Council approves $650,000 settlement with Stellar J over wastewater contract claims

Portland City Council voted to approve an emergency ordinance authorizing a $650,000 settlement with Stellar J to resolve contract claims connected to a 2015 contract (3004899) for drying and hauling biosolids at the Columbia Boulevard Wastewater Treatment Plant.

Beth Woodard, senior deputy city attorney, described the dispute: Stellar J claimed differing site conditions and higher-than-estimated quantities in lagoons, which led to a partial termination and multiple follow-up claims. City staff reviewed the claims, agreed to pay some allowable termination costs, and denied additional compensation. Follow-on litigation and mediation culminated in a proposed settlement that the city attorney's office and the Bureau of Environmental Services recommended for approval.

No public testimony was recorded on the item. The emergency ordinance required nine votes to pass; the clerk recorded 10 ayes, one no (Zimmerman) and one absent, and the council adopted the settlement.

The settlement resolves breach-of-contract litigation tied to construction and termination-for-convenience claims; the transcript records prior claims submitted by Stellar J in the millions and the city's view that many claims were barred by contractual limitations, but the court concluded a mixed question of fact and law required trial, leading to private mediation and this council decision to settle.

No additional monitoring or reporting requirements were placed on the settlement in the public record during the vote.