HomeMy WebLinkAbout1996-07-22 96-324 RESOLVECOUNCIL ACTION
Item No. 96-326
Date duly 22. 1996
Item/Subject: Resolve, Ratifying Action of City Manager i
Executing Amendment to Agreement with Leo A. Daly Company
Responsible Department: Legal
Coamientary:
Per 'recent discussionsbythe City Council in executive session,
the City Manager last week executed's modification to the City of
Bangor design services agreement with Leo A. Daly Company for the
BIA terminal building expansion project. The modification adds an
arbitration clause to the City's agreement with Daly, so as to -
permit arbitration of our
claims against Daly currently pending in
the U.S. District Court under docket no. 95-0116-B. The City
Manager executed the modification at the request of our outside
counsel in this matter, in advance of formal Council approval, in
order to expedite hearing an motion for stay and referral to
arbitration to be filed in docket no. 95-0116-B. The attached
Council Resolve would ratify the City Manager's signature on the
agreement modification.
Depeitm�t Mead
Finance Director
CityCity Solicitor --Z r
Passage
First Reading
Referral Page I of 7
City
Manager
Associated
Information:
Resolve,
Modification to
Agreement
Finance Director
CityCity Solicitor --Z r
Passage
First Reading
Referral Page I of 7
Assigned to Councilor Tyler July 22, 1996 96-324
CITY OF BANGOR
(TITLE,) IPWI Ratifyigg_npuon of Citx Manager in executing
�................_ ...._....._ ......_. ...._......._..._......._.._..
Amendment to Agreement with Leo A. Daly Company
eg Ge CIN County of W Cltg o(Bnnpor:
RESOLV&D,
the action of the City Manager in executing a
modification to an agreement between the City of Bangor and Leo A.
Daly Company dated November 13, 1990 for design services on the BIA
terminal building renovation and expansion project is hereby
ratified and confirmed. A copy of the modification as executed by
the City Manager is attached to this Resolve and is incorporated
herein by reference.
IN CITY COUNCIL
July 22. 1996
Passed
96-324
E E 5 0 L V E
Ratifying Action of City Manager
in Executing Aemendment to Agreement
with Leo A. Daly Company
9,,.J6
96-324
MODIFICATION NO._
To
AGBEEM$NT HEINS= ONNER AND ARCHITECT
THIS MODIFICATION AGRNH HNT made this day Of .July,
1996 by and between the City of Bangor, 73 Harlow Street,
Bangor, Maine (the "Owner") and the Leo A Daly Company,
1201 Connecticut Avenue, M.N., Tenth Floor, Washington,
D.C. 20036 (the "Architect").
RBCITAL9
1. The Owner and the Architect entered into an
agreement dated November 13, 1990 (the "Original
Agreement") providing for design and construction
administration services with respect to expansion and
renovation of the Domestic and International Arrivals
Buildings at Bangor International Airport, Bangor, Maine.
2. Certain disputes have arisen between the parties
concerning the performance by each of the terms and
conditions of the Original Agreement which such disputes
are the subject matter of a certain action pending in the
United States Federal District Court for the District Of
Maine, Northern Division, Civil No. 95-0116-B (the
"pending Action").
3., In order to foster the prompt resolution of this
dispute, each party believes that: (i) it is to their
benefit to amend the Original Agreement so as to add to It
an arbitration clause containing the language used in .form
8141 0£ the forme supplied by the American Institute of
Architects for the supply of design services; and (11) to
refer the entire scope of the controversy covered by the
Pending Action to arbitration under the Construction
Industry Arbitration Rules of the American Arbitration
Association.
4. Accordingly, this Agreement is being entered into
to add this clause to the Original Agreement and to state
the terms and conditions under which the Pending Action
shall be stayed and the controversy subsumed by it shall
be referred to arbitration. -
The Architect hereby expressly warrants and represents
that the execution of this Agreement does not require the
consent of its Insurers and its execution and performance
shall have no adverse impact upon nor operate to limit or
defeat any coverage now in effect for errors and =lesions
on the part of the Architect or its subcontractors or
coneultanta for which it may be liable to the Owner.
The parties hereby agree to amend
Original Agreement by deleting Article
substituting therefor new Articles 7.1
read in their entirety as fallowe:
Claims, disputes or other matters in question
between the parties to this Agreement arising out
of or relating to this Agreement or breach
thereof shall be subject to and decided by
arbitration in accordance with the Construction
Industry Arbitration Rules of the American
Arbitration Association Correctly in effect
unless the parties mutually agree otherwise.
