97-018 State of California (and Cupertino) settlement with Rosendin Electric regarding Bid RiggingCity of
Cupertino
Office of the City Attorney
10320 S. DeAnza Blvd., #11)
Cupertino, CA 95014
Ph: (408) 777-3405
Fax: (408) 777-3401
March 11, 1997
Honorable Mayor and Members
of the City Council
City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014
Charles T. Kilian
City Attorney
Eileen Murray
Deputy City Attorney
Re: State of California (Cupertino, et al.) v. Rosendin Electric, Inc.,
et al., San Francisco Superior Court No. 880011
Dear Mayor and Councilpersons:
For a number of years, the California Attorney General has maintained criminal and
civil actions on behalf of the state and various cities including Cupertino against
Rosendin Electric Inc., Steiny & Co., CVE Inc., and Howard Electric for bid rigging.
Attached .is a copy of the Attorney General's latest letter in this regard. The Attorney
General has tentatively agreed to a settlement with the defendant whereby a fund has,
or will be, created in the total sum of $1,635,000.00.
According to the Attorney General, it is estimated that the City of Cupertino would
receive the following amounts:
1) $2,500 The minimum each agency would receive.
2) $16,026 The City's pro rata share of the proceeds based upon its gross
contract amounts with the defendants over the suspect period of time.
Printed on Recycled Paper /-z
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The Honorable Mayor and
Members of the City Council
March 7, 1997
Page 2 (Dir/M/R)
This totals $18,526. In addition, an additional sum of $4,326. 00 per city will be paid
to any third party designated by the City which is non-profit and which provides
"transportation related" services within Santa Clara County. This payment may be
made in yearly payments for up to 5 years. The unpaid balance will earn interest at
the rate of 8% per annum. In discussing this issue with Bert Viskovich, he suggests
that the traffic authority be designated as the third party to re ceive the funds.
In addition to the normal releases to be executed by the City, the City must also agree
not to "de bar" any of the defendants from bidding on future project.
Our office recommends settlement of this case which has been pending for well over
five years. The case thus far has cost the City nothing. The Attorney General will
reimburse itself in the modest amount of 10% of the total recovery. In addition to the
Attorney General's letter I have also attached a copy of the proposed releases and a
copy of the contract summaries for the various agencies involved.
I request that the Mayor be authorized to excute the enclosed releases and that the
Clerk provide me with the original executed releases so that I may respond to the
Attorney General.
Sincerely,
Charles T. Kilian
City Attorney
ss
/L—Z__—
DANIEL E. LUNGREN State of California
Attorney General DEPARTMENT OF JUSTICE
1300 I STREET, SUITE 125
P.O. BOX 944255
SACRAMENTO, CA 94244-2550
(916) 445-9555
FACSIMILE: (916) 327-2319
(916) 324-7874
March 3, 1997
Charles Kilian, Esq.
Cupertino City Attorney
10300 Torre Avenue
Cupertino, CA 95014
RE: California, et al. v. Rosendin Electric, Inc., et al.
San Francisco Superior Court No. 880011
Dear Colleague:
We have reached the point in this litigation when we can plan the distribution of
various settlements. A proposed plan of distribution is contained in this letter, as well as a
review of the basic facts of the underlying litigation.
I. BACKGROUND
This civil action was initiated after the filing of criminal charges by federal antitrust
officials against various electrical contracting firms and their executives. These firms--
Rosendin Electric, Steiny & Co., C. V . E. , Inc. and Howard Electric --subsequently entered
into plea agreements in federal court. The gravamen of both the federal criminal action and
this state civil action was that the defendants rotated winning public jobs for the construction
or reconstruction of highway signal and lighting systems.
Based on the testimony of the participants, the conspirators monitored which firms
picked up plans from public agencies necessary to bid on signal and lighting contracts. If so-
called "plan holders" consisted of conspirators --but no others --the conspiring firms would be
in position to rig who would "win" the job. (If a stranger to the conspiracy was expected to
bid, the conspirators bid competitively.) Conspiring firms "won" jobs when they were
lowest in running totals maintained by key figures in each firm. This system allowed the
conspirators to share the benefits of the conspiracy even though signal and lighting jobs vary
substantially in size. Unfortunately, but not surprisingly, the records of the actual conspiracy
were never recovered by state or federal investigators.
