...Title
Dept. / Agency: Water and Sewer Utilities
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Purpose: Pre-Litigation Settlement
Docket No.: N/A
Claimant: Mak Group LLC
Claimant's Attorney: N/A
Attorney’s Address: N/A
Settlement Amount: $123,366.43
Funding Source: Department of Water and Sewer Utilities Budget: Fund 037 Dept 756 Div/Proj 7565 Account 71960 Budget YR 2025
Additional Information:
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WHEREAS, as authorized by 7R12-a adopted on October 2, 2024, the Director of the Department of Water and Sewer Utilities executed Contract 07-WS2024 Re-Bid, for Roof Replacement at the Water Pretreatment Building, The Meadowlands Stormwater Pumping Station, and the Way Pumping Station 1 & 2, with Mak Group, LLC (“Mak”), 82 Midland Avenue, Suite D, Saddle Brook, New Jersey 07663, in the amount of $839,758.00, with work that commenced on or about December 2024 and was completed on or about September 2025; and
WHEREAS, on or around December 31, 2024, a dangerous, significant water intrusion developed at the Charlotteburg Gate House (Gate House) requiring immediate attention; and
WHEREAS, at the request of the Director of the Department of Water and Sewer Utilities (“the Director and/or the Department”) the engineering consultant, PCI Consulting Inc., overseeing the roof replacements under Contract 07-WS2024, conducted an inspection of the Gate House, observed the water intrusion, and significant deterioration of the roof and opined immediate replacement of the roof was necessary; and
WHEREAS, the continuing exposure to water posed inevitable damage to the panels responsible for the operation of the dam valves and alarm system such damage would lead to a serious operational emergency, affecting dam safety and response capability; and
WHEREAS, at the time that the dangerous condition was observed by the Department’s personnel, Mak was completing the roof replacements under Contract 07-WS2024; and
WHEREAS, the Gate House roof required immediate replacement on an emergency basis to protect this critical essential asset to the City’s water system to provide potable water without interruption; and
WHEREAS, the Department being satisfied with Mak’s performance of Contract 07-WS2024 asked that they provide a proposal for the replacement of the Gate House roof; and
WHEREAS, the Director accepted the proposal submitted by Mak to replace the Gate House roof for an amount not to exceed One Hundred Twenty-Three Thousand Three Hundred Sixty-Six Dollars and Forty-Three Cents ($123,366.43) and instructed that they proceed with the work which commenced on or around September 10, 2025, and completed in approximately one week; and
WHEREAS, the documents prepared by the consultant to initiate the work at the Gate House were drafted as a Change Order to Contract 07-WS2024 as opposed to the declaration of an emergency pursuant to N.J.S.A. 40A:11-6 and Mak’s invoice remains unpaid for the work performed at the Gate House; and
WHEREAS, due to this procedural error and no other process available to pay for the work performed, the Director after consultation with the Corporation Counsel seeks to resolve this matter by way of settlement; and
WHEREAS, the Director of the Department confirmed that the services were performed in a satisfactory manner, and desires to pay the outstanding balance by way of settlement; and
WHEREAS, to avoid the costly expense of litigation, Mak and the Corporation Counsel for the City of Newark desire to amicably resolve this matter prior to any commencement of litigation; and
WHEREAS, the Parties have agreed to settle the matter for payment by the City to Mak of One Hundred Twenty-Three Thousand Three Hundred Sixty-Six Dollars and Forty-Three Cents ($123,366.43) in exchange for Mak’s execution of a Settlement Agreement and Release as a full and complete release of the Claims; and
WHEREAS, the Corporation Counsel has determined and the Municipal Council concurring that it is in the best interest of the taxpayers to settle the matter and avoid the cost, expense, delay and uncertainty of litigation.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Corporation Counsel is authorized on behalf of the City of Newark to enter into a Settlement Agreement and Release with Mak Group, LLC., 82 Midland Avenue, Suite D, Saddle Brook, New Jersey 07663, and any other documents, sufficient in form and content to the Corporation Counsel and to take whatever actions are necessary to effectuate the terms of the within resolution and settlement of this matter pursuant to the terms contained in this Resolution.
2. In exchange for the execution of the Settlement Agreement, acceptable in form to the Corporation Counsel and after passage of this Resolution and upon receipt by the Corporation Counsel and the Director of Finance of any and all other documents deemed necessary, the Director of Finance of the City of Newark is authorized to make payment in the sum of One Hundred Twenty-Three Thousand Three Hundred Sixty-Six Dollars and Forty-Three Cents ($123,366.43) by check made payable to Mak Group, LLC., 82 Midland Avenue, Suite D, Saddle Brook, New Jersey 07663 attention: Atanas Nakev, Managing Member or if request by electronic payment.
3. Certification of Funds from the Comptroller of the City of Newark in the amount of One Hundred Twenty-Three Thousand Three Hundred Sixty-Six Dollars and Forty-Three Cents ($123,366.43) is attached. Funds are available from Department of Water and Sewer Budget: Fund 037 Dept 756 Div/Proj 7565 Account 71960 Budget Reference 2025. A copy of the Certification(s) of Funds shall be filed in the Office of the City Clerk along with a copy of this resolution for each payment.
4. A fully executed copy of the Settlement Agreement and Release shall be filed in the office of the City Clerk by the Corporation Counsel.
STATEMENT
This resolution authorizes the pre-litigation settlement between the City of Newark and Mak Group, LLC in the amount of One Hundred Twenty-Three Thousand Three Hundred Sixty-Six Dollars and Forty-Three Cents ($123,366.43) for the emergency roof replacement at the Charlotteburg Gate House.