This Ordinance settles a lawsuit brought by Stellar J Corporation alleging breach of contract claims against the City arising out of the City's termination for public convenience of Contract 30004899.
Official proposal and impact statementEmergency ordinance2026-028
What is Portland deciding about pay Settlement of Stellar J Corporation Contract Claims in the Amount of $650,000?
This Ordinance settles a lawsuit brought by Stellar J Corporation alleging breach of contract claims against the City arising out of the City's termination for public convenience of Contract 30004899.
Official impact statementSee the official legal title
*Pay Settlement of Stellar J Corporation Contract Claims in the Amount of $650,000
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Official matter classification and recordThis Ordinance settles a lawsuit alleging breach of contract claims against the City arising out of the City's termination for public convenience of Contract 30004899. No public involvement or input was sought regarding this Ordinance. The City Attorney's Office and City Administrator have concluded that it is not appropriate to have public involvement in settlement negotiations regarding lawsuits on behalf of the City.No future public involvement is anticipated or necessary. Approval by City Council of this Ordinance will fully settle the lawsuit in favor of the City of Portland.
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Final Council action
Passed · 10–1
Read the exact motion or vote question
Final action on 2026-028: *Pay Settlement of Stellar J Corporation Contract Claims in the Amount of $650,000
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This legislation will have no impact on City revenue.The City will pay $650,000 to resolve all claims from the remaining contract allocation. This Ordinance does not amend the budget.
Official financial impact statement- The source-linked record has not yet received a human review of competing arguments. A yes or no vote alone does not establish a Councilor’s rationale.
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Official testimony on this decision has closed. Residents can still contact their district Councilors about implementation and follow-up.
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Official documents1 sources
Final legal actionEmergency ordinance 192135
The operative official record after Council action.
Open at Portland.govRead the full official text
The City of Portland ordains.Section 1. The Council finds:The City entered into Contract 30004899 with Stellar J Corporation for the drying and hauling of biosolids at the Columbia Boulevard Wastewater Treatment Plant.The City terminated the contract for public convenience after discovery of unanticipated site conditions. Stellar J Corporation submitted termination costs and the City paid some, but not all, of the requested costs.Stellar J Corporation, by and through its attorneys, filed a lawsuit in Multnomah County Circuit Court alleging breach of contract claims, disputing the amounts paid for allowable termination costs.The City has concluded that, after extensive analysis of the facts and applicable law and taking into account the risks and uncertainties associated with litigation, the settlement agreement is desirable to avoid the time, risk, and expense of protracted litigation.The City Attorney, Bureau of Environmental Services, and the Mayor's office recommend the lawsuit be settled for the total sum of $650,000.00 subject to mutual release by the parties of claims related to the contract payment terms.NOW, THEREFORE, the Council directs:The City Administrator is authorized to settle the lawsuit in the amount of $650,000.00 and the Mayor or Mayor's designee is authorized to execute the Settlement Agreement on behalf of the City.Section 2. The Council declares that an emergency exists in order to avoid undue and costly delay in settling this lawsuit; therefore, this Ordinance shall be in full force and effect from and after its passage by the Council.
Meetings, motions, amendments, and votes1 meetings · 1 votes
PassedAgenda item 5
Final Council action · Jan 14, 202610 yes · 1 no · 1 absent
Final action on 2026-028: *Pay Settlement of Stellar J Corporation Contract Claims in the Amount of $650,000
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Financial impact
CompleteThe official impact statement includes financial information.
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CompleteThe impact statement identifies funding information without an explicit unresolved-source qualifier.
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UnknownNo linked attachments were found on the official page.
Referenced exhibit integrity
Not ApplicableNo explicit exhibit reference was detected in the official text.
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Not ApplicableThe reviewed action is not expressly identified as a non-binding agreement.
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- First discovered
- Aug 13, 2026, 1:08 PM PDT
- Last checked
- Sep 13, 2026, 2:27 AM PDT
- Evidence hash
- e9db50db99f67568
- Guide status
- Deterministic baseline
- SOURCE UPDATED
Passed
- DOCUMENT PUBLISHED
Observed in the official source.
- Council Action
Passed