March 3, 1997
Page 2
We do know that when a firm was allocated a job under the conspiracy, it was
expected to bid higher than it would otherwise. Other firms would submit complementary or
shadow bids set at even higher levels in order for the winning firm's bid to be both inflated
and the low bid needed to win the job.
II. THE SETTLEMENTS
The two largest firms in the conspiracy were Rosendin Electric and Steiny & Co. We
settled with Rosendin for $540,000 plus cooperation. Steiny ultimately agreed to settle for a
total of $825,000. For various tax reasons, this amount is split between $375,000 in
damages and $450,000 to be donated to a third party providing benefits to plaintiffs. Steiny
also agreed to implement an antitrust compliance program and agree to a prohibitory
injunction relating to violations of state or federal antitrust law. We were also able to secure
settlements with the smaller firms. Howard Electric agreed to pay $150,000 while C.V.E.,
Inc. and its executives agreed to pay $120,000, based on their current ability to pay.
Because their business activities have declined recently, Steiny has proposed that the
schedule for paying off the charitable or non-profit portion of their settlement be elongated
somewhat. Having reviewed the company's financial statements, I strongly recommend that
we accept this proposal. Over time, it will allow us to recover all of the value in this
settlement while maintaining a viable competitor in the market. A copy of the proposed
debarment agreement is attached.
As a condition of these various settlements, we dismiss antitrust claims against the
defendant firms and their executives and agree not to debar them from future bidding. The
total of these settlements is $ 1,635,000.00. Although our time records and expert expenses
would support a much higher sum, our office is planning to request no more than 10% of
this amount in fees and costs, as authorized by Bus. & Prof. Code § 16750(c).
III. APPROACH TO DISTRIBUTION
Distribution of settlement proceeds in this case presents somewhat unique problems
because of the lack of precise data on the full universe of rigged jobs. However, after
discovery, we do know some things that can provide a reasonable basis for a distribution.
First, the conspirators bid against each other --legitimately or not --in the greater San
Francisco Bay Area as far south as Santa Clara County. Second, the conspirators only
rigged jobs on which they alone were expected to bid. Third, one conspirator was able to
identify some rigged jobs based on mark-ups used on estimating sheets still kept by his
former employer.
1�2 — Y1
March 3, 1997
Page 3
Based on these facts, we propose to offer the court a plan of distribution which will
award a minimum amount to each plaintiff based on the evidence that the conspiracy
operated throughout the region. For planning purposes, we believe this figure should be
$2,500.00. For government entities whose work was on the rigged jobs list or was
presumptively rigged because we know that only conspirators bid on particular jobs, we
propose to allocate the remainder of the net settlements on a pro rata basis. The attached
chart contains totals, by entity, of jobs which were actually rigged or might have been
rigged. If you have additional information which would help identify additional rigged or
presumptively rigged jobs, please supply it as soon as possible.
Based on this approach, your share would pencil out as follows. Each entity would
receive $2500.00. If we also have data identifying particular jobs associated with your unit
of government, you would get a pro rata share of the remaining net settlement fund. This
should be approximately $52.82 for every $1000 in gross contract value we have been able
to identify in rigged or possibly rigged work. In addition, you will receive the value of the
third party payment provided for in the Steiny debarment agreement, which is approximately
$4326.00/plaintiff.
IV. WHAT YOU CAN DO
First and foremost, I need your counsel on whether the proposed distribution plan
makes sense. If you believe some alternate formulation would work better, please advise me
at your earliest convenience, but no later than March 31, 1997 so that I can initiate
distribution procedures.
Second, I will assume that the Steiny settlement, with the somewhat relaxed payment
schedule, is acceptable if I do not hear from you by the same date.
Third, as a condition of settlement with both the Steiny and C.V.E. defendants, we
need to be clear that they are not debarred from bidding on future work. Copies of the
appropriate releases for your execution are enclosed under the blue cover, with a pre -
addressed return envelope.
Finally, I would like your counsel on charitable or non-profit organizations which
meet the criteria in § 2 of the Steiny agreement concerning debarment. Under that
provision, this portion of the settlement can be "used for transportation projects or services"
for the benefit of plaintiffs.
i,Z - S
March 3, 1997
Page 4
CONCLUSION
It is a great pleasure to report to you that we can finally bring this matter to a
profitable conclusion. If I can answer any questions concerning this case, please call me at
(916) 324-7874 or contact me via the Internet at tgreene@counsel.com.
