Res 019-2011 3/1/2011 RESOLUTION NO. 19-2011
Resolution Authorizing The City Manager To execute ali documents
necessary to settle MW Builders of Texas, Inc, v. The City of Wichita
Falls; Siemens Water Technologies Corp. f/d/b/a US Filter
Wastewater Group; and Biggs & Mathews, Inc.
WHEREAS, the City of Wichita Falls entered into five contracts with MW Builders
of Texas, Inc. to construct the Cypress Water Treatment Plant microfiltration and
reverse osmosis water treatment operation;
WHEREAS, four of the five construction contracts, collectively known as the
"membrane train contracts", suffered from delays, resulting in the withholding of
liquidated damages therefrom;
WHEREAS, the five contracts, with change orders, totaled approximately
$26,078,790, and they were subject to approximately $2,510,613.63 of withheld and
otherwise retained amounts;
WHEREAS, litigation between the City, MW Builders of Texas, Inc. and MW's
subcontractor, Siemens Water Technologies Corp. f/d/b/a US Filter Wastewater Group,
has resulted in a settlement agreement authorizing release of the retained amount, plus
$289,386.40, which would represent an increased amount of 1% of the total contracted
amount;
WHEREAS, in exchange for such released amount pursuant to settlement
between the parties, Siemens Water Technologies Corp. f/d/b/a US Filter Wastewater
Group will provide added equipment and services, which should provide substantially
increased capacity and life for the City's water treatment operation; and
WHEREAS, the City Council finds that the purchases, if any, represented by this
settlement, are exempt from the state's competitive bidding requirements pursuant to
Texas Local Government Code § 252.022 because they are procurements necessary to
preserve or protect the public health or safety of the municipality's residents and
because they are procurements of items that are available from only one source
because the items are patented and are captive replacement parts.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
The City Manager is authorized to execute all documents necessary to settle MW
Builders of Texas, Inc. v. The City of Wichita Falls; Siemens Water Technologies Corp.
f/d/b/a US Filter Wastewater Group; and Biggs & Mathews, Inc. in a form to be
approved by the City Attorney, which will include payment of amounts unpaid, held,
and/or otherwise retained on the Cypress Water Treatment Plant contracts with MW
Builders of Texas, Inc. and additional sums to the contractor and subcontractor for the
aforementioned contracts, in the amount of approximately $289,386.40.
PASSED AND APPROVED this the 10 day of March, 2011.
MAYOR
ATTEST:
;
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City Clerk