Explanation
BACKGROUND: Loveland Excavating of Columbus, Inc. filed a lawsuit against the City to prevent the award of a contract to Loveland. Loveland had submitted a bid proposal to the Department of Public Utilities for the McDannald Estates Stormwater System Improvements Project No. CIP 610994 but sought to withdraw its bid after the bid opening on the grounds it had inadvertently omitted a substantial cost for some of the work. The Department and Loveland have determined that it is in the best interests of both parties to settle this lawsuit.
This ordinance authorizes the Director of Public Utilities to compromise and settle this lawsuit in the amount of $35,000.00 and to execute any necessary documents to effectuate the settlement.
FISCAL IMPACT: The City will receive a settlement payment in the amount of $35,000.00, and contractor will be debarred from bidding on city projects for a period of one year.
Title
To authorize the Director of Public Utilities to compromise and settle on behalf of the City of Columbus the litigation captioned Loveland Excavating of Columbus, Inc. v. City of Columbus, pending in the Franklin County Court of Common Pleas, in the total amount of $35,000.00 (Thirty-Five Thousand Dollars and no cents); to execute any necessary documents associated with the settlement and final resolution of the litigation; to authorize the City Auditor to deposit the settlement funds as directed by the City Auditor, and to declare an emergency.
Body
WHEREAS, On February 20, 2008, Loveland submitted its bid proposal seeking to obtain a construction contract with the City on the McDannald Estates Stormwater System Improvements Project No. CIP 610994 (the "Project"); and
WHEREAS, On February 20, 2008, at the opening of bids, Loveland's bid of $1,399,550.40 was the low numerical bid on the Project; and
WHEREAS, After the bid opening, Loveland discovered that it had made a substantial error in that it had not include...
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