Altamonte Springs commission approves $770,000 settlement in Little Wekiva River repair dispute

The Altamonte Springs City Commission voted Dec. 3 to accept a $770,000 settlement to resolve a lawsuit tied to repair work on portions of the Little Wekiva River.

Mike Sasso of Sasso and Sasso, P.A., the city’s outside counsel in the matter, told the commission that Intercounty was hired to install erosion-control gabions and that work was subcontracted to a firm identified in the transcript as Brownies Septic. Sasso said the project ran ‘‘158 days late’’ and that the contract’s liquidated-damages clause called for $3,645 per day, producing $575,910 in assessed liquidated damages. "We negotiated a resolution of that $719,000 claim for $209,000 — $209,400 to be precise," Sasso said, summarizing the negotiated component that, together with contract balance and interest, produced the $770,000 figure.

Sasso told commissioners that a circuit court judge had ruled the city’s liquidated-damages clause unenforceable, leaving the city exposed if it pursued trial and a multi‑year appeals process. He described expected trial and appeal costs and delays and said the city’s litigation team and staff recommended settlement as a pragmatic business decision.

A commissioner moved to accept the $770,000 settlement; the motion was seconded and approved by the commission. The transcript records vocal affirmative votes and the mayor declared the matter approved. Sasso said his office will work with the city attorney to finalize paperwork.

Why it matters: The action resolves a multi-party dispute that grew out of a city construction contract and a subcontractor claim for equipment and services. The settlement amount combines the contractor's remaining contract balance, accrued interest, and a negotiated payment resolving the subcontractor's claim. The commission’s approval avoids further litigation and the time and cost associated with appeals.

What the settlement covers: According to the attorney’s presentation, the $770,000 represents the contract balance retained to Intercounty (about $399,370), interest (about $161,000), plus the negotiated $209,400 payment resolving additional claimed costs. The transcript indicates the city originally assessed $575,910 in liquidated damages before the court ruling on enforceability.

Next steps: City counsel will prepare settlement documents and close the case; the transcript does not specify further administrative steps or any required budget appropriation details tied to this payout.

Quotes: "We negotiated a resolution of that $719,000 claim for $209,000 — $209,400 to be precise," Mike Sasso said of the subcontractor claim. "So that's my report. And it's the recommendation of our firm that you proceed and settle the dispute along these lines."