BY COUNCILOR ECKENBERG:01-0205R
RESOLUTION APPROVING SETTLEMENT OF THE CITY OF DULUTH'S CLAIM FOR REIMBURSEMENT FOR TIOGA STREET PROJECT IN THE AMOUNT OF $109,784.
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.
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.