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BY: Mayor O'Grady <br />AN ORDINANCE A UTHORIZING THE DIRECTOR OF LA W TO SETTLE <br />A LAWSUIT WITH THE SHELLY COMPANY IN EXCHANGE FOR <br />DISMISSAL, WITH PREJUDICE, OF COURT ACTION AGAINST THE <br />CITY AND A UTHORIZING THE MA YOR TO EXECUTE A RELEASE AND <br />SETTLEMENT AGREEMENT, AND DECLARING AN EMERGENCY. <br />WHEREAS, the Shelly Company commenced an action in Cuyahoga County Common <br />Pleas Court (Case No. CV-05-574174) alleging that the City of North Olmsted owed it <br />$46,753.89, plus interest, penalties and fees, for construction claims arising from extra work <br />performed by its predecessor in interest and one of its subcontractors on the Lorain Road <br />Rehabilitation Project, Phase I, in 2003; and <br />WHEREAS, the Director of Law has, during the discovery stage of the litigation between <br />the parties, evaluated the City's exposure to liability for the additional work ordered by the City <br />and performed by the Shelly Company's predecessor in interest, and, accordingly, recommends a <br />settlement which provides for payment by the City to Shelly Company in the amount of Thirty <br />Thousand ($30,000.00) Dollars in exchange for a full release of all claims and a dismissal, with <br />prejudice, of the suit against the City; <br />NOW THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF <br />NORTH OLMSTED, CUYAHOGA COUNTY, AND STATE OF OHIO: <br />SECTION 1: That the Director of Law be and he is hereby authorized to negotiate ;and <br />enter into a settlement with the Shelly Company in the total amount of Thirty Thousand Dollars <br />($30,000.00) in an exchange for a full release by Shelly, its predecessor in interest and its <br />subcontractor of all claims that any of them may have against the City in this matter, and a <br />dismissal with prejudice of the action filed by Shelly against the City in said Case No. CV-05- <br />574174. Further, the Mayor is authorized to execute a settlement agreement on behalf of the <br />City in the said matter, in substantially the form attached hereto as Exhibit A. <br />SECTION 2: That this Ordinance is hereby declared to be an emergency measure <br />immediately necessary for the preservation of the public health, safety and welfare, and for the <br />reason that it is necessary that this Ordinance go into effect immediately so that the City may <br />immediately perform in exchange for dismissal of the Court action, and further provided it <br />receives the affirmative vote of two-thirds of all members of Council, it shall take effect and be <br />in force immediately upon its passage and approval by the Mayor.