I Placement: New Business
Action Requested: Motion / Vote
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Authorize Staff & the City Attorney's Office to Take All Actions Necessary to Preserve the City's Right and Interests In Its Property Affected by Aquifer Maintenance Performance Systems, Inc. ("AMPS") Including Taking Legal Action.?
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Submitted By: Richard Shiller, Deputy City Attorney, City Attorney's Office
Strategic Plan Link: The City's Mission to enhance our community's safety.
Executive Summary (General Business): ??On August 8, 2022, the City Council authorized the Utility Services Department (USD") to enter into a contract with AMPS for annual wellfield maintenance. During a routine maintenance inspection, the USD discovered that parts of Well #12 would need to be removed and replaced; the contract with AMPS was utilized to perform this work. During AMPS' work, a catastrophic drill pipe failure occurred when a drilling pipe used by AMPS became lodged in the pipe's casing, thus causing damage to the well. Attempts to dislodge the drill pipe were unsuccessful. Since October 1, 2023, Well #12 has been completely inoperable. It has been determined by USD that the damaged well must be replaced with a new well, the cost of which is expected to exceed $460,000.00. The City submitted a claim through Relation, which notified Engle Martin, the City's excess carrier. They, in turn, hired an engineering firm to assess the damage. Because it was determined that the damage was caused by AMPS' negligence, the excess carrier denied the City's claim. AMPS is insured by Allied World Insurance Company, which has hired an insurance adjuster to evaluate the City's claim. To date, there has been no resolution of the City's claim. The statute of limitations to file a lawsuit against AMPS runs on October 6, 2025. ?
Presentation Information: There is no formal presentation, but staff is available for questions.
Staff Recommendation: Move that the Council authorize Staff and the City Attorney's Of...
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