The York City School Board has approved settlement agreements with three companies involved in lawsuits with the district over William Penn Senior High School's renovation project.
"They're resolved, settled and done to the district's advantage," said Margie Orr, board president. "We followed the solicitor's advice."
The agreements involve Leer Electric of Dillsburg; Rado Enterprises, a heating, ventilation and cooling contractor of Bloomsburg, Columbia County; and Fab-Rick Industries (formerly Caravel & Rick Inc.), a steel fabrication contractor of Ephrata Lancaster County.
The district will pay Rado $150,000 within 30 days of the board's approval of the agreement, officially termed "Mutual Agreement of Settlement and Release."
In its case, Rado was seeking $972,000 for construction "inefficiencies" caused by the district and another $360,000 in withheld pay and other fees, The initial contract was for $6.6 million, according to the documents.
The board approved a "Compromise Settlement and Mutual Release Agreement" with Leer and Fab-Rick, which do not include payments from the district.
The three agreements are based on a Feb. 28 decision by York County Common Pleas Judge Sheryl Ann Dorney, who granted the district a summary judgment against the three companies, which were seeking about $5 million overall.
The three companies had claimed the district had "defective" construction documents, bad scheduling and other delays that made it impossible for them to complete work on time, thus leading to hundreds of thousands of dollars in additional compensation requested because of extra labor and materials.
Rado Enterprises had filed a lawsuit against the district in 2005. It filed an amended claim in 2007, at which time the district filed a counterclaim. The district also filed a lawsuit on March 16, 2010 against Rado for liquidated damages.
According to the settlement agreement, Rado and the district will dismiss their lawsuits against each other.
Leer was seeking about $850,000, according to court documents. Its contract was for $4.7 million. Fab-Rick sought $1.9 million. The company's initial contract was about $3 million.
Leer Electric and Fab-Rick informed the district of their intent to appeal Dorney's decision, while the district said it would seek counsel fees from both companies, according to the district's agreement document. However, the district still had suits that were filed against them on March 16, 2010 for liquidated damages regarding the William Penn project.
However, under the compromise settlement and mutual release agreement, both parties have agreed to drop further legal action against each other, and the district would not seek counsel fees.
William Penn's renovation was completed around 2006. The $53.4 million renovation project began with demolition of portions of the 1927 building in 2003.
It also included renovation to the remaining parts of that building and construction of a new wing to house an auditorium, library and media center and science and music suites.
In other business:
The board approved its support of the York County Rail Trail Authority's grant-seeking efforts for a trail extension plan that includes the district's property.
The Heritage Rail Trail County Park is seeking a grant from the state Department of Conservation & Natural Resources to help fund its extension plan, which is the third of four phases to connect John C. Rudy County Park in Springettsbury Township to a trail head at Philadelphia Street in the city.
The extension plan calls for bringing the trail from a Route 30 bridge across the Codorus Creek and extending it along the west bank of the creek to the city school district's Small Athletic Field, off North George Street and near Willis Run.
The project includes building a bridge over Willis Run. The district is willing to negotiate an easement agreement with final approval from the board.
On April 10, York County Commissioners approved allocating $150,000, or half of the plan's cost. The state grant would match the amount.
-Reach Eyana Adah McMillan at email@example.com.