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<br /> <br /> City Council Agenda Item Cover Sheet <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />Project title: Approval of Settlements with East Clearwell Roof Contractor and Subcontractor <br />Council Bill # <br /> Project: Approval of Settlements with East Clearwell Roof Contractor and Subcontractor <br />Partner/Supplier : <br /> Location: East Clearwell Roof <br />Preceding action: None <br />Fund: None <br />Agenda dates requested: <br /> 7/7/2021 <br /> <br />Briefing <br />Proposed action <br />Consent7/7/21 <br />Action <br />Ordinance <br />Public hearing <br /> Yes X No <br /> <br />Budget amendment: <br /> Yes X No <br /> <br />PowerPoint presentation: <br /> Yes X No <br /> <br />Attachments: <br />Settlement Agreements <br /> <br />Department(s) involved: <br />Public Works & Legal <br /> <br />Contact person: <br />Tim Benedict <br /> <br />Phone number: <br />425-257-8669 <br /> <br />Email: <br />tbenedict@everettwa.gov <br />Initialed by: <br /> <br />Department head <br /> <br />Administration <br /> <br />Council President <br /> <br />Fiscal summary statement: <br /> <br />Project summary statement: <br />The East Clearwell roof at the City’s Water Filtration plant collapsed in February <br />2019, about two months after it was accepted by the City from the contractor, T <br />Bailey. The City’s insurer has paid for the entire cost of replacing the roof (about <br />$3.5 million), except for the City’s $100,000 deductible and some other adjustments <br />totaling about $40,000. <br />Because the City’s insurers paid the replacement cost, the insurers brought a lawsuit <br />against T Bailey and its subcontractors. These claims (subrogation claims) are <br />routine in insurance matters. The City is part of that lawsuit, because the City <br />wanted T Bailey and its subcontractors to reimburse the City for the $100,000 <br />deductible. <br />The City’s insurers are settling the claims with T Bailey and its principal <br />subcontractor, Ultraflote. This settlement will allow the City’s insurers to recover a <br />significant portion of what those insurers paid the City to rebuild the collapsed roof. <br />As part of the settlement, the City will receive a $100,000 direct payment to cover <br />the deductible. <br /> <br /> <br /> <br />Recommendation (exact action requested of Council): <br />Authorize the Mayor to Sign the Settlement Agreement with T. Bailey and the <br />Settlement Agreement with Ultraflote, both in the form substantially as provided <br />