Sincerely,
DANIEL E. LUNGREN
Attorney General
J
THOMAS GREENE
Senior Assistant Attorney General
Chief, Antitrust Section
TG: lc
Attachments
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DANIEL E. LUNGREN, Attorney General
of the State of California
DAVE STIRLING
Chief Deputy Attorney General
RODERICK WALSTON,
Chief Assistant Attorney General
THOMAS GREENE
Assistant Attorney General
P.O. Box 944255
Sacramento, California 94244-2550
Telephone: (916) 324-7874
Attorneys for Plaintiffs
STATE OF CALIFORNIA, et al.
LATHAM & WATKINS
LINDA M. INSCOE
505 Montgomery Street, Suite 1900
San Francisco, CA 94111-2586
Telephone: (415) 391-0600
Attorneys for Defendants
STEINY & COMPANY, INC. and
ROBERT K. DONNELLY
SUPERIOR COURT OF THE STATE OF CALIFORNIA
FOR THE CITY AND COUNTY OF SAN FRANCISCO
THE STATE OF CALIFORNIA, et al.,
Plaintiffs,
V.
ROSENDIN ELECTRIC, INC., et al.,
Defendants.
1.
No. 880011
RELEASE AND AGREEMENT
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DANIEL E. LUNGREN, Attorney General
of the State of California
DAVE STIRLING
Chief Deputy Attorney General
RODERICK WALSTON,
Chief Assistant Attorney General
THOMAS GREENE
Assistant Attorney General
P.O. Box 944255
Sacramento, California 94244-2550
Telephone: (916) 324-7874
Attorneys for Plaintiffs
STATE OF CALIFORNIA, et al.
LATHAM & WATKINS
LINDA M. INSCOE
505 Montgomery Street, Suite 1900
San Francisco, CA 94111-2586
Telephone: (415) 391-0600
Attorneys for Defendants
STEINY & COMPANY, INC. and
ROBERT K. DONNELLY
SUPERIOR COURT OF THE STATE OF CALIFORNIA
FOR THE CITY AND COUNTY OF SAN FRANCISCO
THE STATE OF CALIFORNIA, et al.,
Plaintiffs,
V.
ROSENDIN ELECTRIC, INC., et al.,
Defendants.
1.
1�IN:3:1111M
RELEASE AND AGREEMENT
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In consideration of a potential right to receive a share of the proceeds of the
Settlement Agreement in the above -captioned matter dated
which the
undersigned has read in full and which is incorporated herein by reference, Plaintiff expressly
covenants and agrees that it will forever refrain from instituting any suit or action against Robert
K. Donnelly and his heirs, assigns, administrators and executors and Steiny & Company, Inc.,
and its past and present officers, directors, agents, employees, parents, affiliates, subsidiaries,
divisions, successors, assigns and legal representatives, on any claim, including without
limitation any claim arising under the antitrust laws of the United States, and the laws of any
state governing antitrust, unfair competition, fraud and misrepresentation, based upon or in any
way relating to the facts alleged in this Action. Notwithstanding the generality of the foregoing,
Plaintiff does not hereby waive its right to institute debarment proceedings against Steiny &
Company, Inc. and/or Robert K. Donnelly. Plaintiff agrees to be bound by each and every term
of the Settlement Agreement, including without limitation paragraph 7 thereof. The undersigned
warrants that s/he has obtained all necessary approvals and has the authority to execute this
document on behalf of the Plaintiff identified below, and thereby to bind that Plaintiff to the
terms of this document and the Settlement Agreement.
Plaintiff: City of Cupertino
By: '6)1�4441
Title: VMayor
Dated: r;/ 7 /q9
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SUPERIOR COURT OF THE STATE OF CALIFORNIA
FOR THE CITY AND COUNTY OF SAN FRANCISCO
THE STATE OF CALIFORNIA, et al.,
Plaintiff,
V.
ROSENDIN ELECTRIC, INC., et al.,
Defendants.
