| ITEM #: 6. DATE: 10/27/2025 AI #:2876 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | APPROVAL OF SETTLEMENT AGREEMENT WITH FORESITE DESIGN AND CONSTRUCTION, INC. |
| STAFF PRESENTER(S): | Roric Massey, City Attorney |
SUMMARY
Approval of the Settlement Agreement with ForeSite Design and Construction, Inc. will resolve the current litigation in the ForeSite Design & Construction v. City of Goodyear matter.
STRATEGIC PLAN ALIGNMENT
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RECOMMENDATION
Approve the Settlement Agreement with ForeSite Design and Construction, Inc., and authorize the City Manager to execute the documents necessary to complete all remaining actions to resolve the current litigation in ForeSite Design and Construction, Inc. v. City of Goodyear. (Roric Massey, City Attorney)
FISCAL IMPACT
The negotiated settlement amount is $109,000 to resolve all claims between the parties. The unallocated fund balance will be utilized to fund the expenditure and settle the claim.
BACKGROUND AND PREVIOUS ACTIONS
On February 27, 2023, the City Council approved the expenditure of funds in the amount of $6,154,200 for Project #30008 for the renovation of Fire Station 183.
STAFF ANALYSIS
This settlement agreement will resolve pending litigation between the two parties related to a contract for renovations of Goodyear Fire Station 183. The parties entered into a Cooperative Purchase Agreement for the project with a maximum contract amount of $5,000,000. Through various change order requests, some disputed, the final project cost exceeded the maximum contract amount. ForeSite filed a Notice of Claim related to outstanding change orders in the amount of $164,216.13. The parties have negotiated a settlement of those outstanding change orders at $109,000 to resolve the litigation and settle all claims. The Settlement Agreement is included as Attachment A.