HomeMy WebLinkAboutMINUTES - 09162008 - C.17 TO: BOARD OF SUPERVISORSti-sE L Contra
FROM: KEITH FREITAS, DIRECTOR OF AIRPORTS Costa
DATE: September 16, 2008 c°s a-oUKT County
SUBJECT: Approval of Settlement Agreement with Franklin M. Sterling & Associates
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
I. Recommended Action:
APPROVE and AUTHORIZE the Director of Airports,or designee,to execute on behalf of the County a
settlement agreement and release with Franklin M. Sterling & Associates ("Sterling"). (All Districts)
Il. FINANCIAL IMPACT:
The proposed$50,000 settlement payable by the County will have no direct financial impact on the County
General Fund.The settlement amount will be funded by the Airport Enterprise Fund and FAA/State Grants.
The settlement amount will bring the total amount paid to Sterling to approximately$144,529, an amount
that is less than the $216,430 original value of the contract under dispute.
III. Background and Reasons for Recommendations
On June 1, 2005, County entered into a consulting services agreement with Sterling for the design and
installation of security access control enhancements at Buchanan Field Airport. Sterling repeatedly failed to
meet completion deadlines set forth in the agreement. On April 3, 2007, the Board authorized the
termination of the Sterling consulting service agreement.
Continued on Attachment: X SIGNATURE:
R4-t—A-
ECOMMENDATION OF COUNTY ADMINISTRATOR
ECOMMENDATION OF BOARD COMMITTEE
APPROVE _OTHER
SIGNATURE (S):
ACTION OF BOARD ON L jAtA4PROVED 611ECOMMENDED HER
i
I hereby certify that this is a true and correct copy of an action
taken and entered on the minutes of the Board of Supervisors on
the date shown.
tOi E OF SUPERVISORS
✓✓ UNANIMOUS(ABSENT �� )
AYES: NOES: ;ATTESTED: At . l 44&efe�
ABSENT: ABSTAIN: DAVID TWA?Clel<of the Board of Supervisors and County
Administrator
Orig.Div: County Airports By � , Deputy
Contact: Beth Lee(925)646-5722
cc: CAO
County Counsel
Public Works Director
SUBJECT: Approval of Settlement Agreement with Franklin M. Sterling & Associates
DATE: September 16, 2008
PAGE: 2
On May 31,2007,the County terminated its contract with Sterling. The County also withheld payment on
two invoices that the County disputes. Those invoices have a total value of$81,768.98.
Sterling has filed a lawsuit seeking payment of the outstanding invoices plus interest, costs and attorney's
fees.
In the interest of avoiding the time, expense and uncertainty associated with a lawsuit, the parties have
agreed to a settlement. The key terms of the settlement are as follows:
• The County will pay Sterling a one-time payment of$50,000.
• In exchange for payment, Sterling will provide the County will a full release of all causes of action,
whether known or unknown, arising from this dispute.
• Sterling will dismiss its action against the County.
• In exchange for the dismissal, the County will provide Sterling with a full release of all causes of
action, whether known or unknown, arising from this dispute.
IV. Consequences of Negative Action
The matter will be resolved through legal action which will significantly increase costs and staff resource
obligations.