RELEASE AND
AGREEMENT
In consideration of a potential right to receive a share of the proceeds of the
Settlement Agreement in the above -captioned matter dated September 29, 1993, which the
undersigned has read in full and which is incorporated herein by reference, Plaintiff
expressly covenants and agrees that it will forever refrain from instituting any suit or action
against William A. Schafhirt and Ray Collishaw and their heirs, assigns, administrators and
executors and C.V.E., Inc., and its past and present officers, directors, agents, employees,
parents, affiliates, subsidiaries, divisions, successors, assigns, insurers, and legal
representatives, on any claim, including without limitation any claim arising under the
antitrust laws of the United States, and the laws of any state governing antitrust, unfair
competition, fraud and misrepresentation, based upon or in any way relating to the facts
alleged in this Action. Plaintiff agrees to be bound by each and every term of the Settlement
Agreement, and specifically waives any and all rights arising from California Civil Code
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Section 1542 and any similar rights under any other applicable law. Said section 1542
provides:
"A general release does not extend to claims which the
creditor does not know or suspect to exist in his favor at the
time of executing the release, which if known by him must have
materially affected his settlement with the debtor. "
The undersigned warrants that s/he has obtained all necessary approvals and has the authority
to execute this document on behalf of the Plaintiff identified below, and thereby to bind that
Plaintiff to the terms of this document and the Settlement Agreement.
Plaintiff: City of Cupertino
By:
Title: Mayor
Dated: 7b, ril `Z, 1227
04
AGREEMENT NOT TO DEBAR
This Agreement is made as of October 1996 and is entered into by and among
the State of California, County of Alameda, County of Contra Costa, County of Santa Clara,
County of Santa Cruz, County of Solano, City and County of San Francisco, City of
Alameda, City of Albany, City of Antioch, City of Atherton, City of Benecia, City of
Brisbane, City of Burlingame, City of Calistoga, City of Capitola, City of Colma, City of
Concord, City of Corte Madera, City of Cupertino, City of Daly City, City of Danville, City
of Dublin, City of Emeryville, City of Fairfield, City of Foster City, City of Gilroy, City of
Hayward, City of Hercules, City of Lafayette, City of Livermore, City of Los Altos, City of
Los Gatos, City of Martinez, City of Menlo Park, City of Milpitas, City of Monte Sereno,
City of Morgan Hill, City of Mountain View, City of Napa, City of Newark, City of
Novato, City of Oakland, City of Palo Alto, City of Pinole, City of Pleasant Hill, City of
Pleasanton, City of Redwood City, City of Rhonert Park, City of San Leandro, City of San
Bruno, City of San Carlos, City of San Mateo, City of San Pablo, City of Santa Clara, City
of Santa Rosa, City of Saratoga, City of Scotts Valley, City of South San Francisco, City of
Tiburon, City of Union City, City of Vallejo, and City of Walnut Creek (collectively
referred to as "the Government Entities"), on the one hand, and Steiny & Company, Inc. and
Robert K. Donnelly (collectively referred to as "Steiny"), on the other hand.
RECITALS
WHEREAS, the Government Entities contend that Steiny has engaged in
anticompetitive conduct in submitting bids for certain Street Signal and Lighting Construction
contracts issued by the Government Entities;
1
WHEREAS, the Government Entities may debar Steiny from bidding or
participating in future Street Signal and Lighting Construction projects based upon Steiny's
alleged or proven anticompetitive conduct;
WHEREAS, Steiny desires to continue bidding and participating in Street
Signal and Lighting Construction projects within the jurisdictions of the Government Entities;
WHEREAS, the Government Entities agree that it is in their interests to have
as broad a field of competitors as possible available for future Street Signal and Lighting
Construction contracts within their jurisdictions;
AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises contained
herein, it is agreed as follows:
SECTION 1. DEFINITIONS
As used herein:
A. "Street Signal and Lighting Construction" means the design,
engineering, installation, construction, reconstruction, erection or repair of traffic signals or
street lighting for public or private roads and includes the provision of associated labor
materials, tools, equipment and services;
B. "License" means the license or licenses held by Steiny and issued by
the State of California to carry out Street Signal and Lighting Construction.
C. "Debar" means to prohibit from bidding or participating in Street
Signal and Lighting Construction.
2
D. "Third Party" means an entity that (i) funds or provides transportation -
related services within the region encompassed by Region 4 of the California Department of
Transportation, (ii) is not a signatory to this Agreement, and (iii) is not controlled by and
does not control any signatory to this Agreement.
