TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager/Chief Executive Officer
SUBJECT: Contract Amendment for Outside Legal Counsel
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager to execute an amendment to Contract 2022-10480 with Herrig & Vogt, LLP adding $1,750,000 to the contract and extending the term to December 31, 2024, for legal services related to disputes and issues arising out of the construction of the East Bay Bus Rapid Transit (BRT) Project.
Staff Contact:
Jill A. Sprague, General Counsel/Chief Legal Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
The BRT project has been operational as the Tempo line since August 2020. In order to close out the third construction bid package which constructed the platforms, signals, pavement, etc and to eliminate the financial uncertainty of outstanding claims, the contractor delay claims must be defended against and/or settled and third-party claims by the District must be pursued to offset the District's potential liability. Outside counsel for the District has been retained to achieve these objectives.
BUDGETARY/FISCAL IMPACT:
Legal fees and expert fees to (1) defend the District against delay claims by contractor O.C. Jones and subcontractor Mike Brown Electric; and (2) pursue claims against third parties responsible for project delays will likely exceed $1.5 million. This amount is expected to be offset by a reduction in the amount claimed as well as by potential recovery against third parties who contributed to the project delays.
BACKGROUND/RATIONALE:
The BRT project was implemented in three construction bid packages. The first two construction bid packages were successfully completed and closed out without any claims. The third construction bid package with $108 million initial contract award went into constructi...
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