| |
| Council Meeting Date: |
October 22, 2009 |
Contact Person: |
Julie Kriegh |
| Submitting Department: |
Attorney's Office |
District: |
Citywide |
| Staff Recommendations: |
Approve |
|
|
| Agenda Wording: |
|
Settlement and Mutual Release for Washington International Insurance Co v. City of Surprise
|
| Motion: |
| I move to approve the |
| Background: |
|
A. On or about November 15,2006, Obligee and Silver Eagle Western, LLC (hereinafter "Contractor", "Principal" or "SEW") entered into a contract (the "Contract") for work related to the construction of the Coyote Lakes Bell Road Improvements/Contract No. COS07-029 (the "Project").
Specifically, the Contract required SEW to furnish all labor, materials, equipment, and supplies necessary for the construction of certain road improvements at or near the comer of Bell Road and 115
th
Avenue. In accordnance with Arizona Revised Statutes ("A.R.S.") §34-221, et seq., WIIC, a duly licensed surety, issued payment and performance bonds, each numbered S9040069 (collectively the "Bonds") and in the penal sum of $l ,531 ,000.00, on behalf of SEW, as principal, in connection with the Contract. On September 29,2008, WIIC made claim against the City seeking to recover the remaining Contract funds in the amount of $241 ,135.10 under the common law doctrine of equitable subrogation. The City denied WIIC's claim for the Contract funds, asserting various off-sets in an amount exceeding WIIC's claim. Thereafter, WIIC filed a lawsuit against the City in the matter captioned
Washington International Insurance Company
v.
City o/Surprise,
Maricopa County Superior Court for the State of Arizona Arizona, Civil Case No. CV2009-0448 (the "Lawsuit").The parties wish to resolve their disputes and claims arising under or in any way related to the Contract, the Project, the Bonds, and the Lawsuit according to terms and provisions in the Settlement Release. The City of Surprise will release all warranty claims and pay WIIC $22,500 for dismissal of the suit and release of all claims.
|
| Financial Impact Statement: |
This item has been approved by the Mayor and Council in the FY2010 budget in the amount of $100,000. The budget for this item is located in project number 20547. Upon approval of this item it is anticipated that all funds associated with this council action will be expended by November 30, 2009 leaving a total project balance of $77,500.
Project Name | Bell Road Projects | Project Number | 20547 | Total Project Budget | $5,658,500 | Previous Approvals | ($5,558,500) | This Request | ($22,500) | Remaining Balance | $77,500 |
|
| External Attachment Links: |
|
|
| Presentation Speaker Names (spelling and titles for TV captions): |
|
|
|
|
|