Loading...
Contract No. 1992-06MATTHEW D. JAMIN C. WAVER EBELV JOEL H. BOLGER* DIANNA R. GENTRY ALAN L. SCHMITT WALTER W. MASON" DUNCAN S. FIELDS MICHAEL ARAUJO uo.,a•so TO Al.... ANo TO W.aHu.E LLo,.n.Eo •o W.a.I.9•o. uw .. A .o,.vrzo TO .Lu.. uw JAMIN. EBELL. BOLGER & GENTRY A PROFESSIONAL CORPORATION ATTORNEYS AT LAW 323 CAROLYN STREET KODIAK, ALASKA 99613 The Honorable Jerome Selby, Mayor Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99616 Re: Main Elementary roof Our Fik No. 4702-214 Deer Jerome: FACSIMILE: (909) 486.6112 TELEPHONE: (907) 466.6024 REPLY TO KODIAK OFFICE March 24, 1992 SEATTLE OFFICE: 300 MUTUAL LIFE SUILOING 609 FIRST AVENUE SEATTLE, WASHINGTON 96104 FACSIMI LE: (206) 623.7321 TELEPHONE: (206) 6220634 Enclosed is a revised Settlement Agreement with respect to the Main Elementary roof claim The agreement hes been revised to limit the release granted by the Kodiak Island Borough to claims which are related to the design or construction of the roof of Main Elementary School. Atter the assembly approves the settlement, plesse sign this agreement before a notary public and return it to me, and I will set up the payment of the settlement finds. JAMIN, EBELL, BOLGER & GENTRY JHB tsh Enclosure oo: Mr. Jack McFarlsnd, Presiding Offaw Kodiak Island Borough Assembly 4702\214L.027 SETTLEMENT AGREEMENT, RECEIPT AND RELEASE OF ALL CLAIMS The Kodiak Island Borough ("the Borough") executes this Settlement Agreement, Receipt and Release of All Claims in favor of CTA Architects Engineers, Inc. ("CTA") and Rogers & Babler, a division of MAPCO Petroleum, Inc. (Rogers & Babler/MAPCO"). WHEREAS the Borough is owner of the Main Elementary School in Kodiak, Alaska; and WHEREAS CTA was the designer of the Main;Elementary School; and WHEREAS Rogers & Babler/MAPCO was the general contractor for construction of the Main Elementary School; and WHEREAS the roof on the Main Elementary School has experienced significant deterioration and leakage due to condensation of moisture within the roof cavity; and WHEREAS the Borough has asserted claims against both CTA and Rogers & Babler/MAPCO for the costs of repairing and/or replacing the roof; and WHEREAS both CTA and Rogers & Babler/MAPCO have denied any liability to the Borough; and WHEREAS the Borough, CTA and Rogers & Babler/MAPCO all desire to settle fully and finally all claims which have been asserted and which could have been asserted in connection with the Main Elementary School; NOW, THEREFORE, it is agreed as follows: 1. For and in consideration of the payment of the sum of FOUR HUNDRED TWENTY THOUSAND DOLLARS ($420,000.00) in cash, together with six payments of THIRTY-FOUR THOUSAND, ONE HUNDRED THIRTY-SEVEN DOLLARS and EIGHTY-TWO CENTS ($34,137.82) each commencing July 17, 1992 and continuing each month thereafter until December 17, 1992, and for other good and valuable consideration, the Borough, for itself, its political subdivisions, agents, employees, officers, administrators, successors and assigns (hereinafter collectively referred to as "the Releasers"), hereby releases, acquits and forever discharges CTA, Rogers & Babler/MAPCO, their predecessors, stockholders, owners, parent corporations, subsidiary corporations, affiliate corporations, any and all consultants, sub -consultants, contractors and subcontractors used or retained by CTA or Rogers & Babler/MAPCO, their representatives, personal representatives, executors, administrators, officers, directors, employees, agents, insurers and reinsurers, from any and all claims, demands, actions and causes of action, lawsuits and controversies of any kind and nature, for all injuries, damages and losses of every kind and nature, whether presently known or unknown, suspected or unsuspected, disclosed or undisclosed, arising out of or in any way connected with the design and/or construction of the roof of the Main Elementary School in Kodiak, Alaska. 2. it is fully understood that the consideration for this release is given for the sole purpose of terminating further controversy and settling disputed claims of disputed value, and that none of the parties admit any liability whatsoever, but, on the contrary, expressly denies any negligence, breach of contract, -- - breach of duty or other unlawful or inappropriate conduct of any kind or nature, and any liability therefor. The Borough hereby expressly acknowledges and assumes all risk, chance or hazard that the damages to which this release pertains may be or become greater or more extensive which is now known, anticipated, alleged or expected; and that they may be mistaken as to the character and extent of those damages. 