Staff Report. Shannon Road Litigation
Reviewed by: Town Manager, Parks and Public Works Director, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 03/07/2023 ITEM NO: 3
DATE: March 3, 2023
TO: Mayor and Town Council
FROM: Gabrielle Whelan, Town Attorney
SUBJECT: Approve the Proposed Shannon Road Litigation Settlement and Release
Agreements with the County of Santa Clara, Graniterock Construction, and
Uretek; and Approve Revenue and Expenditure Budget Adjustments in the
Amount of $1,565,000 to Recognize the Settlement Proceeds and Authorize
Spending for the Shannon Road Repair Capital Project (411-811-008)
RECOMMENDATION:
Staff recommends that the Town Council approve proposed settlement and release agreements
with the County of Santa Clara, Graniterock Construction, and Uretek; and approve revenue
and expenditure budget adjustments in the amount of $1,565,000 to recognize the settlement
proceeds and authorize spending for the Shannon Road Repair Capital Project (411-811-008).
BACKGROUND:
On January 16, 2018, the Town annexed a portion of Shannon Road (“the Road”) from the
County of Santa Clara. After annexation, the Town noticed that necessary repairs to the Road
had not been made. On March 3, 2022, the Town sued the County of Santa Clara to seek
repairs or funding for repairs to the Road. The Town also sued two County contractors,
Graniterock Construction and Uretek.
DISCUSSION:
The parties have reached proposed settlements, which will provide for a County payment of
$1.5M to the Town, a payment of $50,000 from Graniterock Construction to the Town, and a
payment of $15,000 from Uretek to the Town. These funds will be used to make repairs to
Shannon Road. In exchange for these payments, the Town will ask the court to dismiss the
Town’s lawsuit.
PAGE 2 OF 2 SUBJECT: Shannon Road Litigation – Proposed Settlement Agreements DATE: March 3, 2023
CONCLUSION:
Staff recommends that the Town Council approve the proposed settlement and release
agreements, authorize the Town Attorney to approve any minor, non-material changes to the
agreements, and authorize the Town Manager to execute the agreements on behalf of the
Town.
FISCAL IMPACT:
These funds will assist the Town in making repairs to Shannon Road.
CALIFORNIA ENVIRONMENTAL QUALITY ACT:
Approval of these settlement and release agreements is not a project subject to CEQA. In
accordance with CEQA Guidelines Section 15301, the Town’s repairs to Shannon Road will be
categorically exempt from CEQA as improvements to existing facilities.
Attachments:
1. Proposed Settlement Agreement with County of Santa Clara.
2. Proposed Release Agreement with Graniterock Construction
3. Proposed Release Agreement with Uretek