City of Pinole
From: / Benjamin T. Reyes II, City Attorney
Re: / Special District Services Counter-Offer Of Settlement and Update
Date: / July 5, 2016
Page: / 2
MEMORANDUM
DATE: / July 5, 2016TO: / Mayor Roy Swearingen and the Honorable City Council
City of Pinole
FROM: / Benjamin T. Reyes II, City Attorney
By Eric S. Casher, Esq.
RE: / Closed Session Report On Anticipated Litigation
Special District Services Counter-Offer Of Settlement and Update
Overview and Recommendation
The purpose of this closed session memorandum is to brief the Mayor and City Council regarding the status of settlement negotiations with Special District Services (“SDS”) and seek authority for a response to SDS’ most recent proposal.
Status Update
On May 17, 2016, the City Attorney provided the City Council with a memorandum and update on the City’s claim against SDS to recover lost revenue associated with SDS’ breach of a consulting services agreement and failure to collect sewer fees during the 2014 fiscal year.
At the time we reported that the parties entered into a Tolling Agreement to preserve all statute of limitations in the case, and that SDS made an offer of $45,000 to settle the case. Note, the original claim was for $160,000, not including attorney fees and costs. Based on the Council’s direction we rejected the $45,000 settlement offer and countered with an offer of $160,000 with the City agreeing to waive any attorney fees associated with the claim to date. On June 28, 2016, SDS responded to the City’s offer by requesting that the parties agree to mediate the dispute.
Recommendation
The City Council has two options that the City Attorney would like to discuss with the Council in closed session: (1) agree to non-binding mediation with SDS; or (2) reject the offer to mediate and demand a monetary counter-offer from SDS. The City Attorney will seek direction from the Council on our response in closed session at which point we can discuss any questions the Council may have.
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