R-03-12-18-8G5 - 12/18/2003RESOLUTION NO. R -03-12-18-8G5
WHEREAS, on November 14, 2002, the City of Round Rock ("City")
entered into a contract with Gulf States Protective Coatings, Inc.
("Gulf States") for the 2002-2003 Water Storage Tank(s) Rehabilitation
Project (Proposal B), and
WHEREAS, the City has incurred additional quality control
inspection fees in the amount of $15,015.00 as a result of Gulf States'
delays in completing the Project, and
WHEREAS, Gulf States has agreed to reimburse the City for the
additional inspection costs by deducting said amount from its final
compensation, and
WHEREAS, the City and Gulf . States desire to enter into a
Settlement Agreement and Release in regards to this matter, Now
Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS,
That the Mayor is hereby authorized and directed to execute on
behalf of the City a Settlement Agreement and Release with Gulf States
Protective Coatings, Inc., a copy of same being attached hereto as
Exhibit "A" and incorporated herein for all purposes.
The City Council hereby finds and declares that written notice of
the .date, hour, place and subject of the meeting at which this
Resolution was adopted was posted and that such meeting was open to the
public as required by law at all times during which this Resolution and
the subject matter hereof were discussed, considered and formally acted
upon, all as.required by the Open Meetings Act, Chapter 551, Texas
Government Code, as amended.
@PFDesktop\::ODMA/WORLDOX/O:/WDOX/RESOLUTI/R3i21BG5.WPD/SC
RESOLVED this 18th day of December, 2003
AMT:
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taw
CHRISTINE R. MARTINEZ, City Sec tart'
11/07/2003 FRI 12:17 FAX SHEETS & CROSSFIELD P.C.
SETTLEMENT AGREEMENT AND RELEASE
This SETTLEMENT AGREEMENT and RELEASE is entered into this day of
2003, by and between City of Round Rock, a home -rule municipal
corporation ("CORR"), and Gulf States Protective Coatings, Inc., a Texas corporation ("GULF
STATES')
WITNESSETII:
Q003/006
WHEREAS, on or about November 14, 2002, the CORR and GULF STATES entered an
Agreement wherein GULF STATES agreed to perform rehabilitation and painting water tanks in
Proposal B to the 2002 CIP Tank Rehabilitation Project which consisted of the Lake Creek Water
Tank and the Chandler Creek Elevated Water Tank (the "Project';
WHEREAS, the terms ofthe Agreement allow a five percent (5%) retention to be kept from
each monthly payment until final payment (the "Retainage");
WHEREAS, on or about September 26, 2002, the CORR entered an Agreement with john
H. Konzen ("Consultant") for consulting, project construction administration and management, and
inspection of all of the tanks included in the 2002 CIP Tank Rehabilitation Project, including those
for the Project;
WHEREAS, an additional seventy-seven (77) days of quality control inspection were
required for the Project at an additional cost of Fifteen Thousand Fifteen Dollars ($15,015.00)
("Additional Inspection Costs");
WHEREAS, Consultant has made a claim to CORR for the Additional Inspection Costs; and
WHEREAS, GULF STATES has agreed to deduct the Additional Inspection Costs from the
Retainage held by CORR,
NOW TFIEREFORE, in consideration of the mutual promises and covenants contained
herein, the adequacy and sufficiency of which are hereby acknowledged, and with the intent to be
legally bound hereby, the parties hereto agree as follows:
1. DEDUCTION FROM IIETENTTON
GULF STATES agrees that CORR may deduct the Additional Inspection Costs from the
Retainage held by CORR, and
2. RELEASE By CLAIMANTS
In consideration of the deduction of the Additional Inspection Costs and other good and
valuable consideration, receipt of which is hereby acknowledged and the sufficiency of which may
Page 1 of 4
EXHIBIT
D
D "All II
11/07/2003 FRI 12:17 FAX SHEETS & CROSSFIELD P.C.
