HomeMy WebLinkAboutRes1996-045
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Sponsored by: Garzini
CITY OF SEWARD, ALASKA
RESOLUTION NO. 96-045
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, APPROVING A SETTLEMENT AGREEMENT
WITH CITY ELECTRIC, INC., AND APPROPRIATING FUNDS
WHEREAS, in April 1995, the City awarded a contract to City Electric, Inc., in the amount
of $3,302,578.00 to construct Phase II of the 115 kV transmission line project; and
WHEREAS, Phase II was essentially completed in December 1995 for the original contract
price plus $276,925.83 in change orders for a total contract price of $3,579,503.83, 8.4% above the
bid amount; and
WHEREAS, the total cost of the remaining tasks to complete the project is estimated to be
$55,000.00, and these tasks are the responsibility of the City; and
WHEREAS, City Electric has filed notice of claims totaling approximately $1.7 million for
additional costs they alleged were incurred as a result of decisions made by the City; and
WHEREAS, although the City disputes most of the claims made, it is in the public interest
to settle this case rather than chance the possibility of an unfavorable verdict from a jury;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The City Manager is hereby authorized to make final payment to City Electric,
Inc., in the amount of $846,741.72, to settle all claims relating to the construction of Phase II of the
Seward Transmission Line Project.
Section 2. The sum of $600,000 is hereby appropriated from the Electric Fund Retained
Earnings Account No. 501-0000-3070-0208 to the Transmission Line Project Fund Contract
Services Account No. 208-2081-5390.
Section 3. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 8th day
of April, 1996.
THE CITY OF SEWARD, ALASKA
CITY OF SEWARD, ALASKA
RESOLUTION NO. 96-045
AYES:
NOES:
ABSENT:
ABSTAIN:
Anderson, Bencardino, Crane, Deeter, Keil, King, Sieminski
None
None
None
ATTEST:
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