Title
Dept/Agency: Law
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Purpose: Pre-Litigation Settlement of a Demand for Payment
Docket No.: None
Claimant: Paulus, Sokolowski and Sartor, LLC.
Claimant’s Attorney: None
Attorney Address: None
Settlement Amount: $20,000.00 (Twenty Thousand Dollars and Zero Cents)
Funding Source: City of Newark, Department of Water and Sewer Utilities
Additional Information: 1433 State Route 34 Building A, Wall, New Jersey, 07727
Payment of an additional $20,000.00 (Settlement Sum) on an Emergency Contract, E 013-11.
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WHEREAS, the Department of Water and Sewer Utilities (“Department” or “City”) was in need of certain professional engineering services, more specifically, construction administration services for the repair and rehabilitation of the 24-inch water main located in a tunnel which crosses beneath the Amtrak railroad tracks under the Haynes Avenue Bridge, and engaged Paulus, Sokolowski and Sartor, LLC, by way of Emergency Contract E 013-11 issued on September 6, 2013, for an amount not to exceed $40,350.00; and,
WHEREAS, at the time the Department issued Emergency Contract E 013-11, it was anticipated that construction would be completed within 75 days, with all work under the Emergency Contract completed within the authorized 90-day time period ending December 4, 2013; and,
WHEREAS, the scope of work and the period of time required to complete the work for this Emergency Contract had to be extended due to, among other things: the delivery of special order valves and pipe liner; additional work due to mandatory modifications to the piping due to unforeseen field conditions; the restrictions on work periods imposed by the railroad; and poor weather conditions including low temperatures and extreme snow falls. All of these factors expanded the scope of work and extended work performance resulting in the Contractor completing the work on April 15, 2014; and,
WHEREAS, as a result of the above-mentioned expanded scope of work and extended work period, Paulus, Sokolowski and Sartor, LLC, continued to perform construction administration services, at the direction of City of Newark representatives, by providing additional work hours beyond the Emergency Contract’s authorized 90-day time period ending December 4, 2013, for an additional sum of $20,000.00, resulting in a new total contract cost of $60,350.00; and,
WHEREAS, Paulus, Sokolowski and Sartor, LLC, claims that it provided the services; and,
WHEREAS, Paulus, Sokolowski and Sartor LLC, has submitted invoices for the services provided for the additional cost of $20,000.00, over the original contract cost; and,
WHEREAS, Paulus, Sokolowski and Sartor, LLC, has claimed that the total cost of the services provided is $60,350.00; and,
WHEREAS, the parties agree that Paulus, Sokolowski and Sartor, LLC has previously received payment by the City of Newark of $40,350.00 which is the original contract amount; and,
WHEREAS, the parties have agreed to amicably settle the matter by the lump sum payment by the City of Newark of Twenty Thousand Dollars and Zero Cents ($20,000.00) (“Settlement Sum”), in exchange for the execution of a Settlement Agreement and General Release as a full and complete settlement of any and all of Paulus, Sokolowski and Sartor, LLC’s claims arising from Emergency Contract E 013-11, including any and all claims for attorneys’ fees; and,
WHEREAS, the within Settlement Agreement and General Release neither admits nor should it be construed as an admission of liability or 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 and is entered into to resolve this matter and prevent the incurring of additional costs and fees; and,
WHEREAS, Paulus, Sokolowski and Sartor, LLC acknowledge and agree that the operation and effectiveness of the Settlement Agreement and General Release and the payment of the Settlement Sum are contingent upon the approval by the Municipal Council; and,
WHEREAS, the City has determined that it is in the best interest of the taxpayers to settle 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 hereby authorized on behalf of the City of Newark to negotiate and execute a Settlement Agreement and Release 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 the within Resolution.
2. The Municipal Council of the City of Newark hereby authorizes the payment by check made payable and mailed to Paulus, Sokolowski and Sartor, LLC, 1433 State Route 34 Building A, Wall, New Jersey, 07727, in the amount of Twenty Thousand Dollars and Zero Cents (“Settlement Sum”) in consideration of and pursuant to the terms and conditions contained in the Settlement Agreement and Release annexed hereto.
3. In exchange for the execution of the Settlement Agreement and Release by Paulus, Sokolowski and Sartor, LLC, acceptable in form to Corporation Counsel, and after passage of this resolution and upon receipt by the Corporation Counsel and the Acting Director of Finance of any and all other documents deemed necessary, the Acting Director of Finance of the City of Newark is hereby authorized to issue a check made payable to Paulus, Sokolowski and Sartor, LLC, in the amount of Twenty Thousand Dollars and Zero Cents ($20,000.00).
4. The within settlement and resolution neither admits nor should it be construed as an admission of liability or 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 and is entered into based upon recommendations of counsel and to eliminate all risks and future litigation costs.
5. Attached hereto is a certification of funds issued by the Acting Director of Finance, City of Newark, which states that there are available sufficient, legally appropriated funds of Twenty Thousand, Dollars and Zero Cents ($20,000.00) for the purposes set forth hereinabove and which state that the line appropriation of the office budget which shall be charged is Business Unit: NW041, Department ID: 10W, Project 10W10, Account# 94710. The Corporation Counsel shall file a copy of the Certification of Funds and this Resolution in the Office of the City Clerk.
6. A fully executed copy of the Settlement Agreement and Release shall be filed in the Office of the City Clerk by the Corporation Counsel.
7. This Resolution shall be effective upon adoption in accordance with applicable State law.
STATEMENT
This resolution authorizes the settlement of a demand for payment from Paulus, Sokolowski and Sartor, LLC, for additional services provided under an Emergency Contract, E 013-11, in the amount of Twenty Thousand Dollars and Zero Cents ($20,000.00).