HomeMy WebLinkAbout07/31/1996 Regular
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MINUTES OF THE SPECIAL MEETING OF
THE SPRINGFIELD CITY COUNCIL HELD
WEDNESDAY, JULY 31,1996
The City of Springfield Council met in Special Session in the Springfield City Council Chamber
Room, 225 Fifth Street, Springfield, Oregon, on Wednesday, July 31, 1996, at 1 :06 p.m., with
Mayor Morrisette presiding.
ATTENDANCE
Present were Mayor Morrisette, Councilors Ballew, Beyer, Burge, Dahlquist and Shaver.
Councilor Maine was absent (excused). Also present were City Manager Michael Kelly,
Assistant City Manager Gino Grimaldi, City Attorney Joe Trudeau, City Attorney Joe Leahy,
City Recorder Eileen Stein, Administrative Aide Julie Wilson and members of the staff.
BUSINESS FROM THE CITY MANAGER
1. Recommended Settlement of Fire Station #5 Litigation.
City Attorneys Joe Leahy and Joe Trudeau presented the staff report on this issue. Lee
Construction has filed a lawsuit against the City of Springfield and Dorman Construction. It
is based on the award of the contract for the construction of Fire Station #5 to Dorman
Construction. The City Manager and City Attorney have negotiated a settlement and are
recommending Council approval of it.
On May 20, 1996 the Council awarded the contract for construction of Fire Station #5 to
Dorman Construction. On May 21, 1996 Fire and Life Safety forwarded the Dorman
contract, bid, and bid bond to Risk Management. The surety for the bid bond was not on the
list of sureties recommended by the City's insurance agent. After consultation with the City
Attorney, Risk Management determined that the performance and payment bonds needed to
be from a surety on the recommended list. The signing of the contract was delayed while
Dorman met this requirement. The second lowest bidder, Lee Construction, learned about the
surety issue and the delay and filed a protest with the City after the contract was signed. The
City Manager reviewed the protest with the City Attorney and denied it. Lee then filed a
lawsuit on June 28 claiming that the contract with Dorman was void and that Lee should have
been awarded the contract. Lee also filed a motion for preliminary injunction. A hearing on
the motion was held in the Lane County Circuit Court on July 8 and 9. The Judge denied the
motion for a preliminary injunction, but also denied the City's oral motion to dismiss the
lawsuit made during the hearing. The parties, through their attorneys, have been negotiating a
settlement to resolve the dispute and avoid additional costs and uncertainty of litigation. The
current status of settlement negotiations include 1) accepting the settlement, eliminating the
lawsuit and continue construction; 2) reject the settlement, complete the fire station, and go to
trial on the lawsuit; 3) reject the settlement, stop construction, and go to trial on the lawsuit.
An Executive Session was held prior to this meeting to discuss this issue and the
consequences of each option with Council.
IT WAS MOVED BY COUNCILOR BURGE, WITH A SECOND BY COUNCILOR
SHAVER, TO ACCEPT THE RECOMMENDED SETTLEMENT BETWEEN THE CITY
Special Council Meeting
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OF SPRINGFIELD AND LEE CONSTRUCTION AS PRESENTED, OBLIGATING THE
CITY TO PAY LEE CONSTRUCTION $10,000, AND TO AUTHORIZE THE CITY
MANAGER TO SIGN THE AGREEMENT. THE MOTION PASSED WITH A VOTE OF 5
FOR AND 0 AGAINST.
Councilor Burge also stated an agreement has been reached to contribute to Dorman
Construction documented delay costs, not to exceed $5,000, and that the City of Springfield
will absorb its own attorney fees.
ADJOURNMENT
The meeting was adjourned at 1: 15 p.m.
Minutes Recorder - Julie Wilson
B ill Morrisette
Mayor
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Attest:
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City Recorder
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