Q004/006
not be challenged, CORR does hereby remise, release and discharge GULF STATES and all of its
current, former, and future Officers, directors, employees, servants, agents, shareholders, affiliates,
attorneys, representatives, successors and assigns thereof, and all of their heirs, executors, and
administrators, ("THE RELEASED PARTIES"), of and from any and all manner of actions, causes
of action, suits, debts, dues, accounts, bonds, covenants, contacts, agreements, judgments, costs,
claims and demands whatsoever in law or in equity, foreseen or unforeseen, matured or unmatured,
known orunknown, accrued or not accrued, including, without limitation, claims for attorneys' fees,
claims for defense, indemnity, "bad faith", extra -contractual damages, punitive damages, or any
Other claim whatsoever, whether fixed or contingent, liquidated or unliquidated, direct or indirect,
known or unknown, in connection with, resulting from, or to result from, any damages suffered by
CORR relating to incurring additional quality control inspection days by the Consultant and
otherwise referred to herein as Additional Inspection Costs which against THE RELEASED
PARTIES, CORR ever had, now has, or may have in the future, for or by reason of any cause, matter
or thing whatsoever from the beginning of the world to the date of these presents.
3• SIETTLEA= OF CLAIM
CORR acknowledges that this Settlement Agreement and Release is being offered as a settlement
of a claim and is not an admission by THE RELEASED PARTIES of liability or ofany other matter
not expressly addressed in this Settlement Agreement and Release. The parties further agree that this
matter is being settled as purely a business decision without regard to the merits of any additional
quality control inspection days,
4. ADVICE OF COUNSEL
CORR fu ther represents that thcyhave carefullyread this Settlement Agreement and Release
and know the contents thereof, and acknowledge that they have had the opportunityto berepresented
by counsel oftheir choosing in connection with all matters relating to this Settlement Agreement and
Release and that they are signing this of their own free will.
5. AGREEMENT IS-LE—GALLY BMIN
CORR further agrees that they intend to be legally bound by the promises contained herein
and that they are not relying on any representation or statements of THE RELEASED PARTIES or
any of them, or any of their agents, representatives, or attorneys, in deciding to enter into this
Settlement Agreement and Release.
b. AGREEMENT WAS NIEGOTIATFD
The parties represent and agree that this Settlement Agreement and Release supersedes any
and all oral cornmunications or prior written communications between the parties or their counsel
pertaining to the resolution of this claim, THIS WRITTEN AGREEMENT REPRESENTS THE
FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY
Page 2 uf4
11/07/2003 FRI 12:18 FAX SHEETS & CROSSFIELD P.C.
U005/006
EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS
AMONG TIIE PARTIES.
7• ENTIRE A RE.EMENT
The parties agree that this Settlement Agreement and Release represents the entire agreement
between the parties and that there are no other agreements with regard to the settlement of this claim.
No amendment to, modification or waiver, or consent with respect to, any provision of this
Agreement shall be effective unless the same shall be in writing and signed by the Party against
whom enforcement of the amendment, modification, waiver or consent is sought.
8. GOVERNTNGLAW AND VENUE
This Agreement shall be construed and interpreted in accordance with and governed by the
laws of the State of Texas, without regard to choice of l aw principles. Venue shall be in Williamson
County, Texas.
9. HEADINGS
The headings contained in this Agreement are merely for convenience of reference and shall
not under any circumstances affect the meaning or interpretation of this Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
as of the day and year first above written,
GULF STATES PROTECITVE
COATINGS, INC.
C
By: Jane McKenzie
Title: President
CITY OF ROUND ROCK
By: Nyle Maxwell
Title: Mayor
Pagc 3 of 4
' 11/07/2009 FRI 12:•18 FAX SHEETS & CROSSFIELD P.C. 11006/006
STATE OF TEXAS
COUNTY OF WILLIAMSON
SUBSCRIBED ANIS SWORN TO before me by lane McKenzie, President of Gulf States
Protective Coating, Inc., on this /,3y -A day Of November, 2003.
GLENN M. FOWLER
MY COMMISSION EXPIRES
AUGUST 29, 2005
STATE OF TEXAS §
COUNTY OF WILLIAMSON §
Notary Public, State of Tcxas
My Commission Expires:_ f' 9 —O <S
SUBSCRIBED AND SWORN TO before me by Nyle Maxwell, Mayor of the City of Round
Rock, on this day of November, 2003.
