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HomeMy WebLinkAbout4296RESOLUTION N0.4296 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, APPROVING THE SETTLEMENT ~OF DISPUTED CLAIMS WITH FLAG CONSTRUCTION COMPANY FOR CONSTRUCTION ACTIVITIES AT THE VETERANS MEMORIAL BUILDING WHEREAS, the City of Auburn contracted for construction work in connection with the City of Auburn Veterans Memorial Building, awarding the bid for the work to Flag Construction Company; and WHEREAS, during the course of this. project, certain change orders were made by the City and others were required by errors in construction caused by Flag Construction Company; and WHEREAS, as a result of those changes, the City sought to impose liquidated damages for the delays caused by Flag Construction Company errors, and Flag Construction Company sought increased compensation for the additional work involved in this project (the City sought $16,200 in liquidated damages and Flag Construction Company claimed damages of between $75,000 and $2.1 million); and WHEREAS, pursuant to the agreement between the parties, such disputes are required to go to mediation prior to any litigation, and pursuant to the litigation involved in these disputes, a resolution of the disputed claims was reached, and WHEREAS, even though the City feels its position with respect to these claims is very defensible, in a cost benefit analysis, it would cost the city more to litigate the dispute than pay the amount that was ultimately agreed upon; and Resolution No. 4296 January 7, 2008 Page 1 of 3 WHEREAS, the terms of the resolution (settlement) are subject to approval by the City Council. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, HEREBY RESOLVES as follows: Section 1. That the Mayor is hereby authorized to execute on the City's behalf an agreement that settles the above-referenced disputes in accordance with the attachments hereto, marked as Exhibits A and B, respectively. Section 2. That the Mayor is authorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation. Section 3. That this Resolution shall take effect and be in full force upon passage and signatures hereon. ,~ .~ .~ Dated and Signed this ~ day of t,.._~~~~"- , 2008. r ,~ CITY Of t BURN ,,' ~ , , =~~ ____ - ,. ~. --._ PETER B. LEWIS MAYOR ATTEST: ~ ~~~~~~ D ielle E. Daskam, City Clerk Resolution No. 4296 January 7, 2008 Page 2 of 3 APP~ED /,~~FORM: Daniel B. Hei ~ Attorney Resolution No. 4296 January 7, 2008 Page3of3 Settlement Agreement January 3, 2008 Subject to City Council approval, which will be recommended by Mayor and the participants in this mediation, the undersigned hereby agree to the settlement of claims between Flag Construction Co., Inc., and the City of Aubum on the following terms and conditions. Although further consistent documents may follow, the parties intend this Agreement to be binding, subject to Council approval, consistent with CR 2A. 1. The parties will execute a full and final mutual release of all claims between them, actual and potential, related to the construction of a new community building at the City's Veterans Memorial Park (the "Veterans Memorial Building"). 2. The City will waive all claims for liquidated damages, including but not limited to its claim in the amount of $16,200. 3. The City will not assert any claims against the retainage. 4. The City will pay Flag $10,000 (in addition to the contract balance and retainage, when payable). Such $10,000 is in settlement of disputed claims and is not a contract payment. 5. The City does not admit liability as to any claim asserted by Flag. ~~w~~ ~" ~~'~ ~ G~~ ~~ c5~ ~'v~~ ~ 3~~ ~~ile,~ ~. ~~ ~7~~`a ~ f~`ds~r~ I ~` ~ ~ ~/a ~ 'mss G~-~-r:~ ~,1 A'~'`r ~. ~--- ~'~Z' `'~ RECEIPT, WAIVER AND RELEASE OF CLAIMS The City of Auburn ("City") and Flag Construction Company, Inc. ("Flag") hereby fully and finally release each other from any and all claims, whether existing or potential, stemming from, directly or indirectly, or arising out of the construction by Flag of the Veterans Memorial Building (City of Auburn Contract No. 06-15). Dated: CITY OF AUBURN FLAG CONSTRUCTION COMPANY, INC. Peter B. Lewis ,Mayor Richard E. Schnell, President Attest: Bv: Danielle E. Daskam. City Clerk STATE OF WASHINGTON ) )ss. County of King ) I certify that I know or have satisfactory evidence that Peter B. Lewis and Danielle E. Daskam were the persons who appeared before me, and said persons acknowledged that they signed this instrument, on oath stated that they were authorized to execute the instrument and acknowledged it as the MAYOR and CITY CLERK of the CITY OF AUBURN to be the free and voluntary act of such parties for the uses and purposes mentioned in this instrument. Dated Notary Public in and for the State of Washington residing at My appointment expires STATE OF WASHINGTON ) :ss COUNTY OF ) I certify that I know or have satisfactory evidence that Richard E. Schnell is the person who appeared before me, and said person acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument and acknowledged it as the President of Flag Construction Company, Inc. to be the free and voluntary act of such person for the uses and purposes mentioned in this instrument. Notary Public in and for the State of Washington residing at My appointment expires + O Z ~°,2 G' 3~DA0 y'4A. li~v9ta RECEIPT, WAIVER AND RELEASE OF CI.AIMS The City of Aubura ("CitY") and Flag Constrxtion Compmy, Inc. ("Flag") hereby fuily and finariy release each other fi+om aay and all claims, whether existing or potentiaal, stemming from, directly or indirecdy, or arising out of the coastruction by Flag ofthe Veterans Memorial Building (City of Auburn Contract No. 06-15). Dated: JAN 2 8 2008 OF FLAG CONSTRUCTION CO ANY, INC. Pe er B. 's , Mayor Richard E. Schnell, President Attest: BY: Danielle . Daskam. City Clerk Y' . STATE OF WASHINGTON ) - )ss• . County of King ) . I certify that I lamw or , have satisfactor~►- evide~►ce that Peter B. Levvis and Danielle E;. Daslcam were the pemns who qppwcd be6ore me, and said persons wlmowledged tbat : . , they signed this instr=ent, on oath stated that they were authorized to execute the inshumern and aclnowledged it as the MAYOR and CTI'Y CLEItK of the CITY OF AUBURN to be the fiEe and , volurnary act of sitth parties for tbe uses and purposes memtioa+ed in this instrumeirt. natea ~ P'R Y :0 .r'c ri 'Au ; W%~ N Public in and for the State of Washington ,C) at MY appoin+ment expires d.~ • y 2-°1 . . : hao~o ;Iq'~ Q\ ` - STATE OF WASHINGTON p e e ~ , . ' C~w~ S . COUNTY OF fJ ) c, ~ I certifjr ttat I laiow or haye sad'►sfitetorY evideace that Richard E. Schaell is the geison who • appeared before me, and said pmm aclmowledged that helshe sigzied this instcumcnt, on oath stated - that lielshe was authorized to execute the instcunnent and.aclmowledged it as the Presideat of Flag Conshuction CompanY, Inc. to be the frce and volucrtary act of such per9oa for the uses and pmpose.s memioned in this instrumeat: osryv''',~, , S~O,N F+q~~S Notary Pub ~ li an or the StaRe of Washington 'TaR` 1Vty~appoin ~S ~ D9 ~ Oc' 9 ~ S . = ~ I_'G~0 ~ . , Op WASN"-