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HomeMy WebLinkAbout2015-04-07; City Council; 21920; Settlement Agreement Prava Construction and CityCITY OF CARLSBAD - AGENDA BILL 12 AB# 21,920 AUTHORIZATION FOR RISK MANAGER TO SIGN A SETTLEMENT AGREEMENT AND RELEASE BETWEEN PRAVA CONSTRUCTION SERVICES, INC. AND THE CITY OF CARLSBAD DEPT. DIRECTOR DATE 04/07/15 AUTHORIZATION FOR RISK MANAGER TO SIGN A SETTLEMENT AGREEMENT AND RELEASE BETWEEN PRAVA CONSTRUCTION SERVICES, INC. AND THE CITY OF CARLSBAD CITY ATTY. DEPT. ASD/RISK AUTHORIZATION FOR RISK MANAGER TO SIGN A SETTLEMENT AGREEMENT AND RELEASE BETWEEN PRAVA CONSTRUCTION SERVICES, INC. AND THE CITY OF CARLSBAD CITY MGR. 0^*No9^ RECOMMENDED ACTION: Adopt Resolution No._ 2015-087 authorizing the Risk Manager to sign a settlement and release agreement between Prava Construction Services, Inc. and the City of Carlsbad. ITEM EXPLANATION: On November 1, 2014, a city hired contractor completing improvements on a city owned building allowed storm water to enter the building causing moderate damage. The contractor hired crews to clean up and restore the building to its prior condition at a cost to the contractor's insurances in the amount of $55,947.05. Staff has inspected the building and are satisfied with the repairs completed. The contractor's insurance has requested the City of Carlsbad sign a "Settlement Agreement and Release" prior to the insurance carrier releasing funds to compensate the involved contractors. The Settlement Agreement and Release language was overly broad and was altered by staff. The revised agreement is now acceptable to the insurance carrier and city staff. FISCAL IMPACT: No fiscal impact to the city. Once the Settlement Agreement and Release is signed, the insurance carrier will release the funds to compensate the involved contractors. ENVIRONMENTAL IMPACT: Pursuant to Public Resources Code Section 20165, this action does not constitute a "project" within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. EXHIBITS: 1. Resolution No 2015-087 2. Settlement Agreement and Release DEPARTMENT CONTACT: Ed Garbo 760-602-2471 ed.garbo@carlsbaclca.gov FOR CLERK USE • COUNCIL ACTION: APPROVED • CONTINUED TO DATE SPECIFIC • DENIED • CONTINUED TO DATE UNKNOWN • CONTINUED • RETURNED TO STAFF • WITHDRAWN • OTHER - SEE MINUTES • AMENDED • REPORT RECEIVED • EXHIBIT 1 1 RESOLUTION NO. 2015-087 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, •5 CALIFORNIA, AUTHORIZING THE RISK MANAGER TO SIGN A J SETTLEMENT AND RELEASE AGREEMENT BETWEEN PRAVA 4 CONSTRUCTION SERVICES, INC. AND THE CITY OF CARLSBAD 5 WHEREAS, the Risk Manager requires authority to sign a Settlement and Release 6 Agreement; and 7 8 WHEREAS, there is currently no authority to sign such a document. 9 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California 10 as follows: 11 1. That the above recitations are true and correct. 12 2. The Risk Manager with concurrence of the City Attorney shall have authority to 13 sign Settlement and Release Agreement in the amount of $55,947.05 thus allowing 14 15 settlement of claim for damages to a city facility. 16 /// 17 /// 18 /// 19 /// 20 21 /// 22 /// 23 /// 24 /// 25 /// 26 /// 27 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council ofthe City of Carlsbad on the 7*^ day of April, 2015, by the following vote to wit: AYES: NOES: Council Members Hall, Blackburn, Schumacher, Wood, Packard. None. ABSENT: None. MATT HALL, Mayor ATTEST: BARBARA ENGLESON^y (SEAL) ^''9.^', Clerk EXHIBIT 2 SETTLEMENT AGREEMENT AND RELEASE This SETTLEMENT AGREEMENT AND RELEASE (hereinafter referred to as "Settlement Agreement") is made and entered into by and between Prava Construction Services, Inc. hereinafter referred to as (Prava) and City of Carlsbad, CA (hereinafter referred to as "Claimant"). RECITALS A. Claimant has made a claim against Prava for property damage occurring on or about November I, 2014 at 2075 Las Palmas Dr. Carlsbad, CA to property owned and managed by Claimant when a rain storm caused water damage. (The accident) B. Claimant and Prava desire to enter into this Settlement Agreement in orderto avoid the costs and risks of litigation. AGREEMENT Claimant and Prava hereby agree as follows: 1. Payment has been made by Mt. Hawley Insurance Company on behalf of Prava for $ 55,947.05 (Fifty Five Thousand Nine Hundred Forty Seven and 051100) to claimant, receipt of which is hereby acknowledged. (See paragraph 7. Below) 2. Claimants will release and discharge Prava and their insurers, principals, partners, parent and subsidiary corporations, agents, members, residents, officers, employees, attomeys, and other representatives from any and all claims, liens, demands, debts, liabilities, damages (including attomey's fees and costs), and causes of action arising out of the above-referenced accident at 2075 Las Palmas Drive, Carlsbad, Califomia. 3. This Settlement Agreement is intended to include all alleged acts, causes of action or claims which are the result of the accident occurring on November 1, 2014 at 2075 Las Palmas Drive, Carlsbad, Califomia. 4. This Settlement Agreement shall be fully binding and a complete settlement of all claims between Claimant and Prava arising out of this accident. 5. This Settlement Agreement does not constitute an admission of fault or liability by any party, all of whom deny any fault or liability. 6. Claimant has read this Settlement Agreement, knows the contents thereof, and has had adequate opportunity to consult with counsel about the effect and consequences of the Settlement Agreement and further acknowledge that its terms are contractual and not mere recitals. // // // // EXHIBIT 2 7. Claimant authorizes payment to be made direct to Servpro of Carlsbad in the amount of $39,753.65 for janitorial and building repairs; and for $5,205.00 to Prava for their labor and supervision costs; and $6,346.40 to Newbery Construction and Prava for repairs to baseboards; and for $4,642.00 to Prava and Heartland Acoustics for ceiling tile. Claimant:___J^^if;^^^ '"fo^ V-S^^^^t-—^^'^ City of Carlsbad Authorized Representative Notary ^ Date: ^^"/^ Page 2 of 2 CAUFORNIA ALL-PURPOSl ACKNOWLEDGMENT CIVIL CODE § 1189 A notary pttolic or other officer completing this certificate verifies only the Identity of the individual who sipied lhe document to which this certificate is attached, said not the tmthfulness, accuracy, or validity of that documait. State of Califomia County of SP^..-J~^ /^•^ g> On vA^pv-' t % , <r before me, ) Oate personally appeared -Tev^<& L.-^js>.^ur^ H'==>T4^>-j A^u<- Here Insert Name and Title of the Officer Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capaclty(ies), and that by his/her/their signature(s) on the instrument the person{s), or the entity upon behalf of which the person(s) acted, executed the instrument. TOME L ROmiY CommiMicM # 19S2691 SanOiagoCowHy s 1 I certify under PENALTY OF PERJURY under the laws of the State of Califomia that the foregoing paragraph is true and correct. WfTNESS my hand and official seal. Signature Signature of Notary Publii Place Notary Seal Above OPTIONAL Though this section is optional, completing this information can deter alteration ofthe document or fraudulent reattachment of this fomn to an unintended document. Description of Attached Document ^ t i Title or Type of Document: /•ee^c^<-'*" Document Date: S ' ' S Number of Pages: Signer(s) Other Than Named Above: - CapacityOes) Claimed by Signer(s} Signer's Name: : i Corporate Officer — Title(s): • Partner — • Limited Fl General U Individual • Attomey in Fact • Trustee Cl Guardian or Conservator n other: Signer Is Representing: Signer's Name: • Corporate Officer — Title(s): n Partner — f l Umited LJ General f 1 Individual U Attomey in Fact i ! Trustee i. j Guardian or Conservator • Other. Signer Is Representing: ©2014 National Notay Association • www.NationalNotary.org • 1 -800-US NOTARY (1 -800-876-6827) lt«n #5907