3. Each party shall bear all of its own attorneys, fees and costs in connection with this matter. The Releasers further warrant and agree that they will neither individually, nor in concert with others, maintain or cause to be maintained, any further demands, actions, claims, lawsuits, arbitrations, or similar proceedings, in any capacity whatsoever against CTA or Rogers & Babler/MAPCO as a result of or pertaining to the facts or claims which have been asserted or could be asserted by the Borough in connection with this dispute. 4. The parties affirm and state that they are represented by counsel and that their attorneys have fully explained the terms and conditions of this Settlement Agreement, Receipt and Release, and that they are familiar with the decisions of the Alaska Supreme Court, including Young v. State of Alaska. et aa,_, 455 P.2d 889 (Alaska 1969); Alaska v. Sweat, 568 P.2d 916 (Alaska 1977); and Witt v. Watkins, 579 P.2d 1065 (Alaska 1978). Having been advised of the effect of these decisions upon this Settlement Agreement, Receipt and Release, it is still the full intent and desire of the Borough to fully release CTA and Rogers & Babler/MAPCO from any future liability arising out of the design or construction of the roof of the Main Elementary School. 5. The Borough affirms that it is not at any financial disadvantage and that no promise or inducement which is not herein expressed has been made regarding execution of this Settlement Agreement, Receipt and Release, nor does the Borough rely on any statement or representation made by CTA, Rogers & Babler/MAPCO, or any agent or person representing CTA or Rogers & Babler/MAPCO, except as expressly provided herein. DATED: KODIAK ISLAND BOROUGH By: Itss STATE OF ALASKA ) )ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on the �� of� 1992, before me, the undersigned, a Notary Public in and r the State of Alaska, duly commissioned and sworn, personally appeared Tero n, e YYl �e I6 , to me known and known to me to be the identical individual described in and who executed the within and foregoing instrument asRYor� of KODIAK ISLAND BOROUGH and he acknowledged to meM that he signed the same in the name of and for and on behalf of said municipality, freely and voluntarily and by authority of its Assembly for the uses and purposes therein mentioned. GIVEN UNDER MY HAND and official seal the day and year last above written. ^� o-y� fi• .�h� I tX�! \-Notary Public in and fo asks My Commission Expires: y 4702\214D. 002 AR'1T MMT ALIT, R=IPT AND RHLSM Or ALL CLAIMS - 4 JAMIN, EBELL, BOLGER & GENTRY A PROFESSIONAL CORPORATION JOEL H. BOLGER• ATTORNEYS AT LAW C. WALTER EBELL' \ - /20 S DUNCAN S. FIELDS 323 CAROLYN STREET DIANNA R. GENTRY KODIAK, ALASKA 99615 MATTHEW D. JAMIN WALTER W. MASON - JANE E. SAUER TELEPHONE: (909( 486-6024 ALAN L. SCHMITT FACSIMILE: (907) 466-6112 MICHAEL C. SCIACCA' OALASKA REPLY TO KODIAK OFFICE wA9NiNG ON GAw! L OTHERS ADMITTED TO ALASKA !AR January 15, 1992 VIA FACEMME TO 276-4152. AND MAIL Douglas S. Parker, Esq. Bogle & Gates 1031 W. 4th Ave., Suite 600 Anchorage, AK 99501 Re: Main Elementary roof Our File No. 4702-214 Dear Doug: SEATTLE OFFICE: 300 MUTUAL LIFE BUILDING 603 FIRST AVENUE 5EATTLE. WASHINGTON 98104 TELEPHONE: 1X61 622 763A FGCSIM ILE: (206) 623 TS21 JA0 1 6 92 Thank you for returning my call concerning resolution of the Main Elementary roof problem. Please find enclosed a copy of my letter of January 8, 1992 to James Wagner representing CTA Architects concerning a proposal for settlement discussions. As noted, we plan to meet with Mr. Wagner and his client in Seattle on January 23 or 24, 1992, if possible. You are welcome to attend if your client seriously wants to consider a complete settlement of this matter prior to construction. I believe there are several reasons that MAPCO should give this alternative serious consideration. We have previously forwarded