05-0525R


RESOLUTION APPROVING SETTLEMENT OF CITY CLAIM AGAINST A & L DEVELOPMENT, INC. IN THE AMOUNT OF $22,000.

 

BY COUNCILOR STOVER:

     RESOLVED, that the proper city officials are authorized to accept from A & L Development, Inc., $22,000 in full and final settlement of its claim arising out of a disputed bill for gas services provided by the city of Duluth and resulting in an action filed in St. Louis County District Court and entitled City of Duluth v. A & L Development, Inc., St. Louis County File No. 69-02-04-602419. Funds to be deposited in Fund 520, Agency 500, Revenue Source 4821.

 

 

 

 

 

 

 

 

 

 

 

 

Approved:                             Approved for presentation to council:

 

 

 

                                     

Department Director                   Administrative Assistant

 

 

Approved as to form:                  Approved:

 

 

 

                                     

Attorney                              Auditor

 

ATTY MAL:nmj 08/01/05

 

STATEMENT OF PURPOSE:  In September of 1998, A & L Development, Inc. applied for gas services to a building under construction at 1420 London Road. A gas meter was installed and gas services were initiated. Due to a data entry error in the city’s billing system, services provided from October 29, 1998 through February 28, 2001 were first billed in March of 2001. A & L Development, Inc. disputed the bill. The city commenced litigation in December 2002.

 

The parties engaged in discovery. The civil division of the city attorney’s office analyzed the potential outcome should this matter proceed to trial. Settlement negotiations were conducted, and an agreement has been reached in the amount of $22,000. $6,000 of this amount was previously paid by A & L Development, Inc. The remaining amount will be paid in installments. The city attorney’s office recommends this settlement.