HomeMy WebLinkAbout6905RESOLUTION NO. 690
A RESOLUTION APPROVING A PRELIMINARY COMPROMISE
AND SETTLEMENT AGREEMENT BETWEEN PUEBLO, A MUNI-
CIPAL CORPORATION AND MCI CONSTRUCTORS, INC. AND
AUTHORIZING THE CITY ATTORNEY TO SETTLE THE
CLAIMS OF MCI CONSTRUCTORS, INC. PURSUANT THERETO
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Preliminary Compromise And Settlement Agreement between
Pueblo, a Municipal Corporation and MCI Constructors, Inc., a copy
of which is attached hereto and incorporated herein, having been
approved as to form by the City Attorney, is hereby approved. The
City Attorney pursuant to Section 6 -6 of the Charter is authorized
to settle the claims of MCI Constructors, Inc. in accordance with
the attached Preliminary Compromise And Settlement Agreement and to
execute in the name of the City all instruments, pleadings and
documents reasonably required and necessary to consummate and effect
such settlement.
gRrTTC)N 9-
There exists a sufficient fund balance in the construction
account No. 33 -7090 for the sanitary sewer treatment facilities
project and the amount of $725,000 is approved and directed to be
paid from such construction account for the purpose of discharging
and settling the claims of MCI Constructors, Inc. against the City.
INTRODUCED: March 23, 1992
ATTEST:
Ci Clerk
By HOWARD WHITLOCK
Councilperson
APPROVED:
Presid nt of the City Council
SENT BY:W, T K +H ; 3-19-92 ; 4 :45PM W, T, K +H-6941 #390 *38 #1 ?1954543;# 2
The purpose of this Preliminary Compromise and Settle-
sent Agreement is to outline the essential terms of an agreement
for the purpose of further determination by the parties. The
essential teams are as follows:
1. Defendants will pay to MCI the sum of $775,000.00
upon certain conditions on or before June 10, 1992, including
approximately $100,000.00 for MCIIs change order Claims for addi-
tional work.
2. MCI will be obligated, prior to payment, to furnish
evidence that all verified statements of claims filed with the
city have been satisfied or have otherwise became tine barred.
In the event that lawsuits have been filed to enforce verified
statements of claims under 38 -26 -107 CR9 on or before June 10,
1992, an amount equal to the amount sought in such suit(s) shall
not be paid to XCI but instead shall be placed in an interest-
bearing escrow account with the law firm of Gorsuch, Kirgis,
Campbell, Walker and Grover to be held until such claims are
resolved, and then released to MCI. The City, Sellards & Grigg,
and Harris & Associates shall not in any way encourage or suggest
that any party file suit against MCI, and MCI shall indemnify
the City against claims by laborers for back wages. MCI shall be
responsible for payment of such claims as such claims are estab-
lished. MCI agrees to indemnify and defend the City against
claims for improper release of funds to MCI by those who have
filed verified statements of claim.
3. The warranties shall continue to be in full force
and affect. The City, 'Harris & Associates and Sellards & Grigg
represent that they presently have no knowledge or information
regarding any warranty violations or latent defects except those
listed on Exhibit A (for which MCI and its subcontractors and
suppliers are released from liability) and that they have no
present intention of filing any claims against MCI unless addi-
tional information is discovered.
4. The {Compromise and Settlement Agreement shall have
no affect upon any liability of NCI, Harris & Associates and
Sellards & Grigg with respect to presently unknown latent defects
and with respect to any damages or other costs incurred by the
City of Pueblo because of claims made by any third parties be-
cause of injury or loss suffered by those third parties or as ' a
result of future fines or penalties imposed upon the City of
Pueblo as a result of failures or actions made by MCI, Harris &
Associates, or Sellards & Grigg.
5. With the exclusions noted in Paragraphs 3 and 4,
the Compromise and Settlement Agreement shall constitute a com-
plate and final settlement of all claims between all of the
parties.
6. The City Council of the City of Pueblo must approve
the Compromise and Settlement Agreement on or before March 27,
1992. The parties will suspend all litigation efforts pending
such approval.