the reports indicating that the lack of an effective sealing job by the contractor is a substantial contributing factor to the moisture loading observed. The architects who have reviewed the roof have not found any evidence of compliance with the specifications requiring tape or adhesive to be used to seal penetrations in the vapor barrier. We are proceeding with the completion of design documents and reconstruction of the Main Elementary roof. We will have no choice but to begin litigation against your client to recover the cost of the repair unless a settlement is accomplished through negotiation or mediation. The preliminary estimate of the repair alternative approved by the architectural review board was $784,000. We expect to have a final cost estimate by January 17, 1992. We intend to advertise for CHORAGE OFFICE: D I/r/'�\�\///�1J 1 n \ - /20 S \ `L�� �J ORAGE. AL KA 95 ,LJ(NCI-IOR<G E. ALASKA 99501 TELEPHONE AND FAX (907)278 6100 SEATTLE OFFICE: 300 MUTUAL LIFE BUILDING 603 FIRST AVENUE 5EATTLE. WASHINGTON 98104 TELEPHONE: 1X61 622 763A FGCSIM ILE: (206) 623 TS21 JA0 1 6 92 Thank you for returning my call concerning resolution of the Main Elementary roof problem. Please find enclosed a copy of my letter of January 8, 1992 to James Wagner representing CTA Architects concerning a proposal for settlement discussions. As noted, we plan to meet with Mr. Wagner and his client in Seattle on January 23 or 24, 1992, if possible. You are welcome to attend if your client seriously wants to consider a complete settlement of this matter prior to construction. I believe there are several reasons that MAPCO should give this alternative serious consideration. We have previously forwarded the reports indicating that the lack of an effective sealing job by the contractor is a substantial contributing factor to the moisture loading observed. The architects who have reviewed the roof have not found any evidence of compliance with the specifications requiring tape or adhesive to be used to seal penetrations in the vapor barrier. We are proceeding with the completion of design documents and reconstruction of the Main Elementary roof. We will have no choice but to begin litigation against your client to recover the cost of the repair unless a settlement is accomplished through negotiation or mediation. The preliminary estimate of the repair alternative approved by the architectural review board was $784,000. We expect to have a final cost estimate by January 17, 1992. We intend to advertise for Mr. Parker January 15, 1992 Page 2 competitive bids beginning the week of February 3, 1992. We must reach a settlement before that time. Please let me know if you want to participate in settlement discussions in Seattle. Sincerely yours, JAMIN, EBELL, BOLGER & GENTRY Joel H. Bolger JHB:tah cc: Ray Camardella (via fax and mail) James P. Wagner (via fax and mail) Honorable Jerome Selby, Mayor ,/Mr. Jack McFarland, Presiding Officer Kodiak Island Borough Assembly 4702\214L.018 1. ./ cql -o& THIS AGREEMENT made and entered into this 3rd day of September, 1991 by and between the Kodiak Island Borough ("the Borough"); and CTA Architects Engineers, Inc. ("CTA"). W I T N E S S E T H WHEREAS, the Borough is the owner of a school in Kodiak, Alaska known as the Main Elementary School ("the school"); and WHEREAS, CTA was the architect for the school; and WHEREAS, a dispute has arisen in connection with the design and construction of the roof for the school; and WHEREAS, the Borough and CTA are in agreement that repairs should be made to the roof of the school, but are at this point unable to determine the actual scope or cost of the necessary repairs; and WHEREAS, CTA and the Borough have each made demands upon Rogers & Babler, the contractor who built the school, and its parent company, Mapco Petroleum, Inc. ("Rogers & Babler/Mapco"), to participate in resolution of the present dispute, but Rogers & Babler/Mapco has refused to participate; and WHEREAS, the Borough and CTA desire to equally share in the costs of procuring the additional testing, analysis and design work necessary to produce final construction documents, including plans and specifications, for the necessary repair work, together with a detailed construction cost estimate; with both the