmission poles from Bruce -Lake Company
DATE: August 13, 1979
On February 14, 1979, the City of Lubbock, by a purchase order, entered
into a contract with Bruce -Lake Company to purchase steel transmission poles.
Under the terms of this agreement Bruce -Lake Company was to submit shop drawings
to the Engineer sixty days after receipt of our order, furnish anchor bolts to
the City forty days after the shop drawings were approved, and furnish steel
transmission poles to the City one hundred eighty days after receipt of our
purchase order. The total price to be paid by the City under this contract was
three hundred seventy-eight thousand four hundred two dollars ($375,402.).
Bruce -Lake Company has furnished the City with shop drawings which were approved
and furnished the City with anchor bolts for which the City has made full
payment of seventy-five thousand two hundred seven dollars ($75,207.). However,
Bruce -Lake has instituted bankruptcy proceedings and cannot furnish the steel
transmission poles within the one hundred eighty day period set out in the
contract.
Due to the necessity of obtaining these poles sooner than Bruce -Lake can
furnish them, we have sought to enter into a mutual rescission of this agreement
with Bruce -Lake. Though Bruce -Lake has agreed to rescind this contract, such
rescission must be approved by a bankruptcy court.
Due to the large amount of money involved in this agreement, it is necessary
that the City Council agree to rescinding this contract and authorize the Mayor
to sign the rescission. I have prepared this rescission and attached it to
this memo along with a resolution authorizing the Mayor to sign it. Should you
have any additional questions concerning this matter, please feel free to call
on me.
DWR:hw
attach.
�D
AUG 131979
CITY SECRETARY
David W. Reagan, Ass y Attorney