Meeting_Body
CONSTRUCTION COMMITTEE
MAY 19, 2016
Subject/Action
SUBJECT: RED LINE SEGMENT 2 CLOSE-OUT AND REDLINE SEGMENT 3 CLOSE-OUT
ACTION: INCREASE THE LIFE OF PROJECT BUDGETS
Heading
RECOMMENDATION
Title
APPROVE:
A. INCREASING the Life of Project budget for Project 809081, Red Line Segment 2 Close-out in the amount of $635,000 increasing the previous authorization amount of $31,847,1000 to $32,482,100;
B. AMENDING the FY16 budget to add $635,000 to Project 809081, Red Line Segment 2 Close-out;
C. INCREASING the Life of Project 809082, Red Line Segment 3 Close-out in the amount of $211,670, increasing the previous authorization amount of $4,195,900 to $4,407,570; and
D. AMENDING the FY16 budget to add $211,670 to Project 809082, Red Line Segment 3 Close-out.
Rationale
RATIIONALE
In 1994, Martin Gerlinger filed a qui tam lawsuit alleging violations of the federal and California False Claims Acts by Parsons-Dillingham arising out of its contract with Metro for construction management services regarding the Metro Red Line. Mr. Gerlinger was formerly an employee of Parsons-Dillingham. Subsequent to Mr. Gerlinger's filing of his lawsuit, Metro received proceeds from credits and settlements with Parsons-Dillingham in the total amount of approximately $3.8 million. Mr. Gerlinger claims that, as the relator in the qui tam action, he is statutorily entitled to a share of those proceeds received by Metro. Metro and Mr. Gerlinger have agreed that Mr. Gerlinger is entitled to a $846,670 share of the $3.8 million. The litigation arising out of the construction management contract is on appeal, but regardless of the outcome of the appeals, the $3.8 million credits and settlement amounts would remain unaffected, and thus Mr. Gerlinger would still be entitled to his $846,670 relator's share. The agreement regarding Mr. Gerlinger's share was reached after the current LOPs and FY 2016 budgets were established. The Life of Project Budgets for Project 809...
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