Explanation
BACKGROUND: This ordinance authorizes the City Attorney, on behalf of the Department of Public Utilities, to compromise and settle a lawsuit brought against the City by Jess Howard Electric Company ("Jess Howard") related to a contract dispute arising out of the Phase 3 - Street Light Maintenance 2011 Project. Jess Howard claimed damages in a total amount of $349,916.92 for additional work. Following mediation of the dispute, the Department of Public Utilities and Jess Howard determined that it is in the best interests of both parties to settle this lawsuit. The City has agreed to pay, and Jess Howard has agreed to accept, $240,000.00 in complete settlement of any and all of Jess Howard's claims related to this lawsuit. In consideration of the settlement amount, Jess Howard will dismiss the lawsuit and release the City and its employees from any liability for any claims asserted in the lawsuit.
This ordinance authorizes the City Attorney to compromise and settle this lawsuit and to resolve all issues and disputes now existing between Jess Howard and the City relating to the subject of the lawsuit, in the amount of $240,000.00 and to execute any necessary documents to effectuate the settlement.
FISCAL IMPACT: The City will make payment to Jess Howard Electric Company in the amount of $240,000.00. This ordinance authorizes the appropriation and expenditure of funds from the Electricity Operating Fund for this expenditure.
Title
To authorize the City Attorney, on behalf of the Department of Public Utilities, to compromise and settle the litigation captioned Jess Howard Electric Company v. City of Columbus pending in the Franklin County Court of Common Pleas in the total amount of $240,000.00; to authorize the appropriation and expenditure of $240,000.00 within Electricity Operating Fund; and to declare an emergency ($240,000.00).
Body
WHEREAS, on February 17, 2014 Jess Howard Electric Company filed a lawsuit in the Franklin County Court of Common Pleas, in which Jess Howard Electric Company sought damages related to a contract dispute arising out of the Phase 3 - Street Light Maintenance 2011 Project; and
WHEREAS, following mediation of the dispute, 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, Jess Howard Electric Company has agreed to accept a total amount of $240,000.00 in complete settlement of any and all of Jess Howard Electric Company's claims related to this lawsuit; and
WHEREAS, it is necessary to authorize the appropriation and expenditure of $240,000.00 from the Electricity Operating 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 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 City Attorney is hereby authorized to compromise and settle all the claims in the case captioned Jess Howard Electric Company v. City of Columbus, Case No. 14-CV-01763, pending in the Franklin County Court of Common Pleas for the amount of $240,000.00 (Two Hundred Forty Thousand Dollars and no cents).
SECTION 2. That the City Attorney and Director of Public Utilities are hereby authorized to execute any necessary agreements and court documents associated with the settlement and final resolution of the litigation 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 Jess Howard Electric Company v. City of Columbus, the following appropriation and expenditure or as much thereof as may be needed be and the same authorized as Electricity Operating Fund 550, OCA 600817 and Object Level 3 5573.
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.