MODESTO — 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.