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Home My WebLink AboutCAG2023-608 - Original - Pacific Power Group & Yaculta Companies - Settlement Release & Hold Harmless Agreement - 12/07/2023 FOR CITY OF KENT OFFICIAL USE ONLY Sup/Mgr: Agreement Routing Form DirAsst: For Approvals,Signatures and Records Management Dir/Dep: KENT This form combines&replaces the Request for Mayor's Signature and Contract Cover (Optional' W A 9 n I M 0 T O N Sheet forms. ',Print on pink or cherry colored paper) Originator: Department: Ellaine Wi Human Resources Date Sent: Date Required: 12/05/2023 ASAP 0 ` a Mayor or Designee to Sign. Date of Council Approval: a Q Interlocal Agreement Uploaded to Website 11/21/23 Budqet Account Number: Grant? Yes NoM Budget?Dyes[Z]No Type: N/A Vendor Name: Category: Pacific Power Group and Yaculta Companies Other Vendor Number: Sub-Category: _ 159487 Original 0 Project Name: Settlement Agreement with Pacific Power Group and Yaculta Companies oProject Details: Settlement Agreement with Pacific Power Group and Yaculta Companies for December 2021 generator fire c , Basis for Selection of Contractor: � Agreement Amount: 108,250.82 Other I! 'Memo to Mayor most be attached i Start Date: 1 2/5/2023 Termination Date: tm Q Local Business?❑Yes❑No*lfmeets requirements per KCC 3.10.100,please complete"Vendor Purchase-Local 0(cepilons'form on Cityspace. Business License Verification: ❑Yes 0 In-Process❑Exempt(KCC 5.01.045) ❑Authorized Signer Verified Notice required prior to disclosure? Contract Number: F]Yesallo C93- (42�} Comments: `� v h i 7 C C Qkga a 3 000� ;��C 05 2023 KENT LAW DEpr a� Date Received:City Attorney: ( q Date�outed:Mayor's Office City Clerk's Offices�2 adccW22373_1J0 Visit Documents.KentWA.gov to obtain copies of all agreements rev.20221201 SETTLEMENT RELEASE AND HOLD HARMLESS AGREEMENT FOR AND IN CONSIDERATION of the sum of Thirty-Six Thousand, Eight Hundred Eighty-Eight, and 11/100 Dollars ($36,888.11) paid to the City of Kent and the work performed by Pacific Power Group with a value of Seventy-One Thousand, Three Hundred Sixty-Two and 71/100 Dollars ($71,362.71), totaling One Hundred and Eight Thousand, Two Hundred, and 82/100 Dollars, ($108,250.82); the work performed by Pacific Power Group on October 16,2023; and other good and valuable consideration, the City of Kent ("the City") and all its heirs, administrators, representatives, attorneys, successors, and assigns, (collectively "Releasing Parties") hereby release, waive, acquit, and forever discharge Pacific Power Group and Yaculta Companies, as well as their successors, assigns, insurers (including Great Northern Insurance Company and CHUBB Group of Insurance Companies), agents, lawyers (including Shanleigh R. Kennedy, Gardner Trabolsi & Mordekhov PLLC), relatives, servants, directors, and employees (collectively "Released Parties") from any and all manner of claims, demands,liabilities, obligations, damages, causes of action or suits, whether known or unknown, whether suspected or unsuspected,which the City,its administrators, or assigns may have had,may have now arising out of, or in any way related to the damage to the generator and surrounding machinery, property, and equipment in the City of Kent property located at 400 W. Gowe Street, Kent, 98032, King County, Washington, on 12/09/21. The Releasing Parties shall release, waive, acquit, and forever discharge the Released Parties from any and all manner of claims, demands, liabilities, obligations, damages, causes of action or suits, whether known or unknown,arising from,or as related to, any failure or damage to the generator, its surrounding machinery, property, and equipment, or the premises themselves at 400 W. Gowe Street, Kent, King County, 1 Washington, on 12/09/21. This Release shall be deemed to have been made and performed in Washington. All rights arising under this Release, and all disputes and controversies arising from or in connection with this Release, shall be governed by and determined in accordance with the laws of Washington only, and without regard for any choice of law rules. Without limiting the generality of the foregoing,the release under this Agreement includes all matters, claims, demands,liabilities, obligations, damages,causes of action or suits, whether known or unknown, whether suspected or unsuspected arising out of or in any way connected with the harm or damage to the premises at 400 W.Gowe Street,Kent, Washington, 98032,on 12/09/2021 with respect to the Released Parties. IT IS FURTHER UNDERSTOOD and agreed that this Agreement is intended to cover any and all future damages or losses not known to the parties to this