The ordinance authorizes the City and County of San Francisco to settle a lawsuit with RES System 3, LLC for $2.6 million related to a breach of contract concerning the Warnerville electrical substation. The settlement includes a mutual release of claims, with some exceptions for latent defects and warranty issues.
Ordinance authorizing settlement of the lawsuit filed by RES System 3, LLC against the City and County of San Francisco for $2,600,000; the lawsuit was filed on September 26, 2022, in San Francisco Superior Court, case number CGC-22-601949, and later transferred to Alameda County Superior Court, case number 23-CV-037877; entitled RES System 3, LLC v. City and County of San Francisco Public Utilities Commission; the lawsuit involves alleged breach of contract and related cost impacts arising from the design and construction of the Warnerville electrical substation in Oakdale, California; other material terms of the settlement are a mutual release of claims between the parties with limited exceptions for latent defects and warranty items.
How it got here
This legislation originated from a lawsuit filed by RES System 3, LLC against the City and County of San Francisco regarding a breach of contract related to the Warnerville electrical substation.
RES System 3, LLC filed a lawsuit against the City and County of San Francisco in San Francisco Superior Court, alleging breach of contract related to the Warnerville electrical substation.
The lawsuit was transferred from San Francisco Superior Court to Alameda County Superior Court.
The San Francisco Public Utilities Commission recommended settling the lawsuit for $2.6 million, including a mutual release of claims.
The Government Audit and Oversight Committee reviewed and recommended the settlement ordinance.
The Board of Supervisors passed the ordinance on first reading, authorizing the settlement.
The Board of Supervisors finally passed the ordinance, authorizing the City Attorney to settle the lawsuit.
The Mayor approved the ordinance, finalizing the settlement agreement.
Reconstructed from attached documents & the official record