ORDINANCE approving and authorizing Final Settlement, Release, and Indemnity Agreement between City of Houston and SPACE CITY ENVIRONMENTAL, INC and approving and authorizing Final Settlement, Release and Indemnity Agreement between City of Houston and BUCKED UP CONSTRUCTION, LLC and TEXAS OVER-ALL LLC, to settle two related disputes - $630,727.42 - Enterprise Fund

ORDINANCE approving and authorizing two Final Settlement, Release and Indemnity Agreements (“Releases”) in related pre-litigation disputes.  Prime contractor, Space City Environmental, Inc. (“Space City”), brought the original claim for unpaid invoices for emergency water line repairs approved by Patrece Lee.  Subcontractors Texas Over-All LLC (“Texas Over-all”), Bucked Up Construction (“Bucked Up”), and TJ Cole Enterprises, LLC (TJ Cole), claim an interest in Space City’s accounts receivable.  The two settlements, which are bound together, total $630,727.42.  Under the settlement, the City will pay  $535,000.00 to Space City Environmental, Inc., $49,000.00 to Texas Over-all LLC, and $46,727.42 to Bucked Up Construction, LLC.  Additionally, the agreement requires Space City to pay $2,800.00 to TJ Cole Enterprises out of the settlement funds and to indemnify the City for any claim brought by TJ Cole Enterprises. 

Funding for the item is included in the FY2026 Adopted Budget.  Therefore, no Fiscal Note is required as stated in the Financial Policies.

Arturo G. Michel, City Attorney

$630,727.42      

Water and Sewer System Operating Fund

Fund No.: 8300

Eric Laskowski                        832-393-6475

Suzanne Chauvin                   832-393-6219

Jamie Wolf                              832-393-6367