agreement, but which may later develop or be discovered in connection with the above-referenced litigation, claims or demands which the City,its heirs, executors, administrators or assigns can, shall or may have by reason of any matter, cause or thing whatsoever prior to the date hereof. HOLD HARMLESS AGREEMENT The City, in consideration of the settlement of the above-referenced action, agrees to defend,indemnify and hold harmless the Released Parties from any and all claims that may be asserted including breach of contract, property damage, property loss and tort claims; attorneys' liens, and for any and all claims as a result of the incident that took place on 12/09/21, whether such claims be based on contract,tort or any other theory of law. 2 NOTAN ADMISSION IT IS FURTHER UNDERSTOOD AND AGREED that neither the Release nor other consideration being given is or shall be deemed to be an admission of liability or responsibility on the part of any person and it is further understood and agreed that liability for any of the claims or demands or causes of action referred to herein is specifically denied. VOLUNTARY SIGNATURE IT IS FURTHER UNDERSTOOD AND AGREED that this Agreement has been executed knowingly and voluntarily. The City has been represented by attorneys for the entirety of this matter, this Agreement contains the entire agreement between the parties hereto, and the terms of this Agreement are contractual and not merely a recital. The City further states that it had the opportunity to read the foregoing Agreement. The City further states that it understands and appreciates the foregoing words and terms and their effect and signs this Agreement voluntarily of its own free will and accord. READ BEFORE SIGNING. I understand I have the right to consult with an attorney before deciding whether to settle my/our claims and sign this release of all claims, and I have either consulted with an attorney or made a conscious decision not to do so. IN WITNESS WHEREOF, I have caused this Settlement Release and Hold Harmless Agreement to be executed thi day of i� 023. _-- ___e.. _..__-.. __.._ _______.____._ .._.__._ Authorized Represen of the City of Kent SUBSCRIBED AND SWORN to before me this 'T day of G-ew r2023, by an authorized representative of the City of Kent. 3 ��r /,. Signature of Notary Public =��_r��tic.►Ok ry y /� � C . Printed Name of Notary Public i '`�i s Notary Public in and for the State of Washington "' c 2 h,� 9.Zrt •4� �-`O _ Residing At �� v s My Commission Expires �will,Op WAS'r%N � ,-- — 4 8.E K.ENT W AS Hi uG TU1 DATE: November 21, 2023 TO: Kent City Council SUBJECT: Settlement Agreement with Pacific Power Group and Yaculta Companies - Authorize MOTION: I move to authorize the Mayor to sign a Settlement Agreement with Pacific Power Group, subject to final terms and conditions acceptable to the Human Resources Director and City Attorney. SUMMARY: In August 2021, the City engaged with Pacific Power Group (PPG) to perform annual and semi-annual maintenance and inspections, including load bank testing, for seven generators at five locations throughout the City. Two generators were inspected by PPG at the City Hall Campus on December 17, 2021. The following day, on December 18, 2021, there was a fire that originated from the serviced generator that caused damage to the generator and other City property. PPG accepted liability for the incident, and involved its insurer, CHUBB, to handle the claim. The City incurred temporary and emergency repair costs in the amount of $26,645.20. It also experienced contents loss in the amount of $16,253.42. This loss to the City amounted to a total of $42,898.62. PPG's insurer, CHUBB, assigned $6,010.51 in depreciation to the City's contents loss. So, the total payment to the City will be $36,888.11. PPG also performed repairs to permanently fix the damaged generator in 2022. The value of the work it performed amounts to $71,362.71. PPG then performed minor repairs in October of 2023 which are included in this release as well. BUDGET IMPACT: The City will receive $36,888.11. SUPPORTS STRATEGIC PLAN GOAL: Evolving Infrastructure - Connecting people and places through strategic investments in physical and technological infrastructure. Sustainable Services - Providing quality services through responsible financial management, economic growth, and partnerships. ATTACHMENTS: 1. Settlement Agreement (PDF) Packet Pg.32 . 8.E 11/07/23 Committee of the Whole MOTION PASSES RESULT: MOTION PASSES (UNANIMOUS)Next: 11/21/2023 7:00 PM MOVER: Satwinder Kaur, Councilmember SECONDER: Toni Troutner, Councilmember AYES: Boyce, Fincher, Kaur, Michaud, Troutner Packet Pg. 33