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HomeMy WebLinkAbout4D, 3327 Dunlap Street Settlement - _DDS Request for Council Action ~ Prepared By: Greg Haag Council Meeting Date: August 11, 2008 3327 Dunlap Street Driveway Settlement and Release Agreement Budgeted Amount: $47,500 Actual Amount: $4,140.00 Funding Source: Water Utility Recommendation: Staff recommends approval of the Settlement and Release Agreement between the City of Arden Hills and James and Julie Rechtiene in the amount of $4,140.00 for damages caused to the driveway at 3327 Dunlap Street. Supporting Documents: 1. Memorandum dated August 11, 2008 from Public Works Director. 2. Settlement and Release Agreement drafted by City Attorney, Jerry Filla ~ l_lIIIJIJS MEMORANDUM DATE: August 11, 2008 TO: Honorable Mayor and City Council Ron Moorse, City Administrator FROM: Greg Hoag, Public Works Director SUBJECT: Driveway Repair 3327 Dunlap Street BACKGROUND On November 7,2007 the Public Works Department repaired a broken water main under the driveway in the city right of way at 3327 Dunlap Street. The property owners notified us that they had just replaced the driveway in the late summer and the contractor had provided the residents with a two year warranty. Due to our digging up and patching a portion of the new driveway to complete the repair of the water main, the driveway contractor informed the residents that the warranty on the driveway was now void. Over the last few months City staff and the City Attorney have been working with the residents on a settlement agreement for the damage caused to the driveway. Attached is the Settlement and Release Agreement for your review. STAFF RECOMMENDATION Approve the Settlement and Release Agreement between the City of Arden Hills and James and Julie Rechtiene in the amount of$4,140.00 for damages caused to the driveway at 3327 Dunlap Street. RECOMMENDED COUNCIL ACTION Approve the Settlement and Release Agreement between the City of Arden Hills and James and Julie Rechtiene in the amount of$4,140.00 for damages caused to the driveway at 3327 Dunlap Street, and authorize the Mayor and City Administrator to execute the agreement. SETTLEMENT AND RELEASE AGREEMENT :1..0 Parties. This Settlement and Release Agreement ("Agreement") is entered into by and between the City of Arden Hills, a Minnesota statutory city ("City"); and James Rechtiene and Julie Rechtiene (collectively herein "Rechtienes"). 2.0 Recitals. A. Rechtienes are the owners of the following described real property ("Property") situated in Arden Hills, Minnesota: Lot :I., Block 8, Josephine Hills, Plat NO.2 B. In 2007, the Rechtienes hired a contractor to install a new driveway to serve the Property ("Rechtiene Driveway"). C. Shortly after the Rechtiene Driveway was installed, the City had to repair a City watermain segment. D. The City watermain segment was located within the unimproved portion of the right-of-way adjacent to the Property and below the Rechtiene Driveway. E. A portion of the Rechtiene Driveway was saw cut, removed and patched by the City after the watermain segment was repaired ("Project"). F. The Rechtienes contractor would not warrant the Rechtiene Driveway because the City had removed and patched a section of the Rechtiene Driveway and, in order to obtain the warranty, the Rechtiene Driveway would need to be reinstalled from the improved portion of the City street to the garage. G. The Parties have agreed to resolve this matter pursuant to the terms of this Settlement and Release Agreement. 3.0 Terms and Settlement. NOW THEREFORE, in consideration of the mutual undertakings herein expressed, the Parties agree as follows: A. Upon execution of this Agreement by the Parties, the City shall pay Rechtienes the sum of $4,140 ("Settlement Amount"). B. In consideration of the payment of the Settlement Amount, Rechtienes for themselves and their successors and assigns agree to release the City, its employees and contractors from any liability or claims' whatsoever, known or unknown, arising out of, or in any way related to the Project. c. This is a Settlement Agreement and not an admission of liability. D. This is a legally binding document and each party has' had an opportunity to consult with legal counsel. E. This Agreement may be executed in counterparts by the parties. IN WITNESS THEREOF, the parties have executed this Settlement and Release Agreement on the dates set forth below. CITY OF ARDEN HILLS Dated: By: Stan Harpstead Its: Mayor Dated: By: Ronald Moorse Its: City Administrator STATE OF MINNESOTA ) ) SSe ) COUNTY OF On this _ day of , 2008, before me, a notary public within and for said county, personally appeared Stan Harpstead, the Mayor of the City of Arden Hills, and Ronald Moorse, the City Administrator of the City of Arden Hills, and they executed the above Settlement and Release Agreement as their own free act and deed. Notary Public 2 Dated: James Rechtiene Dated: Julie Rechtiene STATE OF MINNESOTA ) ) SSe COUNTY OF ) On this _ day of , 2008, before me, a notary public within and for said county, personally appeared James Rechtiene and Julie Rechtiene, husband and wife, and they executed the above Settlement and Release Agreement as their own free act and will. Notary Public F:\users\Jessica\Jerry\Arden Hills\Settlement-Release Agr. 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