E. "Net profit" means net profit or income determined in accordance with
Generally Accepted Accounting Principles, including FAS -95 promulgated by the Financial
Accounting Standards Board and any amendments or replacements thereof, except that the
net profit or net income for the year for the purposes of this calculation will be increased for:
1) any principal payments of shareholder debt; 2) payments or cash distributions of
shareholder capital (except for payments to shareholders required for federal and state taxes
attributable to the "S" corporation taxable income, such taxes computed at the then applicable
individual federal and state tax rates; and 3) any cost or expense included in the income
statement or cash flow statement of the company for the year as recorded in accordance with
Generally Accepted Accounting Principles attributable to or for the benefit of, either directly
or indirectly, Jack O. Steiny; Robert K. Donnelly; any relative of Mr. Steiny or Mr.
Donnelly; or trusts of Mr. Steiny, Mr. Donnelly or their relatives.
SECTION 2. PAYMENTS TO THIRD PARTIES
Steiny shall pay a total of Four Hundred Fifty Thousand Dollars ($450,000) to
one or more Third Parties designated by the State of California, in consultation with the
other Government Entities. Said payment shall be used for transportation projects or services
within Region 4 of the California Department of Transportation only and is intended to make
the constituencies of the Government Entities whole for monies that the Government Entities
3
claim they were overcharged as a result of anticompetitive conduct by Steiny and certain of
its competitors from about 1960 to the date of this agreement.
A. Payment Schedule. Not later than December 31, 1998, and provided
that the recorded Net Profit of Steiny exceeds Three Hundred Thousand ($300,000) for the
year, Steiny will cause to be delivered to counsel for the State of California a check or
checks totalling Fifty Thousand Dollars ($50,000.00) made payable to one or more
designated Third Parties.
Not later than December 31, 1999, and provided that the recorded Net Profit
of Steiny exceeds Three Hundred Thousand Dollars ($300,000) for the year, Steiny will
cause to be delivered to counsel for the State of California a check or checks totalling Fifty
Thousand Dollars ($50,000.00) made payable to one or more designated Third Parties.
Not later than December 31, 2000, Steiny will cause to be delivered to counsel
for the State of California a check or checks totalling Seventy -Five Thousand Dollars
($75,000) made payable to one or more designated Third Parties, provided, however, that if
the recorded Net Profit of Steiny exceeds Three Hundred Seventy -Five Thousand Dollars
($375,000) for the year, the amount of the check(s) to be delivered shall total One Hundred
Twenty -Five Thousand Dollars ($125,000).
Not later than December 31, 2001, Steiny will cause to be delivered to counsel
for the State of California a check or checks totalling One Hundred Thousand Dollars
($100,000) made payable to one or more designated Third Parties, provided, however, that if
the recorded Net Profit of Steiny exceeds Four Hundred Thousand Dollars ($400,000) for the
4
year, the amount of the check(s) to be delivered shall total One Hundred Fifty Thousand
Dollars ($150,000).
Not later than December 31, 2002, Steiny will cause to be delivered to counsel
for the State of California a check or checks totalling Twenty -Five Thousand Dollars
($25,000) made payable to one or more designated Third Parties, provided, however, that if
the recorded Net Profit of Steiny exceeds Three Hundred Thousand Dollars ($300,000) for
the year, the amount of the check(s) to be delivered shall total Seventy -Five Thousand
($75,000).
In the event that, by December 31, 2002, Steiny has delivered checks totalling
less than Four Hundred Fifty Thousand Dollars ($450,000) pursuant to this Agreement, then,
no later than December 31 of each succeeding year, Steiny shall deliver check(s) to counsel
for the State of California totalling Fifty Thousand Dollars ($50,000) until such time as the
full amount called for by this Agreement has been paid, provided, however, that Steiny shall
not be obligated to make any such payment in any year in which its Net Profits do not
exceed Three Hundred Thousand Dollars ($300,000).
B. Deferral of Payments
In the event that Steiny defers payments in accordance with the preceeding
section, Steiny shall:
1. Provide counsel for the Government Entities the most recently audited
and unaudited financial statements of Steiny & Company and records of payments excluded
from the calculation of Net Profits, as defined in Section LE.; and
2. Pay interest on any deferred payment at the rate of eight (8) percent.
5
C. Distribution of Proceeds
No distribution of the Proceeds of this Agreement, or any portion thereof,
shall be made until each Government Entity has executed a statement in the form attached as
Exhibit A.
