March 21, 2023
City Attorney's Office
DATE: March 21, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
Dave Aleshire, City Attorney
Stephen Onstot, Litigation Counsel
Christine M. Carson, Litigation Counsel
Subject:
Approval of Settlement Agreement in Angotti & Reilly
(A&R) v. City (dispute regarding BTA Center contract) and Rescind Termination for Cause of A&R.
FINANCIAL IMPACT: The City would pay $75,000 to A&R within 30 days of approval of the settlement agreement. Each side would
waive their claims against one another, but they would
also avoid the costs of litigation, a trial, and any appeals.
The account string is General Liability 50182316 -
400553.
PREVIOUS COUNCIL
ACTION:
None.
STATEMENT OF THE
ISSUE:
Angotti & Reilly (A&R) and the City have accepted a
mediator’s proposal to settle their contract dispute,
subject to approval of a signed settlement agreement.
The settlement agreement includes an agreement that
the City will rescind its August 19, 2022 termination for cause of the A&R contract with the City.
RECOMMENDED ACTION:
APPROVE a Settlement Agreement with Angotti & Reilly
(A&R); and RESCIND the August 19, 2022 termination of
the A&R contract for the Booker T. Anderson
construction – City Attorney’s Office (Dave Aleshire 510- 620-6509).
AGENDA
REPORT
March 21, 2023
DISCUSSION:
The City terminated A&R’s contract to rebuild the BTA Community Center (“Contract”) in August, 2022 and contracted with another contractor, Arntz, to complete the project.
A&R filed a government claim on February 3, 2023, alleging $385,784 in damages due to the City’s termination of their Contract. The City sent notice of opportunity to request leave to file a late claim because the Contract required a claim to be made within 100 days of the termination. The City asserted A&R’s claim was time-barred; the City also asserted claims against A&R for the difference between the A&R contract cost and Arntz contract ($584,200). The Contract required mediation. Following an unsuccessful mediation, the mediator in this matter proposed a settlement in which the City would pay A&R $75,000 within 30 days; the City would rescind its termination of A&R for cause; and both sides would release one another of all claims. Both A&R and the City agreed to the mediator’s proposal – subject to approval and execution, by both sides, of a settlement agreement.
Attached hereto is a Settlement Agreement, approved as to form, by the City Attorney settling the matter. It has been signed by A&R. As part of the terms of the settlement, the Board would withdraw the August 19, 2022 termination for cause of A&R, thus the agenda contains a separate line item for withdrawal of the termination for cause. The Settlement Agreement states that neither party makes any admissions by settling the case and executing the terms of the Settlement Agreement.
DOCUMENTS ATTACHED:
Attachment 1 – Settlement Agreement signed by Angotti & Reilly.