HomeMy WebLinkAbout114-89 RESOLUTIONRESOLUTION NO. 114-89 "3/44.4---4 a
A RESOLUTION AUTHORIZING THE APPROVAL OF A
SETTLEMENT AGREEMENT INT HE CASE OF UNITED
STATES FIDELITY & GUARANTY COMPANY V. CH2M
HILL SOUTHEAST, INC. V. CITY OF FAYETTEVILLE,
ARKANSAS, U. S. DISTRICT COURT, WESTERN
DISTRICT OF ARKANSAS, FAYETTEVILLE DIVISION,
CIVIL NO. 88-5204.
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the Mayor or City Clerk are hereby authorized
and directed to execute a settlement agreement with United States
Fidelity & Guaranty Company and CH2M Hill Southeast, Inc., in the
amount of $134,004.00 and dismissing the case against the City.
A copy of the settlement agreement authorized for execution hereby
is attached hereto marked Exhibit "A" and made a part hereof.
Section 2. That the Board of Directors hereby approves a
budget adjustment in the amount of $134,004.00 to pay the remaining
contract balance in the wastewater treatment plant construction
project. A copy of the budget adjustment approved hereby is
attached hereto and made a part hereof.
PASSED AND APPROVED this 7th day of November, 1989.
APPROVED:
By:
MAYOR
RECEIPT AND RELEASE AGREEMENT
This Receipt and Release Agreement ("Agreement"), made and
entered into by, between, and among the United States Fidelity &
Guaranty Company ("USF&G"), the City of Fayetteville, Arkansas
("City"), .and CH2M. Hill Southeast, Inc.' ("CH2M Hill"), is as
follows.
WHEREAS, Olson Construction Company ("Olson") and City
entered into a contract ("Olson Contract") on or about
December 28, 1984, which required that Olson construct a project
known as "Wastewater Treatment Plant Improvements for the City of
Fayetteville, Arkansas" ("Project");
WHEREAS, the original Olson Contract amount was
$21,232,000.00;
WHEREAS, USF&G issued a performance bond..anda,payment bond,
each in the amount of $21,232,000.00, naming Olson, as principal,
and City, as obligee;
WHEREAS, the Project was designed by CH2M Hill and
McClelland Consulting Engineers, Inc. ("McClelland");
WHEREAS, CH2M Hill and McClelland performed project manage-
ment services on the Project;
WHEREAS, in August 1987, Olson acknowledged that it was
unable to complete the Project due to weakened financial
circumstances;
WHEREAS, on or about September 21, 1987, City, USF&G, and
Huber, Hunt & Nichols, Inc. ("HHN"), entered into a tri -party
agreement to complete the Project;
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WHEREAS, HHN.:substahti'ally completed the Project in March,
1988;
WHEREAS, City has accepted the Project, but has certain
requests for warranty or other work detailed on the attached
Requested Work Listing;
WHEREAS, City paid certain funds remaining in the Olson Con-
tract to HHN for work on the Project;
WHEREAS, USF&G paid to HHN for work on the Project certain
monies over and above what City has paid to HHN;
WHEREAS, on or about December 22, 1988., USF&G filed the suit
against City and CH2M Hill styled United States. Fidelity & Guar-
anty Company vs. CH2M Hill Southeast, Inc., and City of
Fayetteville, Arkansas, Civil Action No. 88-5204, in the United
States District Court for the Western District ,of Arkansas,
Fayetteville Division ("Suit");
WHEREAS, USF&G has alleged in the Suit that certain acts or
omissions by City and/or CH2M Hill were proximate causes in
USF&G's incurring extra costs to complete the Project;
WHEREAS, City and CH2M Hill responded to USF&G's Suit and
have denied any responsibility for USF&G's alleged damages;
WHEREAS, City filed a cross claim against CH2M Hill for
indemnity from USF&G's claims;
WHEREAS, City filed a counterclaim against USF&G for liqui-
dated damages and extra engineering charges;
WHEREAS, CH2M Hill filed a cross claim against City for
indemnity from USF&G's claims;
WHEREAS,: all: parties have -denied and .continue to` deny
responsibility for any claims relating to the Project: -
WHEREAS, USF&G, City, and CH2M Hill now wish to settle and
fully resolve all claims between and among themselves, on the
following bases:
KNOW ALL MEN BY THESE PRESENTS:
NOW THEREFORE, in consideration of the premises, the settle-
ment monies to be paid, the releases and covenants set out below,
and other good and valuable consideration, USF&G, City, and CH2M
Hill agree as follows:
1. City will pay to USF&G the sum of ONE HUNDRED THIRTY-
FOUR THOUSAND FOUR AND NO/100s DOLLARS ($134,004.00) with certi-
fied funds within seven (7) days of the approval and execution by
all parties of this Agreement. City does not have to pay such
sum until such time as USF&G or HHN has provided the Affidavit
required by Paragraph 74 of the General Conditions of the Olson
Contract.