Demand for arbitration shall be filed in writing
with the other party to this Agreement and with
the American Arbitration Association. A demand
for arbitration shall be made within a reasonable
time after the claim, dispute or other matter in
question had arisen. In no event shall the
demand for arbitration be made after the data
when institution of legal or equitable
proceedings based on such claim dispute or other
matter in goestion would be barred by the
applicable statutes of limitations.
No arbitration arising out of or relating to Ghia
Agreement shall include, by consolidation, or
Joinder or in any other manner, an additional
person or entity not a party to this Agreement,
except by written consent containing a specific
reference to this Agreement signed by the Owner,
Architect, and any other person or entity Sought
to be joined. Consent to arbitration involving
an additional person or entity shall not
constitute consent to arbitration of any claim,
dispute or other matter in question not described
In the written consent or with a person or entity
not named or described therein. ghe foregoing
agreement to arbitrate and other agreements to
arbitrate with an additional person or entity
duly consented to by the parties to thin
Agreement shall be specifically enforceable in
accordance with applicable law in any court
having jurisdiction .thereof.
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7.4 The award rendered by the arbitrator or
arbitrators shall be final, and Judgment may be
entered upon it in accordance with applicable law
is any court having Jurisdiction thereof.
7. Referral of the Pandina Action to Arbitration
Within five business days of the execution of this
Agreement, the parties shall refer the entire controversy
between them encompassed by the Pending Action to
arbitration under the following terms and conditions:
(a) The matter shall be determined by a three-
person panel consisting of an attorney, a contractor
representative Bud a designer repreeentative.
(b) The panel shall be selected from a select
list prepared by the Boston Regional office of the
American Arbitration Association, which shall
administer the case in accordance with its customary
administrative procedures.
(a) The conduct of the proceedings shall be
governed by the Construction Industry Arbitration
Rules in effect as of the time the Case is filed by
the parties.
(d) The hearings shall be held in Portland, Wain
unless the parties otherwise mutually agree.
(a) The arbitrators will be engaged with the
knowledge that the parties wish to have the hearings
commence in october, 1996, if possible, sad that they
wish to conduct the hearings in blocks of four
consecutive days with minimal breaks between such
blocks.
(f) As is provided in the Construction Industry
Arbitration Rules, the parties shall Jointly request
and participate in a prehearing conference in .July,
1996, if possible. -
a. Discovery
The parties agree to conclude discovery in this cage
as follows:
(a) Depositions
1. All depositions shall be deemed
concluded, except am provided below;
96-324
2. All depositions already taken, completed
or not completed, may be used in the arbitration.
(b) Production of Documents
1. The Owner shall produce its telephone
records, Ray Royce draft reports, its briefs filed
with the AAR 1n the wolf ease, -its Pie -Application
Pare submitted to the FAA, and its Airport Neater
Plan.
2. Daly shall produce its telephone records
and its time and budget records.
3. The production of the foregoing records
shall conclude production of records on the part of
both parties.
(c) Expert Reports
1. Both parties Shall have the obligation
to produce to the other written reports of each expert
when they expect to call In their case in chief; much
reports shall be detailed and shall comply in all
respects with the provisions and intent of the
requirements of the Federal Rules of Civil Procedure
with respect to such reports.
2. The Owner sba11 serve on Daly final
reports of its experts on or before .auly 15, 1996 and
Daly shall serve On the Owner such reports on or
before August 15, 1996.
(d) Other Discovery
No other form of discovery shall be required of
either party, provided that neither party shall be
foreclosed from Seeking Same from the panel upon a
showing tbat: (d) in the case of the proposed
deposition Of an expert, the report tendered is
incomplete or vague; (ii) in general an extraordinary
need egists, and provaded further that either party
shall be able to apply to the panel for authority to
cake a deposition it necessary for the purposes of
preserving testimony.
9. interest
The parties agree that any award in favor of the Owner
or Architect shall bear interest, either prejudgment,
postjudgment or both as appropriate, at the applicable
rates applied in civil eases filed in U.S. District Court
4
96-324
in the State of Maine, as if the matter had not been
referred to Arbitration. The ,parties further agree to
request that should the arbitrators make any award that
entitles the recipient to interest, that ouch interest be
calculated =a epeoi£ied as a separate line item in the
award, with a designation as to which portions of such
interest are prejudgment or postjudgment-.
The parties shall jointly stipulate to an amendment of
the pleadings in the Pending Actions and file appropriate
motions anas to advise the Court of the terms of this
Agreement and to Provide that the Court enter an order
referring this matter to Arbitration under Title 9 of the
United States Code and retaining Jurisdiction with respect
to entering judgment on the award.
Is WITHERS WHEREOF, the parties have executed this
Agreement as of the data first above written.
21ty of Bangor
Leo A Daly CcmpanY
Ey.—
Ito: