DEPARTMENT: City Attorney
DEPARTMENT HEAD: Robert F. Greenblum
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Settlement of Silverado Brothers Const. Co. v. City of San Antonio
SUMMARY:
This ordinance authorizes a settlement of a lawsuit styled Silverado Brothers Const. Co. v. City of San Antonio, et al; No. 2010-CI-02197; in the 407th Judicial District Court of Bexar County, Texas for payment in the amount of $277,000 from the Self-Insurance Liability Fund.
BACKGROUND INFORMATION:
The City contracted with Silverado Brothers Construction Company to perform construction along Lockhill Selma from West Avenue to NW Military Highway. Silverado Brothers completed performance of the project but suffered delays totaling 168 days. The delays were caused by AT&T underground cables that were not identified before the project plans were bid. The project was shut down for several weeks so that the City could redesign the project to go around the previously undisclosed underground cables. As a result of these delays, Silverado Brothers has filed suit to recover monies for work performed. The Texas Legislature has waived immunity for municipal contract claims such as this one. Silverado Brothers and the City have agreed to resolve the claims for the amount of $277,000.
ISSUE:
Under the Texas Local Government Code, a municipality may be held liable for monies for work performed pursuant to a contract for the provision of goods or services.
ALTERNATIVES:
If the settlement agreement is not approved by City Council, the case will proceed to trial. It is in the best interest of the City to settle this matter to avoid the uncertainties and risks associated with a jury trial.
FISCAL IMPACT:
If approved, the $277,000 settlement will be paid to Silverado Brothers Construction Company and its attorney of record. This will be funded in accordance with the Adopted FY 2014 Liability Fund Budget.
RECOMMENDATION:...
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