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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. -2- 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 -3- 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. -4- 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