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0
SENT BY:W, T K +H
; 3 -19 -97 ; 4:45PP ; W, T, K +H-6941 #390 *38 #171954543;# 4
7. The parties will keep the terms of this settlement
confidential to the maximum extent allowed by applicable laws and
regulations.
8. The city, Harris & Associates and Ballard* & Grigg
will not initiate contact with any Cwnerts representative or
other party regarding MCI'sa performance in this Project or its
general reputation or capabilities and if contacted will provide
no information except that MCI was the General Contractor on the
Project, the Project was completed, and that there war& dispute h
which were settled. This provision shall not apply to informa-
tion required by subpoena or Court order.
Thomas Jagq Esquire
Office of City Attorney
127 Thatcher Building
Pueblo, Colorado 81003
James A. Jablonski, Esquire
Bruce D. Hausknecht, Esquire
Gorsuch, Kirgis, Campbell,
Walker and Grover
1401 - 17th street, Suite 1100
P.O. Box 17180 TA
Denver, Colorado 80217
Counsel for City of pueblo
L. Tyrone Holt, Esquire
Dawn P. Bookhardt, Esquire
13101 Pennsylvania street,
Suite 900
Denver, Colorado 80203
Counsel for Sellards & Grigg
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SENT BY:W. T K +H ; 3 -19-92 ; 4:47PO W, T, K +H-o941 #390 *38 #171954543;# 5
William H. Knapp, Esquire
Glean W. Gregory, Esquire
Knapp, Lao, York & Cardi, P.C.
1860 Blake Street, Suite 400
Denver, Colorado 80202
Counsel for Harris & Associates
Thomases B. Newell, Esquire
Watt, Tieder, Killian & Hoffar
7929 Westggark Drive, Suite 400
McLean, Virginia 22142
Counsel for MCI Constructors,
Inc.
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EXHIBIT A
Warranty Violations
1. Draft Tube mixer seals
2. Cracked motor mounts - digester mixers
3. Failure of irrigation wells #1 and #2
4. Failure of Gear Box - IPS Pump P -6601 & 6602
5. Improper installation of 3 -way air valves on ODS Pumps
6. Sheared axle on barscreen
7. Failed mttnifold seal and band for secondary clarifier
8. Cracks in centrifuge scrolls
9. Failed computer monitors
10. Roof top heating unit #1 - Failed temperature switch, Rooftop
heating unit #2 - broken damper linkage, Rooftop #3 - Failed
thermostat
11. Secondary clarifier #2 - Mechanical disorder of scum skimmer
12. Mechanical problems with digester plug valve #5
13. Motorized wier gate #6604 will not operate automatically
14. DAF Pressure Pump #3 is locked up
15. Aeration Blower #1 vibrates and kicks off
16. Digester basement - HW circulation pump leaks
17. Secondary clarifier - RBS Pump #2 VFD does not operate properly
18. Waterman gates at RSPS and IPS leak
19. DAF air compressor controls are wrong
20. Draft tube mixer controls do not match transformers
21. Headworks heating system has defective air duct detector
22, No. 2 sludge heat exchanger temperature control failed
23. Failed bearing RT unit #3 - Sludge Processing Building
24. Failed DAF #1 Scum Skimmer
25. Failed 8" water line South of Administration Building
26. Bed sludge line missing coupling pin
27. Broken gate wedges on primary clarifier, gate 6517
28. Failed sludge line from ODS Pump 7105
29. Potable water leaks , sludge processing building
30. Failed potable water system - Sludge Processing Building
31. Oil leaks - centrifuges
32. Several yard valves do not operate properly
33. Washdown hydrant leaks near RSPS
34. Concrete leaking between RSPS and Grit removal
35. Defective hand winch - primary clarifier jib hoist
36. Leaking hydrant at primary clarifier
37. Water seepage - secondary clarifier basement
38. IPS Distributor box leaking
39. Inoperative damper motor - RT Unit at digester complex
40. Leaking skylight - Sludge Processing Building
41. North skylight at digester leaks
42. Polymer feedlines to DAF mixing chamber are plugged and polymer
feed pump is defective
43. Inoperative damper motor RT Unit #3 - Sludge Processing Building