Borough and CTA reserving all of their claims, rights, defenses, counterclaims, and/or set -offs between or against each other and against Rogers & Babler/Mapco and any other parties; NOW, THEREFORE, in consideration of the mutual covenants and agreements, the parties hereto do contract and agree as follows: 1. CTA and the Borough will contract with a design firm acceptable to the Borough ("the design firm") for performance of all additional testing, analysis and design work necessary to produce final construction documents, including plans and specifications, for repair of the roof of the Main Elementary School as well as a detailed ccnstruction cost estimate. Both parties will actively participate in selection of the design firm, and will cooperate in contacting, interviewing, providing information to and selecting an acceptable design first. 2. The Borough and CTA will each contribute 50% of the total cost of the design work to be procured pursuant to this agreement. Each party will initially contribute the sum of $35,000 which will be held in trust by CTA's attorneys, Lane Powell Spears Lubersky, and each party will make such additional contributions to that fund as necessary for completion of the required design work on a pro rata basis. Payments from the fund shall be subject to the approval of both parties. The parties presently anticipate that the total cost of the necessary design work to be procured pursuant to this agreement will not exceed $100,000. 3. The design firm selected to perform the work envisioned by this agreement shall maintain professional liability insurance covering all negligent errors or omissions which the design firm, any subcontractor or anyone directly or indirectly 2 employed by them, may make in the performance of their work. Minimum limits required will be $1,000,000 combined single limit per occurrence and annual aggregate. 4. The design firm retained pursuant to this agreement shall agree to indemnify, defend and hold harmless the Borough and CTA from any and all losses, claims or causes of action which may arise from the performance or nonperformance by the design firm of any of its work with respect to the school. The Borough and CTA agree that they will not look to each other, but will look solely to the retained design firm and/or its insurer, for satisfaction or indemnification of any losses, claims or causes of action arising from the performance or nonperformance by the design firm of any of its work with respect to the school. Neither party to this agreement will warrant, guarantee or in any other manner assure or insure the work to be performed by the design firm. 5. Nothing herein shall be construed as an admission by either party of any liability for the problems associated with the roof of the school. The Borough and CTA reserve all of their claims, rights, defenses, counterclaims, and/or set -offs between or against each other and against Rogers & Babler/Mapco and any other parties arising from the design and construction of the Main Elementary School, including without limitation all claims for reimbursement or recovery of the monies to be expended for the design work to be procured herein and any related costs or attorney's fees. 3 Sn•:� lHioi 6. Both parties will cooperate fully with each other and with the retained design firm during the performance of the design firm's work. This cooperation shall include, without limitation, access to the school, access to the each party's project files, availability for consultation, and provision of any and all information which the design firm might require during the course of its work. No lawsuits or other proceedings of any nature whatsoever shall be instituted by either of the parties against the other pending completion of the design work to be procured pursuant to this agreement or before January 1, 1992, whichever occurs first. Any statute of limitations governing any claims between the parties hereto shall be tolled pending completion of the design work to be procured pursuant to this agreement or until January 1, 1992, whichever occurs first. 