Title
Dept/ Agency: Engineering
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Settlement Agreement
Purpose: Authorizing Execution of Settlement Agreement with Passaic Valley Sewerage Commission
Entity Name: Passaic Valley Sewerage Commission (PVSC)
Entity Address: 600 Wilson Avenue, Newark, New Jersey 07105
Contract Amount: $83,680.00
Funding Source: Not Applicable
Contract Period: Not Applicable
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. () EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient ( X ) n/a
Additional Information:
Original Resolution 7R3-e adopted on April 5, 2023, authorized the City of Newark (the “City”) to enter into an Agreement with PVSC which required PVSC to install curb and sidewalk at the completion of their flood wall construction project, at their sole monetary expense. However, in lieu of construction, PVSC and the City of Newark have agreed to a monetary settlement in the amount of $83,680.00, the approximate value of the curb and sidewalk construction.
body
WHEREAS, pursuant to Resolution 7R3-e adopted April 5, 2023, the City of Newark (the “City”) and Passaic Valley Sewerage Commission (“PVSC”), entered into an agreement which required PVSC to install curb and sidewalk improvements on the Western side of Doremus Avenue between Wilson Avenue and Delancy Street (“Agreement”); and
WHEREAS, this Agreement was necessary because the City was in the process of developing and expanding the improvements on Doremus Avenue to include new curb and sidewalk along the Western side from Wilson Avenue to Delancy Street (“Project”), which is considered part of the public right-of-way, with grant funds, which incorporated an established schedule; and
WHEREAS, PVSC was simultaneously constructing a flood wall on its property which included a property adjacent to the Project and required the use of the public right-of-way and such construction would interrupt the City’s project; and
WHEREAS, due to the conflict in schedules and PVSC’s interest in proceeding with its construction of the flood wall, it agreed to complete the City’s Project at its sole cost and expense totaling Eighty-Three Thousand Six Hundred Eighty Dollars and Zero Cents ($83,680.00); and
WHEREAS, the Project was delayed by PVSC due to additional required funding and securing a contractor, which resulted in it being postponed until Spring 2024; and
WHEREAS, on April 25, 2024, PVSC sent a letter to the Acting Director of the Department of Engineering, offering to provide a monetary settlement in the amount of Eighty-Three Thousand Six Hundred Eighty Dollars and Zero Cents ($83,680.00), in lieu of completing the Project; and
WHEREAS, the Acting Director of the City of Newark wishes to accept this monetary settlement in the amount of Eighty-Three Thousand Six Hundred and Eighty Dollars and Zero Cents ($83,680.00) for the construction of the curb and sidewalk from Passaic Valley Sewerage Commission, in lieu of work originally intended to have been completed by PVSC, pursuant to the Agreement authorized by Resolution 7R3-e adopted on April 5, 2023; and
WHEREAS, the City and PVSC have agreed to settle the matter for payment by PVSC of Eighty-Three Thousand Six Hundred and Eighty Dollars and Zero Cents ($83,680.00), pursuant to the Settlement Agreement and General Release (attached hereto and made a part hereof).
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor and/or his designee, the Acting Director of the Department of Engineering, are hereby authorized on behalf of the City of Newark to enter into and execute a Settlement Agreement and Release (the “Agreement”), between the City of Newark and Passaic Valley Sewerage Commission (PVSC), 600 Wilson Avenue, Newark, New Jersey 07105.
2. Pursuant to the Settlement Agreement and Release, PVSC shall pay the City of Newark, the settlement sum of Eighty-Three Thousand Six Hundred and Eighty Dollars and Zero Cents ($83,680.00), to be paid via check, made payable to the City of Newark, Department of Engineering, for the construction of the curb and sidewalk in lieu of work originally intended to have been completed by PVSC. The funds shall be deposited into Business Unit NW045, Dept. 23A, Div./Proj. 23A02, Activity A, Account# 94710, Budget Ref B2023.
3. The Acting Director of the Department of Engineering shall file a fully executed copy of the Settlement Agreement and Release in the Office of the City Clerk.
4. This Resolution shall be effective upon adoption in accordance with applicable State Law.
STATEMENT
This Resolution authorizes the Mayor of the City of Newark and/or his designee, and the Acting Director of the Department of Engineering, to enter into and execute a Settlement Agreement and Release with Passaic Valley Sewerage Commission. Pursuant to the Agreement, PVSC shall pay Eighty-Three Thousand Six Hundred and Eighty Dollars and Zero Cents ($83,680.00) to the City of Newark for construction of the curb and sidewalk in lieu of work originally intended to have been completed by PVSC.