HomeMy WebLinkAboutMINUTES - 05151990 - 1.2 (2) THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Order on Mav 15 . 1990 , by the following
vote:
AYES: Supervisors Powers , Schroder, McPeak, Torlakson, Fanden
NOES: None
ABSENT: None
ABSTAIN: None
SUBJECT: Settlement of Litigation
County of Contra Costa v. Amwest Surety Insurance Co.
Case No. C89-01962
Discovery Bay Park - Phase II (Byron area)
RECOMMENDATION(SI: 1 . Approve settlement of above-entitled
litigation, which would involve bonding company' s payment of
$14,000 to the County and the County's dismissal of the lawsuit
and release of all claims .
2 . Authorize Board Chair to execute Settlement Agreement
and any other documents necessary to consummate settlement.
3 . Authorize County Counsel to dismiss lawsuit with
prejudice and to take any other steps necessary to consummate
settlement.
FINANCIAL IMPACT: $14,000 in monies owed to the County.
REASONS FOR RECOMMENDATION/BACKGROUND: In February 1988,
the contractor (DLT Landscape, Inc. ) on the Discovery Bay Park -
Phase II landscaping project declared bankruptcy, after failing
to perform the 90-day maintenance period. As a result of the
contractor's default, the General Services Department took over
the job and completed the work, incurring expenses of $20,300 . 62 .
Applying the unpaid contract funds ($8,703 . 95 ) , the net expense
to the County (County Service Area M-8) was $11,596 . 67 .
In October 1988, the County submitted a claim to DLT' s
bonding company, Amwest Surety Insurance Company, for the
expenses incurred in completing DLT's work. When payment was not
forthcoming, this Board, on January 31, 1989, authorized the
filing of litigation against Amwest. The above-entitled lawsuit
was filed on May 15, 1989 .
In response to the County's demands, Amwest has recently
offered $14,000 .00 in settlement of the County's lawsuit. The
sum offered would cover all of the expenses (salaries, benefits,
supplies, overhead, etc. ) incurred by the General Services
Department plus two years' worth of interest. Also, it would
cover a significant portion of the County Counsel's expenses in
this matter. The General Services Department, Community
Development Department (Service Area Coordinator) and County
Counsel' s Office jointly recommend approval of the settlement.
DFS/jh
I hereby certify that this is a true and correct copy of
J-1:\a:\byron.dfs an action taken and entered on the minutes of the
Board of Supervisorsap�t�he day 1990
cc : County Administrator ATTLSTED:
Auditor-Controller PHIL BATCHELOR,Clerk of the Board
County Counsel of Supervisors and County Administrator
Amwest Surety L4
Deputy