01-0205R

RESOLUTION APPROVING SETTLEMENT OF THE CITY OF DULUTH'S CLAIM FOR REIMBURSEMENT FOR TIOGA STREET PROJECT IN THE AMOUNT OF $109,784.

BY COUNCILOR ECKENBERG:

        BE IT RESOLVED, that the proper city officials are authorized to settle claims arising out of the design of certain improvements for the Tioga Street project and accept payment to the city as full payment and satisfaction of all claims of the city against Salo Engineering, Inc., and its liability insurers, and to execute and implement a release of all claims relating to the project, for payment in the amount of $109,784, said amount to be deposited in Street Improvement Project Fund 0440, Agency 038, Organization 0001, Revenue Source 4697.


STATEMENT OF PURPOSE:  During the construction of the 4700 and 4800 blocks of Tioga Street during the 2000 street improvement program, it was discovered that certain plan errors had resulted in unacceptable elevations being created. Upon learning of the error, the city and the engineering consultant responsible for the plans entered in to negotiations to determine how to correct the problem.

In September 2000, the city council approved Resolution 00-0619 which authorized adding funds to the street improvement program so that the affected portion of Tioga Street could be reconstructed during the 2000 construction season. The city's contractor for the project agreed to perform the reconstruction at the unit prices under the existing contract, without additional cost for mobilization. The reconstruction project is now complete.

The city attorney's office notified the engineering consultant in February 2001 that the city would be making a claim for its costs of reconstruction. The engineering consultant and their insurer have now provided the city with payment in the amount of $109,784. This payment represents the amount of the city's cost of reconstruction.

Throughout this process, Salo Engineering, the consulting engineer, has cooperated with the city and assisted the city in assuring that the reconstruction work was done promptly and has provided full payment for the additional cost of the reconstruction.