Notary Public, State of Texas
My Commission Expires:
Pagc 4 of 4
Legend
• Tanks
CHANDLER CREEK TANK
N 2002-2003 TANK
W
E REHABILITATION PROJECT
'ROUND ROCK, TEXAS
S PROPOSAL "B'' IA PROSPEMY
S/GRAPHICS/ENGINEERING/TANK REHAB PROJ
DATE: December 12, 2003
SUBJECT: City Council Meeting - December 18, 2003
ITEM: 8.G.5. Consider a resolution authorizing the Mayor to execute a
Settlement Agreement and Release with Gulf States Protective
Coatings, Inc. for the 2002-2003 Water Storage Tank(s)
Rehabilitation Project - Proposal B.
Resource: Tom Word, Chief of Public Works Operations
Tom Clark, Director of Utilities
History: This Settlement Agreement and Release Document was prepared by the
City Attorney's Office and has been agreed to by Gulf States Protective
Coatings, Inc.
With the execution of this Settlement Agreement and Release Document
we can closeout this project. Therefore, we recommend approval of this
resolution to reduce the final payment in the amount of $15,015.00.
Funding:
Cost:
Source of funds:
Outside Resources:
($15,015.00)
Capital Project Funds (Self -Financed Utility)
Gulf States Protective Coatings, Inc.
Impact/Benefit: Contractor and not the City will pay for the contractors
additional inspections that were due to the contractor's delays
Public Comment: N/A
Sponsor: N/A
EXECUTED
DOCUMENT
FOLLOWS
11/07,/2003 FRI 12:17 FAX SHEETS & CROSSFIELD P.C.
SETTLEMENT AGREEMENT AND RELEASE
This SETTLEMENT AGREEMENT and RELEASE is entered into this /9 day of
, 2003, by and between City of Round Rock, a home -rule municipal
corporation ("CORR"), and Gulf States Protective Coatings, Inc., a Texas corporation ("GULF
STATES")
WITNESSETH -
WHEREAS, on or about November 14, 2002, the CORR and GULF STATES entered an
Agreement wherein GULF STATES agreed to perform rehabilitation and painting water tanks in
Proposal B to the 2002 CIP Tank Rehabilitation Project which consisted of the Lake Creek Water
Tank and the Chandler Creek Elevated Water Tank (the "Project");
WHEREAS, the terms ofthe Agreement allow a five percent (5%) retention to be kept from
each monthly payment until final payment (the "Retainage");
WHEREAS, on or about September 26, 2002, the CORR entered an Agreement with John
H. Konen ("Consultant") for consulting, project construction administration and management, and
inspection of all of the tanks included in the 2002 CIP Tank Rehabilitation Project, including those
for the Project;
WHEREAS, an additional seventy-seven (77) days of quality control inspection were
required for the Project at an additional cost of Fifteen Thousand Fifteen Dollars ($15,015.00)
("Additional Inspection Costs ,);
WHEREAS, Consultant has made a claim to CORR for the Additional Inspection Costs; and
WHEREAS, GULF STATES has agreed to deduct the Additional Inspection Costs from the
Retainage held by CORK,
NOW THEREFORE, in consideration of the mutual promises and covenants contained
herein, the adequacy and sufficiency of which are hereby acknowledged, and with the intent to be
legally bound hereby, the parties hereto agree as follows:
1. DEDUCTION FROM RETENTION
GULF STATES agrees that CORR may deduct the Additional Inspection Costs from the
Retainage held by CORR, and
2. RELEASE BY CLAIMANTS
In consideration of the deduction of the Additional Inspection Costs and other good and
valuable consideration, receipt of which is hereby acknowledged and the sufficiency of which may
Page l of 4
Q 003/006
11/07/2003 FRI 12:17 FAX SHEETS & CROSSFIELD P.C.
