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4/8/82
FBA/rsa/mr
4/12/82
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 82-18
AUTHORIZATON TO CITY MANAGER TO NEGOTIATE SETTLEMENT
OF CLAIMS ARISING FROM FAILURES OF PUMP STATIONS ONE
AND THREE OF THE SEWARD INTERCEPTER AND TREATMENT
PLANT PROJECT.
WHEREAS, on January 16, 1982, Pump Station 1 and 3 of the
Sewer Intercepter and Treatment Plant Project were flooded, resulting in
extensive damage to Pump Station 1 and 3, and
WHEREAS, disputes have arisen between the City of Seward,
Brown and Associates, J.V., a Joint Venture, consisting of Brown Construction
Company, Inc., and T.C.I., Ltd. ("Brown"), Arctic Environmental Engineers
("Arctic"), and
WHEREAS, the City Council discussed the pending claims and possible
resolutions in executive session following the regular City Council meeting
on March 8, 1982, and
WHEREAS, the City suggested to the parties that an amicable
resolution be attempted in order to avoid expensive litigation, delays, and
increased costs, and
WHEREAS, the parties have been unable to reach an agreement between
themselves as to how the entire dispute should be settled, but
WHEREAS, the City has received from some of the parties an
indication that the parties would separately wish to resolve particular
claims, and
WHEREAS, litigation of all of the particular claims would greatly
increase the cost of the project to the detriment of the City,
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SEWARD, that:
Section 1. The City Manager or his designee is hereby
authorized to negotiate and conclude a settlement of pending claims between
the City of Seward and Brown, Arctic, and any others claiming by or through
them with respect to Pump Station 1 and 3 within the following limits:
(a) Any such settlement may not, without express approval from
City Council, bind the City of Seward to an expenditure of funds beyond those
already authorized in existing contracts;
(1)
CITY OF SEWARD, ALASKA
RESOLUTION NO. 82-l8
Page 2
(b) The City of Seward should attempt to recover its
indirect, legal, accounting, and other costs relating to the disputes
although some of those costs might be compromised;
(c) The City may waive liquidated damages with respect to any
of the existing disputes in the discretion of the City Manager;
(d) Any rework of Pump Stations 1 and 3 will included satis-
factory evidence that the work is performed in accordance with the contract
specifications and any equipment will have full warranty provisions.
Section 2. The City Manager is instructed to report to the City
Council in executive session with respect to the progress of negotiations and
and any proposed agreement.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE SEWARD OF SEWARD,
ALASKA, this l2th day of April ,l982.
CITY OF SEWARD,
C. KEITH CAMPBELL, VICE MAYOR
AYES:
NOES:
ABSENT:
BURGESS, MEEHAN, SORIANO AND CAMPBELL
NONE
CRIPPS, O'BRIEN AND SWARTZ
ATTEST:
APPROVED AS TO FORM:
HUGHES, THORSNESS, GANTZ,
POWELL & BRUNDIN
%/flI~
FRED B. ARVIDSON, ATTORNEY
(CITY SEAL)
(2)