Resolution - 14-18 - Water Tower Lawsuit-Proposed Settlement• CITY OF SPRING PARK
SPRING PARK, MINNESOTA
RESOLUTION 14-18
A RESOLUTION APPROVING THE PROPOSED SETTLEMENT AGREEMENT
BETWEEN THE CITY OF SPRING PARK, MAGUIRE IRON, INC. AND EARL, INC.
d/b/a ST. GERMAIN SANDBLASTING
WHEREAS, the City engaged Maguire Iron, Inc. ("Maguire Iron") as the general contractor
to construct a new water tower in 2005; and
WHEREAS, St. Germain Sandblasting ("St. Germain") was a subcontractor hired by
Maguire Iron for certain work, including paint application; and
WHEREAS, the paint and finish coating on the water tower began delaminating; and
WHEREAS, the City engaged a third party engineering firm (KLM Engineering) to inspect
the water tower and its report indicated that in its opinion the delamination was premature (well
before the end of is expected service life) and the paint and coating failures were, in its opinion,
due to defective application; and
WHEREAS, the City engaged outside counsel (attorney Mark Vyvyan of Fredrikson &
Byron) to start litigation against Maguire Iron and St. Germain; and
• WHEREAS, the City Council has met in several closed sessions with outside counsel to
discuss litigation strategy; and
WHEREAS, outside counsel has negotiated a settlement of the matter whereby Maguire Iron
and St. Germain will do repair work as recommended by a third party engineering firm (Dixon
Engineering) hired by the City for a reduced price as more fully described in the attached
Settlement Agreement and Exhibit A (Scope of Work); and
WHEREAS, the outside counsel recommends approval of the settlement agreement;
NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SPRING
PARK:
The proposed Settlement Agreement by and among the City of Spring Park, Maguire Iron,
Inc. and St. Germain Sandblasting is hereby approved and the Mayor and City Clerk are hereby
directed to sign the Settlement Agreement on behalf of the City.
Adopted by the City Council of the City of Spring Park this 4t' day of August, 2014.
APPROVED: ATTEST:
• Sar Rei ardt, M or Wendy Lew' , City Clerk