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Home My WebLink About16422 ORD - 07/29/1981mb; 7/29/81,;lst AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A SETTLE- MENT AGREEMENT WITH GENERAL MOTORS CORPORATION IN CONNECTION WITH CIVIL ACTION C-80-151, ENTITLED CITY OF CORPUS CHRISTI VS. GENERAL MOTORS CORPORA- TION, PRESENTLY PENDING IN THE UNITED STATES DIS- TRICT COURT FOR THE SOUTHERN DISTRICT OF TEXAS AND UNDER WHICH AGREEMENT GENERAL MOTORS WILL PAY $27,900 IN CASH, REPRESENTING 60% OF THE ESTIMATED COST OF REPAIRING 15 BUSES PURCHASED FROM GENERAL MOTORS IN 1976; ALL AS MORE SPECIFICALLY SET FORTH IN THE GENERAL RELEASE, A SUBSTANTIAL COPY OF WHICH IS ATTACHED HERETO AS EXHIBIT "A"; AND DECLARING AN EMERGENCY. WHEREAS, in June, 1976 the City contracted with General Motors Corporation for the purchase of 15 diesel powered transit type coaches for use in the City's municipal transit system; WHEREAS, shortly after delivery of these coaches, they deve- loped substantial rust and corrosion which required considerable repair work at the City's expense; WHEREAS, on October 27, 1980, the City filed a lawsuit against General Motors Corporation entitled City of Corpus Christi vs. General Motors Corporation, Civil Action C-80-151, in the United States District Court for the Southern District of Texas, for breach of warranty and breach of contract; arid WHEREAS, in order to avoid further expense of litigation and to resolve their outstanding differences, the City of Corpus Christi and General Motors Corporation desire to enter into a settlement agree- ment under the terms described in Exhibit "A" to this ordinance; NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager be and is hereby authorized to execute a settlement agreement with General Motors Corporation whereby General Motors will pay the City $27,900 in cash, representing 60% of the estimated cost of repairing the rusted condition of 15 buses purchased from General Motors in 1976, which damages are the subject of the afore- mentioned lawsuit; all is more fully set forth in the general release agreement a substantial copy of which is attached hereto as Exhibit "A" and made a part hereof. 16422 OFILNIEQ SEP 27 1984 SECTION 2. That upon written request of the Mayor or five Council members, copy attached, to find and declare an emergency due to the need for preserving public property by executing the above contract and expediting repair of above equipment, such finding of an emergency is made and declared requiring suspension of the Charter rule as to consideration and voting upon ordinances or resolutions at three regular meetings so that this ordinance is passed and shall take effect ufirst reading as an emergency measure this ,29 day of , 1981: ATTEST: 7. BiG. Read, iC ry Secretary MAYOR II TH CIT `IF CORPUS CHRISTI, TEXAS APPROVED: GAN DAY OF , 1981: J. BRUCE AYCOCK, CITY ATTORNEY ity Attorney J GENERAL RELEASE FOR AND IN CONSIDERATION of the payment of the sum of TWENTY-SEVEN THOUSAND NINE HUNDRED ($27,900.00) DOLLARS, the receipt and sufficiency of which is hereby acknowledged, the City of Corpus Christi, Texas, by and through its duly authorized agents, hereby RELEASE, ACQUIT and FOREVER DISCHARGE General -Motors Corporation and GMC Truck and Coach Division and their respective successors, officers, directors; -employees, attorneys and agents of and from any and all actions, causes of action, claims, demands, damages, costs and expenses (including all court costs and attorneys' fees) and -compensation on account thereof, which in any way grow out of, or are associated -with, whether direcLly or indirectly, the purchase of fifteen (1-5) Diesel Powered Transit Type Coaches and any --and- all repairs - and maintenance on the same_and, further, which in any --way relate to any and all warranties and representations and all other rights of any and all kinds whatsoever, pertaining to the same, in addition to any and all other claims, demands and causes of action of any and every character, whether=sounding_ in contract or tort, which have accrued, or -may have accrued, on account of, or in any way connected with, the purchaseor maintenance of the aforesaid vehicles and/or any acts and/or events subsequently accruing in connection_withany dispute regarding any rights asserted by the said releasing party hereto. in connection with said vehicles and further releasing,_ without limitation, any and all claims, transactions, events and causes of action which are, or may have been, described in that certain civil action filed in the United States District Court, Southern District of Texas, Corpus Christi Division as Cause No. C- 80-151 and styled "City of Corpus Christi, Plaintiff .vs. General Motors Corporation, Defendant". - IT IS FURTHER UNDERSTOOD that this settlement is in compro- mise of doubtful and disputed claims and the said civil suit 2 --Yew ••• and all rights of the undersigned pertaining thereto, and that the payment hereof is not to be construed as an admission of liability on the part of General Motors Corporation and GMC Truck and Coach Division and persons hereby released or of their said respective officers, directors, employees, attorneys or agents, by whom liability is expressly denied, but.the said settlement is made for the purpose of the released parties 'and other persons buying their peace and avoiding continued costs of litigation. - - IT IS FURTHER UNDERSTOOD that the afuLesaid cause of action presently pending in said United States District Court, is to be dismissed immediately and the undersigned -does hereby authorize and direct that its attorneys sign the necessary. stipulation and agreement to so dismiss said cause with prejudice and that all Court costs are to be assessed against the Plaintiff. - This Release contains the entire agreement between -the, parties hereto, and the terms of this -Release are contractual - in nature. WITNESS ITS CORPORATE HAND AND SEAL this July, 1981. ATTEST: day of CITY_OF-CORP-US:CHRISTI, TEXAS By By Bill Read, City Secretary _ R. Marvin Townsend, Ci , Manager APPROVED: J. BRUCE AYCOCK, CITY ATTORNEY By Assistant City Attorney STATE OF TEXAS X COUNTY OF NUECES X s Lont.s,V, istant City Manager BEFORE ME, the undersigned authority, on this day personally appeared - - - for the City of Corpus Christi, Texas, a municipal corporation, known to me to be the person whose name is subscribed to the fore- going instrument, and acknowledged to me that the executed the same for the purposes and consideration therein expressed, in the capacity therein stated, and as the act and deed of said corporation. GIVEN UNDER MY HAND AND SEAL OF OFFICE on this the day of July, 1981. Notary Public Nueces County, Texas Corpus Christi, Te as ' 29 day of TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas , 1981 For the reasons set forth in the emergency clause of the foregoing ordinance or resolution, an emergency exists requiring suspension of the Charter rule as to consideration and voting upon ordinances or. resolutions at three regular meetings; .I/we, therefore, request that you suspend said Charter rule and pass this ordinance or resolution finally on the date it is, introduced, or at the present meeting of the City Council. - Respectfully, Council Members Respectfully. MAY THE C i' OF CORPUS CHRISTI, TEXAS The above ordinance was passed by the foll.wing vote: Luther Jones Betty N. Turner Jack K. Dumphy Bob Gulley Herbert L. Hawkins, Jr. Dr. Charles W. Kennedy Cliff Zarsky 16422