Explanation
Background: This ordinance authorizes the Director of Public Utilities to execute a compromise agreement with Inland Products, Inc., as a settlement of a lawsuit filed by Inland Products, Inc. for damages relating to flooding that occurred during the early days of January of 2005. Inland Products, Inc. has claimed damages in the total amount of Eleven Million Six Hundred Thousand Dollars ($11,600,000.00) as a result of flooding and sewer backup. This matter went to trial before a jury and the jury, after having heard all of the evidence, returned a verdict on February 3, 2012, in favor of Inland Products, Inc. in the total amount of Eleven Million Six Hundred Thousand Dollars ($11,600,000.00). The Department of Public Utilities and Inland Products, Inc. have determined that it is in the best interests of both parties to settle this lawsuit and to resolve any claims relating to this 2005 flood event. Through negotiations with the City Attorney's Office, the City has agreed to pay, and Inland Products, Inc. has agreed to accept, Ten Million Dollars ($10,000,000.00) in complete settlement of any and all of Inland Products, Inc.'s claims related to this lawsuit and, further, to resolve all issues in dispute now existing between Inland Products, Inc. and the City of Columbus relating to the operation of the City's sewer system, including any claims relating to a certain flood of Inland Products, Inc.'s property that occurred in January of 2005. This settlement agreement provides that, in consideration of the settlement amount, Inland Products, Inc. will file a Receipt and Satisfaction of Judgment and release the City of any liability for any claims that Inland Products, 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 claims that Inland Products, Inc., may have against the City as a result of the 2004 and 2005 flood events. Under this settlement agreement, the City of Columbus waives its right to attempt to collect the assessed sewer charges in the amount of Two Hundred Seventy-five Thousand One Hundred Sixty-eight Dollars and Twelve Cents ($275,168.12) which has been certified to the County Auditor.
This ordinance authorizes the Director of Public Utilities to compromise and settle this lawsuit and to resolve all issues and disputes now existing between Inland Products, Inc. and the City of Columbus relating to the operation of the City's sewer system, including any issues and disputes relating to a certain flood of Inland Products, Inc.'s property that occurred in 2004 and 2005 in the amount of Ten Million Dollars ($10,000,000.00) and execute any necessary documents to effectuate the settlement.
Fiscal Impact: The City will make payments to Inland Products, Inc. in the amount of Ten Million Dollars ($10,000,000.00). This ordinance authorizes the appropriation and expenditure of funds from the Sanitary Sewer Operating fund for this expenditure.
Title
To authorize the Director of Public Utilities to compromise and settle on behalf of the City of Columbus litigation captioned Inland Products, Inc v. City of Columbus Ohio Case No. 06VH11-15231 pending in the Franklin County Court of Common Pleas and to resolve all issues and disputes now existining between Inland Products Inc. and the City of Columbus relating to the operation of the City's sewer system, in the total amount of Ten Million Dollars ($10,000,000.00); to execute any necessary documents associated with the settlement and final resolution of the litigation; to authorize the appropriation and expenditure of Ten Million Dollars ($10,000,000.00) with the Sanitary Sewer Operating Fund and to declare an emergency. ($10,000,000.00)
Body
WHEREAS, Inland Products, Inc. filed a lawsuit in the Franklin County Court of Common Pleas in which Inland Products, Inc. sought damages relating to flooding and a sewer backup that occurred following storm events occurring in December 2004 and January 2005; and,
WHEREAS, the lawsuit was vigorously defended by the City of Columbus; and,
WHEREAS, the jury returned a verdict against the City of Columbus in the total amount of Eleven Million Six Hundred Thousand Dollars ($11,600,000.00); and,
WHEREAS, based upon the totality of the circumstances of this case, the City has deemed it in the best interests of both parties to settle the lawsuit; and,
WHEREAS, Inland Products, Inc. has agreed to accept the total amount of Ten Million Dollars ($10,000,000.00) in complete settlement of any and all of Inland Products, Inc.'s claims related to this lawsuit and to resolve all issues and disputes now existing between Inland Products, Inc. and the City relating to the operation of the City's sewer system, including any issues and disputes relating to certain sewer charges in the amount of Two Hundred Seventy-five Thousand One Hundred Sixty-eight Dollars and Twelve Cents ($275,168.12) which have been certified to the County Auditor; and,
WHEREAS, it is necessary to authorize the appropriation and expenditure of Ten Million Dollars ($10,000,000.00) from the Sanitary Sewer Operating fund; and,
WHEREAS, an emergency exists 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 made without delay, so that the pending lawsuit can be promptly dismissed, for the preservation of 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 Inland Products, Inc. v. City of Columbus, Ohio Case No. 06CVH11-15231 pending in the Franklin County Court of Common Pleas and to resolve all issues and disputes now existing between Inland Products, Inc. and the City of Columbus relating to certain sewer charges that have been certified to the County Auditor, including, without limitation, any issues and disputes relating to a certain flood of Inland Products, Inc.'s property that occurred in late December 2004 and early January 2005 in the total amount of Ten Million Dollars ($10,000,000.00).
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 Inland Products, 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 Inland Products, Inc.'s property that occurred in late December 2004 and early January 2005, on behalf of the City.
Section 3. That the funds necessary for payment of this settlement are hereby appropriated and authorized for expenditure from Sanitary Sewer Operating Fund 650, OCA 605931 and Object Level 35573.
Section 4. That the City Auditor be, and hereby is, authorized to draw a warrant upon the City Treasurer in the amount of Ten Million Dollars ($10,000,000.00) and payable to Inland Products, Inc., upon the receipt of a voucher from the Director of Public Utilities and release approved by the City Attorney.
Section 5. 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.