HomeMy WebLinkAboutContract 30221 `RETARY
NO. {2LL
SETTLEMENT AGREEMENT AND RELEASE
This Settlement Agreement and Release (the "Agreement") is entered into
between Solar Turbines Incorporated, a Delaware corporation ("Solar") and the City of
Fort Worth, a Texas municipality(the"City"). These parties hereby execute this release
of specific claims and disputes and enter into the following settlement agreement:
WHEREAS, Solar entered into a contract with the City on May 30, 2000 to
provide two Solar Taurus 60 Gas Turbine Generator Sets, Fuel Gas Compressors and
Exhaust Heat Recovery Systems for the Village Creek Wastewater Treatment Plant
(Project No. PE42-070420160110) and related equipment and services ("the Contract").
WHEREAS, the City claims that liquidated damages totaling One Hundred Forty-
Five Thousand Five Hundred and Forty Dollars ($145,540) are owed by Solar for failure
to meet obligations under the Contract in a timely manner.
WHEREAS, Solar claims that the City has failed to pay all amounts owed under
the Contract related to the Retention Payment for the Balance of Plant scope of work and
approved and unapproved change orders totaling Two Hundred Twenty-Seven Thousand
One Hundred and Fifty-One Dollars ($227,151).
WHEREAS, the Parties have discussed said claims and now desire to fully
compromise and settle specific disputes between them, including liquidated damages
claims and claims for amounts owed under the contract for work and products supplied
by Solar.
NOW THEREFORE, in consideration of the mutual promises and agreements
contained herein, and in exchange for the consideration set forth herein below, the Parties
agree as follows:
SCOPE OF RELEASE
Nothing contained in this Agreement is intended to:
A. Release Solar from any warranty obligations not yet expired under the Contract.
B. Release Solar from any obligations not yet expired for the installation and
recommissioning of the Kato generators containing replacement rotors.
1. RELEASE OF CLAIMS
In consideration for the City assuming responsibility of the obligation of painting
the"exhaust stacks" and paying Solar Seventy-Two Thousand Five Hundred and
Twenty-Five Dollars ($72,525.00), Solar, its agents, successors, assigns and affiliates
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hereby releases and forever discharges the City, its agents, successors, assigns and
affiliates from all claims and damages for monies owed under the Contract for retention
payments for the Balance of Plant scope of work and the following approved and
unapproved change orders:
Approved Change Orders:
• CMR-14 for temporary Vg compressor including installation
• CMR-15 for piping and valves for f/g comp. Inlet and outlet connections.
Unapproved Change Orders:
• CMR-12 for the modification of No. 1 inlet air duct.
• CMR-12 for the modification of No. 2 inlet air duct.
• CMR-14 for the removal of temporary f/g comp.
In consideration for Solar accepting Seventy-Two Thousand Five Hundred and
Twenty-Five Dollars($72,525.00)as final payment of all monies owed for retention
payments for the Balance of Plant scope of work and the above listed change orders and
the City assuming the obligations related to painting the"exhaust stacks,"the City hereby
releases and forever discharges Solar, its agents, successors, assigns and affiliates from
all claims and damages for liquidated damages which may or may not have accrued under
the Contract.
2. NO ADMISSION OF LIABILITY
It is understood and agreed by all parties that the aforesaid payment by Solar to
the City is made in and for the compromise of disputed claims and that payment made by
Solar to compromise these disputes shall in no way be construed as an admission of
liability or wrongdoing or any other evidence of any liability or wrongdoing on behalf of
Solar or the City of Fort Worth.
3. SEVERABILITY
If any provision, covenant,term or condition of this agreement is held to be
invalid, illegal or unenforceable for any reason, such invalidity, illegality, or
unenforceability shall not affect the validity, legality or enforceability of any other
provisions, covenants,terms or conditions of this agreement.
4. WAIVER
The failure of any party to insist upon strict adherence to any term of this
agreement on any occasion shall not be considered a waiver thereof or deprive that party
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of the right thereafter to insist upon strict adherence to that term or any other term of this
agreement.
5. ENTIRE AGREEMENT
The terms and conditions of this agreement shall constitute the entire agreement
in compromise and settlement of the claims as to all parties, and all other claims and
matters subject to this agreement that any party has or could have asserted against the
other party.
6. BINDING ON SUCCESSORS AND ASSIGNS
All terms of this agreement and its attachment shall be binding upon and inure to
the benefit of the parties hereto and their respective heirs, successors and assigns.
7. AUTHORITY OF SIGNATORY
Each party's representative covenants, represents and warrants that he or she is of
legal age, is under no disability and has the mental capacity and authority to legally bind
each representative party.
8. GOVERNING LAW
The validity, effect and construction of this agreement and any obligations
undertaken pursuant hereto, and any dispute relating or arising from the negotiation and
execution of this agreement, shall be governed by the laws of the State of Texas, without
regard to the conflicts of law provisions.
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9. CONFIDENTIALITY
The Parties agree to treat this Agreement and its terms as confidential. Further,
the Parties agree not to disclose this Agreement or its contents to anyone not a party to
this Agreement except as required by court order or other legal requirement. Each party
will notify the other party in the event it appears likely that disclosure may be legally
required.
CITY O7FT WOR Texas APPROVED AS T FORM AND LEGALITY:
By:
Assistant City Attorney
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Contract Authorization
Date
Sylvia Glover
Acting City Secretary
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SOLAR TURBINES INCORPORATED �—
contract Authorizatioa
By.
Date
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Contras Authorization if
Date
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 6/29/2004
DATE: Tuesday, June 29, 2004
LOG NAME: 60TURBINES REFERENCE NO.: **C-20128
SUBJECT:
Change Order No. 3 with Solar Turbines Incorporated for the Purchase and Installation of Digester
Gas Fueled Turbine Generators at Village Creek Wastewater Treatment Plant
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to:
1. Execute Change Order No.3 with Solar Turbines Incorporated for the purchase and installation of
digester gas fueled turbine generators at Village Creek Wastewater Treatment Plant in the amount of
$55,019.11, increasing the contract amount to $5,876,701.11; and
2. Execute a Settlement Agreement and Release with Solar Turbines, Incorporated to address liquidated
damages and warranty work under the contract.
DISCUSSION:
On May 30, 2000 (M&C C-18047) the City Council authorized an award of contract to Solar Turbines
Incorporated for the purchase and installation of two 5.2 MW(megawatt) digester fueled turbine generators
at the Village Creek Wastewater Treatment Plant.
The work to be performed under Change Order No. 3 includes modifications to the air cooling and liquid
heat recovery fluid systems as recommended by the manufacturer, modifications to the existing generator
building to accommodate new equipment, and to comply with the City's electrical code. A temporary gas
compressor was also installed in order to operate the turbine generators until the specified gas compressor
equipment was delivered.
Change Order No. 3 also addresses liquidated damages charged to Solar Turbines Incorporated for late
completion of the project. The Settlement Agreement assesses liquidated damages in the amount of
$126,027 and does not release Solar from any warranty obligations under the contract.
The net effect of this proposed change order is as follows:
Original Contract Cost $5,798,346.00
Change Order No. 1 &2 $23,336.00
Proposed Change Order No. 3 $55,019.11
Revised Contract Totat Cost $5,876,701.11
Mulatech Engineering, Inc., the project construction manager and city staff recommend approval of
Change Order#3.
Locname: 60TI TRRINFS PaaP �f
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that funds are available in the current capital budget, as appropriated, of the
State Revolving Fund — Sewer.
TO Fund/Account/Centers FROM Fund/Account/Centers
PE42 541200 070420160130 $55,019.11
Submitted for City Manager's Office bv: Marc Ott (8476)
Originating Department Head: Dale Fisseler (8207)
Additional Information Contact: Dale Fisseler (8207)
Loename: 60TURBTNES PaaP ? of