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Home My WebLink About05- Morrison Maierle, Williams Plumbing Settlement Agreement and Release of Claims - .~ - SETTLEMENT AGRl<~EMENT AND RELEASE OF CLAIMS This agreement is made on Decernber J5-t'-b,- 2005, between the City of Bozeman, Montana ("City"), Morrison Maierle, Inc. ("MMI") and Willianls Plumbing Heating and Utilities, Inc. ("Williams"). In October 2003, the City, as owner, awarded a contract to Williams to construct a project known as the Rouse Avenue Sewer Trunk line and Water Replacement Project, City Project No, 56EP04 (the "Project"). Monison-Maicrle, Inc. ("M MI") was the design and construction engineer on the Project. During the course of the Project's construction, certain disputes as to what constituted extra work and the amount of equitable compensation owed Williams for such extra work arose between Williams, as contractor, and the City and MMI, as the result o[which Williams submitted claims to the City lex additional compensation. On September 12 and 13, 2005, the parties as provIded by the contract mediated the disputed claims. As the result of the mediation, the parties agreed on the following resolution of the claims: I. The City agrees to pay the sum of $332,709.41 to Williams, in addition to the sum of $103,365.13 previously paid on the mediated claims pursuant to an approved Change Order, and Williams agrees to accept said sum 01'$332,709.41 in addition to the amounts previously paid on said mediated claims. Tn consideration for such payment and all other payments made by the City to Williams under the contract Williams agrees upon receipt of such payment it fully and forever releases and discharges the City and or/MMI and their respective representatives, successors, assigns, agents, partners, employees and att0111eys (rOlll all actions, claims, causes or action, demands, or expenses for additional compensation for work performed as required by the contract on the Project arising out of the construction or design and adrninistration ofthe project except as provided in Paragraph 2, infra. 2, The City, MMI and Williams acknowledge that all Work required by the contract has been completed by Williams in accordance with the requirernents orthe plans and specifIcations Ii)]' the project and has been accepted per the requisite paragraphs orthe Standard General Conditions ofthe contract subject to and as provided by the contract terIns and provisions and the SetllClTlelll Agreement and Releasc ofCJallns Williams-M M I-Bozeman December 14, 2005 Pagc I . - warranty provisions of the contract. In connection with any alleged warranty work Willianls retains it rights under the contract to dispute and to mediate any dispute as to whether said alleged warranty work is or is not warranty work and to make a claim fl)r an equitable adjustment fur any alleged warranty work that is dctennined not to be warranty work, ], Willianls releases Zurich Insurance COlnpany fronl all obligations under any part of the company's insurance policies applicable to Williams' clairns and ji-OlT1 any and all claims arising out of the investigation, handling, adjusting, defense or settlernent ofWillialns' c1ainl, including without linlitation any clainls under Section 33-11:)-242, Mont. Code Ann. 4. It is understood that the above-mentioned sum, together with prior payments related to Williams' construction of the Project, are accepted by Williams as the sole consideration for full satisfrction and accord to compromise the mediated claims, and that neither the payment of the sums on the mediated claims nor the negotiations for settlernent shall be considered as an admission of liability by the City or MMl. 5. Williams assures the City that all subcontractors /l.)!' the Project bave been paid. 6. Williams represents and warrants it is the owner of the rnediated claims and there arc no other parties or persons with an interest in the mediated claims and that no ad(htlOnal claims are contemplated against ,my other party potentially liable Il.)f the losses lor whieh this Release is given, In the event any additional claim is made which directly or indirectly results in additional exposure to the City for the losses for which this Release is given, Willianls covenants and agrees to indemnify and save the City hannless from all such claims, including reasonable attorneys' fees and other expenses necessarily incurred. 7. None of the parties may use the terms of this agreement or the arnount of the settlement as evidence that Williams is or is not a responsible bidder. However, the making ofthe June 5, 2005 claim, the fact the claim was settled and the clainl's contents may be used by the City of Bozeman or Williams on the issue in the future as to whether Williams is or is not a responsible bidder. 8. Each of the parties has carefully read the Coregoing, discussed its legal effect with its respective attorneys, understand the contents thereof, and executes the same of its own free will and accord. 9. Tbe parties agree to cooperate fully and execute any supplenlental documents and to take all additional actions which may be necessary or appropriate to give full/urce and effect to the basic tenns and intent of this Settlement Agreement. Settlement Agreement and Release of Claims Williams-MM I-Bozeman December 14, 2005 Page 2 "\ ~ 10. The City agrees to payment of the agreed upon sum of$332,709.41, which as approved by the City Commission on September 12,2005, shall be reasonably processed and paid in the ordinary course of the City's business and the parties agree that such payment shall be subject to the Montana gross receipts tax. 11. This Settlement Agreement and Release of Claims is intended to and does replace the handwritten Settlement Agreement and Mutual Release of Claims signed by counsel at the conclusion of the Mediation of September 13,2005. ::;1\ DATED this /}J day of December, 2005. WILLI~MS PLUM~ING, IlEA TING & UTILITIES, INC. ,. ,/ / - //. ,,')'\;'1 , "1'/" " / I ----..' ;) 1'1 // ~ , / ..,' " d/.> i..!" '.'... { d/? /,1 / ,/{,t1 /.1 A"/l ''j ./ . -1 ({/f /1 k,/ , _,." ./ t,. I '{./ c..r--,. VLvr} {....... ;.. L",(;"" ...}.,., v' ~.-,-__..."" l, Ken WillianY', President ./"/,,." /,;:::/' r:. ' -~ ., .,' /,. .' \,,_,,::.' '~!.-_""-/:""<-- (' ./'::~7___";rl"fZ~'",,/ ..,"'-' Richardt Andriolo, Attorney at Law CITY OF BOZE~A ~~.._.- Chris Ku lski, City Manager /! II" /.i " " 1, y::- . / Li,.:" ..---'1 ',ti,\/iT'''-.... Rob J. Planalp, Attorney at Law; ~S.T:. g;J~ , Clerk of Commission RISON MAIERL.:a ? ~--VP J6 1-,/1" 17. Sc.. ~J:!~ ~m i ! I Ii;' I ~I , .:' ! (' ' / ,',~ i I /..' _ ._ ._ ! J ,I', / - I,,J _-,---" Neil'Westesen, ~at Law ~-_. Settlement Agreement and Release of Claims Williams-MMI-Bozeman December 14,2005 Page 3