6. Settlement Agreement Between Bethlehem Area School District and Zurich Group, etal - Freemansburg Elementary School
INFORMATION:
During the summer of 2000, Freemansburg Elementary School received considerable water infiltration through the roofing system while an outside contractor was replacing it. The district argued that the roofing contractor and subcontractors caused this water infiltration and the resulting mold growth. The presence of mold prevented the building from being used during the 2000-2001 school year because of health concerns and the need to remediate the damage.
A temporary school site was created in the former office building of the Bethlehem Steel Corporation. The remediation, temporary school site, textbook and supply replacements, and other related costs were paid by the school district. The school district filed legal action against the contractors, and a settlement of $1.2 million was negotiated in the Northampton County courts. The school district continues to pursue additional reimbursement from its insurance carrier.
On Monday, May 7, 2007, a settlement of $175,000 was negotiated in U.S. Court with the Honorable Henry S. Perkin mediating. The Board of School Directors must formally accept this settlement.
RECOMMENDATION:
That the Board of School Directors adopts the Motion of a Settlement Agreement and Release, in a form acceptable to the school district's special counsel, Powell, Trachtman, Logan, Carrle and Lombardo, for the payment of $175,000 toward the settlement and compromise of claims presented by the school district as a result of damages incurred at the Freemansburg Elementary School and costs related to the temporary education of the students attending that school. Further, the board shall authorize the execution of the Settlement Agreement and Release.
ROLL CALL RECOMMENDATIONS 1, 3, 5 and 6 Director Heske moved the administration's recommendations 1, 3, 5 and 6. Director Craig seconded the motion. The question was called and roll call was as follows: Yea, Directors Heske, Koch, Leeson except no for item 3, Rowe, Williams, Amato, Craig, Dexter, and Haytmanek. Items 1, 5, and 6 passed 9 - 0. Item 3 passed 8 - 1.