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CITY OF HOUSTON - CITY COUNCIL
Meeting Date: 5/6/2025
ALL
Item Creation Date: 4/9/2025
Cause No. 2024-38922: St Harlem Construction, LLC and AmeriFactors Financial Group, LLC v City of Houston, in the 80th Judicial District Court of Harris County, Texas/Cause No. 2024-24785: V&S Construction, LLC v City of Houston, in the 152nd Judicial District Court of Harris County, Texas
Agenda Item#: 17.
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| | | | | | | | Summary:
ORDINANCE approving and authorizing Settlement, Release and Indemnity Agreement between City of Houston and ST. HARLEM CONSTRUCTION, LLC and AMERIFACTORS FINANCIAL GROUP LLC; and a Settlement, Release and Indemnity Agreement between City of Houston and V&S CONSTRUCTION LLC; to settle two related lawsuits - $1,066,255.38 - Enterprise Fund |
| | | | | | | | Background:
The City engaged St. Harlem to perform emergency water line repairs following a drought in 2023. The City of Houston, through Houston Public Works, entered into Contract No. SPD-CMH-082420 with St. Harlem Construction LLC. St. Harlem subcontracted the water line repairs to V&S Construction and Earth Engineering, Inc. St. Harlem assigned some of its accounts receivable to Amerifactors, a factoring company.
After matters involving Patrece Lee (a manager at HPW) came to light, the City placed a hold on payment for emergency water line repairs. St. Harlem and Amerifactors filed suit against the City of Houston seeking to recover the contractual amounts owed ($1,299,350.67) plus interest and attorney’s fees. V&S Construction also filed a separate lawsuit seeking to recover against the City directly. Earth Engineering did not file suit, but claims it is owed $12,255.38.
The City Attorney recommends that Council adopt an Ordinance authorizing and approving the Settlement Release and Indemnity Agreements in the above referenced lawsuits, and approve and authorize payments totaling $1,066,255.38 out of the Water and Sewer System Operating Fund 8300 in settlement of all claims.
The settlement requires all parties to settle contemporaneously such that all parties’ claims are resolved. Therefore, both settlement agreements are presented in this ordinance. |
| | | | | | | | Prior Council Action:
None |
| | | | | | | | Amount and Source of Funding:
Fiscal Note: Funding for the item is included in the FY2025 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policies.
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Estimated Spending Authority
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DEPARTMENT
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Current FY
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Out Year
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TOTAL
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Houston Public Works
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$ 1,066,255.38
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$ -
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$ 1,066,255.38
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Total
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$ 1,066,255.38
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$ -
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$ 1,066,255.38
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Arturo G. Michel, City Attorney
Prior Council Action:
None
Amount of Funding:
$1,066,255.38
Water and Sewer System Operating Fund
Fund No.: 8300 |
| | | | | | | | Contact Information:
Eric Laskowski 832-393-6475
Suzanne Chauvin 832-393-6219
ATTACHMENTS:
Description Type
Final Settlement, Release and Indemnity Backup Material
Agreement for St. Harlem and Amerifactors
Final Settlement, Release and Indemnity Backup Material
Agreement for V&S Construction
Cover Sheet Signed Cover Sheet
Ordinance Ordinance/Resolution/Motion |
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