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City to settle over costs

Glendale will pay contractor to end a protracted dispute over project expenses.

February 11, 2010|By Melanie Hicken

CITY HALL — The City Council on Tuesday agreed to a $285,000 settlement with the city’s contractor for a $14.1-million seismic retrofit for the Municipal Services Building — ending a long-running billing dispute with the contractor over the project’s ballooning costs.

The council voted 4 to 0 to settle two lawsuits filed against the city by DJM Construction after discussing the legal action during closed session. Councilman Dave Weaver was absent.

The most recent lawsuit stemmed from more than a dozen change orders that brought the project’s original contract $11.8-million price tag to $14.1 million. The majority of the settlement comes from within the updated contract cost.

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Officials have attributed much of the change orders to structural damage to the foundation of the building, which was built in 1964.

Early work revealed cracks in some of the steel and concrete elements that required extensive consultation and welding procedures that lasted through nights and weekends.

After the project’s completion in late 2008, the Anaheim-based construction company filed multiple claims against the city, alleging that the company was still due more than $500,000 in back pay and interest.

Public Works Director Steve Zurn said the city withheld final payments until a fountain design by the company was in working order, and did not believe any late fees or interest should be paid.

The majority of the settlement stems from a dispute on payment for temporary shoring, or supporting structures used during construction, Zurn said.

City officials requested additional shoring after the city’s building official said the initial structures were unsafe, which set off a back-and-forth with the company.

“He thought it was not sufficient for a building that was occupied,” Zurn said. “They disagreed.”

According to the settlement, city officials have agreed to pay for additional shoring costs, but not for the delays caused by the company’s initial unwillingness to upgrade the structures.

City officials said they were glad to see the long-running dispute resolved. One lawsuit was set to go to jury trial in March after months of mediation.

The most recent lawsuit, filed late last year, was scheduled for a case management conference.

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