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190 <br />COUNCIL MEETING MAY 24, 1993 <br />ATTORNEY'S REPORT <br />Consideration of Settlement Concerning Arcon Construction, <br />Reshanau Trunk Sewer/Brandywood Estates - Mr. Hawkins reported a <br />tentative settlement agreement and asked that the Mayor and City <br />Clerk be authorized to sign the settlement agreement. <br />Mr. Hawkins outlined the settlement agreement for Brandywood <br />Estates. Arcon Construction has agreed to accept the $30,000.00 <br />retainage. The City will pay $20,000.00 and SEH has agreed to <br />pay the balance of $10,000.00. The City is collecting <br />assessments that will cover the entire $20,000.00 settlement <br />amount. <br />Mr. Hawkins outlined the settlement agreement for the Reshanau <br />Trunk Sewer Improvement. Originally, Arcon Construction <br />contended that they were entitled to additional compensation <br />because of the additional dewatering expenses incurred because of <br />the exceptional amount of rain that fell during the construction <br />of the project. In addition, the City held $75,000.00 of the <br />contract because Arcon Construction had not completed the project <br />in a timely manner as required by the contract. Settlement <br />negotiations have been completed on this matter and the agreement <br />requires that the City pay Arcon Construction $63,385.00 of the <br />remaining contract amount. <br />Mr. Hawkins asked for authorization to execute the settlement <br />agreement. <br />Council Member Kuether asked if the projects have been completed. <br />Mr. Hawkins explained that both projects are complete, however, <br />the Reshanau Trunk Sewer Improvement was not completed in a <br />timely manner. Arcon Construction had started the litigation <br />because of the dewatering problem but has now settled for less <br />than the contact amount. <br />Council Member Kuether moved to accept the settlement agreements <br />and authorize Mr. Hawkins to execute the settlement agreements. <br />Council Member Neal seconded the motion. Motion carried <br />unanimously. <br />CONSIDERATION OF RESOLUTION NO. 17 - 93 ADOPTING THE LINO LAKES <br />SAFETY POLICY <br />Mr. Asleson explained that several weeks ago, the City Council <br />was given copies of the proposed Safety Policy for their review. <br />He asked that the City Council approve the Safety Policy so that <br />it can be implemented. <br />PAGE 9 <br />1 <br />1 <br />1 <br />