Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
8d
ACTION ITEM
Date of Meeting
June 27, 2023
DATE: June 27, 2023
TO: Steve Metruck, Executive Director
FROM: Pete Ramels, General Counsel
Loren Armstrong, Senior Port Counsel
SUBJECT: Commission Authorization to Execute a Settlement Agreement to Recover Insured
Repair and Replacement Costs
Amount payable to the Port:
$4,200,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute a settlement agreement
with the Port’s insurer, which will pay the Port $4,200,000 to recover costs associated with the
central terminal glass curtain wall following construction at STIA.
SUMMARY
Between 2003 and 2005 construction took place of an approximately 30-foot cable-supported
glass curtain wall at STIA. After construction was complete, seven glass panels cracked in this
curtain wall. After investigating the damage and estimating repair costs, the Port filed a claim
under its policy, which the insurer denied. The Port and insurer mediated the dispute over several
days and have negotiated a settlement.
Under the proposed settlement agreement, the Port will receive $4,200,000 in exchange for a
release and indemnity for any such future costs. This will settle the matter without resorting to
the further time and expense of litigation, and promptly pay the Port a reasonable amount for
recovery.
This matter was discussed in privileged attorney-client communications. There are no
attachments to this memo.
