200 S. Anaheim Blvd.
Suite #276
Anaheim, CA 92805
Tel: (714) 765-5176
Fax: (714) 765-5161
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: FEBRUARY 4, 2025
FROM: DEPARTMENT OF PUBLIC WORKS
SUBJECT: SETTLEMENT AGREEMENT AND MUTUAL RELEASE
WITH EBS ENGINEERING, INC.
ATTACHMENT (Y/N): YES ITEM # 06
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1) Approve a post construction Settlement Agreement and Mutual Release (Agreement) between the City of Anaheim (City) and EBS General Engineering, Inc. (EBS), in the amount of $290,000; and 2) Direct and authorize the Director of Public Works, on behalf of the City, to execute the Agreement and take such actions as are necessary, required, or advisable to implement and administer the Agreement.
DISCUSSION:
On October 18, 2021, the City, as owner, and EBS, as general contractor, entered into a written contract for EBS to provide all necessary labor, equipment and materials needed to construct a public works improvement known as the Northeast Anaheim Colony Sabina Neighborhood Improvements Phase III located in the City of Anaheim, California for the bid sum of $5,317,919.39 before adjustment for actual bid quantities installed and change orders (‘the Project”). This project was completed, and the Notice of Completion (NOC) was filed on April 25, 2023.
Through the course of the Project certain disputes arose between the City and EBS (Parties) regarding delays and alleged extra work which culminated in EBS filing a Complaint on October 23, 2023, in the Orange County Superior Court, Case No. 30- 2023-01358864-CU-BC-NJC.
EBS originally claimed a total amount of $622,450.86. The Parties participated in a mediation with Eileen Diepenbrock, Esq. on November 6, 2024, which resulted in a proposed settlement (Attachment #1) in the amount of $290,000. The Parties desire to settle and compromise certain claims and disputes that arose out of the Agreement and the Project. Therefore, it is City staff recommendation that City Council approve the Agreement.
Settlement Agreement and Mutual Release with EBS Engineering, Inc.
February 4, 2025
IMPACT ON BUDGET:
Adequate funding is available in the FY 2024/25 Department of Public Works budget.
Respectfully submitted,
Rudy Emami
Director of Public Works
Attachment:
1. Settlement Agreement and Mutual Release