Explanation
This ordinance is submitted to settle the lawsuit known as Trucco Construction Co., Inc. v. City of Columbus, Case No. 04CV5864 in the Franklin County Court of Common Pleas, in the amount of Seventy Thousand and No/100 Dollars ($70,000.00). This case arose out of two contracts for the Rhoads Avenue and Watkins Road storm water improvement projects. Bids were opened in September, 2001, but unanticipated delays resulted in Notices to Proceed as to both projects being delayed until June, 2002. Trucco filed suit in 2004 alleging seven counts and seeking over $1.5 Million in damages. The Tenth District Court of Appeals upheld summary judgment rendered by the Common Pleas Court in favor of the City as to all but Trucco's claim for unpaid damages for delay to which they were entitled under the parties' contract. This ordinance resolves that remaining claim.
Fiscal Impact: Funds were not specifically budgeted for this settlement; however sufficient monies are available in the appropriate account to pay the amount this claim.
Title
To authorize and direct the City Attorney to settle the case of Trucco Construction Co., Inc. v. City of Columbus, currently pending in the Franklin County Court of Common Pleas; to authorize the expenditure of the sum of Seventy Thousand Dollars ($70,000.00) from the Stormwater Operating Fund in settlement of this lawsuit; and to declare an emergency.($70,000.00)
Body
WHEREAS, on June 3, 2004, the plaintiff filed a lawsuit in the Franklin County Court of Common Pleas, Case No. 04-CV-5864, against the City of Columbus alleging seven counts arising out of delays in commencement of the Rhoads Avenue and Watkins Road storm sewer improvement projects; and,
WHEREAS, following the evaluation of plaintiff's claims in the course of litigation, the parties reached an agreement to settle this matter due to the risks and uncertainties associated with continued litigation and trial; and,
WHEREAS, the settlement amount is deemed acceptable by the City of Columbus, along with dismissal of the lawsuit with prejudice; and,
WHEREAS, by reason of the foregoing, and in order to avoid the possible payment of interest, an emergency exists in the usual daily operation of the City and for further preservation of the public health, peace, property, safety and welfare, 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 the lawsuit of Trucco Construction Co., Inc. v. City of Columbus, Case No. 04-CV-5864 in the Franklin County Court of Common Pleas, by payment of the amount of Seventy Thousand and No/100 Dollars ($70,000.00) as a reasonable and fair amount and in the best interests of the City of Columbus.
Section 2. That for the purposes of paying this settlement, there be and hereby is authorized to be expended by the City of Columbus, Department of Public Utilties, the sum of Seventy Thousand Dollars ($70,000.00) from Fund 675, OCA: 675002, Object Level 5539.
Section 3. That the City Auditor be and is hereby authorized to draw warrants upon the City Treasurer upon receipt of a voucher and release approved by the City Attorney payable in the following manner: $70,000.00 payable to Trucco Construction Company, Inc.
Section 4. 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 day after passage if the Mayor neither approves nor vetoes the same.