2.
City Council Combined Work Session/Special Meeting
- Meeting Date:
- 10/28/2014
- Co-Submitter:
- Rick Barrett
- From:
- Michelle D'Andrea, City Attorney
TITLE:
Consideration and Approval of the Settlement Agreement and Mutual Release: Between the City of Flagstaff and Capital Improvements, LLC and the Guarantee Company of North America, U.S.A. (Approve Settlement Agreement with C.I. and surety for West/Arrowhead project)
RECOMMENDED ACTION:
Approve the settlement of CV2014-053783, between the City and its contractor, Capital Improvements, LLC and the contractor's surety, Guarantee Company of North America, for $550,000.00. The agreement will contain mutual releases and will require lien releases from all subcontractors, suppliers and materialmen.
Policy Decision or Reason for Action:
The Council directed the City Attorney and Staff to proceed with settlement of this claim and the terms of the Agreement are consistent with that authorization.
Financial Impact:
This settlement will not impact other City projects because the settlement is within the budget for the West/Arrowhead project.
Connection to Council Goal and/or Regional Plan:
1. Repair Replace maintain infrastructure (streets & utilities)
2. Effective governance
2. Effective governance
Previous Council Decision on This:
The Council has not previously considered the proposed Agreement language, but has directed the City Attorney's Office and Staff to settle the lawsuit in an executive session on April 29, 2014.
Options and Alternatives:
Council may approve the Agreement and conclude the lawsuit or Council may proceed with the litigation.
Community Involvement:
Inform