HomeMy WebLinkAboutMINUTES - 07281992 - 1.81 Contra
TO: BOARD OF SUPERVISORS _==-
Costa
FROM: COUNTY COUNSELN,4 County
DATE: July 24, 1992 SrA CouK
SUBJECT: Settlement of Litigation against Standard Structures, Moraga Library,
Moraga Area
SPECIFIC REQUEST(S) OR RECOMMENDATIONS) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
APPROVE and AUTHORIZE County Counsel 's Office to sign a release in
favor of Standard Structures and its insurer and to take other
steps necessary to settle lawsuit against Standard Structures.
FISCAL IMPACT
$50, 000. 00 in monies payable to the County.
BACKGROUND,REASONS FOR RECOMMENDATIONS
The Moraga Library at 1500 St. Mary's Road was built and occupied
in 1974 . On October 13 , 1988, County staff learned for the first
time that four of the glue-laminated beams in the library building
had developed large cracks. The beams were subsequently repaired
at a total cost to the County of $96, 385.00, including staff time.
On September 17 , 1990, the Board authorized the filing of suit
against Standard Structures, the parent company of the company that
manufactured the cracked beams. The purpose of the lawsuit was to
recover the expenses incurred in repairing the beams. Suit was
filed in the Contra Costa County Superior Court on October 3 , 1991
(County of Contra Costa, et al. v. Standard Structures, Inc. , et
al. ; Case No. C91-04697) .
As the result of a settlement conference held on July 17, 1992 , the
insurance carrier for Standard Structures has offered $50, 000. 00 to
settle the case. The amount offered would essentially cover the
construction contract cost of the repairs ($50, 239. 00) .
The County Counsel's Office has discussed the settlement offer with
the County Administrator's Office and Library Administration.
Considering the amount offered and the cost of bringing this case
to trial, all three departments recommend that the settlement be
accepted.
CONTINUED ON ATTACHMENT: X YES SIGNATURE
_ RECOMMENDATION OF COUNTY ADMINISTRATOR _ RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON �i APPROVED AS RECOMMENDED x OTHER
VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE
J/ / AND CORRECT COPY OF AN ACTION TAKEN
/� UNANIMOUS (ABSENT ) AND ENTERED ON THE MINUTES OF THE BOARD
AYES:_ NOES: OF SUPERVISORS ON THE DATE SHOWN.
ABSENT: ABSTAIN: ATTESTED !I f 9 C/a,
Orig: County Counsel PHIVBATCHELCLC, CLERK OF
cc: D. Bell, County Administrator's Office THE BOARD OF SUPERVISORS
J. Prideaux, Library Administration AND COUNT ADMINIST ATOR
R. Hill, General Services Dept.
,FOU
(,(�/
BY , EPUTY
1
CONSEQUENCES OF NEGATIVE ACTION
The lawsuit would proceed at additional expense to the County. If the suit
continues, the court has indicated that the expenses for County staff time
($17, 152) would not be recoverable. Therefore, the most the County could
probably hope to recover would be $79, 233 plus interest. In addition,
Standard Structures has argued that the County's claim was time-barred. If
this argument is successful, the County would recover nothing.
2