HomeMy WebLinkAboutRes2003-028
Sponsored by: Erchinger
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CITY OF SEWARD, ALASKA
RESOLUTION 2003-28
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, AUTHORIZING THE ACTING CITY
MANAGER TO ENTER INTO A SETTLEMENT AGREEMENT
WITH SWALLING CONSTRUCTION COMPANY,
INCORPORATED (SCCI) FOR $45,000 AND APPROPRIATING
THAT AMOUNT FROM THE HARBOR ENTERPRISE FUND
RETAINED EARNINGS ACCOUNT
WHEREAS, Swalling Construction Company. Inc. v. City of Seward, Case
Number 3AN-02-7701 CI was filed on May 28,2002; and
WHEREAS, SCCI claimed approximately $179,000 from the City of Seward
(City) related to a contract for delivery and installation of the harbor float system; and
WHEREAS, both parties met with Judge Volland in a settlement conference on
March 7,2003 and agreed to settle all claims without admitting any liability for payment
by the City to SCCI in the amount of $45,000 subject to City Council approval; and
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WHEREAS, upon payment of this amount, the litigation would be dismissed
with prejudice and both sides could forego the time and expense of continued litigation.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, that:
Section 1. $45,000 is appropriated from the Harbor Enterprise Fund Retained
Earnings Account 401-0000-3050 to the Harbor Enterprise Fund Account 401-4360-5790
to pay SCCI for settlement of Swalling Construction Inc., v. City of Seward, Case
Number 3AN-02-7701 CI.
Section 2. The Acting City Manager is directed to enter into a settlement
agreement reflecting payment to SCCI and settlement of all claims and dismissal of the
litigation with prejudice with the further understanding that the City denies all liability
and wrong doing.
Section 3. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska
this 24th day of March, 2003.
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THE CITY OF SEWARD, ALASKA
Gitd#-
Stu Clark, Mayor
CITY OF SEWARD, ALASKA
RESOLUTION 2003-28
AYES:
NOES:
ABSENT:
ABSTAIN:
Amberg, Dunham, Shafer, Clark
Valdatta
Branson, Orr
ATTEST:
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COUNCIL AGENDA STATEMENT
Meeting Date: March 24, 2003
Through: Kris Erchinger, Acting City Manager
From: Harbormaster, James B. Beckham
Agenda Item: Authorizing the Acting City Manager to Enter
Into a Settlement Agreement With Swalling
Construction Company, Incorporated (SCCI)
For $45,000 and Appropriating Funds for that Purpose
BACKGROUND & JUSTIFICATION:
SCCI was the General Contractor for the North Harbor Renovation Capital Project in late 2000 and
early 2001. SCCI submitted claims for approximately $179,000 from the City of Seward (City)
related to delivery and installation of the harbor float system. These claims were rejected by the City.
Swalling Construction Company, Inc. v. City of Seward, Case Number 3AN-02-7701 CI was filed on
May 28, 2002.
After months of negotiations and trial preparation,both parties met with Judge Volland in a
settlement conference on March 7, 2003 and agreed to settle all claims without admitting any liability
for payment by the City to SCCI in the amount of $45,000 subject to City Council approval. Upon
payment of this amount, the litigation would be dismissed with prejudice and both sides could forego
the time and expense of continued litigation.
CONSISTENCY CHECKLIST: Yes No
1. Comprehensive Plan ___ N/A
2. Strategic Plan _ _ N/A
3. Other: Small Boat Harbor Management Plan _ _ N/A
FISCAL NOTE:
$45,000 will be appropriated from the Harbor Enterprise Fund Retained Earnings Account 401-0000-
3050 to the Harbor Enterprise Fund Account 401-4360-5790 to pay SCCI for the settlement.
Approved by Finance Department
RECOMMENDATION:
Council approves Resolution 2003-28, authorizing the Acting City Manager to enter into a settlement
agreement with SCCI for $45,000 and appropriating funds for that purpose.