D. No Interest in Distribution of Proceeds. The funds paid by Steiny in
accordance with this Agreement shall be distributed to the Third Parties by the State of
California, in accordance with agreement reached between the State of California and the
Government Entities. Steiny takes no position with respect to the distribution of such funds
and shall have no responsibility with respect to such distribution. Steiny's sole interest in
making the above described payments is to secure the Government Entities' agreement not to
take any action to revoke, suspend or otherwise adversely affect licenses issued to Steiny by
the State of California or take any other action to debar Steiny from bidding on or
participating in Street Signal and Lighting Construction contracts or projects within the
jurisdictions of the Government Entities, based upon the alleged anticompetitive activities of
Steiny from about 1960 to the date of this Agreement.
SECTION 3. AGREEMENT NOT TO DEBAR
The Government Entities each agree that they will not take any action to
revoke, suspend or otherwise adversely affect licenses issued to Steiny by the State of
California or take any other action that will result in Steiny being barred from bidding on or
participating in Street Signal and Lighting Construction contracts or projects within their
jurisdictions, based upon the alleged anticompetitive activities of Steiny from about 1960 to
the date of this Agreement.
T
PARTIES.
SECTION 4. REPRESENTATION AND WARRANTY BY THE
Each signatory hereto represents and warrants by such signature that he or she
is authorized to enter into this Agreement on behalf of the party indicated. Hence, Assistant
Attorney General Thomas Greene warrants that he has the authority under Cal. Bus. & Prof.
Code § 16750 to execute this agreement on behalf of the State of California, and both he and
the State of California warrant that they have authority to execute this agreement on behalf of
the other Government Entities. Jack O. Steiny warrants that he has authority to execute this
agreement on behalf of Steiny Company, Inc.
SECTION 5. SUCCESSORS BOUND.
This Agreement shall be binding upon the administrators, executors, heirs,
directors, officers, elected and appointed officials, employees, agents, successors and assigns
of each of the parties hereto.
SECTION 6. ACCELERATION OF OBLIGATIONS.
In the event that Steiny files for bankruptcy or reorganization, all sums
remaining to be paid under this agreement are immediately due and payable. Interest on this
obligation shall accrue at the rate of eight (8) percent.
SECTION 7. MISCELLANEOUS.
A. This Agreement shall be construed in accordance with, and all disputes
hereunder shall be governed by, the laws of the State of California.
B. This Agreement sets forth the entire Agreement between the parties
7
hereto, and fully supersedes any and all prior agreements or understandings pertaining to the
subject matter hereof.
C. This Agreement may be executed in counterparts with the same force
and effectiveness as if it were executed in one complete document.
WHEREFORE, the parties hereto have executed this Agreement and their
intent to be bound hereby as of the date shown in the first page hereof.
STEINY & COMPANY, INC.
By
Jack O. Steiny
Title
Dated:
ROBERT K. DONNELLY
By
Robert K. Donnelly By
Dated Dated:
DANIEL E. LUNGREN
Attorney General of the
State of California
DAVE STIRLING
Chief Deputy Attorney General
RODERICK WALSTON
Chief Assistant Attorney General
THOMAS GREENE
Assistant Attorney General
Attorneys for The State of
California, and as Parens
Patriae for all Government
Entities Listed in the First
Paragraph of this Agreement
Thomas Greene
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EXHIBIT A
RELEASE AND AGREEMENT
In consideration of the agreement of Steiny & Company, Inc. and Robert K.
Donnelly (collectively, "Steiny") to make payment of $450,000 to third party funders or
providers of transportation -related services in Region 4 of the California Department of
Transportation identified by the Government Entity set forth below, in consultation with the
State of California, the undersigned covenants and agrees that it will forever refrain from
taking any action to revoke, suspend or otherwise adversely affect licenses issued to Steiny
by the State of California or take any other action that will result in Steiny being barred from
bidding on or participating in street signal and lighting construction contracts or projects
within the jurisdiction of the undersigned, based upon alleged anticompetitive activities of
Steiny from January 1, 1960 through the date of this Release and Agreement. The
Government Entity set forth below agrees to be bound by each and every term of the
Agreement Not to Debar. The undersigned warrants that s/he has obtained all necessary
approvals and has the authority to execute this document on behalf of the Government Entity
set forth below, and thereby to bind that Government Entity to the terms of this document
and the Agreement Not to Debar.
