Title
The Board of Water Commissioners for the City of Detroit Water Sewerage Department to approve Amendment 1 to DWSD Contract No. 6003769 (LS-1906) with Bush Seyferth, PLLC, to add $50,000 for a new total amended amount of $550,000 for continued Legal Services for representation in litigation related to the Summer 2021 Rain Events. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
Body
Agenda of April 20, 2022
Item No. 22-0768
Proposed Amendment 1
Contract No. 6003769 (LS-1906)
Contractor: Bush Seyferth, PLLC, 100 W Big Beaver Road, Suite 400, Troy, MI 48084
Current Contract Amount: $500,000
Proposed Amendment No. 1 Amount: $50,000
Proposed Amendment 1Total Amount: $550,000
Term: 8/15/21 - 8/14/23 (2 years)
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Detroit Water and Sewerage Department
RE: Proposed Amendment No. 1 to DWSD Contract No. 6003769 (LS-1906) for Legal Representation for Litigation Related to the Summer 2021 Rain Events
MOTION
Upon recommendation of Marqaicha Welch, Procurement Manager, the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve to approve Amendment 1 to DWSD Contract No. 6003769 (LS-1906) with Bush Seyferth, PLLC, to add $50,000 for a new total amended amount of $550,000 for continued Legal Services for representation in litigation related to the Summer 2021 Rain Events. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
The historic rainfalls of June 25th and 26th, 2021 contributed to a substantial amount of flooding and sewage backups in the City of Detroit and surrounding suburbs. On July 16th another rain event occurred that caused flooding and backups in a smaller section of the City. Under the Governmental Liability for Negligence Act (Act 170 of 1964), a governmental agency is immune from tort liability for the overflow or backup of a sewage disposal system unless:
1. The sewage disposal system had a defect.
2. The governmental agency knew, or in the exercise of reasonable diligence should have known, about the defect.
3. The governmental agency, having the legal authority to do so, failed to take reasonable steps in a reasonable amount of time to repair, correct, or remedy the defect.
4. The defect was a substantial proximate cause of the event and the property damage or physical injury (50% or more of the cause).
Listed below are the class action lawsuits filed to date under numerous different counts in Wayne County Circuit Court stemming from the Summer 2021 rain events, as follows:
Ven Johnson lawsuits
• Bulka v. City of Detroit; Case No.: 21-008465-CZ
• Adams v. City of Detroit; Case No.: 21-008745-CZ
• Lanell v. City of Detroit; Case No.: 21-009030-CZ
• Andrzejczak v. City of Detroit; Case No.: 21-013480-CZ
• Brady v. City of Detroit; Case No.: 21-013987-CZ
• Bearse v. City of Detroit; Case No.: 21-013979-CZ
• Achtabowski vv. City of Detroit; Case No.: 21-014161-CZ
David Dubin lawsuits
• Michelle Busuita v. DTE Energy; Case No. 21-009198-NZ
• Dubrulle v. City of Detroit ; Case No.: 21-014057-NZ
• Eidt v. City of Detroit; Case No.: 22-001315-NZ
Note that the City is not a party to the first Dubin lawsuit (21-009198-NZ). However, there are insurance related issues that BSP is handling on the City’s behalf. Additionally, there are two Tom Daily lawsuits (Lessl v. City of Detroit; Case No.: 21-008800-CZ and Walworth v. City of Detroit; Case No.: 21-008805-CZ). But the City has never been served and the summons have expired.
The City of Detroit and/or Detroit Water and Sewerage Department (DWSD) have been named or will likely be named in each case. The City/DWSD requires the services of an outside law firm to handle the defense of these cases. The City’s Corporation Counsel, Lawrence Garcia; Deputy Corporation Counsel, Charles Raimi, and DWSD’s General Counsel interviewed several firms and have chosen Bush Seyferth, PLLC as the firm suitable to represent the City/DWSD in these matters.
The DWSD General Counsel Division is requesting an additional $50,000 in funding, for a total amended contract amount of $550,000 for two years, on this contract for legal services given the number of cases and claims involved.
PROCUREMENT METHOD
DWSD General Counsel Division submitted Requisition 491691(approved 10/7/21) to initiate a new contract for litigation services related to the Summer 2021 rain events in Detroit. Competitive solicitation was not required per Item 6 under Judge Sean F. Cox’s order dated October 5, 2012, in Case No. 77-71100. The BOWC approved the contract for LS-1906 on 9/1/21.
Requisition 494145 to initiate Amendment 1 requesting an additional $50,000 was approved on 3/2/22.
Bush Seyferth’s clearances expire on 9/17/22 and the formal contract amendment document is routing for vendor signature.
SUMMARY
A. Contract No.: 6003769 (LS-1906)
B. Contractor: Bush Seyferth, PLLC
C. Initial Term: 8/15/21 - 8/14/23
D. Initial Contract Amount: $500,000
E. Current Contract Amount: $500,000
F. Proposed Amendment No. 1 Amount: $ 50,000
G. Proposed New Total Contract Amount: $550,000
H. Funding Source: O&M Funds
I. Anticipated FY Spend: FY 21-22: $300,000
FY 22-23: $125,000
FY 23-24: $125,000
I. GL String: 5821-20243-497711-613100-460999-15802-0000-000000 - 100% (Sewer)
This proposed amendment was presented to the BOWC Finance Subcommittee on April 6, 2022. Per DWSD procurement protocol, no additional approvals are required.