2. USF&G, individually, and as assignee of the rights of
Olson and HHN under their contracts with City or with respect to
the Project, does on behalf of itself, the rights assigned from
Olson and HHN, and its and their insurers, reinsurers, agents,
attorneys, bankruptcy trustees, successors and assigns, fully
release and discharge City, and the agents, representatives,
employees, attorneys, and insurers of City, of and from any and
all rights of action, claims, remedies, or causes of action at
law or in equity that (1) arose from the Project; or
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(2)' -pertained to:.the Olson Contract or Olsbn's work or defective
work under the Olson Contract; or (3) pertained to the adminis-
tration or inspection of Olson's work on the Project; or
(4) pertained to payments to Olson on the Project; or (5) were
set out in USF&G's Suit; or (6) pertained to USF&G's Suit or the
allegations of the Suit.
3. USF&G, individually, and as assignee of the rights of
Olson and HHN under their contracts with City or with respect to
the Project, does, on behalf of itself and Olson and HHN, and its.
and their insurers, reinsurers, agents, attorneys, bankruptcy
trustees, successors and assigns, fully release and forever dis-
charge McClelland, CH2M Hill, and the parent, subsidiary, and
affiliated companies of CH2M Hill, and the respective agents,
representatives, employees,
attorneys, and insurers of
McClelland; CH2M Hill, and the parent, subsidiary, and affiliated
companies of CH2M Hill, of and from any and all rights of action,
claims, remedies, or causes of action at law or in equity, which
pertain or relate to or arise from any or all acts or omissions,
whatsoever, whether known or unknown, occurring prior to the date
of this Agreement, even though the effects of such acts or omis-
sions may not be felt or become manifest until on or after the
date of this Agreement.
4. USF&G covenants that neither it nor its insurers,
agents, attorneys, and assigns shall in the future, except as
otherwise provided in this Agreement, raise or prosecute any
affirmative claim against City, CH2M Hill, or McClelland, or the
insurers, agents, .attorneys parent,' subsidiary or affiliated
companies of City, CH2M Hill, or McClelland, for any acts or
omissions occurring prior to the date of this Agreement which
pertain to the Project; provided, however, notwithstanding any-
thing to the contrary in this Agreement, in the event USF&G is
sued by any party in the future for any reason whatsoever for any
matter "or claim pertaining to or arising from the Project, then
the above covenant not to raise or prosecute any affirmative
claim shall be modified to allow USF&G to assert such claims
against City which pertainto the time HHN was on the Project, or
to HHN's work on the Project, or to administration or inspection
of HHN's work, or to payments made to HHN on the Project.
5. Notwithstanding anything to the contrary in this Agree-
ment, particularly notwithstanding Paragraphs 2.or 3. above, the
above releases and/or discharges by USF&G are not intended to
preclude USF&G from seeking indemnity and/or contribution from
City, CH2M Hill, and/or McClelland should USF&G be sued by any
party in the future for any reason whatsoever pertaining to the
Project or USF&G's having issued performance and/or payment bonds
on the Project. The scope and extent of USF&G's indemnity and/or
contribution from City, CH2M Hill, and/or McClelland will be lim-
ited to the liability of USF&G to the party bringing such suit
against USF&G, and such indemnity and/or contribution claims will
not include orbe based on any affirmative claims for damages set
out or sought in USF&G's Suit, or exceed USF&G's liability to
such party bringing such suit. The scope and extent of USF&G's
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indemnity -and/or contribution from CH2M:Hill and/or McClelland
shall be' further limited to claims for design defects other than
any defects in the design of (a) clarifier topping slabs; (b)
clarifier walls; (c) clarifiers; (d) aeration basin expansion
joints; (e) aeration basin column -floor connections; (f) aeration
basin; (g) return activated sludge pumps; (h) DNR pumps; or (i)
landscaping.
