Title
Dept/ Agency: Law
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Purpose: Pre-Litigation Settlement Agreement
Docket No.: Not Applicable
Claimant: Mainlining America, LLC, 555 Pound Road, Elma, New York 14059
Claimant's Attorney: Not Applicable
Attorney's Address: Not Applicable
Settlement Amount: $360,555.60
Funding Source: 2013 Budget/Department of Water and Sewer Utilities/Business Unit: NW041, Dept. ID 13W, Div/Proj. 13WA0, Account Code 94710, Budget Ref: B2013
Additional Comments:
The Contract 11-WS2011, Rehabilitation of Water Mains (C&L) awarded to Mainlining America, LLC, 555 Pound Road, Elma, New York 14059, will be settled with the payment of $360,555.60.
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WHEREAS, Resolution 7R12-c adopted on December 2, 2015, authorized the Director of the Department of Water and Sewer Utilities to award Contract 11-WS2011, Rehabilitation of Water Mains (C&L) to Mainlining America, LLC, 555 Pound Road, Elma, New York 14059 in the amount of $13,733,451.50 in accordance with the Local Public Contracts Law, N.J.S.A. 40A:11-1 et seq.; and
WHEREAS, Resolution 7R12-g(AS) adopted on June 24, 2020, authorized the execution of Change Order #1 to Contract 11-WS2011 with Mainlining America, LLC, increasing the contract amount by $648,952.08 to a total contract amount of $14,382,403.58; and
WHEREAS, Resolution 7R12-f adopted on April 7, 2021, authorized the execution of Change Order #2 to Contract 11-WS2011 with Mainlining America, LLC, for the increasing the contract amount by $137,035.60 to a total contract amount of $14,519,439.18; and
WHEREAS, the City of Newark and Mainlining America, LLC, (“the Parties”) expressed differing interpretations of the specifications at issue, resulting in this current dispute; and
WHEREAS, following completion of the project and the disputed work regarding the increased quantities remaining open, Mainlining America, LLC, issued a Demand for Mediation letter; this Mediation then reached an impasse; and
WHEREAS, following the Mediation, the Parties continued to negotiate, and were able to reach an amicable resolution; and
WHEREAS, the Department of Water and Sewer Utilities agrees to pay the remaining previous authorized Change Order #2 in the amount of One Hundred Thirty-Seven Thousand Thirty-Five Dollars and Sixty Cents ($137,035.60) and the remaining amount of Two Hundred Twenty-Three Thousand Five Hundred Twenty Dollars and Zero Cents ($223,520.00) to Mainlining America, LLC, for a total settlement amount of Three Hundred Sixty Thousand Five Hundred Fifty-Five Dollars and Sixty Cents ($360,555.60); and
WHEREAS, the within Settlement Agreement and General Release neither admits nor should it be construed as an admission of liability or a violation of any law, statute or regulation or a breach of any duty by the City of Newark, its agents, officers and/or employees whatsoever or by Mainlining America, LLC, or any of its agents, officers and/or employees whatsoever and is entered into in good faith based upon recommendations of Counsel and to eliminate all risks and potential costs; and
WHEREAS, the Corporation Counsel agrees and the Parties seek to resolve this matter without the need for litigation by the execution of the attached Settlement Agreement and General Release (the “Agreement”) and payment to Mainlining America, LLC in the total settlement amount of Three Hundred Sixty Thousand Five Hundred Fifty-Five Dollars and Sixty Cents ($360,555.60)(“Settlement Sum”).
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor of the City of Newark, and/or his designee, the Corporation Counsel, is hereby authorized, on behalf of the City of Newark, to enter into and execute the terms of the Settlement Agreement and General Release between the City of Newark and Mainlining America, LLC, of 555 Pound Road, Elma, New York 14059.
2. Pursuant to the Agreement, City of Newark shall pay Mainlining America, LLC, the Settlement Sum of Three Hundred Sixty Thousand Five Hundred and Fifty-Five Dollars and Sixty Cents ($360,555.60) to be paid, via check made payable to: Mainlining America, LLC, of 555 Pound Road, Elma, New York 14059.
3. Attached hereto is the Certification of Funds from the Chief Financial Officer which states that funds are available for the purpose of paying the remaining balance of Two Hundred Twenty-Three Thousand Five Hundred Twenty Dollars and Zero Cents ($223,520.00) set forth hereinabove and which states that the line appropriation of the official budget which shall be charged is: Business Unit NW041, Dept. ID 13WA0, Div./Proj. 13WA0, Account Code 94710, Budget Ref: B2013.
4. The Corporation Counsel shall file a copy of the fully executed Settlement Agreement and General Release, the Comptroller’s Certification and a copy of this Resolution in the Office of the City Clerk.
STATEMENT
This Resolution authorizes the Mayor of the City of Newark and/or his designee, the Corporation Counsel, on behalf of the City of Newark, to enter into and execute a Settlement Agreement and General Release with Mainlining America, LLC., of 555 Pound Road, Elma, New York 14059 to resolve disputed work regarding increased quantities in the total amount of $360,555.60. In return, the Parties release and discharge each other from any liability for the payment of interest, late charges and penalties and any and all claims which were or could have been asserted in this matter.