Ord 12-2010 3/2/2010 ORDINANCE NO. � �.- �-p� Q
Ordinance Of The City Council Of The City Of Wichita Falls, Texas,
Appropriating $394,500 From The Water And Sewer Fund For
Professional Services (Attorneys, Engineers, Travel Expenses,
Consulting Experts, Court Clerk Fees, And Testifying Experts) To Be
Provided For The Defense Of The MW Builders Of Texas, Inc. V. City
Of Wichita Falls, Et. Al.
WHEREAS, MW Builders entered into five contracts between July of 2003 and
April of 2005 to construct improvements at the Cypress Water Treatment Plant;
WHEREAS, MW Builders of Texas, Inc., still has open punch list items from their
contracts concerning the Cypress Water Treatment Plant Improvements Projects. As a
result of delays in completing the water plant improvements, the liquidated damages
provisions in these contracts resulted in a reduction in the amounts owed to MW
Builders of approximately $2,900,000,
WHEREAS, MW Builders sued the City three times seeking its $2,900,000
liquidated damages, delay damages, attorneys' fees, and other damages. MW Builders
also sued Siemens, alleging Siemens caused the delays in project completion. In
addition, it sued Biggs & Mathews, Inc., alleging negligence and a conspiracy against it.
The City won its first two lawsuits. However, the third lawsuit against the City contains a
contract cause of action that is not subject to judicial dismissal; therefore, this case is
now in intensive discovery; and
WHEREAS, the expected cost of experts and other specialized litigation services
will require the expenditure of an estimated $394,500.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
There is hereby appropriated in the 2009-10 City of Wichita Falls budget the sum
of $394,500 from the Water and Sewer Fund for professional services (attorneys,
engineers, travel expenses, consulting experts, court clerk fees, and testifying experts)
to be provided for the defense of the MW Builders of Texas, Inc. v. City of Wichita Falls,
et. al.
PASSED AND APPROVED this the 2" day of March, 2010.
�
MAYOR
ATTEST:
ity Clerk