*Pay Settlement of Stellar J Corporation Contract Claims in the Amount of $650,000

The City of Portland ordains. Section 1. The Council finds: The City entered into Contract 30004899 with Stellar J Corporation for the drying and hauling of biosolids at the Columbia Boulevard Wastewater Treatment Plant. The City terminated the contract for public convenience after discovery of unanticipated site conditions. Stellar J Corporation submitted termination costs and the City paid some, but not all, of the requested costs. Stellar J Corporation, by and through its attorneys, filed a lawsuit in Multnomah County Circuit Court alleging breach of contract claims, disputing the amounts paid for allowable termination costs. The City has concluded that, after extensive analysis of the facts and applicable law and taking into account the risks and uncertainties associated with litigation, the settlement agreement is desirable to avoid the time, risk, and expense of protracted litigation. The City Attorney, Bureau of Environmental Services, and the Mayor's office recommend the lawsuit be settled for the total sum of $650,000.00 subject to mutual release by the parties of claims related to the contract payment terms. NOW, THEREFORE, the Council directs: The City Administrator is authorized to settle the lawsuit in the amount of $650,000.00 and the Mayor or Mayor's designee is authorized to execute the Settlement Agreement on behalf of the City. Section 2. The Council declares that an emergency exists in order to avoid undue and costly delay in settling this lawsuit; therefore, this Ordinance shall be in full force and effect from and after its passage by the Council.