Modesto, MID receive $8.5M in water plant settlement

Bee Staff ReportsMay 9, 2013 

— Modesto officials have confirmed that the city and the Modesto Irrigation District received $8.5 million from Black & Veatch to settle a legal dispute over an upgrade of the Modesto Regional Water Treatment Plant.

Black & Veatch was hired to provide design, engineering and construction serv- ices for the plant upgrade, a joint project between the city and the MID to provide clean water for residents, businesses and industrial users. The two accused Black & Veatch and others of faulty work on the project, located east of Waterford near the Modesto Reservoir.

The city released the settlement agreement Thursday.

The MID received the $8.5 million, as well as an additional $400,000 from Black & Veatch.

The MID said it also has received $6 million from Western Summit Constructors of Denver, the master contractor; Big B Construction, a concrete subcontractor in Stockton; along with other financial concessions such as discounts, waived claims, releases of disputed payments and special arrangements-cooperation with regard to the project completion.

The estimated shortfall to finish the project remains at $7.5 million, with Modesto and the MID continuing to negotiate how to apportion that amount.

Repair work on the plant has resumed with an estimated completion date of mid-2015.

The settlement agreement states that there is no admission of wrongdoing by any of the parties.

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