7. This agreement is subject to the approval of the Kodiak Island Borough Assembly. The attorneys signing this agreement are authorized to execute it on behalf of their clients. IN WITNESS WHEREOF the parties have executed this agreement on the day and date first above written. KODIAK ISLAND BOROUGH 4.9 'H. Bolge its attorney CTA ARCHITE S ENGINEERS ALASKA, INC. rr Imes P.Wagner, t attorney kiblsprmt r i� 4 .r 1.,�c� w�rylrt, .iAMIN, DELL. Lar.0 a .fMI/C!lfOM•a WfeOur+Ow rt+r� ►rT0AMCT2 AT wAM 4iwi".0 :70 rW Wim ..•{fW�.O .•r iucW O. .wM.r a7 eafo V•f 9•e99' IOU n.a. •'asL ywLrtN 9KLL .00lww. www SPw �9lfD ea•..Le. .••....ora. a.'�• .3iL ++. fO�G[P• '.f.f rf.0 aOp Na •' a ]IaMMw N. OtMTf. ':L[IYcr4 +a Gf+..a•'f a• af•►M L, '.00f M.L t:.lOtf .8.!.114 3CMM.r♦ 0.LN••o"K; 9091 ..a •.Oi ..oM• CVMCAM !. f160D ., M^66 ►N.WO vCOL. rh .00las 6!.119 TU C' IO ... e.rf.fe.er..... ro A RFC£/ toaq���sq�r9g1 ► l Ti. E. �Rp� ANS RGECHAI. - • ,j0&jma = TO TE AUTO DIAL :^,DE: AT'!'�7TZCRs _ FIRH: FROM: r i . a Law — Attarssy TOTAL ;;A= TWSHiT'�-. :,.jGL=1NG "_."S CD7ER SHEET. :1& LL&O�fff11W 1. yssa[om toy = i fM O9 tom! ="rs"" "a sm"cy W VIM i� &Savo^ �'• TiIMM• gyp[ydf U", aif *NEW St9 0&if+0s� rsa6SWM � fffffirf May cow%&= :'•'�f� t&si is OZl LSSA. 4U%w$=%Ux- i OYO►:[s'•wr et L]Ss...S'si 'pif9 Ot 8888 'IOU sit O.i7ff cati"ff LAS% a0► ^••�'— t .& s9 ouy �rppsASLM. Ot ..s WtOOaif[ &Off Ww C7 C94.f[t CALL :3 190T1 {✓)�3�• am fu[[ aLOf[ tam .= L••J[[ff &y&[Yf" may �i CiL7 Y7fi7c SSAfA&AfSOA :i : &w� 9 yy ai :J& ifV" 44m&Vw• :.SA O91gzm" :ti%fAi! to from Tele=" (907) 486 - Wo are c-snsmitz 4 �°" 3 or should for aamea 6112. It you are not reeeia�.aPse phom the undo igaed at rsaeoa not rwsi" all Pa9a t Please (907) 486-80240 Trynam�.ttsr + SETTLEMENT AGREEMENT THIS AGREEMENT is entered into between Kodiak Island Borough, Attention: Mayor Jerome Selby, of 710 Mill Bay Road, Kodiak Island, Alaska 99615, hereinafter referred to as the Claimant, and Continental Casualty Company, hereinafter referred to as the Company, an Illinois corporation with its principal place of business in Chicago, Illinois. The Claimant and the Company have agreed to a settlement of their claim under Policy Number AAE 8219014, issued by Continental Casualty Company to CTA Architects Engineers, insured. A portion of the proceeds of this claim settlement are to be paid as follows: 1. Deferred Monthly Payments - The Company will pay to Kodiak Island Borough the sum of Two Hundred Four Thousand Eight Hundred Twenty -Six Dollars and Ninety -Two Cents ($204,826.92) to be paid in six (6) consecutive deferred monthly payments of Thirty -Four Thousand One Hundred Thirty -Seven Dollars and Eighty -Two Cents ($34,137.82) each. The first such deferred monthly payment is to be made on July 17, 1992. No one shall have the right to accelerate any payment or to increase or decrease the amount of deferred monthly payments specified above. The aforesaid deferred monthly payments shall not be subject to assignment, transfer, commutation or encumbrance by the Claimant or Payee. This Agreement is dated March 17, 1992 and will terminate as specified above. We further state that we have carefully read the foregoing Settlement Agreement and Release and know the contents thereof, and we sign the same as our own free act. WITNESS OUR HAND AND SEAL this �S_day of 1992. KODIAK ISLAND BOROUGH Claimant By Its ATTEST: G)i r. 7 ttt�i Donna F. Smith Borough Clerk Witness I JAMIN, EBELL, BOLGER & GENTRY Attorneys for Kodiak Island Borough ��.el —H. BoKer The above Settlement Agreement is hereby accepted as of the date it bears. CONTINENTAL CASUALTY COMPANY Vivian Robinson Benefit Settlement Option Department 6702\216D.006 ITEM NO. 12.D. 1. Kodiak Island Borough Meeting of: ITEM TITLE. Main Roof Repair Settlement Offer by CTA Architects and MAPCO Petroleum. SUMMARY STATEMENT A settlement offer was received by Joel Bolger and Ray Camardella from CTA Architects and MAPCO Petroleum for the repair of Main Elementary School Roof. The offer was received during a meeting in Seattle on March 18, 1992, for the total amount of $624,827. $420,000 is to be paid to the Kodiak Island Borough at the time of the settlement agreement; and the remainder to be paid in installments of $34,137.82 from July 17, 1992 through December 17, 1992. This joint settlement is expected to cover the costs of the repair, including construction administration and the cost of the design contract. It is