6. Should USF&G bring an action against CH2M Hill for
indemnity or contribution, CH2M Hill may issue an offer of judg-
ment to USF&G. If USF&G does not accept the offer of judgment
within ten 10 days of receipt by USF&G, and if the final Judgment
against CH2M Hill is more favorable to CH2M Hill in terms of
money damages awarded than its offer of judgment, then USF&G
shall reimburse CH2M Hill for all of CH2M Hill's -expenses and
costs incurred as a result of such litigation including any
appeals (including, but not limited to, attorney's fees) attrib-
utable to USF&G's indemnity or contribution claim. Such reim-
bursement,' shall be due and payable in full within 30 days after
final judgment has been entered, and appeals of the final judg-
ment have run their course. Such reimbursement shall not include
the money damages awarded in the final judgment. If on appeal,
or following a new trial, the judgment against CH2M Hill is modi-
fied, vacated, or altered, and the new final judgment becomes
less favorable to CH2M Hill in terms of money damages awarded
than CH2M Hill's offer of judgment, then USF&G is not required to
reimburse CH2M Hill for any of CH2M Hill's expenses and costs
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(including, --buts not limited to, atto'rney's fees and costs and
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expenses in any appeal) attributable to USF&G's indemnity or con-
tribution claim. Should USF&G bring an action against McClelland
for indemnity or contribution, McClelland may issue an offer of
judgment to USF&G, and receive the same benefits described above
for CH2M Hill, under the same provisions and restrictions listed
above for CH2M Hill.
7. USF&G, City and CH2M Hill agree, and authorize their
attorneys, to file a Joint Motion to Dismiss and an Agreed Order
of Dismissal, dismissing the Complaint of USF&G, Counterclaim of
City, and Cross Claims of City and CH2M Hill, with prejudice,
each partly to bear their own costs and attorneys fees, following
receipt by USF&G of all settlement monies.
8. City, on behalf of itself, its insurers, employees,
agents, attorneys, successors, and assigns, fully releases and
forever discharges USF&G, Olson, and HHN, and the respective
employees, agents, insurers, reinsurers, attorneys, bankruptcy
trustees, successors, and assigns of USF&G, Olson, and HHN, of
and from any and all rights of action, claims, remedies, or
causes of, action at law or in equity, including any claims what-
soever of. bad faith surety or claims practices, which pertain or
relate to or arise from any or all acts or omissions, whatsoever,
whether known or unknown, occurring prior to September 21, 1987,
even though the effects of such acts or omissions may not be felt
or become manifest until after September 21, 1987. City also
releases 'HHN and USF&G for any and all of the items on the
attached -one-page .Requested Work Listingrwhich is incorporated
by reference as if fully set out in this Agreement. Without lim-
iting the general nature of the foregoing release, it is under-
stood that the release includes, but is not limited to, any and
all rights of action, claims, remedies, or causes of action aris-
ing from or pertaining to (1) City's Counterclaim against USF&G;
(2) work performed by Olson; or (3) acts or omissions by Olson;
or (4) claims of bad faith surety or claims practices; or (5) the
performance bond and/or the payment bond that USF&G issued for
Olson or HHN; or (6) any entitlement or right under the perfor-
mance bond or payment bond that USF&G issued for Olson or HHN or
(7) any obligation on USF&G relating to the performance bond or
the payment bond that USF&G issued for Olson or HHN.
9. :Except as hereinafter provided, City, on behalf of
itself, its insurers, employees, agents, attorneys, successors
and assigns, fully releases and forever discharges McClelland,
CH2M Hill, and the parent, subsidiary and affiliated companies of
CH2M Hill, and the respective employees, agents, insurers,
reinsurers, attorneys, successors and assigns of McClelland, CH2M
Hill, and the parent, subsidiary and affiliated companies of CH2M
Hill, of :and from any and all rights of actions, claims, reme-
dies, or causes of action at law or in equity., whatsoever,
whether known or unknown, occurring prior to the date of this
Agreement, even though the effects of such acts or omissions
occurring prior to the date of this Agreement may not be felt or
become manifest until later. Without limiting the general nature
of the foregoingrelease it is understood the release includes,
but is not limited to, any and all rights of action, claims, rem-
edies, or causes of action arising from or pertaining to (1) work
performed by HHN; or (2) acts or omissions by HHN; or (3) admin-
istration of the HHN Contract and/or HHN's work; or (4) inspec-
tion of HHN's work; or (5) preparation, submission, evaluation,
and payment of HHN payment applications; or (6) any of the mat-
ters or problems listed on the Requested Work Listing attached
hereto; (7) work performed by Olson; or (8) acts or omissions by
Olson; or (9) administration of the Olson Contract and/or Olson's
work; ory(10) inspection of Olson's work; or (11) preparation,
submission, evaluation and payment of Olson's payment applica-
tions; or (12) design of (a) clarifier topping slabs, (b) clari-
fier walls, (c) clarifiers, (d) aeration basin expansion joints,
(e) aeration basin column -floor connections, (f) aeration basin,
(g) return activated sludge pumps; (h) DNR pumps; or (k) land-
scaping; provided only, however, it is expressly understood that
City has;not and does not release CH2M Hill from liability for
any design deficiencies not released in this paragraph; and, City
expressly' retains all rights, remedies, claims and causes of
action it may have against CH2M Hill for any such design defi-
ciencies not released in this Paragraph.
is
10. It is expressly understood that City has not and does
not release, but instead has expressly retained, any rights not
released above that it may have whether known or unknown against
HHN.
11:: .It :is :further expressly understood that, should City
make a demand or assert a claim against HHN or USF&G, USF&G has
retained all of its suretyship defenses, and any defenses of its
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principals to such demand or claim. USF&G agrees that such
retained defenses will not include or be based on the affirmative
claims and causes of action released and discharged in
Paragraph 2 above, and that such affirmative claims and causes of
action will not be pleaded as a setoff to any demand asserted by
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City against USF&G or HHN.
12. CH2M Hill, for itself and its insurers, agents, attor-
neys, parent, subsidiary and affiliated companies, successors and
assigns, releases and discharges, City and USF&G, and the repre-
sentatives, employees, agents, insurers, reinsurers, attorneys,
successor's and assigns of City and USF&G, of and from any rights
of action, claims, remedies, and causes of action at law or in
equity that pertain to the Suit or to USF&G's filing of the Suit.
CH2M Hill covenants that neither it nor its insurers, agents,
attorneys, parent, subsidiary or affiliated companies, succes-
sors, and assigns shall in the future, except as otherwise pro-
vided below, raise or prosecute any affirmative claim against
USF&G, HHN, Olson, or City for any acts or omissions occurring
prior to the date of this Agreement which pertain to the Project;
provided,however, notwithstanding anything to the contrary
herein, in the event CH2M Hill is sued by any party in the future
for any reason whatsoever for any matter or claim pertaining to
or arising from the Project, then the above releases and covenant
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not. to raise or prosecuteany.affirmatige claim shall be nulli-
fied and:set aside for the limited purposes: of allowing CH2M Hill
to seek,'..and shall not preclude CH2M Hill from obtaining indem-
nity and/or contribution from USF&G, HHN, Olson and/or City. The
scope and extent of CH2M Hill's indemnity and/or contribution
from USF&G, HHN, Olson and/or City will be limited to the liabil-
ity of CH2M Hill to the party bringing suit against CH2M Hill and
will not include any affirmative claims for damages in excess of
CH2M Hill's liability to such party bringing such suit.
13. USF&G, City, and CH2M Hill acknowledge that the work-
manship on the Project is not perfect in all respects, and that
the City has accepted the Project, subject to any continuing
obligations of warranty or otherwise of HHN.
14. In the event of warranty or othermatters in the
future, City will provide reasonably prompt notice of such war-
ranty or other matters to HHN and USF&G to allow HHN and USF&G to
investigate the facts and circumstances of such warranty or other
matters.
