DISCLAIMER

 

06-0102R


RESOLUTION APPROVING SETTLEMENT OF CITY CLAIM AGAINST A&L DEVELOPMENT, INC., IN THE AMOUNT OF $26,472.25.

BY COUNCILOR STOVER:

     RESOLVED, that the proper city officials are authorized to settle its claim against A&L Development, Inc., for a total amount of $26,472.25 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.

     BE IT FURTHER RESOLVED, that proper city officials are authorized to accept $20,472.25 as the unpaid portion of the $26,472.25 settlement amount; such payment to be made within 30 days of final approval of settlement; funds to be deposited in Fund 520, Account 1302.


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. 54,914 units of gas were used by that time. A&L Development, Inc., disputed the bill. The city commenced litigation in December 2002.


The parties engaged in discovery. The city estimates that most of the gas was used during building construction. Acting on this, the city calculated the amount owed and demanded $26,472. 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 $26,472.25. $6,000 of this amount was previously paid by A&L Development, Inc. If the settlement is approved, the remaining amount will be paid within 30 days. The city attorney’s office recommends this settlement.