Title
Resolution to Authorize Settlement of City of Ann Arbor v Tetra Tech of Michigan, P.C. et al, Washtenaw County Circuit Court Case No. 25-001543-CK
Staff
Prepared by: Jennifer Richards, Senior Assistant City Attorney
Reviewed by: Atleen Kaur, City Attorney
Body
Whereas, On September 8, 2025, the City filed a lawsuit against Tetra Tech alleging professional negligence and breach of contract claims arising out of the City's Water Treatment Plant Heating, Ventilation, and Air Conditioning ("HVAC") replacement project;
Whereas, Tetra Tech denied the allegations in the complaint and asserted defenses;
Whereas, On October 29, 2025, the Court entered a facilitation order, requiring the parties to participate in early facilitation;
Whereas, Through the facilitation process, the Parties have agreed to settle and resolve the lawsuit, without an admission of liability on the part of any party, wherein Tetra Tech will pay $350,000 to the City in exchange for a full and final settlement agreement signed by the parties, a mutual release of all claims by the parties, and dismissal of the lawsuit with prejudice; and
Whereas, The City Attorney's Office has advised City Council on this matter in attorney-client privileged and confidential legal advice memorandum;
RESOLVED, That City Council authorizes the City Attorney to fully resolve the case entitled City of Ann Arbor v Tetra Tech of Michigan, P.C. et al., Washtenaw County Circuit Court Case No. 25-001543-CK for a payment of $350,000 from Tetra Tech to the City to be reimbursed to the Water Supply Fund contingent on the receipt of a full and final settlement agreement signed by the parties, mutual release of all claims, and entry of an order dismissing lawsuit with prejudice, all of which shall be subject to City Attorney approval as to form and substance; and
RESOLVED, That the Mayor, Clerk, City Administrator and City Attorney are authorized to take actions to implement this resolution, including signing a se...
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