Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Settlement topic
No spam. Unsubscribe anytime.
Diversion Authority finalizes $57 million settlement, approves ICE advance amendment
Summary
The Metro Flood Diversion Authority on Dec. 18 approved a definitive settlement and related contract amendments that finalize a previously agreed $57,000,000 settlement and raise the ICE advance facility cap to $90,000,000 to address a calculation issue and support pay‑unit cash flow.
The Metro Flood Diversion Authority on Dec. 18 approved a definitive settlement and related contract amendments that formalize a previously negotiated $57,000,000 settlement with the project's public‑private developer and amend the project payment facility to correct a calculation and raise the ICE advance cap to $90,000,000.
John Shockley summarized the agreement for the board, saying the settlement was structured “to resolve all known and foreseeable claims as of the date of the settlement” and that the Authority had already made initial payments under the arrangement. He explained the ICE Advance amendment “corrects that mathematical issue to raise it to the $90,000,000.”
The settlement package, described to the board as the culmination of the statement of principles agreed in July, also includes an amended and restated project agreement and a D&C contract amendment. Shockley said the settlement uses a structured payment mechanism, with an initial $10,000,000 payment and subsequent payments tied to construction milestones (for example, bridge and rail corridor openings and aqueduct completion). The board was told a $10,000,000 risk‑sharing fund was established to address any future valid claims before other remedies are invoked.
A member moved to approve the resolution to amend and restate the ICE Advance Agreement. The motion was seconded and the board approved by roll call. A second motion to approve the related amended and restated project agreement was also moved, seconded and adopted by roll call.
Board members were repeatedly told the actions do not change the project’s rebaseline schedule (substantial completion was described as October 2026 in the presentation) and that the amendments make the prior statement of principles final and enforceable. The presentation reiterated that the changes carry forward payment structures and governance teams established under the statement of principles.
Next steps described to the board were final execution of signature pages by the parties and a formal closing once all documents are signed.