recommended that the Assembly approve this settlement offer. FISCAL NOTES [] N/A Expenditure Account Required No. APPROVAL FOR AGENDA: RECOMMENDED ACTION, Move to approve Main Elementary School Roof Repair Settlement offer from CTA Architects and MAPCO Petroleum for a total amount of $624,827. JAMIN, EBELL, BOLGER & GENTRY MATTHEW D. JAMIN C. WALTER EBELL JOEL H. BOLGER• DIANNA R. GENTRY ALAN L. SCHMITT WALTER W, MASON** DUNCAN S. FIELDS MICHAEL APAUJO TTED TO ALASEA AND w.SNINOTON MARS ..NIrTMD To w.MNmcTON sA6 AI -L OTRERS ADMITTED TO ALAS— IIAR VIA HAND DELIVERY The Honorable Jerome Selby, Mayor Kodiak Ialand Borough 710 Mill Bay Road Kodiak, Alaska 99815 Re: Main Elementary roof Our File No. 4702-214 Dear Jerome. A PROFESSIONAL CORPORATION ATTORNEYS AT LAW 323 CAROLYN STREET KODIAK. ALASKA 99613 FACSIMILE: (901) 466-6112 TELEPHONE: (907) 466-6024 REPLY TO KODIAK OFFICE March 20, 1992 SEATTLE OFFICE: 300 MUTUAL LIFE GUILDINO 606 FIRST AVENUE SEATTLE, WASHINGTON 96104 FACSIMILE:(ROO) 623 1621 TELEPHONE: (206) 622-1634 IM 2 0 92 Please find enclosed a settlement offer from GTA Architects and MAPCO Petroleum with respect to the reconstruction of the roof on Main Elementary School. The architect and the contractor offer to settle the case in return for payment of $824,827. They would pay $420,000 in cash at the time of settlement and monthly payments of $94,137.82 from July 17, 1992 through December 17, 1992. I strongly recommend approval of this settlement by the Kodiak Island Borough Assembly. I believe from my discussions with Ray Camardella that this settlement would pay for the estimated construction cast, the estimated costs of construction administration and the cast of the design contract in full. Rap and I represented to the other parties that we would endeavor to have the matter placed on the April 2, 1992 agenda for approval by the assembly. Feel free to cell if you have any questions. Sincerely yours, JAMIN, EBELL, BOLGER & GENTRY C JHB:tah Enclosure W. Ray C E. ardetyR, Engineering and Facilities Director Mr. Jack McFarland, Presiding Officer Kodiak Island Borough Assembly 4702\234L.026 MAR IS 192 16:22 FROM STAFFORD FREY GOUFER W 0cjloai S UFFA) FREY COOPER & S WART MOMMD sea" RLMN, MOMMY M. ■MAIN JOON 61wOL01M NMWAMO W. CAM4MAM• JOIW e. COOPRM A. me" NWMmA• THUM M. FITZPATRIC K, THOMAS D. PRICY AMNDLD L. DRAT 6TMPHMN M LANRM DIANE aICIM■R LISW VM6iAM L. MEAL. JAM ■. a11KOL. MAINOM WAPPp11D. P.I. JOHN GANGER W{WART- NMWO L TN021 or �111196 DAVID 9. HARTMAN FA J1. ATTORNEYS 300 WATERMARK TOWER SS SPRING STREET iQATTLt. WASHINGTON 90104-1095 12061633-9900 PACSIMILS: U66, 62A -Maas PORTLAND DPPIea 1Tl0 ■LKJAMIN PKARKLIN RASA OIIL D.W. 4=At1 ■IA PORTLAND. eO■WN MU."W 49021 44144" FA 811016111, 101141 222.61]06 March 18, 1992 Joel Bolger, Esq. JAMIN, EBEL - BOLGER & GENTRY 605 First Avenue, Suite 300 Seattle, Washington 98104 Re: Our File No. Dear Joel: rl-I�e. beef edw ARMS N. ■MLMNMN M. 6IC2 CYDK' RRW DLNRLP "BART R. HAMILTON K61MM6TN MOSS■• rffiar ■. m A. J 11■T. ■. W1lMON■ONI JA1111 T. TAMDN WAMI1110O90I4 MM 0 ZA MI RAN. ALYM MR . OM■OOR•WASNIMOTON MR • A4■RA.MMwIMOTdN MM • CANPONNIA�WAAMM*TOR MR • IOAII0.OMRODM Ma . IWNTMWA■MKN MAN • P■MN■TL11AM1AAILW JICMICT- WA4 ,MN ■AM Just a short note to confirm that we have reached agreement on a settlement in the Main Elementary School matter. We have agreed to settle the case for a payment to your client of $420,000 in cash and monthly payments of $34,137.82 from July 17, 1992 through December 17, 1992. The total payout on the structured portion of the settlement will be $204,827.00. We understand that this settlement is contingent upon approval by the Kodiak Island Borough Assembly. We understand that this agreement will be favorably recommended to the Assembly by both Ray Camardella and yourself I will be shortly forwarding a draft settlement agreement and release. I look forward to receiving your comments on that draft Joel Bolger, Esq. March 18, 1942 Page Two Joel, I want you to know I enjoyed working with you on this matter and very much appreciated your courteous and professional manner. I am very glad we were able to work out a settlement without resort to litigation. Very truly yours, STAFFORD FREY COOPER & STEWART , OIOFS�� es P. aper JPW-laa cc: Douglas