Agenda

Return

C. 14

To:	Board of Supervisors
From:	David Twa, County Administrator
Date:	August 6, 2019

Contra

Costa

County

Subject:

Settlement and Release Agreement among Skyhawk Electric, Argonaut Insurance Co, and the County

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 08/06/2019

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Laura Strobel (925) 335-1091

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: August 6, 2019
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Public Works Director, or his designee, to execute a Settlement and Release Agreement among James Krause d/b/a Skyhawk Electric, Argonaut Insurance Company, and the County, in the amount of $58,854 to settle subcontractor Skyhawk’s payment claims.

FISCAL IMPACT:

100% General Fund

BACKGROUND:

The County entered into a job order contract with Federal Solutions Group (FSG) on April 18, 2017, for one year for FSG to perform construction services on various County projects. James Krause d/b/a Skyhawk Electric (Skyhawk) performed subcontractor work for FSG. FSG failed to pay Skyhawk in the amount of $58,854. FSG is under criminal indictment for money laundering and its principal has fled the country.

BACKGROUND: (CONT'D)

Skyhawk filed a lawsuit against FSG, surety insurer Argonaut Insurance company, and the County to recover the amount due for its subcontractor services. Because of the criminal allegations against FSG and the absence of its principal, FSG cannot or will not pay Skyhawk. Skyhawk is entitled to be paid for its work performed on County projects for make ready work at the new Emergency Operations Center Site/Project. In exchange for the County's payment of $58,854 to Skyhawk, Skyhawk will dismiss the lawsuit against the County.

CONSEQUENCE OF NEGATIVE ACTION:

The County will spend resources litigating the subcontractor payment claims.