Laserfiche WebLink
• <br /> 8 <br /> PROJECT CLOSE-OUT AND SETTLEMENT AGREEMENT <br /> This Project Close-Out and Settlement Agreement(this"Agreement")is entered into as <br /> of January 2013,by and between the City of Everett(the"City")and Scarsella Brothers,Inc. <br /> ("Contractor"). <br /> RECITALS <br /> A. The City and Contractor entered into a contract dated February 15,2012 the <br /> "Construction Contract"),which provided that Contractor would construct a water transmission <br /> line across and under the Pilchuck River,along with associated improvements(the"Project"). <br /> The Construction Contract amount is$2,414,286.60. Under the Construction Contract,the Project <br /> was to be completed by open trench methods,where river water and ground water would be <br /> managed by cofferdams and dewatering wells. <br /> B. After the issuance of the notice to proceed,the City and Contractor learned that the <br /> permit time allowed by the Department of Natural Resources for in-water work in the Pilchuck <br /> River would be only 30 days,not the 60 days as the City and Contractor previously believed. In <br /> addition,the Contractor claimed that locations of the deepest portion of the river channel,along <br /> with the sand-bar location,had changed subsequent to issuance of the bid documents. The <br /> Contractor also claimed that the design of the cofferdam system was defective and violated an <br /> implied warranty. <br /> C. After an attempt to begin construction in August 2012,the City suspended all <br /> Project work. The purpose of this Agreement is to close-out the Project,deliver final payment to <br /> Contractor,confirm delivery of all Project materials to the City,and terminate the Construction <br /> Contract. <br /> • <br /> AGREEMENT <br /> For good and valuable consideration,the receipt and sufficiency of which is <br /> acknowledged,the City and Contractor agree as follows: <br /> SECTION 1: FINAL PAYMENT AND RETAINAGE <br /> A. Final Payment. The City shall pay to Contractor no later than February 15,2013 <br /> an amount equal to Three Hundred Thousand Dollars($300,000) (the"Final Payment"). <br /> B. Release of Retainage. Unless the Department of Revenue or another person or <br /> agency other than the City asserts a claim for the retainage withheld with respect to the Project <br /> under chapter 60.28 RCW,the City shall,no later than sixty(60)days after the mutual execution <br /> of this Agreement,notify Bank of America to release Project retainage to Contractor in the sum <br /> of$24,787.45. If the retainage is subject to such a claim,then applicable laws(including <br /> chapter 60.28 RCW)will govern the claim and the retainage. <br /> C. Tax Indemnity. In the event that the Department of Revenue or any other taxing <br /> authority with jurisdiction over enforcement of the retail sales tax in Washington asserts(whether <br /> by audit or otherwise)that the Final Payment is a taxable purchase,then Contractor shall promptly <br /> notify City and provide access to all communications received from the taxing authority. Provided <br /> Pagel <br /> --- ®m d2.9 <br />