Government Entity
By:
Title:
Date:
RESOLUTION NO. 9809
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CUPERTINO AUTHORIZING EXECUTION RELEASE AND
AGREEMENT NOT TO DEBAR, SETTLEMENT OF STATE OF
CALIFORNIA (CITY OF CUPERTINO ET AL.) V. ROSENDIN
ELECTRIC INC. ET AL., SAN FRANCISCO SUPERIOR COURT
NO. 880011
WHEREAS, there have been presented to the City Council Releases and
Agreements and an Agreement Not To Debar, in relation to settlement of State of
California (City of Cupertino et al.) v. Rosendin Electric Inc. et al., San Francisco
Superior Court No. 880011; and
WHEREAS, the terms, conditions and provisions of the releases and agreement
have been reviewed and approved by the City Attorney and the Director of Public Works.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Cupertino hereby approves the aforementioned agreement and authorizes the Mayor and
the City Clerk to execute said agreement and releases on behalf of the City of Cupertino.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 17th day of March, 1997 by the following vote:
Vote Members of the City Council
AYES: Burnett, Chang, Dean, Sorensen, Bautista
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST: APPROVED:
/s/ Kimberly Smith /s/ John Bautista
City Clerk Mayor, City of Cupertino
resoluti/res9809.doc
(;itv cel
Cupertino
August 19, 1997
Thomas Greene
Office of the Attorney General
P. 0. Box 944255
Sacramento, California 94244-2550
City Hall
10300 Torre Avenue
Cupertino, CA 95014-3255
Telephone: (408) 777-3223
FAX: (408) 777-3366
OFFICE OF THE CITY CLERK
RE: CALIFORNIA, ET AL. V. ROSENDIN ELECTRIC, INC., ET AL.; SAN FRANCISCO
SUPERIOR COURTNO. 880011
Enclosed is an executed copy of Exhibit A, Release and Agreement for the above-mentioned action.
If you have any questions or need additional information, please contact me at (408) 777-3217.
Sincerely,
�LL L !Vcs
KIMBERLY Sl�1ITH, CMC
CITY CLERK
KS/cs
Enclosure
cc: City Attorney
Printed on RecyclFd Paper
DANIEL E. LUNGREN State of California
Attorney General DEPARTMENT OF JUSTICE °4t,FORO
1300 I STREET, SUITE 125
P.O. BOX 944255
SACRAMENTO, CA 94244-2550
(916)445-9555
FACSIMILE: (916) 327-2319
(916) 445-4921
August 13, 1997
Charles Kilian, Esq.
Cupertino City Attorney
10300 Toree Avenue
Cupertino, CA 95014
RE: California, et al. v. Rosendin Electric, Inc., et al.
San Francisco Superior Court No. 880011
Dear Mr. Kilian:
Pursuant to our telephone conversation of today, enclosed please find the following
document for signature:
EXHIBIT A - RELEASE AND AGREEMENT
Thank you for your prompt attention to this matter.
Sincerely,
DANIEL E. LUNGREN
Attorney General
Robyn L. Parker, Secretary to
THOMAS GREENE
Senior Assistant Attorney General
Chief, Antitrust Section
Enclosure (1)
EXHIBIT A
RELEASE AND AGREEMENT
In consideration of the agreement of Steiny & Company, Inc. and Robert K.
Donnelly (collectively, "Steiny") to make payment of $450,000 to third party funders or
providers of transportation -related services in Region 4 of the California Department of
Transportation identified by the Government Entity set forth below, in consultation with the
State of California, the undersigned covenants and agrees that it will forever refrain from
taking any action to revoke, suspend or otherwise adversely affect licenses issued to Steiny
by the State of California or take any other action that will result in Steiny being barred from
bidding on or participating in street signal and lighting construction contracts or projects
within the jurisdiction of the undersigned, based upon alleged anticompetitive activities of
Steiny from January 1, 1960 through the date of this Release and Agreement. The
Government Entity set forth below agrees to be bound by each and every term of the
Agreement Not to Debar. The undersigned warrants that s/he has obtained all necessary
approvals and has the authority to execute this document on behalf of the Government Entity
set forth below, and thereby to bind that Government Entity to the terms of this document
and the Agreement Not to Debar.
Government Entity city of Cupertino
By:
_6) V'O""
Title: Mayor
Date: