HomeMy WebLinkAboutItem 06.i
Date: October 19, 2020 Item No.
SOUTH CREEK HYDRODYNAMIC SEPARATOR
SETTLEMENT AGREEMENT WITH PETERSON COMPANIES
AND RESOLUTION AMENDING 2020 BUDGETS
Proposed Action
Staff recommends adoption of the following motions: Move to approve a) Settlement Agreement
with Peterson Companies, Inc.; and b) resolution amending 2020 budgets related to the Settlement
Agreement and project completion for South Creek Hydrodynamic Separator, City Project 17-06.
Overview
The South Creek Hydrodynamic Separator project included public infrastructure improvements
designed to remove sediment and pollutants from stormwater before entering the South Creek.
The City and Peterson Companies entered into a contract on March 18, 2019 to complete the work.
Following completion of the project, Peterson Companies presented a claim to the City for
additional funds related to unanticipated extra efforts implemented during construction. City staff
and Peterson Companies representatives met to discuss the claim and mutually agreed upon an
adjustment to the Contract Price in the amount of $50,000 as a means of resolving the claim.
Primary Issues to Consider
• The attached Settlement Agreement provide the terms of the agreement.
Supporting Information
• Settlement Agreement
• Resolution
Financial Impact: $50,000 Budgeted: Y☐ N☒ Source: Stormwater Infrastructure Fund
Envision Lakeville Community Values: Access to a Multitude of Natural Amenities and
Recreational Opportunities
Report Completed by: Zach Johnson, City Engineer
CITY OF LAKEVILLE
RESOLUTION NO. 20-
RESOLUTION AMENDING 2020 BUDGETS RELATED TO THE
SOUTH CREEK HYDRODYNAMIC SEPARATOR PROJECT (CITY PROJECT 17-06)
WHEREAS, the contract for the South Creek Hydrodynamic Separator, City Project 17-
06, was previously approved in March 2019; and
WHEREAS, the contractor presented a claim to the City for additional funds related to
unanticipated efforts implemented during construction, and the City has agreed to pay $50,000 in
additional contract costs.
NOW, THEREFORE, BE IT RESOLVED the City is hereby authorized to amend the 2020
budgets and make the appropriate transfers between funds with respect to the project funding
sources up to 10% above the estimated costs.
ADOPTED by the Lakeville City Council this 19th day of October 2020.
______________________________
Douglas P. Anderson, Mayor
_________________________________
Charlene Friedges, City Clerk
Funding Sources Budgeted
Costs
Total
Estimated
Costs
Variance
Grant Funds 199,311$ 222,000$ 22,689$
Stormwater Infrastructure Fund 56,311 116,485 60,174$
Total 255,622$ 338,485$ 82,863$
211387v2 1
SETTLEMENT AGREEMENT
AGREEMENT entered into this ___ day of _____, 2020, by and between the
CITY OF LAKEVILLE, a Minnesota municipal corporation (“City”) and PETERSON
COMPANIES, INC., a Minnesota corporation (“Peterson”).
RECITALS
A. On March 18, 2019, the City and Peterson entered into an Agreement
(“Contract”) for construction of the South Creek Hydrodynamic Separator Project, City
of Lakeville Improvement Project No. 17-06 (“Project”).
B. Following completion of the Project, Peterson presented a claim to the
City for additional funds related to unanticipated additional efforts during structure
installation.
C. The parties desire to amicably resolve their disputes regarding any
additional payment owed by the City to Peterson through this Agreement.
NOW, THEREFORE, for good and valuable consideration, the parties agree as
follows:
1. Final Contract Payment and Sum Due to Peterson. The City shall pay to
Peterson, no later than _________, 2020, the amount of $50,000.00, representing full and
final payment of any and all amounts due or which may be due to Peterson and any of
Peterson’s subcontractors, or suppliers (a) pursuant to the Contract and (b) directly
related to the Project. Peterson agrees, on behalf of itself and on behalf of its
subcontractors and suppliers, that it shall make no further claims of any kind, including
but not limited to pay requests, change orders, supplemental pay requests, and
mechanic’s lien claims.
2. Peterson’s Full and Final Release and Agreement to Indemnify for
Subcontractor and Supplier Claims and Liens. Peterson, for itself, and its owners,
officers, employees, insurers, agents and assigns, hereby fully and finally releases,
discharges and agrees to hold harmless and indemnify the City, and any of the City’s
elected and appointed officials, employees, officers, and agents from and against any and
all claims, pay requests, change order requests, lawsuits, mechanic’s liens, administrative
proceedings, arbitrations, costs, attorneys and professional fees and costs, and any and all
claims of any kind, arising out of, directly or indirectly, or relating to, directly or
indirectly, the Contract, the Project or any matter relating thereto.
211387v2 2
3. No Admission. This Agreement effects the settlement and release of
claims and defenses, which are denied and contested by the parties, and nothing
contained in this Agreement shall be construed as an admission of liability by either
party.
4. Representation. Peterson represents and warrants that it has not assigned
or transferred, or purported to assign or transfer, any of the claims released pursuant to
this Agreement to any other person and that it is fully entitled to compromise and settle
such claims.
5. Final Agreement. This Agreement represents the entire agreement
between the parties with respect to the subject matter of the Agreement and supersedes all
prior and contemporaneous oral and written agreements and discussions. Each of the
parties covenants that it has not entered into this Agreement as a result of any
representation, agreement, inducement, or coercion, except to the extent specifically
provided in this Agreement. Each party further covenants that the consideration recited
in this Agreement is the only consideration for entering into this Agreement, and that no
promises or representations of other or further consideration have been made by any
person. This Agreement may be amended only by a written agreement executed by both
of the parties.
CITY OF LAKEVILLE
BY: _____________________________
Douglas P. Anderson, Mayor
AND ____________________________
Charlene Friedges, City Clerk
PETERSON COMPANIES, INC.
BY: _____________________________
Its
Jon Peterson
President