Explanation
BACKGROUND: This legislation authorizes the Director of Public Utilities to execute documents necessary to settle a dispute arising from the Big Walnut Augmentation/Rickenbacker Interceptor ("BWARI") project. The City and URS Corporation-Ohio, formerly URS-Grenier, Inc., ("URS") entered into a Professional Engineering Services Agreement dated July 18, 1997 whereby URS agreed to provide design and construction administration services to the City in connection with the BWARI project, the Big Walnut Outfall Augmentation Sewer ("BWOAS") Project and the Air Quality Control Facility ("AQCF") Project, all referred to collectively as the "Project." URS and Lachel Felice & Associates, Inc., formerly Lachel & Associates, Inc., ("LFA") entered into an agreement dated December 2, 1997 whereby LFA agreed to provide certain professional services in connection with the Project as a subconsultant to URS. The City entered into a contract with JayDee, Michels, Traylor Joint Venture ("JDMT") dated December 3, 2003 whereby JDMT agreed to undertake the construction for the BWARI Project including the Corrosion Protection Liner ("CPL") system that was specified therein. During the construction phase of the BWARI Project, a dispute arose between the City and JDMT related to the installation of the CPL. The City contended that to the extent it was liable to JDMT for alleged problems and issues related to the CPL system, URS was responsible for the City's damages to JDMT. URS contended that to the extent it was found liable to the City for the payment of damages to JDMT, that LFA was responsible to URS for the amounts URS was obligated to pay the City. All parties engaged in a lengthy mediation process, as a result of which a settlement agreement was reached between all parties.
This ordinance authorizes the Director of Public Utilities to settle and release all outstanding claims related to the Project and to execute any necessary documents to effectuate the settlement.
FISCAL IMPACT: The City will receive a settlement payment in the amount of $500,000.00.
Title
To authorize the Director of Public Utilities to settle and release on behalf of the City of Columbus all claims related to a dispute arising from the Big Walnut Augmentation/Rickenbacker Interceptor ("BWARI") project; to execute any necessary documents associated with the settlement and final resolution of the dispute; to authorize the City Auditor to accept a settlement payment in the amount of $500,000.00 (Five Hundred Thousand Dollars and no cents); to deposit the settlement payment into the appropriate fund, and to declare an emergency.
Body
WHEREAS, the City and URS Corporation-Ohio, formerly URS-Grenier, Inc., ("URS") entered into a Professional Engineering Services Agreement dated July 18, 1997 whereby URS agreed to provide design and construction administration services to the City in connection with the Big Walnut Augmentation/Rickenbacker Interceptor ("BWARI") Project, the Big Walnut Outfall Augmentation Sewer ("BWOAS") Project and the Air Quality Control Facility ("AQCF") Project, and all referred to collectively as the "Project"; and
WHEREAS, URS and Lachel Felice & Associates, Inc., formerly Lachel & Associates, Inc., ("LFA") entered into an agreement dated December 2, 1997 whereby LFA agreed to provide certain professional services in connection with the Project as a subconsultant to URS; and
WHEREAS, the City entered into a contract with JayDee, Michels, Traylor Joint Venture ("JDMT") dated December 3, 2003 whereby JDMT agreed to undertake the construction for the BWARI Project including the Corrosion Protection Liner ("CPL") system that was specified therein; and
WHEREAS, during the construction phase of the BWARI Project, a dispute arose between the City and JDMT related to the installation of the CPL; and
WHEREAS, the City contended that to the extent it was liable to JDMT for alleged problems and issues related to the CPL system, then URS was responsible for the City's damages to JDMT; and
WHEREAS, URS contended that to the extent it was found liable to the City for the payment of damages to JDMT, that LFA was responsible to URS for the amounts URS was obligated to pay the City; and
WHEREAS, the parties participated in mediation, as a result of which the City, URS, LFA, and JDMT are desirous of setting forth their agreement as to the resolution and mutual release of claims between the parties and the consideration for accomplishing same; and
WHEREAS, there is an emergency in the usual daily operations of the Department of Public Utilities in that it is immediately necessary for the preservation of the public peace, safety and welfare that this settlement be approved and such payment be made, now therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Public Utilities is hereby authorized to settle and release all claims related to the dispute arising from the Big Walnut Augmentation/Rickenbacker Interceptor ("BWARI") project.
SECTION 2. That the Director of Public Utilities is hereby authorized to execute any agreements necessary and incident to the settlement and final resolution of these claims on behalf of the City.
SECTION 3. That the City Auditor is hereby authorized to accept the settlement funds upon receipt, and to deposit the same into the appropriate fund to the credit and benefit of the City into Department 60-05; Fund 671 Sanitary Sewer Permanent Improvement Fund; OCA 052564 Revenue- Fund 671.
SECTION 4. That for the reasons set forth in the preamble, which are incorporated by reference herein, this ordinance is hereby deemed to be an emergency measure necessary for the immediate preservation of the public peace, safety and welfare shall take effect and be in force from and immediately after its passage and signature by the Mayor, or within 10 days thereafter if the Mayor neither signs nor vetoes the same.