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HomeMy WebLinkAboutCC RES 92-017 RESOLUTION APPROVING THE SETTLEMENT AGREEMENT BETWEEN THE CITY OF ST. ANTHONY AND NEWMECH COMPANIES, INC AND AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE SAID AGREEMENT Meeting Sheet IIIIIIVIIIVIIIVIIIVIIIVIIIIIIIIIII 103554 Box: 26 Folder: RES 1992 Document: CC RES 92-017 RESOLUTION APPROVING THE SETTLEMENT AGREEMENT BETWEEN THE CIN OF ST. ANTHONY AND NEWMECH COMPANIES, INC AND AUTHORIZING THE MAYOR AND CIN MANAGER TO EXECUTE SAID AGREEMENT CITY OF ST. ANTHONY RESOLUTION 92-017 A RESOLUTION APPROVING THE SETTLEMENT AGREEMENT BETWEEN THE CITY OF ST. ANTHONY AND NEWMECH COMPANIES, INC. AND AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE SAID AGREEMENT WHEREAS, in 1988 the City of St. Anthony entered into an agreement with NewMech, Inc. for the construction of a new sewage pumping station (Foss Road Lift Station); and WHEREAS, claims of problems with the project were made by the City; and WHEREAS, said claims were denied by NewMech, Inc.; and WHEREAS, both parties desire to resolve their disputes. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of St. Anthony hereby approves the Settlement Agreement between the City of St. Anthony and NewMech Companies, Inc. and authorizes the Mayor and City Manager to execute said agreement on • behalf of the City. Adopted this day of 7FL , r U Ct rte/ , 1992. Mayor ATTEST: City Clerk Reviewed for administration: City Manager • T h . Settlement Agreement • This Settlement Agreement (hereinafter "Agreement") is made and entered into by and between the City of St. Anthony ("St. Anthony") and NewMech Companies, Inc. ('NewMech"), and is based on the following recitals: RECITALS A. On or about October 6, 1988, St. Anthony entered into the ETCDC Standard Form of Agreement Between Owner and Contractor on the Basis of a Stipulated Price with NewMech for the construction of new sewage pumping station in St. Anthony (the "Project"), pursuant to plans, drawings and specifications prepared by Short-Elliot-Hendrickson, Inc. St. Anthony and NewMech entered into Change Orders to the contract, including Change Orders which extended the time for • substantial completion and completion under the contract (the ETCDC Standard Form of Agreement Between Owner and Contractor on the Basis of a Stipulated Price and the Change Orders are hereinafter collectively referred to as the "Contract"). B. St. Anthony has claimed that NewMech failed to have the work required by the Contract substantially complete and complete as required by the Contract and that it experienced many problems with the Project, including, without limitation, delays in completing punch list items, power outages, sewage spills, problems with the bubbler tube, and numerous problems with the pumps and motors. C. As a direct result of the problems with the Project, St. Anthony withheld certain payments in the amount of $16,058.50, alleged by NewMech to be due under • the Contract. • D. St. Anthony commenced a lawsuit against NewMech entitled City of St. Anthony v. NewMech Companies, Inc., Ramsey County District Court (the "Action"). E. NewMech has denied that it improperly performed any duty owed to St. Anthony under the Contract or caused St. Anthony to incur any damages. F. The parties desire to resolve their disputes concerning the Contract and the action. NOW, THEREFORE, in consideration of the mutual covenants, promises, and releases herein, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties to this Agreement agree as follows: • 1. St. Anthony will pay to NewMech the amount of$6,501.95 by certified check payable to "NewMech Companies, Inc. and Gerald Duffy, its attorney." The payment of said sum shall fully satisfy all of St. Anthony's obligations under the Contract for payments to NewMech. 2. NewMech, for itself, its successors, and assigns, and its subcontractors and suppliers, with regard to this Project, hereby releases, acquits, and forever discharges St. Anthony, and its successors and assigns, of and from any and all liability or damages arising out of any matter, act, or occurrence prior to the date hereof. 3. St. Anthony, for itself, its successors and assigns, with regard to the Project, hereby releases, acquits, and forever discharges NewMech, and its successors 2 S • and assigns, of and from any and all liability or damages arising out of any matter, • act, or occurrence prior to the date hereof; provided, however, that it is understood P that St. Anthony is not releasing any claims for damages insured after the date hereof resulting from defects in the design or construction of the Project or breaches of any warranty which St. Anthony discovers after the date hereof. 4. Notwithstanding anything apparently to the contrary herein, neither party is releasing the other of and from any right to indemnity or contribution arising out of a personal injury, death, or property damage claim asserted by a third party. 5. The parties agree that the settlement of certain claims by this Agreement does not constitute, and shall not be construed as, any admission of • liability or fault whatsoever by any party, and that the purpose of this Agreement is to amicably resolve disputes without incurring the time and expense of litigation. No person not a party to this Agreement has any rights under this Agreement or shall be considered to be a beneficiary of it. 6. The parties acknowledge and agree that they have read this Agreement, that they each have been represented by independent counsel, that they understand and fully agree to each, all, and every provision hereof, and that they have received a copy of this Agreement. This Agreement may not be amended orally. • 3 r Dated: CITY OF ST. ANTHONY BY -7-2 Its Ma%A-& Dated: NEWMECH COMPANIES, INC. .r By It 4