RESOLUTION NO. RS2009-865

A resolution authorizing the Metropolitan Department of Law to compromise and settle the Metropolitan Government’s claims against the Wackenhut Corporation in the amount of $400,000.00.

WHEREAS, on March 16, 2007, the Metropolitan Government entered into Contract No. 16519 (“the Contract”) with the Wackenhut Corporation (“Wackenhut”) for the provision of security guard services; and,

WHEREAS, on December 24, 2007, the Election Commission’s Office was burglarized, and the intruder stole several pieces of computer equipment, including two laptop computers containing personal information of Davidson County voters; and,

WHEREAS, as a result of the burglary and breach of security, the Metropolitan Government incurred expenses in notifying all voters by mail of the burglary and breach of confidentiality and in taking steps to provide identify-theft protection to the voters; and,

WHEREAS, as a result of the burglary and breach of security, on January 16, 2008, the Metropolitan Government hired Kraft CPAs, PLLC (“Kraft”) to conduct an independent audit of the Contract, which revealed information that the Metropolitan Government considered to be billing irregularities, problems with staffing guard posts, and problems implementing Facility Post Orders on the part of Wackenhut; and,

WHEREAS, on September 26, 2008, the Metropolitan Government filed a lawsuit in Chancery Court (Case No. 08-2149-III) against Wackenhut in order to recover the damages that the Metropolitan Government believed resulted from inadequate security services and irregular billing practices by Wackenhut; and,

WHEREAS, after thorough investigation, the Department of Law believes that the settlement amount of $400,000 is fair and reasonable and in the best interest of the Metropolitan Government and recommends that the Metropolitan Government accept $400,000.00 as compensation for all damages of the Metropolitan Government from this matter.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1: The Department of Law is authorized to compromise and settle the Metropolitan Government’s claims against Wackenhut in an amount totaling $400,000.00, which amount shall be deposited into an appropriate fund as determined by the Director of Finance.

Section 2: This resolution shall take effect from and after its adoption, the welfare of the Metropolitan Government requiring it.

Sponsored by: Jim Forkum, Karen Bennett

LEGISLATIVE HISTORY
Referred to:	Budget & Finance Committee
Introduced:	July 21, 2009
Adopted:	July 21, 2009
Approved:	July 23, 2009
By: