Fiscal Note
The $262,500 received as the result of this settlement will be deposited in the Parks Division capital project accounts and appropriated for Warner Park roof repairs (CB60-58401-810397)
Title
SUBSTITUTE - Authorizing the Mayor and City Clerk to execute a settlement agreement and related documents between the City of Madison and K.E.E. Architecture, Inc., regarding the Warner Park Community and Recreation Center roof and amending the 2005 Parks Division Capital Budget to appropriate the $262,500 settlement for roof repairs.
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PREAMBLE
In September of 1999 the City opened the newly-constructed Warner Park Community and Recreation Center (the "Center"). The Center was designed by K.E.E. Architects, Inc. ("KEE") and constructed by the general contracting firm of Guenther-Wagner-Johnson, which has since dissolved. Soon after the Center's opening, and continuing to date, the Center's copper roof has leaked. The roofing subcontractor on the project has made remedial repairs to the roof under its five-year warranty, but leaks continue, and City staff and consultants have concluded that portions of the copper roof should be replaced. By Resolution Number 60639, adopted June 17, 2003, the Common Council authorized the City to retain legal counsel to proceed with litigation concerning the roof leaks. Soon thereafter, the City retained legal counsel and began discussions with KEE, and as a result of those discussions a settlement agreement has been reached.
WHEREAS, the City of Madison and KEE have agreed to settle all disputes relating to the Center's roof and to mutually release all claims related thereto in return for KEE's payment to the City of $262,500; and
WHEREAS, as a part of the settlement the City shall indemnify and hold KEE harmless against claims for contribution or indemnification made by others in actions regarding the design, construction, repair, appearance and replacement of the roof; and
WHEREAS, the City Architect believes that the settlement amount is sufficient to fund the necessary roof repair project.
NOW, THEREFORE, BE IT RESOLVED that the City hereby accepts the settlement offer of $262,500 from KEE, and directs the City Comptroller to place the funds in the Parks Division capital project account to be used for the design and construction of a new Warner Park Community and Recreation Center roof.
BE IT FURTHER RESOLVED, that the Parks Division Capital Budget, Project #3, Park Facility Improvements, be amended to authorize this additional expenditure.
AND, BE IT FURTHER RESOLVED that the Mayor and City Clerk are authorized to execute a Settlement Agreement and Release with K.E.E. Architects, Inc. as described in this Resolution, and any related documents, all in a form subject to the approval of the City Attorney.