HomeMy WebLinkAbout~Master - Settlement agreement regarding water pollution control facility methane generator no 2 RESOLUTION NO. 22-484
RESOLUTION FOR SETTLEMENT AGREEMENT REGARDING WATER
POLLUTION CONTROL FACILITY METHANE GENERATOR NUMBER TWO
FOR THE CITY OF AMES,IOWA
WHEREAS, the City of Ames contracted with Waldinger Corporation to do work at the
City's Water & Pollution Control water treatment facility, including work on existing electric
generators that are powered by methane; and,
WHEREAS, Waldinger hired subcontractor Zeigler, Inc., to work on the electric
generators; and,
WHEREAS, one of the generators had been operated without coolant in it, resulting in
catastrophic damage. The City identified a Zeigler employee as the one responsible, but Zeigler
denied liability for the damage; and,
WHEREAS, the City withheld payment from the general contractor, Waldinger, until the
dispute about responsibility for the damage to the generator could be settled. The parties were in
negotiations, and Waldinger filed a lawsuit against the City and Zeigler; and,
WHEREAS, the parties,through negotiation and mediation, agreed upon the settlement of
the dispute and the lawsuit; and,
WHEREAS, the settlement included, among other terms, the City retaining, through an
adjustment in the payment to Waldinger, $85,000 via Change Order#3 to compensate the City for
the damage to the generator; and the City paying Waldinger the net amount of$170,173.51. The
City shall make an initial payment of$77,026.65 to Waldinger within 15 days of the execution of
the settlement agreement, and the remaining $93,14.86 within 30 days of the completion of the
work remaining under the original contract; and
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF AMES, IOWA, that
the Council approves the written settlement agreement reached by the parties.
ADOPTED THIS 16t'day of August, 2022.
Renee Nall, City Clerk John A. Haila, Mayor
Introduced by: Beatty-Hansen
Seconded by: Corrieri
Voting aye: Betcher, Gartin, Junck, Rollins
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 16'day of August, 2022.