HomeMy WebLinkAboutOrdinance 21987-12-2015 ORDINANCE NO. 21987-12-2015
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE RISK FINANCING FUND IN THE AMOUNT OF
$450,000.00, FROM AVAILABLE FUNDS, FOR THE PURPOSE OF
SETTLEMENT OF CLAIMS IN CITY OF FORT WORTH V. SITE CONCRETE
INC. REGARDING PREMATURELY FAILED STREETS IN NORTH FORT
WORTH; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS
ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL
ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE
DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS:
SECTION 1.
That in addition to those amounts allocated to the various City departments for Fiscal Year 2015-2016 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Risk
Financing Fund in the amount of$450,000.00, from available funds, for the purpose of settlement of claims
in city of Fort Worth v. Site Concrete Inc. regarding prematurely failed streets in north Fort Worth.
SECTION 2.
That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or
void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way
impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining
provisions shall be and remain in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance No. 21873-09-2015 and all other ordinances and
appropriations amending the same except in those instances where the provisions of this ordinance are in
direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions
of said prior ordinances and appropriations are hereby expressly repealed.
SECTION 4.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY:
.-z
Harvey Frye,Assistant ity Attorney Mary J.Kayse`, ;ty ecr t ry
ADOPTED AND EFFECTIVE: December 8,2015
Ordinance No.21987-12-2015
Page 1 of I
City �
of Fort Worth, Texas
Mayor and Council Communication
on
COUNCIL ACTION: Approved on 12/8/20115 - Ordinance No. 21987-12-2015
[}ATE: Tuesday, December 08. 2O15 REFERENCE NO.: °°G-10617
LOG NAME: 2OGETTLE SITE CONCRETE
SUBJECT:
Approve Settlement of Claims in City of Fort Worth v. Site Concrete, Inc., Regarding Pnanocdune|y Failed
Streets and Adopt Appropriation Ordinance (COUNCIL DISTRICT 7\
RECOMMENDATION:
|tie recommended that the City Council:
1. Approve o Settlement of C|oinoa in City of Fort Worth v. Site Concrete, Inc., regarding prematurely
failed streets in north Fort Worth; and
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriation in the Risk
Financing Fund in the amount of$45O.00O.00; and
3. Approve the transfer of$223.571.96 from the Insurance Fund to the Debt Service Fund.
DISCUSSION:
On or about March 19, 2013, the City Council approved the retention of Whitaker, Chalk, Swindle and
Schwartz (VVCGG) to represent the City with regard to Site Concrete Inc., and dennegae incurred as a
result of premature street failure in various developments on the far north side of Fort Worth.
As o condition of retention, VVC8S offered to pursue the City's claims against Site Concrete, Inc., on a
strictly contingent fee basis. All attorney's fees and other expenses would bo paid only out ufmoney
recovered. VVCS8 would pay all expenses upfront. Upon recovery, either by way of settlement or
judgment, WCSS would be reimbursed for its expenses out of the proceeds of the recovery and would be
paid 50 percent of the remaining funds un|aoa an appeal is filed in which case they would be paid 55
percent of the remaining funds. |fno money io recovered, the City will pay nothing for expenses or
attorney's fees.
The parties recently agreed to mediate the case which has resulted in a settlement offer that totals
$45O.00O.00 for damages. Ae defined in the retention contract with VVCG8. the City's portion ofthis
settlement io $223.571.SO. The City's portion will go to debt service to help pay the debt for the Certificate
of Obligations which were issued in the amount of$6,000,000.00 in the 2007 Critical Capital Program for
the purpose of Premature Street Failures.
Approval of this Settlement Agreement will settle all claims the City has against Site Concrete Inc., for
prematurely failed streets constructed by Site Concrete Inc., between June 2002 and October 2005.
These projects are located in COUNCIL DISTRICT 7.
Lngname: 20OBTTLE SITE CONCRETE Page [ of2
The Financial Management Services Director certifies that upon approval of the above recommendations
and adoption of the attached appropriation ordinance, funds will be available in the Risk Financing Fund.
FUND IDENTIFIERS (FIDs):
TO
Fund Department Account Project Program Activity Budget Reference # Amount
ID ID Year Chartfield 2
60111 0147120 5520104 2016 $450,000.00
60111 0147120 4850201 2016 $450,000.00
3 40100 0132000 4960107 2016 $223,571.96
FROM
Fund Department Account Project Program Activity Budget Reference # Amount
ID ID Year Chartfield 2
M1 60111 0147120 5520104 2016 $226,428.04
3 60111 0147120 5900010 2016 $223,571.96
CERTIFICATIONS:
Submitted for City Manager's Office by: Jesus J. Chapa (5804)
Originating Department Head: Douglas W. Wiersig (7801)
Gerald Pruitt (7616)
Additional Information Contact: Harvey L. Frye Jr. (8715)
Logname: 20SETTLE SITE CONCRETE Page 2 of 2