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 ...
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