CM-2024-012 - 1/12/2024MUTUAL RELEASE
AND SETTLEMENT AGREEMENT
THIS MUTUAL RELEASE AND SETTLEMENT AGREEMENT, (the "Mutual Release") is effective as of
the �r day of December, 2023 by and between the City of Round Rock, Texas, a Texas home rule -
city (the "City"), and PM Construction & Rehab, LLC a Texas limited liability company, ("PMCR").
WHEREAS, the City and PMCR entered into that one certain Standard Form of Agreement
for the replacement and/or rehabilitation of the Chandler Creek 36-inch wastewater line (the
"Project"), dated the 31st day of August, 2022;
WHEREAS, the methodology used by PMCR to rehabilitate the wastewater interceptor
was by pipe bursting; and
WHEREAS, as part of Project, PMCR constructed a berm to prevent water from a near -by
detention pond from entering the entry and exit pits it excavated, -and the existing manhole that
was exposed; and
WHEREAS, during the Project, a large rain event occurred which caused the berm to be
compromised, which allowed a significant amount of water from the detention pond to drain into
the exposed manhole and the pits; and
WHEREAS, as a result, a massive amount of water flowed through the wastewater
interceptor to the Brushy Creek Regional Wastewater System ("BCRWWS"); and
WHEREAS, said water caused significant damage to the BCRWWS treatment plant, which
cost the City several hundred thousands of dollars to repair: and
WHEREAS, the City has requested PMCR to reimburse the City for the full cost of said
repairs; and
WHEREAS, PMCR has denied that it is responsible for any of the repairs or damages; and
WHEREAS, under the terms of the Agreement, the City is holding $149,000 in retainage;
WHEREAS, the parties understand and agree that all the claims asserted between them
are doubtful and in dispute; and
WHEREAS, the parties wish to settle their disputes and buy peace without admitting or
conceding any matter;
&"_ 2-0 2 �_- 0/ 2_
WHEREAS, PMCR has agreed that the City may keep $100,000 from the retainage, in
exchange for the City releasing any and all claims that the City may have against PMCR;
NOW THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1. Each party releases and forever discharges the other party to this Mutual Release and
the other party's predecessors, successors, assigns, and legal representatives.
z. Each party extends this Mutual Release to all claims, demands, actions, causes of
action arising out of the amount of water that was diverted into the wastewater
interceptor from the Project.
3. Each party acknowledges that it has read and understood the effect of this Mutual
Release. Each party also acknowledges that it executes this Mutual Release of its own
free will and accord, for the purposes and the considerations set forth in this Mutual
Release.
Executed to be effective this thJ day o rnber, 3.
CITY OF ROUND ROCK, TEXAS
J.aiee,, ity Manager
PM Construction & Rehab, LLC
By:
Thomas Gottsegen, Chief Legal Officer