Title
Request to Approve the Settlement of Claims regarding SW-548
Body
Agenda of: June 26, 2019
Item No.: 2019-257
Amount: N/A
TO: Legal Committee
Great Lakes Water Authority
FROM: Randal M. Brown, General Counsel
DATE: June 24, 2019
RE: Request to Approve the Settlement of Claims regarding SW-548
MOTION
Upon recommendation and opinion of Randal M. Brown, General Counsel, the Legal Committee for the Great Lakes Water Authority (GLWA):
1) Recommends to the Board that Sue McCormick, the CEO, and the General Counsel settle claims associated with Contract SW-548.
JUSTIFICATION
On or about April 12, 2010, Colasanti Construction Services, Inc. ("Colasanti") and the City of Detroit Water and Sewerage Department ("DWSD") entered into Contract SW-548 (the "Contract") for the construction of certain improvements at DWSD's Southwest Water Treatment Plant (the "Project"). The Great Lakes Water Authority ("GLWA") is the successor-in-interest to DWSD's rights and obligations under the Contract. The Project improvements included supply and installation, in each of four sedimentation basins, of certain components ("Collector Components") for construction of chain and flight sludge collector mechanisms (the "Collector Mechanisms"). Colasanti contracted with J.F. Cavanaugh Company ("Cavanaugh") via purchase order and subcontract, respectively, for the supply and installation of the Collector Components. Cavanaugh contracted with Siemens Water Technologies Corp. n/k/a Evoqua Water Technologies LLC ("EWT") via purchase order for the supply of the Collector Components. On April 6, 2013, DWSD issued its Certificate of Substantial Completion for the Project. Both prior to and after the Substantial Completion Certificate was issued, DWSD/GLWA reported inoperability of certain Collector Mechanisms and damage to certain Collector Components. Disputes and differences arose among the Parties relating to the Project including, but not limited to, the ...
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