15. City warrants that as of this date City does not con-
template, and has no plans for, asserting a demand or claim in
the future (1) against CH2M Hill for any reason or (2) against
HHN and/Or USF&G for allegedly defective work or materials on the
f
Project, except for the warranty or other work detailed on the
attached Requested Work Listing.
16. City and CH2M Hill on behalf of themselves, their
respectiv'e insurers, employees, agents, attorneys, successors,
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and assigns, fully and -completely releaseand forever discharge
the cross claims City and CH2M Hill have filed against each other
in the Suit.
17. Notwithstanding anything to the contrary herein, should
an employee or former employee of USF&G, City, CH2M Hill, or
McClelland sue or make demand against one or more of USF&G, City,
CH2M Hill, McClelland, Olson, or HHN, concerning anything per-
taining to or arising out of the Project or USF&G's Suit, then
any release or discharge of such employee granted by the party
(or parties) against whom suit is brought or demand is made is
rescinded, null, and void, and the party (or parties) against
whom suit is brought or demand is made is fully restored with all
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rights, claims, remedies, and causes of action that such party
had or may have had against such employee. All other releases
and discharges would remain in effect.
18. Notwithstanding anything to the contrary in this Agree-
ment, it is understood that USF&G has reserved, and has not
released or discharged, its rights and claims against HHN and
Olson and any parties aside from those released in Paragraphs 2
and 3, above. Notwithstanding anything to the contrary in this
Agreement,. it is understood that CH2M Hill has reserved, and has
not released or discharged, its rights and claims against any
parties aside from those released in Paragraph 12, above.
19.; It is acknowledged that the releases in this Agreement
are intended for the direct benefit of third persons or entities
released therein, including McClelland, HHN and Olson.
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20.':Any payments herein are made without any .admission of
liability on the part of any party or non-party, and are made
solely for the purpose of compromise and avoidance of further
litigation.
21.The terms of this Agreement shall be binding on City,
USF&G, and CH2M Hill, and the respective agents, representatives,
assigns,:and attorneys of City, USF&G and CH2M Hill.
22. The undersigned persons executing this Agreement
respectively warrant that each has been fully authorized to enter
into this Agreement.
23. City warrants that its Board of Directors have passed a
resolution authorizing and empowering the person signing for City
to execute. this Agreement. A copy of that resolution is attached
to and made a part of this
Agreement.
IN WITNESS WHEREOF, this Agreementen�has been executed in mul-
tiple originals, this 7"day of �/(�u.444. , 1989.
WITNESSES:<,
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CITY OF FAYETTEVILLE, ARKANSAS
Title:
4
CH2M HILL SOUTHEAST, INC.
By: X17
fron
Title:f/%ce rr&31ht e-ej,on /tTasrir
ATTEST /
t ..r.
_'c • Asses ;aitt Secretary
A
ft
rc:STATE'O F,(ARKANSAS
n -
COUNTY OF WASHINGTON
This instrument was
day of i049,r J,,fne ,i5
the Agent on behalf of CI
STATE'OFIALABAMA
5
5
_UNITED STATES FIDELITY
& GUARANTY COMPANY
By:
Assistant Vice President
ACKNOWLEDGED be ore me on this the
1989, by
TY OF FPrY\ETTEVILLE,(ARKANSAS.
5
5
COUNTY OF MONTGOMERY
J2 )
IIry Public, Stafe of Arkansas
�J
Ud / /N»E Mg -L '
Printed Name of Notary Public
This,`y�nstrument was ACKNOWLEDGED,_,bbefore me
day of /1014 -ME/? , 1989, by /0,)//1/0/17,0D/t
of CH2M HILL SOUTHE ST, INC., a
tion, on behalf of said corporation
My commission Expires:
92
on this�,, the /5'Tf
r /oAP% /f ,
Florida corpora -
Nota • Public
777
S te of Ala
.Printed Name of Notary Public
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ma
•
STATE OF MARYLAND 5
5
CITY OF BALTIMORE 5
This instrument was
day of November
Asst. Vice Pres.of UNITED
Maryland'corporation, on
[S E A L]
\'-7‘17'.4t, ''1%
My ,Comm'issaeoni,Exp i res :
r- `tea
24708909IT8AAA.00
ACKNOWLEDGED before me on this the-
, 1989, by Stephen J. Trecker
STATES FIDELITY & GUARANTY COMPANY,
behalf of said corporation.