Parker (via telecopier) Leslie Asbury (via telecopier) Keith Rupert (via first class mail) Ronald I udders (via telecopier) 4:31aajpw $60 SETTLEMENT AGREEMENT, RECEIPT AND RELEASE OF ALL CLAIMS The Kodiak Island Borough ("the Borough") executes this Settlement Agreement, Receipt and Release of All Claims in favor of CTA Architects Engineers, Inc. ("CTA") and Rogers & Babler, a division of MAPCO Petroleum, Inc. (Rogers & Babler/MAPCO"). WHEREAS the Borough is owner of the Main Elementary School in Kodiak, Alaska; and WHEREAS CTA was the designer of the Main: Elementary School; and WHEREAS Rogers & Babler/MAPCO was the general contractor for construction of the Main Elementary School; and WHEREAS the roof on the Main Elementary School has experienced significant deterioration and leakage due to condensation of moisture within the roof cavity; and WHEREAS the Borough has asserted claims against both CTA and Rogers & Babler/MAPCO for the costs of repairing and/or replacing the roof; and WHEREAS both CTA and Rogers & Babler/MAPCO have denied any liability to the Borough; and WHEREAS the Borough, CTA and Rogers & Babler/MAPCO all desire to settle fully and finally all claims which have been asserted and which could have been asserted in connection with the Main Elementary School; NOW, THEREFORE, it is agreed as follows: 1. For and in consideration of the payment of the sum of FOUR HUNDRED TWENTY THOUSAND DOLLARS ($420,000.00) in cash, together with six payments of THIRTY-FOUR THOUSAND, ONE HUNDRED THIRTY-SEVEN DOLLARS and EIGHTY-TWO CENTS ($34,137.82) each commencing July 17, 1992 and continuing each month thereafter until December 17, 1992, and for other good and valuable consideration, the Borough, for itself, its political subdivisions, agents, employees, officers, administrators, successors and assigns (hereinafter collectively referred to as "the Releasers"), hereby releases, acquits and forever discharges CTA, Rogers & Babler/MAPCO, their predecessors, stockholders, owners, parent corporations, subsidiary corporations, affiliate corporations, any and all consultants, sub -consultants, contractors and subcontractors used or retained by CTA or Rogers & Babler/MAPCO, their representatives, personal representatives, executors, administrators, officers, directors, employees, agents, insurers and reinsurers, from any and all claims, demands, actions and causes of action, lawsuits and controversies of any kind and nature, for all injuries, damages and losses of every kind and nature, whether presently known or unknown, suspected or unsuspected, disclosed or undisclosed, arising out of or in any way connected with the design and/or construction of the roof of the Main Elementary School in Kodiak, Alaska. 2. It is fully understood that the consideration for this release is given for the sole purpose of terminating further controversy and settling disputed claims of disputed value, and that none of the parties admit any liability whatsoever, but, on the contrary, expressly denies any negligence, breach of contract, MWZLZ mrT AMMDMT, MCNIPT AND MRARa or ALL CLAM - 2 breach of duty or other unlawful or inappropriate conduct of any kind or nature, and any liability therefor. The Borough hereby expressly acknowledges and assumes all risk, chance or hazard that the damages to which this release pertains may be or become greater or more extensive which is now known, anticipated, alleged or expected; and that they may be mistaken as to the character and extent of those damages. 3. Each party shall bear all of its own attorneys' fees and costs in connection with this matter. The Releasers further warrant and agree that they will neither individually, nor in concert with others, maintain or cause to be maintained, any further demands, actions, claims, lawsuits, arbitrations, or similar proceedings, in any capacity whatsoever against CTA or Rogers & Babler/MAPCO as a result of or pertaining to the facts or claims which have been asserted or could be asserted by the Borough in connection with this dispute. 