HomeMy WebLinkAbout4G - Valley Paving Settlement Agreement
CITY COUNCIL AGENDA REPORT
MEETING DATE:
AGENDA #:
PREPARED BY:
March 1, 1999 )y
:~ank Boyles, City Manage~'\
AGENDA ITEM:
CONSIDER APPROVAL OF SETTLEMENT AGREEMENT WITH
VALLEY PAVING AND AUTHORIZE THE MAYOR AND CITY
MANAGER TO EXECUTE SAME.
DISCUSSION:
History
Valley Paving made a claim against the City for spreading City
provided topsoil in connection with the Northwood Road Project
restoration. The City and vendor were not able to agree upon a
settlement for this claim.
Current Circumstances
At the January 19, 1999 Executive Session, the City Council
authorized the City Attorney to pursue a settlement of this claim in an
amount up to $10,000. The City Attorney has discussed the claim and
attempted to reach a lesser settlement. Valley Paving agreed to no
less than $10,000.
Conclusion
The City Council should authorize the Mayor and City Manager to
execute the attached settlement agreement and release.
ISSUES:
The City Council has previously discussed the issues associated with
this claim.
ALTERNATIVES:
(1) Authorize the Mayor and City Manager to execute the Settlement
and Release Agreement on behalf of the City.
RECOMMENDED
MOTION:
Alternative (1).
162~<!l~'fSi3:)9'iOO()ijMILI)<Mrnnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
SETTLEMENT AND RELEASE AGREEMENT
THIS SETTLEMENT AND RELEASE AGREEMENT ("Agreement") is entered into on the day of
, 1999 between VALLEY PAVING, INC. ("Valley Paving") and the CITY OF
PRIOR LAKE, MINNESOTA, a Minnesota municipal corporation ("City").
Recitals
(1) Valley Paving entered into a contract with the City ("Contract") for the improvement of Northwood
Road in the City of Prior Lake ("Project");
(2) The Contract provided, among other things, that Valley Paving was to salvage materials from the
site and spread those site materials after the grade was established;
(3) The Project did not have enough topsoil on-site to satisfy the residents along Northwood Road;
(4) The City had extra topsoil hauled onto the site;
(5) Valley Paving was instructed by the City Engineer, John Wingard, to spread the topsoil across the
boulevards on Northwood Road;
(6) Valley Paving spread the extra topsoil to the City's specifications;
(7) A dispute has arisen between Valley Paving and the City regarding whether or not the work
performed by Valley Paving in spreading the extra topsoil was "extra work" which was beyond the
scope of the Contract;
(8) A dispute has also arisen between Valley Paving and the City regarding the price for performing
any extra work under the Contract.
(9) The Contract provided that interest shall accrue at the maximum legal rate from the first day a
payment is due and continuing until payment is received by Valley Paving.
(10) Disputes have arisen between Valley Paving and the City regarding the amount of interest owed
on late or outstanding payments.
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
acknowledged, the parties agree as follows:
A. Payment and Valley Paving Release. In consideration of the sum of Ten Thousand and No/100
Dollars ($10,000.00), the receipt and sufficiency of which is hereby acknowledged, Valley Paving,
and for its representatives, officers, directors, employees, agents, successors and assigns, hereby
release and forever discharge the City, its representatives, assigns and subrogees from all claims,
damages or liabilities of any king or nature, whether known or unknown, and whether past, present
or future, arising out of the services performed for the City by Valley Paving on the Project. Without
limiting the generality of the foregoing, this Release also discharges claims for interest, attorney's
fees, costs and disbursements.
B. No Admission of Liability. This Agreement is a compromise of disputed claims. Neither the
willingness to enter into this Agreement, nor any term hereof, shall be regarded or construed to be
an admission of liability or an admission of merit regarding any claims or allegations made by
Valley Paving against the City who expressly denies the same.
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." .
C. Governing Law. This Agreement shall be construed in accordance with Minnesota law. Any
enforceable provision of this Agreement shall remain in full force and effect, notwithstanding that
any other provision or provisions of this Agreement are determined to be unenforceable.
D. Amendment: This Agreement may only be amended by a subsequent written agreement signed
by the parties.
E. Voluntary Execution. The parties acknowledge that they had an opportunity to be represented by
counsel during negotiations culminating in this Agreement, that they read and understand the
terms of this Agreement, and that they are voluntarily entering into this Agreement with due and
proper authorization to agree to all of the terms and provisions of this Agreement.
F. Execution and Counterpart. This Agreement may be executed in a number of multiple originals,
each of which shall be deemed an original for all purposes and this Agreement may be executed in
simultaneous counterparts and each executed counterpart shall be considered an original for all
purposes.
DATED:
CITY OF PRIOR LAKE
By:
Wesley M. Mader, Mayor
By:
Frank Boyles, City Manager
DATED:
VALLEY PAVING, INC.
By:
Richard A. Carron, President
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