The City engaged Collective Minds LLC to perform emergency water line repairs following a drought in 2023. The City of Houston, through Houston Public Works, entered into an agreement for EPO No. 450040404613-0 based on Emergency Purchase Justification No. SPD-JSA-08092023-003 with Collective Minds LLC. Collective Minds LLC subcontracted the water line repairs to subcontractors, Capital Underground Utilities LLC, Precision Construction Utilities LLC, Virtual Asset Holdings, LLC, Truline Construction & Development, and Texas Pro Grading.
After matters involving Patrece Lee (a manager at HPW) came to light, the City placed a hold on payment for emergency water line repairs. Collective Minds LLC filed suit against the City of Houston seeking to recover the contractual amounts owed plus interest and attorney’s fees.
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 $790,315.00 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.
Fiscal Note:
Funding for this 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
Estimated Spending Authority
|
Department
|
FY2026
|
Out Years
|
Total
|
|
Houston Public Works
|
$790,315.00
|
$0
|
$790,315.00
|