15th
Mary Pub ic, State of Ma and
John T. Wilkins
Printed Name of Notary Public
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a
United States Fidelity and Guaranty Company
BALTIMORE, MARYLAND 21203
THIS IS TO CERTIFY that the following is a true and correct copy of a resolution adopted
by the Board of Directors of United States Fidelity and Guaranty Company at a meeting held on
April 28, 1982, at which a quorum was present and voted:
RESOLVED, That the Chairman of the Board, the Pres- limiting the foregoing, any and all bonds, guarantees, under-
ident, any Vice President, or any Assistant Vice President, in takings. recognisances, stipulations, policies of insurance, deeds,
conjunction with the Secretary or an Assistant Secretary, shall leases, mortgages. releases, satisfactions and agency agree -
have power on behalf of the Company: ments;
(a) to execute, acknowledge, verify and deliver all (b) to appoint one or more persons for any or all of the
contracts, obligations, instruments and documents whatsoever purposes mentioned in the preceding paragraph (a), including
in connection with its business, including, without affixing the seal of the Company.
and that the foregoing resolution is now in force and effect.
I certify, further, that the following are duly elected officers of United States Fidelity and
Guaranty Company and hold positions as:
JACK MOSELEY
Chairman of the Board
PAUL J. SCHEEL Executive Vice Presidents
President E. DONALD BANGS JAMES V. HARRINGTON DAVID H. MEEHAN
W. MINOR CARTER
Vice Presidents:
LANDON V. ALEXANDER
JOHN A. ANDRYSZAK
CHARLES W. BOONE
MICHAEL B.
CASEY B -
STEPHEN.. COOK
(Controller)
ROBERT E. DENIKE
JEROME. W. DOBBYN
• MICHAEL A DODGE
CECIL E ESTES
ROBERT FARROW
Assistant Vice Presidents:
PATRICIA A. ALUISI
MICHAEL J. ANKERSON
FRED C. BOSSE
JAKIE BROWN, JR.
KRIS DALY
RONALD L DEHAMER
NANCY G. DJORDJEVIC
CHRISTIE A. FEENEY
KENNETH I. FORD
WILLIAM J. GENTZ
JOHN R. HAMMOND
MICHAEL P HAMMOND
DEXTER G. HESS
Senior Vice Presidents
JEANNE H. EDDY URBAN E. LEIMKUHLER, JR.
•ROBERT C FREEDY
NANCY M. HARAGAN
RAYMOND M. HASSETT
L. LEE HUPFER
GLENN H. KEATTS
(and Actuary)
JOE I. KIRK
JOHN G. LISKA
JOHN A. MACCOLL
(and General Counsel)
RANDOLPH L. ROHRBAUGH
WILLARD R. HOLLEY
RICHARD A. HUGHES JR
JOHN A. Huss
EDWARD C. LEBER. JR.
THOMAS LONEGRO
MICHAEL T MCCARTY
RUTH MCCLELLAND
B. JAY NCNAMARA
(and Assistant General Counsel)
T. HARTLEY MARSHALL
DORIS MARTIN
ALLYSON L. MEADS
JAMES G. MERCER
PAUL W. SCHLOUGH
RICHARD H. SNADER
(and Corporate Actuary)
WILLIAM J. D. SOMERVILLE, JR.
WILLIAM F. SPLIEDT
(Secretary)
W. BRADLEY WALLACE
RONALD E WOHLUST
KATHLEEN F. WYCOFF
(and Treasurer)
CHARLES D ZIMMERMAN, III
PHILLIP F. NELSON
ROBERT E. NEUBAUER
THEODORE G. PARKS
DOUGLAS C. PERRY
PATRICIA J. SCARFF
KEITH T. SHOEMAKER
BURDETTE L. SHORT
DENISE M. SORTING
WALTER E. STEWART, JR.
