The Colleyville City Council on Nov. 5 approved Resolution R-25588 authorizing the City Manager to enter into a settlement agreement with Martin Corporation not to exceed $1,368,405.37 to resolve litigation tied to the late completion of the city's Senior Center.

City Attorney (name not stated) told the council that the dispute stemmed from Martin Corporation's substantially late completion of the Senior Center and that the court of appeals had held the contract's liquidated-damages clause to be a penalty. "The court of appeals made that decision, here we are," the attorney said, summarizing the legal position that the city could not enforce the contract clause and instead must pay the contractor what it is owed plus interest and attorney fees.

Mayor Linda Mood opened a public hearing on the settlement. Former councilman George Dodson asked whether payments had been withheld; staff confirmed the city had asserted contract remedies before the appeals decision. Councilmember Bobby Graves, who moved the resolution, said he had visited the Senior Center and praised the facility's quality and community benefit.

The motion to adopt Resolution R-25588 was seconded by Councilmember Gunderson and passed, 7'0'00. The resolution authorizes the City Manager to execute the settlement and make appropriate payment in an amount not to exceed $1,368,405.37.

City staff said the outcome will change how the city approaches future construction contracts, noting a move toward performance-based payment structures to reduce the risk that liquidated-damages clauses could be treated as penalties in court. No additional legal appeals were announced at the meeting.

Action details

Motion: Adopt Resolution R-25588 authorizing settlement with Martin Corporation up to $1,368,405.37.
Mover: Councilmember Graves. Second: Councilmember Gunderson.
Vote: 7'0yes, 0'0no. (Recorded as 7'0'00; no individual roll-call objections were recorded in the meeting minutes.)