00-0859R

RESOLUTION AMENDING CONTRACT NUMBER 18365, AS AMENDED, WITH F.I. SALTER COMPANY, INC., BY INCREASING THE AMOUNT PAYABLE BY AN AMOUNT NOT TO EXCEED $20,000.

BY COUNCILOR HOGG:

        BE IT RESOLVED, that the proper city officials are authorized to execute an amendment, in the form filed as Public Document No. ________________, to city Contract Number 18365, dated December 30, 1998, as amended, with F.I. Salter Company, Inc., for the provision of appraisal services related to the condemnation of land previously owned by the estate of Stanley A. Lepak and others, increasing the amount payable thereunder by an amount not to exceed $20,000, payable from Fund 605.


STATEMENT OF PURPOSE:   On December 30, 1998, F.I. Salter, Inc., was hired by the city to provide appraisal services in the condemnation matter identified as city of Duluth, a political subdivision of the state of Minnesota, petitioner, v. the estate of Stanley A. Lepak, the unknown heirs of Stanley A. Lepak, Skip's Warehouse Sales, Rice Lake Lumber, Inc., Michael S. Lepak, Stanley R. Lepak, Richard S. Lepak, Cathleen S. Manning, Marilyn S. Esselstrom, Mary Kay S. Jones, John S. Lepak, and all other persons unknown claiming any right, title, estate, interest, or lien in the real estate described in the petition herein, respondents.  St. Louis County district court File No. C1-98-602367.  On November 27, 2000, the city council unanimously adopted Resolution 00-0787 which authorized proper city officials to complete settlement of this matter and a related matter pending in the federal district court.  That settlement has now been approved by the court.  This settlement concludes the services of F.I. Salter Company, Inc.

The previously authorized amount of the contract was $30,000.  However, this matter was complicated by unanticipated claims asserted by the corporate respondents which resulted in the need to conduct extensive investigation and analysis of the damage claims asserted by these respondents.  Significant trial preparation was also required by the appraiser who was acting as the city's expert witness, and this preparation was a significant factor in the city's ability to obtain settlement without the need for trial.  The city has been able to avoid the additional legal expenses associated with trial and any potential appeal.

The city attorney's office has reviewed the billing and determined that the professional services rendered were reasonable and proper.