Z004/006
not be challenged, CORR does hereby remise, release and discharge GULF STATES and all of its
current, former, and future officers, directors, employees, servants, agents, shareholders, affiliates,
attorneys, representatives, successors and assigns thereof, and all of their heirs, executors, and
administrators, ("THE RELEASED PARTIES"), of and from any and all manner of actions, causes
of action, suits, debts, dues, accounts, bonds, covenants, contacts, agreements, judgments, costs,
claims and demands whatsoever in law or in equity, foreseen or unforeseen, matured or unmatured,
known orunknown, accrued or not accrued, including, without limitation, claims for attorneys' fees,
claims for defense, indemnity, "bad faith", extra -contractual damages, punitive damages, or any
other claim whatsoever, whether fixed or contingent, liquidated or unliquidated, direct or indirect,
known or unknown, in connection with, resulting from, or to result from, any damages suffered by
CORR relating to incurring additional quality control inspection days by the Consultant and
otherwise referred to herein as Additional Inspection Costs which against THE RELEASED
PARTIES, CORR ever had, now has, or may have in the future, for or by reason of any cause, matter
or thing whatsoever from the beginning of the world to the date of these presents.
3. SETTLEMENT OF CLAIM
CORR acknowledges that this Settlement Agreement and Release is being offered as a settlement
of a claim and is not an admission by THE RELEASED PARTIES of liability or of any other matter
not expressly addressed in this Settlement Agreement and Release, The parties further agree that this
matter is being settled as purely a business decision without regard to the merits of any additional
quality control inspection days.
4. ADVICE OF COUNSEL
CORR further represents that theyhave carefullyread this Settlement Agreement and Release
and know the contents thereof, and acknowledge that they have had the opportunity to be represented
by counsel of their choosing in connection with all matters relating to this Settlement Agreement and
Release and that they are signing this of their own free will.
5. AGREEMENT IS LEGALIY BINDING
CORR further agrees that they intend to be legally bound by the promises contained herein
and that they are not relying on any representation or statements of THE RELEASED PARTIES or
any of them, or any of their agents, representatives, or attorneys, in deciding to enter into this
Settlement Agreement and Release.
b. AGREEMENT WAS NEGOTIATED
The parties represent and agree that this Settlement Agreement and Release supersedes any
and all oral communications or prior written communications between the parties or their counsel
pertaining to the resolution of this claim, TIIIS WRITTEN AGREEMENT REPRESENTS THE
FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY
Page 2 vf 4
11/07/2003 FRI 12:18 FAX SHEETS & CROSSFIELD P.C.
2005/006
EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS
AMONG TIIE PARTIES.
7. ENTIRE AGREEmENT
The parties agree that this Settlement Agreement and Release represents the entire agreement
between the parties and that there are no other agreements with regard to the settlement of this claim.
No amendment to, modification or waiver, or consent with respect to, any provision of this
Agreement shall be effective unless the same shall be in writing and signed by the Party against
whom enforcement of the amendment, modification, waiver or consent is sought.
S. GOVERNING LAW AND VENUE
This Agreement shall be construed and interpreted in accordance with and governed by the
laws of the State of Texas, without regard to choice of law principles. Venue shall be in Williamson
County, Texas.
9. HEADINGS
The headings contained in this Agreement are merely for convenience of reference and shall
not under any circumstances affect the meaning or interpretation of this Agreement.
IN WITNESS WHEREOF, the parties hereto have caused. this Agreement to be executed
as of the day and year first above written,
GULF STATES PROTECTIVE
COATINGS, INC.
By: Jane McKenzie
Title: President
CITY OF ROUND
Mayor
Page 3 of 4
11/07/2003 FRI 12:18 FAX SHEETS & CROSSFIELD P.C. Q006/006
STATE OF TEXAS §
§
COUNTY OF WILLIAMSON §
SUBSCRIBED AND SWORN TO before me by lane McKenzie, President of Gulf States
Protective Coating, Inc., on this day of November, 2003.
GLENN M. FOWLER
;s ni
• •' MY COMMISSION EXPIRES
.£ AUGUST 29, 2005
STATE OF TEXAS §
COUNTY OF WILLIAMSON §
Notary Public, State of Tcxas
My Commission Expires, �� Q d
SUBSCRIBED AND SWORN TO before me by Nyle Maxwell,Mayor of the City OfRound
Rock, on this %g day of X2003.
Notary Public, State of Texas
My Commission Expires:
Pagc 4 of 4