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HomeMy WebLinkAboutResolution 3732-04-2009A Resolution NO 3732-04-2009 RATIFYING THE LAWSUIT ENTITLED CITY OF FORT WORTH V D R. NORTON TEXAS, LTD , AND SITE CONCRETE, INC , FILED IN THE TARRANT COUNTY DISTRICT COURT BY OUTSIDE COUNSEL WHITAKER, CHALK, SWINDLE & SAWYER, LLP WHEREAS, the City has identified premature street failures to certain neighborhoods following the construction of streets and WHEREAS on June 20 2006 City Council approved Resolution 3368 06 2006 to retain outside counsel Whitaker Chalk, Swindle & Sawyer LLP and WHEREAS tt has become necessary for the City to engage m ltttgatton regarding the premature failure of the streets against contractors D R Horton Texas Ltd and Site Concrete Inc NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS, THAT Whitaker Chalk, Swindle & Sawyer LLP zs authorized to effect necessary legal action against D R. Horton Texas Lt:d and Site Concrete Inc regarding streets that failed prematurely The filing of the lawsuit against D R Horton Texas Ltd and Site Concrete Inc is hereby ratified Adopted this 28th day of Aril 2009 ATTEST _~~-~ fn ~~,' /` ~; Y L J -h~F:. r' J ~ ~ ...= __r _-...~ _t_ By _. - -;:, r u Marty Hendrix City Sec ;. %.e ,,~~ +~~*' ~~~ APPFiOVEQ CITY CQ~JNCIL APR 2 8 2009 City Secretary of the City of Fort Worth, Texas T ter? ;~' ~ RESOL'IJTIDN'NO 3732=04=2009 ATTACHMENT' ~. _~ ___ -~ city of F®rt Worth, Texas Mayor and Council Communication COUNCIL ACTION Approved on 4/21/2009 Res No. 3727-04-2009 8~ Ord No 18571-04- 2009 DATE. Tuesday April 2l 2009 LOG NAME. 121NCREASE WCSS REFERENCE NO G-16541 SUBJECT Adopt a Resolution Authorizing Increase to the Maximum Amount to be Paid to the Law Firm of Whitaker Chalk, Swindle and Sawyer LLP to Assist the City with Legal Matters Concerning the Water Department and Transportation and Public Works Department Contracts and Litigation in an Additional Sum of $150 000 00 and Adopt Supplemental Appropriation Ordinance RECOMMENDATION It is recommended that the City Council authorize the City Manager to 1 Adopt the attached supplemental appropriation ordinance increasing appropriations in the Water and Sewer Fund by $150 000 00 and decreasing the Unaudited Unreserved Undesignated Fund balance by the same amount: and 2. Adopt a resolution increasing the maximum amount to be paid to Whitaker Chalk, Swindle and Sawyer LLP by $150 000 00 to assist the City with legal matters concerning the Water Department and Transportation and Public Works Department contracts and litigation in relation to premature street failures DISCUSSION By adopting M&C G-15239 on June 20 2006 the City Council approved Whitaker Chalk, Swindle and Sawyer LLP (Whitaker Chalk) to assist the City with various legal issues regarding the City's Water Department and Transportation and Public Works Department (TPW) contracts and authorized payment to Whitaker Chalk in an amount not to exceed $5q 000 00 M&C G-15680 adopted on April 17 2007 increased the authorized amount to $150 000 04 and on September 25 2007 M&C G-15873 was adopted to increase the authorized amount to $200 000 00 M&C G-16055 adopted February 19 2008 increased the authorized amount to $250 000 00 M&C G- 16288 adopted September 30 2008 increased the authorized amount to $350 000 00 Various matters concerning Water Department and TPW contracts and representation of the City in litigation concerning such matters are still pending Because of the extraordinary importance of the issues raised it is the recommendation of the City Attorney to authorize an additional sum of $150 000 00 to Whitaker Chalk for their services concerning those matters not to exceed $500 000 00 Since the last increase counsel have been continuing to negotiate arbitration agreements with various contractors Several lawsuits have also been filed against contractors and developers This M&C is to increase the amount to be paid to Whitaker Chalk for these matters and general construction issues Fees for litigation costs in City of Fort Worth v Arcadia Park and Site Concrete Inc will be addressed under a separate M&C The affected streets are located in COUNCIL DISTRICTS 2 and 6 Council Date 4/14!2009 Page 1 of 2 FISCAL INFORMATION /CERTIFICATION The Financial Management Services Director certifies that upon the approval of the above recommendations and adoption of the attached supplemental appropriation ordinance funds will be available in the current operating budget, as appropriated of the Water and Sewer Fund Upon approval the Unaudited Unreserved Undesignated Fund balance in the Water and Sewer Fund will be $3 068 322 63 below the 20 percent reserve required by the Financial Management Policy Statement. FUND CENTERS TO Fund/Account/Centers FROM Fund/Account/Centers PE45 531200 0601000 150 000.00 CERTIFICATIONS Submitted for City Manag_er's Officece bv. Originating Department Head. Additional Information Contact. Fernando Costa (6122) David Yett (7623) Frank Crumb (8246) Gerald Pruitt (7616) Jimmy Riddell (7614) Council Date. 4/14/2009 Page 2 of 2 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: `Approved on 4/28/2009` Res. No. 3732..-04-2009 _~~ ~- ~~ DATE Tuesday April 28 2009 REFERENCE NO """G-16545 LOG NAME 12FS NORTON SUBJECT Adopt a Resolution Ratifying the City's Lawsuit Entitled City of Fort Worth v D R Horton-Texas Ltd and Site Concrete Inc. Cause No 17 232717-08 Filed on September 10 2008 in Tarrant County District Court RECOMMENDATION It is recommended that the City Council adopt the attached resolution ratifying the filing of the lawsuit entitled City of Fort Worth v D R. Horton-Texas Ltd and Site Concrete Inc. DISCUSSION The City retained Whitaker Chalk, Swindle and Sawyer L.L.P (Whitaker Chalk) as outside counsel to represent the City in litigation concerning premature street failures It is the opinion of the City and Whitaker Chalk that legal action is necessary against D R. Horton-Texas Ltd and Site Concrete Inc. This lawsuit concerns allegations of improper trench compaction and inadequate construction resulting in premature street failures Funding is being provided as set out in M&C G-16541 adopted April 21 2009 Due to time constraints Whitaker Chalk had to file suit to prevent a potential waiver of some of the City's rights The premature street failures are located in COUNCIL DISTRICTS 2 and 6 FISCAL INFORMATION /CERTIFICATION The Financial Management Services Director certifies that funds are available for this purpose FUND CENTERS TO Fund/Account/Centers FROM Fund/Account/Centers PE45 531200 0601000 $15.000.00 CERTIFICATIONS Submitted for City Manager's Office bX. Originating Department Head. Additional Information Contact: Fernando Costa (8476) David Yett (7623) Gerald Pruitt (7616) Jimmy Riddell (7614) Logname. 12FS NORTON Page 1 of 1