JOHN W SULLIVAN
BRENDA M. TOMEC
STEPHEN J. TRECKER
FREDERICK F WILLEY
t
Assistant Secretaries:
THOMAS L. ALLEN JOHN HOFFEN BRIAN A. ROWLAND
BERNARD G. BACINSKI FRANK G HOLLENBECK (and Counsel)
DAVID G. BAKER JONATHAN R. JESCHKE A. LOUISA RUSH
DOUGLAS R. BOWEN HARRIETT LITTLE CARL R. SAAR
DAVID W. BRYDEN KATHLEEN S. LUMSDEN DIANE E. SCHAEFER
JAMES M. CARROLL EDWARD S. MAJGRAF DAVID J. SVEC
EDWARD A. CHAMBERS, JR. TERESA J. MARECK MICHAEL W VANN
CHARLES H. CLEMENS JANIS MAXWELL -ROBERT J. WHITE
,.,WILLIAM J. DUFFY RICHARD L. NAUMAN JOHN T. WILKINS
:EL"IZ-ABETH DUNN DAVID G. OLSON FREDERICK J. WILLEY
-GEOROER. GARDNER FRANCIS X. PHELAN, JR. DICK E. WILT
MICHP:EC O. GRAY THOMAS O. PRESLAR DAVID P. WINGER
THOMNS.G. HEIDENREICH -CHARLOTTE RHEINHARDT RONALD R. WIRSING
1 � JUDITH^C.`-HIMPLER -
;certify— �further;`that the signatures' affixed'to the attached instrument are genuine and
affikedkthereto by virtue of the recited authority.
".„.........;;;:),•iGven under my hand and the seal of the Company, this \ 0 -\ day of
\INC-u''rt\ ' , I9
Executive 30 (7-89)
•
.:~ Z • 1 ��
Assistant Secretary
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REQUESTED WORK LISTING
As of November 9, 1989, City and Operations Management
International, Inc., have requested that the following four war-
ranty or other work items on the Project be performed by HHN
and/or USF&G:
1. : Correction of a ponding of water problem on East-West
Road in the Northern portion of the Project between the
:.Aeration Basin and the Clarifiers.
2. Correction of a blistering problem on the outside sur-
faces of the Primary Clarifiers.
3. ;.Correction of a vibration -related problem with the
Lamson blowers in the Blower Building.
4. Miscellaneous touch-up painting.
USF&G agrees to pay to City up to and no more than SEVEN
THOUSAND FIVE HUNDRED AND NO/100S DOLLARS ($7,500.00) to resolve
the items listedanddescribed on this Requested Work Listing.
Should the cost of resolving these items amount to less than
SEVEN -THOUSAND FIVE HUNDRED AND NO/100S DOLLARS ($7,500.00),
USF&G will pay the actual costs incurred. City agrees to submit
to USF&G itemized cost accounting records, invoices, and such
other reasonable verification as required by USF&G to document
the costs incurred. City agrees that°all work on the items con-
tained on. this Requested Work Listing will be completed on or
before December 15, 1989, weather permitting, and that USF&G will
owe no money for work on such items after December 15, 1989, or
such extended date to complete the work as is necessary due to
adverse weather conditions. City covenants that it will complete
the above listed work as expeditiously as possible, weather con-
ditions permitting.
247:D8909'18AAA.00
RESOLUTION NO.
114-89
A RESOLUTION AUTHORIZING THE APPROVAL OF A
SETTLEMENT AGREEMENT IN THE CASE OF UNITED
STATES FIDELITY & GUARANTY COMPANY V. CH2M
HILL SOUTHEAST, INC. V. CITY OF FAYETTEVILLE,
NO. CIV 88-5204.
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the Board of Directors hereby authorize
and direct the Mayor and City Clerk to execute a settlement
agreement with the counsel of United States Fidelity & Guaranty
Company in the amount of $134,004.00 and dismissing the case
against the city. A copy of the settlement agreement authorized
for execution hereby is attached hereto marked Exhibit "A" and
made a part hereof.
Section 2. That the Board of Directors hereby approves a
budget adjustment in amount $134,004.00 for paying the remaining
balance in connection with the wastewater treatment plant
construction project. A copy of the budget adjustment for
approval is hereby attached hereto and made a part hereof.
1�'
•
•
-1,'10, ATTEST:, hi
PASSED AND APPROVED this 7th day of'Nodember , 1989.
City1,C1
'1111111111
APPROVED:
Mayor