4. The parties affirm and state that they are represented by counsel and that their attorneys have fully explained the terms and conditions of this Settlement Agreement, Receipt and Release, and that they are familiar with the decisions of the Alaska Supreme Court, including Young v. State of Alaska. at al., 455 P.2d 889 (Alaska 1969); Alaska v. Sweat, 568 P.2d 916 (Alaska 1977); and Witt v. Watkins, 579 P.2d 1065 (Alaska 1978). Having been advised of the effect of these decisions upon this Settlement Agreement, Receipt and Release, it is still the full cU V05'i is fn iia 9.1 is Y: i` \:'u intent and desire of the Borough to fully release CTA and Rogers & Babler/MAPCO from any future liability arising out of the design or construction of the roof of the Main Elementary School. 5. The Borough affirms that it is not at any financial disadvantage and that no promise or inducement which is not herein expressed has been made regarding execution of this Settlement Agreement, Receipt and Release, nor does the Borough rely on any statement or representation made by CTA, Rogers & Babler/MAPCO, or any agent or person representing CTA or Rogers & Babler/MAPCO, except as expressly provided herein. DATED: KODIAK ISLAND BOROUGH By: Its: STATE OF ALASKA ) )ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on the of , 1992, before me, the undersigned, a Notary Public in and for the State of Alaska, duly commissioned and sworn, personally appeared , to me known and known to me to be the identical individual described in and who executed the within and foregoing instrument as of KODIAK ISLAND BOROUGH and he acknowledged to me that he signed the same in the name of and for and on behalf of said municipality, freely and voluntarily and by authority of its Assembly for the uses and purposes therein mentioned. GIVEN UNDER MY HAND and official seal the day and year last above written. Notary Public in and for Alaska 4702\214D.002My Commission Expires: sa1TLZKUT AAIVDMT. FJ=XPT AHD ABLBAU OF ALL CLAIMS - 4 JOEL H. BOLGER• C. WALTER EBELL DUNCAN S. FIELDS DIANNA R. GENTRY MATTHEW D. JAMIN WALTER W. MASON' JANE E. SAUER ALAN L. SCHMITT MICHAEL C. SCIACCA• O ALASKA WASHINGTON BA.S ANDALL WASHINGTON AGNITTED TO ALASKA EUR JAMIN, EBELL, BOLGER & GENTRY A PROFESSIONAL CORPORATION ATTORNEYS AT LAW 323 CAROLYN STREET KODIAK, ALASKA 99615 -ELEPHONE: (907) 486-6024 FACSIMILE: (907) 485-6112 REPLY TO KODIAK OFFICE February 24, 1992 csF ANCHORAGE OFFICE: 1200 I STREET. SUITE 704 ANCHORAGE. ALASKA 99501 TELEPHONE AND FAX (907) 278 6100 SEATTLE OFFICE: 300 MUTUAL LIFE BUILDING 605 FIRST AVENUE SEATTLE. WASHINGTON 96104 TELEPHONE: 12061 622 7634 FACSIMILE: (2061 e23 7521 INA of Texas, Inc. c/o Frank B. Hall & Co. of Oklahoma 1008 Utica Tower Bldg. C C C' � % E D 1924 S. Utica L G v Tulsa, OK 74104 TM 2 6 Re: Kodiak Island Borough Main Elementary School ',h ISLC.NO Cc General Liability Policy ISL-GO9283422-4 Our File No. 4702-214 Greetings: Our records indicate that your company provided a general liability policy to Rogers & Babler, a Division of MAPCO Alaska, Inc., for the completion of the Kodiak Main Elementary School- I have enclosed a copy of the insurance certificate dated May 1, 1983. I am writing on behalf of the Kodiak Island Borough. We have recently experienced severe decay and condensation in the roof of the Main Elementary School. Our architect's investigation during the preparation of design documents indicates that the lack of an effective sealing job by the contractor in the installation of the vapor barrier is a substantial contributing factor to the moisture loading observed. I have enclosed a copy of the letter we received from John Kumin, A.I A., dated December 3, 1991, confirming that the defects in the installation of the vapor barrier constitute a violation of the contract specifications. We have recently advertised for bids for reconstruction of the roof during the summer of 1992. Our preliminary estimate indicates that the total cost of reconstruction will be approximately $800,000. I am writing to determine if your company may be liable for the cost of reconstruction under the terms of the referenced policy. INA of Texas, Inc. February 24, 1992 Page 2 Feel free to write or call if you have any questions. Sincerely yours, JAMIN, EBELL, BOLGER & GENTRY Joel H. Bolger JHB:tah Enclosures cc: Ray Camardella, Engineering & Facilities Director vilonorable Jerome Selby, Mayor Mr. Jack McFarland, Presiding Officer Kodiak Island Borough Assembly 4702\214L.024