8d. Memo

Recover Insured Cost Settlement Agreement

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 

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. 
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
This matter was discussed in privileged attorney-client communications.   There are no
attachments to this memo. 

Template revised September 22, 2016.

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