Explanation
Background:
This ordinance is submitted to settle the pending lawsuit known as FOP Capital City Lodge No. 9, et al., v. City of Columbus, United States District Court Case No. 22-CV-4290 involving Plaintiffs Bryan Hupp and Steven Steenburgh; and to avoid additional litigation by settling the related claims of Larry Howell and Mike Evans in the amount of three-hundred sixty thousand dollars and zero cents ($360,000.00). All claims arise out of the determination that Hupp, Steenburgh, Howell and Evans (together “Members,” with Members and the City collectively referred to as the “Parties”) were deemed not eligible to participate in the Retirement Incentive Program (“Program”) in accordance with the terms and conditions agreed to by the City of Columbus and the Fraternal Order of Police.
On July 15, 2021, the City of Columbus and the FOP executed a Memorandum of Understanding (“MOU”) setting forth the material terms of the Program as mutually agreed upon by the City of Columbus and the FOP. The Final Program Terms stipulated that the election period to opt into and participate in the Program was from January 31, 2022 to February 6, 2022 and that in order to be eligible to participate, a member could not be under administrative investigation, other than for minor misconduct, or under criminal investigation at any time from January 31, 2022 through the date of the member’s retirement under the Program.
On March 28, 2022, Hupp, Steenburgh, Howell and Evans were determined to be under administrative investigation and deemed ineligible to participate in the Program. As a result, Hupp and Steenburgh filed the lawsuit known as FOP Capital City Lodge No. 9, et al., v. City of Columbus, United States District Court Case No. 22-CV-4290 for breach of contract, alleging the City breached the terms of the Program when it determined that Hupp and Steenburgh were not eligible to participate in the Program. The Parties filed cross motions for summary judgment. The Court denied the motions and concluded there was a genuine issue of material fact as to whether the City breached the Program terms. While the Parties prepared for mediation, the FOP notified the City that Howell and Evans were also planning to file lawsuits for being denied participation in the Program.
To resolve all related claims arising out of the Members ineligibility to participate in the Program, the Parties agreed to settle all claims filed by Hupp in the amount of thirty-five thousand dollars ($35,000); all claims filed by Steenburgh in the amount of one hundred and twenty-five thousand dollars ($125,000); all potential claims by Evans in the amount of one hundred thousand dollars ($100,000) and all potential claims by Howell in the amount of one hundred thousand dollars ($100,000).
Fiscal Impact:
Funds were not specifically budgeted for this settlement; however, sufficient monies are available within the Department of Finance’s Citywide Account for this purpose.
Emergency Designation:
Emergency action is requested for this ordinance to be effective immediately in order for the Parties to effectuate the settlement of the lawsuit and the related claims in accordance with the terms of the settlements and to meet case deadlines, in the sum of three-hundred sixty thousand dollars and zero cents ($360,000.00), which is in the best interest of the City, and to pay the agreed sum without delay.
Title
To authorize and direct the City Attorney to settle the pending lawsuit known as FOP Capital City Lodge No. 9, et al., v. City of Columbus, United States District Court Case No. 22-CV-4290; to authorize and direct the City Attorney to settle related potential claims arising out of the Retirement Incentive Program with Larry Howell and Mike Evans; to authorize a transfer within the general fund; to authorize the expenditure of the sum of three-hundred sixty thousand dollars and zero cents ($360,000.00) in settlement of the pending lawsuit and the related claims arising out of the ability to participate in the Program; and to declare an emergency ($360,000.00).
Body
WHEREAS, On July 15, 2021, the City of Columbus and the FOP executed a Memorandum of Understanding (“MOU”) setting forth the material terms of a Retirement Incentive Program (“Program”) as mutually agreed upon by the City of Columbus and the FOP; and
WHEREAS, the Final Program Terms stipulated that the election period to opt into and participate in the Program was from January 31, 2022 to February 6, 2022 and that in order to be eligible to participate, a member could not be under administrative investigation, other than for minor misconduct, or under criminal investigation at any time from January 31, 2022 through the date of the member’s retirement under the Program; and
WHEREAS, On March 28, 2022, Officers Bryan Hupp, Steven Steenburgh, Larry Howell and Mike Evans were determined to be under administrative investigation and deemed ineligible to participate in the Program; and
WHEREAS, Hupp and Steenburgh filed the lawsuit known as FOP Capital City Lodge No. 9, et al., v. City of Columbus, United States District Court Case No. 22-CV-4290 for breach of contract, alleging the City breached the terms of the Program when it determined that Hupp and Steenburgh were not eligible to participate in the Program; and
WHEREAS, while the Parties to the lawsuit prepared for mediation, the FOP notified the City that Larry Howell and Mike Evans were also planning to file lawsuits for being denied participation in the Program; and
WHEREAS, following the evaluation of the claims and the risk of continued litigation against the City of Columbus, a settlement totaling three-hundred sixty thousand dollars and zero cents ($360,000.00) along with dismissal of the case with prejudice and full releases of the City of Columbus and its employees from any further liability was deemed acceptable by the Department of Public Safety; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Safety, Division of Police, in that it is necessary for this ordinance to be effective immediately in order to effectuate the settlement of the lawsuit and the related claims in accordance with the terms of the settlements and to meet case deadlines, all of which is in the best interest of the City; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the City Attorney be and hereby is authorized and directed to settle all claims against the City of Columbus, its officers, agents, and employees, by payment of the sum of Thirty-five thousand dollars and zero cents ($35,000.00) to Bryan Hupp and One hundred and twenty-five thousand dollars and zero cents ($125,000.00) to Steven Steenburgh in settlement of the action FOP Capital City Lodge No. 9, et al., v. City of Columbus, United States District Court Case No. 22-CV-4290.as a reasonable and fair amount and in the best interest of the City of Columbus.
SECTION 2. That the City Attorney be and hereby is authorized and directed to settle all future claims arising out of the Program against the City of Columbus, its officers, agents, and employees, by payment of the sum of One hundred thousand dollars and zero cents ($100,000.00) to Mike Evans and One hundred thousand dollars and zero cents ($100,000.00) to Larry Howell as a reasonable and fair amount and in the best interest of the City of Columbus.
SECTION 3. That the transfer of $360,000.00, or so much thereof as may be needed, is hereby authorized between object classes within the General Fund Transfer Line per the account codes in the attachment to this ordinance:
SECTION 4. That the expenditure of $360,000.00, or so much thereof as may be needed, is hereby authorized as follows in the General Fund object 05 per the accounting codes in the attachment to this ordinance.
SECTION 5. That, upon receipt of an invoice and a release approved by the City Attorney, the City Auditor be and is hereby authorized to draw a warrant upon the City Treasurer for the sum of $360,000.00:
SECTION 6. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.