HomeMy WebLinkAbout~Master - Settlement Agreement for Water Treatment Plant - Contract No. 1 (Utilities) RESOLUTION NO. 17478
RESOLUTION APPROVING MEDIATION SETTLEMENT AGREEMENT
FOR NEW WATER TREATMENT PLANT-CONTRACT NO. 1 (UTILITIES)
FOR THE CITY OF AMES
WHEREAS, on February 24, 2015, the Council awarded a construction contract in the
amount of$3,197,273 to S.M. Hentges & Sons of Jordan, Minnesota, for the interconnecting piping
between the old and new Water Treatment Plant locations; and,
WHEREAS, during the execution of the project, S.M. Hentges' work resulted in additional
costs to the City, which staffpresented to Hentges as a series of claims against the contract; and,
WHEREAS, the contract calls for dispute resolution to be by mediation followed by
litigation; and,
WHEREAS, a mediation session was held on July 10, 2017, at the office of an independent
third-party mediator; and,
WHEREAS, and the parties reached the following settlement agreement: "Parties S.M.
Hentges and City of Ames, subject to City Council approval and resolution, agree to execute a
settlement agreement that will provide a credit to be given to the City of Ames by Change Order in
the amount of one hundred fifty five thousand and 00/100 dollars ($155,000.00), with the remainder
of contract balance to be paid to S.M. Hentges by August 1, 2017; warranty to begin July 25, 2017;
mutual release of parties respective claims and final acceptance of the Water Treatment Plant —
Contract 1 —Utilities Project;"and,
WHEREAS, the Agreement calls for the City to remit the final payment of$84,197.53 to the
Contractor by August 1, 2017.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the Mediation Settlement Agreement with S.M. Hentges & Sons of Jordan, Minnesota, for the
New Water Treatment Plant- Contract No. 1 (Utilities)Project is hereby approved.
ADOPTED THIS 25t' day of July, 2017.
A.
Diane R Voss, City Clerk Arm H. Campbell, Mayor
Introduced by: Betcher
Seconded by: Beatty-Hansen
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Orazem
Voting nay: None Absent: Nelson
Resolution declared adopted and signed by the Mayor this 25t''day of July, 2017.