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Bosserman Aviation Equipment_Airport SettlementMasterpiece on the Mississippi JAMES (TIM) A. O'BRIEN, ESQ. ASSISTANT CITY ATTORNEY / To: Mayor Roy D. Buol and Members of the City Council DATE: May 27, 2010 MEMORANDUM RE: Bosserman Aviation Equipment Inc. — Airport Settlement In September of 2005 the Dubuque Regional Airport entered into a contract with Bosserman Aviation Equipment Inc. for the purchase and installation of a self - fueling system for the Airport. In May of 2007 the self - fueling system installed by Bosserman was taken out of service due to rust in the system which ended up in the fuel tanks of airport customers. Bosserman refused to correct the deficiencies in the self - fueling system and the Airport made arrangements to have the corrections made. A claim was made on Bosserman's insurance carrier and after negotiations, the insurance carrier has offered to pay the City of Dubuque /Dubuque Regional Airport the sum of $20,000.00 to settle the claim. Airport Manager Robert Grierson and the Airport Commission have approved this settlement. I request that the City Council authorize the Mayor and City Clerk to execute a release in the form attached hereto to implement the settlement. JAO:tls Attachment cc: Michael C. Van Milligen, City Manager Robert Grierson, Airport Manager Gordy Vetsch, Fixed Based Operation Supervisor F: \USERS \tsteckle \O'Brien \Bosserman Aviation EquipmentWlayorCouncil _Settlement_052710.doc FOR THE SOLE CONSIDERATION OF a payment in the amount of Twenty Thousand and 00/100 Dollars ($20,000.00), the receipt and sufficiency of which is hereby acknowledged, the undersigned, the City of Dubuque, Iowa, owner of The Dubuque Regional Airport, does hereby release, acquit, and forever discharge Bosserman Aviation Equipment, Inc. together with its past and present officers, directors, employees, related and affiliated entities, successors, agents, heirs, assigns, and insurers, and all other persons, firms and corporations, from any and all liability whatsoever, including all claims, demands, and causes of action of every nature affecting me, jointly or severally, which I have, may have, or ever claim to have by reason of defects, the failure to correct such defects and consequential damages caused by those defects; in the installation of the Dubuque Regional Airport Self Fueling System. As further consideration of said payment, the City of Dubuque, Iowa hereby represents, warrants, and agrees: 1. That this Release covers all injuries and damages, whether known or not, and which may hereafter appear or develop arising from or in any way connected with the matter(s) above referred to and the claims, demands, and causes of action hereby released and discharged. 2. That the above sum is all that the City of Dubuque, Iowa will receive for its claim(s), and no promise for any other or further consideration has been made by anyone. 3. That this Release is executed as a compromise settlement of a disputed claim, liability for which is expressly denied by the parties released, and the payment of the above sum does not constitute an admission of liability on the part of any person or entity. 4. That this Release is being executed solely in reliance upon the City's own knowledge, belief, and judgment and not upon any representations made by any party released or others on their behalf. THE CITY OF DUBUQUE, IOWA HAS READ THE FOREGOING RELEASE, UNDERSTANDS ITS TERMS, AND FREELY AND VOLUNTARILY SIGNS THE SAME. DATED this - day of Attest: Jeanne F. Schneider, City Clerk RELEASE Roy D/: uol, Mayor