HomeMy WebLinkAbout1995-027
~
f".
('.
('
o
n
I
ORIGINAL
<,
RESOLUTION 95-27
KESOLUTION APPROVING SETl'LEMENT AGREEMENT
WHEREAS, during an executive session of the City Council held on the 24th of January, 1995,
for the purpose of discussing an arbitration proceeding involving the claims of A.A. Hanson Electric, Inc.
("Hanson") arising and growing out of Local Improvement 257, the Council considered the relative
claims of both Hanson and Johnson Dros. Corporation ("JDC"); and
WHEREAS, a settlement was proposed by the City Attorney that had been agreed to by JDC and
Hanson described as follows:
1. That the claim of Hanson, the subject of the present arbitration, is in the amount of
$365,000.00 representing claims for surprise and unexpected site conditions encountered during the
construction of light bases and for other disruption, delay and sequencing claims; and,
2. Independent of the Hanson claim, JDC has an outstanding claim for the cost of extra
services furnished during the construction of the Downtown Plan in the amount of $161,700.00; and
3. That the City pay $59,500.00 to Hanson on the delay claim and that JDC pay an
additional $59,500.00 to Hanson for a total payment to Hanson of $119,000.00.
4. That JBC will be paid by the City for their outstanding claim, the sum of $160,000.00
in addition to releasing any outstanding retainage that the City held in its account.
5. That since Hanson is a subcontractor of JBC and in order to facilitate payment of the
sums, the City will pay $219,500.00 directly to JDC in return for JDC's obligation to pay Hanson its
entire delay claim of $119,000.00.
6. The Settlement be and the same hereby is approved and the Mayor and City Clerk are
authorized to sign the Settlement Agreement attached as Exhibit A to this Resolution in multiple
counterparts .
f
r
r
r-
r[I
Enacted by the City Council of the City of Stillwater this 31st day of January, 1995.
ATIEST:
~ /J~M~
Morl Weldon, CIty Clerk
Publish:
II n
I
~4(
Ja Ie, yor
m