Explanation
BACKGROUND: This ordinance authorizes the Director of Public Utilities to execute a compromise agreement with Crane and Tractor, Inc. as settlement of a lawsuit filed by Crane and Tractor against the City for damages related to flooding that occurred following a storm event on January 4, 2004. Crane and Tractor, Inc. claimed damages in a total amount of $497,577.09 as a result of this storm event. A second flood event occured in 2008 after Crand and Tractor, Inc. had filed the lawsuit. The Department of Public Utilities and Crane and Tractor, Inc. have determined that it is in the best interests of both parties to settle this lawsuit and to resolve any potential claims relating to the 2008 flood event. Through negotiations with the City Attorney's Office, the City has agreed to pay, and Crane and Tractor, Inc. has agreed to accept, $200,000.00 in complete settlement of any and all of Crane and Tractor, Inc.'s claims related to this lawsuit and further to resolve all issues and disputes now existing between Crane and Tractor, Inc. and the City relating to the operation of the City's sewer system, including any claims relating to a certain flood of Crane and Tractor's property that occurred in 2008. The settlement agreement provides that, in consideration of the settlement amount, Crane and Tractor, Inc. will dismiss the lawsuit and release the City from any liability for any claims which Crane and Tractor, Inc. ever had or now has from the beginning of time to the present against the City related to the sewer system and/or failure of the sewer system, including any claims asserted in the lawsuit and any claims that Crane and Tractor, Inc. may have against the City as a result of the 2008 flood event. Under the settlement agreement, Crane and Tractor, Inc. waives its right to submit a property damage claim or any other claim against the City or any of its departments or divisions for any damages or losses that Crane and Tractor, Inc. may have suffered as a result of the 2008 flood event.
This ordinance authorizes the Director of Public Utilities to compromise and settle this lawsuit and to resolve all issues and disputes now existing between Crane and Tractor, Inc. and the City relating to the operation of the City's sewer system, including any issues and disputes relating to a certain flood of Crane and Tractor's property that occurred in 2008, in the amount of $200,000.00 and to execute any necessary documents to effectuate the settlement.
FISCAL IMPACT: The City will make payment to Crane and Tractor, Inc. in the amount of $200,000.00. This ordinance authorizes the appropriation and expenditure of funds from the Sanitary Sewer Reserve Fund for this expenditure.
Title
To authorize the Director of Public Utilities to compromise and settle on behalf of the City of Columbus the litigation captioned Crane and Tractor, Inc. v. City of Columbus, Case No. 08CVH-01-1154, pending in the Franklin County Court of Common Pleas and to resolve all issues and disputes now existing between Crane and Tractor, Inc. and the City relating to the operation of the City's sewer system, including any issues and disputes relating to a certain flood of Crane and Tractor's property that occurred in 2008, in the total amount of $200,000.00 (Two Hundred Thousand Dollars and no cents); to execute any necessary documents associated with the settlement and final resolution of the litigation; to authorize the appropriation and expenditure of $200,000.00 within Sanitary Sewer Reserve Fund and to declare an emergency.
Body
WHEREAS, On January 22, 2008 Crane and Tractor, Inc. filed a lawsuit in the Franklin County Court of Common Pleas, in which Crane and Tractor sought damages related to flooding that occurred following a storm event in January 2004, which the City opposed; and
WHEREAS, Based on the totality of circumstances in this case, the City has deemed it to be in the best interests of both parties to settle the lawsuit; and
WHEREAS, Crane and Tractor, Inc. has agreed to accept a total amount of $200,000.00 in complete settlement of any and all of Crane and Tractor, Inc.'s claims related to this lawsuit and to resolve all issues and disputes now existing between Crane and Tractor, Inc. and the City relating to the operation of the City's sewer system, including any issues and disputes relating to a certain flood of Crane and Tractor's property that occurred in 2008; and
WHEREAS, it is necessary to authorize the appropriation and expenditure of $200,000.00 from theSanitary Sewer Reserve Fund; and
WHEREAS, there is an emergency in the usual daily operations of the Department of Public Utilities in that it is immediately necessary that this settlement be approved and such payment be made in an emergency manner so that the pending lawsuit can be dismissed, for the preservation of the public peace, safety and welfare; now therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of Public Utilities is hereby authorized to compromise and settle all the claims in the case captioned Crane and Tractor, Inc. v. City of Columbus, Case No. 08CVH-01-1154, pending in the Franklin County Court of Common Pleas and to resolve all issues and disputes now existing between Crane and Tractor, Inc. and the City relating to the operation of the City's sewer system, including without limitation any issues and disputes relating to a certain flood of Crane and Tractor's property that occurred in 2008, for the amount of $200,000.00 (Two Hundred Thousand Dollars and no cents).
Section 2. That the Director of Public Utilities is hereby authorized to execute any necessary agreements and court documents associated with the settlement and final resolution of the litigation and to resolve all issues and disputes now existing between Crane and Tractor, Inc. and the City relating to the operation of the City's sewer system, including without limitation any issues and disputes relating to a certain flood of Crane and Tractor's property that occurred in 2008, on behalf of the City.
Section 3. That for the purpose of paying the cost to compromise and settle all claims in the case known as Crane and Tractor Inc v City of Columbus, the following appropriation and expenditure or as much thereof as may be needed be and the same authorized as follows:
Division: 60-05
Fund: 654, Sanitary Sewer Reserve Fund
OCA:655225
Object Level 3: 5539
Amount: $200,000.00
Section 4. That the City Auditor is hereby authorized to establish proper project accounting numbers as appropriate.
Section 5. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contract or contract modifications associated with this ordinance.
SECTION 6. That for the reasons set forth in the preamble, which are incorporated by reference herein, this ordinance is hereby deemed to be an emergency measure and shall take effect and be in force from and immediately after its passage and approval by the Mayor, or 10 days after if the Mayor neither approves nor vetoes the same.